Survivor ’09 – Last US Forex broker standing

When you hear the word ‘Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term’ what immediately comes to your mind? Is that something good or bad? To me, that is always something grey, bureaucratic, NFA, cumbersome, rigid, etc. Now we have one more reason to frown when we hear that word.

So how many US brokers do you think have survived the NFA requirements tsunami which swamped the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term industry in the past year or so? Given the competitiveness in the market and the abundance of online and offline ads you might say 50 or maybe 30 or even 20 if you are a real skeptic.

Actually it’s closer to 14. Yes, that much.

Back in October 2008 there were at least 29 of them. That’s a 60% decrease in 6 months...

With NFA inventing new impractical requirements every couple of months and FXCM acquiring one broker’s customer base after another the US Forex industry is undergoing a significant consolidation process. What used to be thriving and very competitive industry is now becoming more and more regulated and centrist and this is really bad news for consumers. The less competitive the market the worse is the bargaining power of the consumer.

NFA failed in its bid to make the markets better and made them worse by making all the wrong moves that were possible.

The Forex survivors, so far, are (registered with NFA as of March 2009):

Oanda

FXCM

Gain

GFT

FX Solutions

IBFX

PFG

CMS FX

IG Markets

Forex Club

MB Trading

Alpari – Just entered the US market

Ikon (Tradeview)

Easy Forex

I-Trade – sold its retail business to FXCM

ODL – sold its retail business to FXCM

Advanced Markets (amifx.com not the Swiss ACM)

GFS– announced its exit from US market

FXDD - is in registration process, though it might encounter few problems...

Give the NFA a few more months and the number of brokers goes below 10. Guaranteeed.

Michael