Companies leaving the US market

Does anyone know what is up with this? why are a bunch of companies leaving the US market?



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Dale

[quote=Dale;2500958]Does anyone know what is up with this? why are a bunch of companies leaving the US market?





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Hi Dale,

Well, there are in reality 2 reasons. The most common one is that the NFA is making tougher requirements from brokers wishing to have an office in the USA that accepts deposits for funding trading accounts. The NFA has demanded that these brokers have in place a minimum of $15 million net capital. Obviously, many of the smaller brokers with only say 1 office, who do not have that kind of capital, will uproot and move to a foreign location where the demands are less stringent. Some bokers will stop accepting money to fund accounts and remain solely as a representation office in order to contact and administer potential US clients to their head offices abroad. For some brokers such as Swiss based ACM, these new events in the US fall at the same time that their preperations for their Swiss banking license do as well, as a result of the Swiss banking license requirements, they will now centralize everything from Geneva during this period, as such, there is no need at the moment to have their NY office registered with the NFA.

Some people like the self worshiping, holier than though, Forexsavior on this website, or Forexscholar as he calls himself on another forum, will make you think that all brokers who have been forced to leave are doing it for bad reasons, that they are all scam artists, I don't think he's ever write a positive thing on any broker come to think of it, or if he has he will counter it with a negative comment. SOME, but not all, brokers leaving the US are, I am sure, not the beacon of shinning light, transparency or truth they claim to be so it is a good thing.