Proposed NFA Capital Requirement - page 45
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The NFA is on the march. This week they announced that all Forex Dealer Members must meet the first capital benchmark of $10 million by October 31st: National Futures Association | News Center
On July 17, 2008, NFA's Executive Committee recommended that NFA's Board of Directors approve revisions to NFA Financial Requirements Section 11 to implement the increased capital requirements called for under the Reauthorization Act. Under these revisions, Forex Dealer Members will be required to maintain adjusted net capital equal to or in excess of $10 million as of October 31, 2008, $15 million as of January 17, 2009, and $20 million as of May 16, 2009. NFA staff expects that the Board of Directors will adopt these revisions at its meeting on August 21, 2008 and that the Commission will approve them shortly thereafter. We are providing advanced notice of the increase in capital requirements to give Forex Dealer Members sufficient time to make arrangements to come into compliance.
In addition to the increase in the required minimum capital, the Executive Committee also recommended that the Board of Directors approve revisions to NFA Financial Requirements Section 12 regarding the collection of security deposits. Section 12(a) requires that Forex Dealer Members collect and maintain minimum security deposits of either 1% or 4% of the notional value of each forex transaction, depending on the currency. Section 12(b) provides an exemption from this requirement for those Members that consistently maintain at least twice the required adjusted net capital. The revised rule would provide that a Forex Dealer Member that consistently maintains 150% of the required adjusted net capital would be exempt from having to collect the prescribed security deposits. As with the capital requirements, NFA staff anticipates this revision also becoming effective on October 31.
How does you firm stack up?
The following firms have net capital below $10 million
Advanced Markets $5,017,000
Bacera $5,387,000
MG Financial $6,001,000
Forex Club $7,380,000
Hotspot $7,843,000
Friedberg Mercantile $8,167,000
CMC $8,426,000
Ikon $8,462,000
MB Trading $8,660,000
Easy Forex $8,662,000
IFX $9,141,000
In particular you will notice that three firms are far below the upcoming increase to $10 million. Advanced Markets, Bacera and Money Garden. In fact, they are struggling just to meet the current $5 million net capital requirement with Advanced Markets a scant $17,000 above the current law. That kind of capitalization does not inspire much confidence and traders really need to beware doing business with them.
The following firms have net capital below $20 million
GFS Forex $10,829,000
Alpari $11, 668,000
ODL $15,182,000
I Trade FX $15,828,000
FX Solutions $18,088,000
CMS Forex $19,306,000
The following firms have net capital above $20 million
PFG $20,275,000
Interbank FX $22,980,000
Gain Capital $44,293,000
GFT Forex $58,304,000
FXCM $70,794,000
Oanda $164,256,000
As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new law.
As far as I know first you should understand the broker is from which country then you go to the site of registrations of that country there isn't any reference site for all of countries
I will choose GFT Forex , are they using Meta Trader 4 ?
I will choose GFT Forex , are they using Meta Trader 4 ?
As far as i know, they don't have MT4 platform. They have their own Dealbook 360 software.
The following firms have net capital above $20 million
Interbank FX $30,364,000
Gain Capital $61,918,000
GFT Forex $67,298,000
FXCM $70,792,000
Oanda $165,526,000
As always conduct your due diligence and make sure the firm you are trading with will be able to comply with the new law going into effect in less than three months.It seems the biggest robbers end up with the highest net cap.
It seems the biggest robbers end up with the highest net cap.
Where do you think they got all the money from?