[forex savior]

Two of the biggest FX Brokers are preparing for the coming increase in capital requirements by loading up their balance sheets.

First, Oanda has landed $100 million in funding:
Oanda Gets $100 Million Venture Capital Investment - 2007-09-18 11:22:59 | Venture Capital News

Online currencies information and trading system Oanda Corp has received a $100 million investment from a consortium of firms, the company announced Monday. The consortium is led by New Enterprise Associates and includes Legg Mason (LM), Cascade Investment LLC and T. Rowe Price Group Inc. (TROW). The proportion that each firm is contributing to the investment wasn't disclosed.

Michael Stumm, co-founder of Oanda, told Dow Jones Newswires that the investment wasn't aimed at financing any particular projects. "It's primarily to beef up our balance sheet," he said. "We're a market maker and we're in the financial services industry so the balance sheet plays an important role."

Meanwhile, FXCM has released its own balance sheet to the general public:
FXCM Group Releases Updated Financial Data - Forum - FXstreet.com

Balance Sheet (Unaudited)
AS OF AUGUST 31, 2007

CUSTOMER CASH 296,474,636

OPERATING CASH 96,311,380

OTHER ASSETS 19,666,212

FIXED ASSETS 9,821,211

TOTAL ASSETS 422,273,439

CUSTOMER DEPOSITS 296,474,636

OTHER LIABILITIES 5,662,597

TOTAL LIABILITIES 302,137,233

FXCM CAPITAL 120,136,206

TOTAL LIABILITIES AND FXCM CAPITAL 422,273,439

Drew Niv, CEO of the trading firm, commented: “FXCM is proud of our continued financial discipline and strong balance sheet. We believe clients should have the necessary information to make intelligent choices.”

FXCM also commented on the proposed increase in capital requirements and stated:

Although this new $5 million capital requirement has yet to take affect, NFA’s president and Chief Executive Officer has already testified before congress that capital levels for Forex Dealer Members should be raised to $20 million.

Forex Capital Markets, LLC, an NFA member firm, is the US regulated entity of the FXCM Group. As of August 31, 2007 Forex Capital Markets, LLC had an adjusted net capital of $60,268,390.

According to Niv, “The financial resources for FXCM (Forex Capital Markets, LLC) far exceed both the recently announced increased $5 million capital requirement level as well as the $20 million capital level proposed by NFA’s president and CEO in his recent congressional testimony.”

So what are the smaller firms waiting for? Why haven't we been hearing these kinds of reassuring statements from the poorly capitalized firms under $5 million? Are they going to be able to meet the coming $5 million capital requirement due in just two months? Why aren't these firms releasing their own balance sheets? Many of the firms under $5 million claim to have additional resources they are not reporting. So why don't they tell us about these "unreported assets." The silence from the sub-$5 million fx brokers is deafening. And it should be a warning sign for traders to beware doing business with them until it becomes clear that they actually have a future.