What happens to brokers not meeting the NFA capital requirement?

In the coming months, the NFA will require for brokers to have $20,000,000 capital. Does that mean if a broker doesn't have that amount of capital, then the broker will be out of business? Or does it just mean they will no longer be a member of the NFA?

anybody have answer? because i have same question.

From what I understand there are three general choices, although most recently have chosen option 1.

1. Sell the US business to someone else. (ie: ODL USA, Hot Spot, EFX, etc.)

2. Continue on without NFA membership, which seems to be something that no one currently in the biz seems to want to do. Legacy situations like FXDD which is unregulated seem to be the only ones that can seem to get by (for now) this way. GallantFX is a much smaller shop that also comes to mind that is unregulated by the NFA.

3. Somehow operate under the radar if it is offshore based. Visit ACM-USA http://www.acmusa.com/ and you'll see that the website is just a landing page directing you to it's Swiss based website. They had a booth at the Traders Expo in NYC last month and were open about accepting accounts from the USA. Kind of a weird situation.

what they will do is promote harder with deposit money get money, friend referals, free demo accounts... till you deposit a large money and then blow your account. haha
base on NFA data, average rob 300 clients will get the money they lack...

just think that you're dealing with someone with high debt facing death penalty(business closure) if cannot get money, and you're their meat on the dinner table... if you make a million and withdraw, they are out of business.

if you made 10, 20% profit with this kind of bucket shop, withdraw 10% profit and watch how their acc manager treats you, if they attempt to stop you doing withdraw, this proves their evil, immediately withdraw all the rest and don't trade (there will be trading traps ahead); no matter what, if you made more than 30% profit, close account and trade somewhere else, individual cannot afford lost of 30%, so do bucket shops... unless you have years of trust with a broker that is proven.

however I don't think ecn really require big money, maybe exception of this.

i just saw this on DD's website...
http://www.fxdd.com/fileadmin/templa...row-button.gif Capital of FXDD (total ownership equity)

As of December 31, 2008 - $44,467,070.