DislikedThere are plenty of firms who post moderate Capital Requirements that have plenty of funding behind them and aren't a risk for flight or collapse. These rules are meant to prevent small firms from taking EXCESSIVE RISK in the markets against client positions. If a firm has minimal market exposure, why tie up significant capital when the money can be put to better use? It is important to also note the "haircutting" requirements vary depending on the liquidity of the currency pair exposed. Firms trading many exotic currency and exposing themselves with proprietary positions will tend to have higher net capital requirements.
In addition, I found that article in currencytradermag to be somewhat unprofessional- insinuating only 6 firms remain based on a snapshot of one cftc.gov filing without accurately describing what the report shows. The CFTC report is a great reference, but should be ONE factor when selecting a broker. The NFA website is a great source to view the history of your broker, and if any current regulatory actions are being taken against them. A history of inappropriate sales solicitation by the firm and its APs are a good tipping point that they are in the business to scam as many people as possible. High pressure sales occurs to often in spot FX (and Futures & Options) and shouldn't be taken lightly.
My two cents...
SeanIgnored
Sort of words from professionals.
Thanks for the insight.
Trading is a business