I am looking at opening an account but i am a little concerned with this new capital requirements legislation that will take effect in Dec 2007 and how it will affect some brokers.
I have currently been trading on demo with MBTrading and have been very happy with their platform and spreads. However, i am now a little dubious of opening an account as they currently do not meet the capital requirement of $5m, and there is no way that we will know if they can meet these requirements until that time when they are enforced. This is a very reputable company and well established and i am sure that it has suitable funding and is only reporting these figures currently because the current requirement is only $1m.
There has even been talk of imposing a $20m requirement, and if so, this will surely rock the boat for a lot of these smaller companies.
Now, i know that this has been discussed on many other threads, but i was just seeking advice from some of the more senior members who have had plenty of experience in this business. Would you recommend holding out until December to see if they come up with the additional funds or am i just being paranoid about this?
My alternative would be open an account with Oanda for a short while until this becomes legislation. I have used them quite a lot in the past so i am familiar with their platform. My only problem with this broker is their platform is basic and their spreads can be a bit alarming during news and at weekends. I know that spreads widen during times when liquidity is low but sometimes i feel that these take the biscuit!
Anyway, any advice would be appreciated.
Steve
I have currently been trading on demo with MBTrading and have been very happy with their platform and spreads. However, i am now a little dubious of opening an account as they currently do not meet the capital requirement of $5m, and there is no way that we will know if they can meet these requirements until that time when they are enforced. This is a very reputable company and well established and i am sure that it has suitable funding and is only reporting these figures currently because the current requirement is only $1m.
There has even been talk of imposing a $20m requirement, and if so, this will surely rock the boat for a lot of these smaller companies.
Now, i know that this has been discussed on many other threads, but i was just seeking advice from some of the more senior members who have had plenty of experience in this business. Would you recommend holding out until December to see if they come up with the additional funds or am i just being paranoid about this?
My alternative would be open an account with Oanda for a short while until this becomes legislation. I have used them quite a lot in the past so i am familiar with their platform. My only problem with this broker is their platform is basic and their spreads can be a bit alarming during news and at weekends. I know that spreads widen during times when liquidity is low but sometimes i feel that these take the biscuit!
Anyway, any advice would be appreciated.
Steve
