The news about the NFA shaking up the forex industry by dramatically raising capital requirements has kicked off a lot of speculation. So I gathered everything I have learned about this new NFA proposal and am posting here for your review. As someone who has been burned by a bankrupted forex broker I can tell you it is not a pleasant feeling to watch your funds get sucked into some black hole. So my advice is to stay away from any firm that is not currently meeting the coming $5 million capital requirement. And if you already have money at such a firm, get it out, [U][B]now[/B][/U]. If you don’t, you could end up like the poor souls at United Global Markets (UGMFX) who can’t get their money out due to an NFA account freeze: UGM - United Global Markets GOING DOWN @ Forex Factory
[U][B]Who has the Money & Who Doesn’t[/B][/U]
To find out how much money your broker has goto this link:
[B]Healthy Forex Firms[/B]
FXCM ($51,000,000)
GFT ($48,000,000)
Oanda ($44,000,000)
FX Solutions ($20,000,000)
Gain Capital ($20,000,000)
CMS ($10,000,000)
[B]Dead Firms Walking[/B]
One World Capital ($1,105,000)
Velocity4X ($1,587,000)
Direct Forex LLC ($1,523,000)
FiniFX ($1,464,000)
Forex Club ($3,304,000)
GFS Futures & Forex ($3,074,000)
Nations Investments ($1,699,000)
Royal Forex Trading ($1,102,000)
SNC Investments ($1,565,000)
Advanced Markets ($1,020,000)
MB Futures ($3,080,000)
Money Garden ($3,399,844)
The CFTC is expected to sign off on it this summer. I’ll comment further on the proposal in a future posting as it will actually require most firms to have upwards of $10 million in capital when you take into consideration such things as open customer positions and margin levels. In any case, this should be sober reading to anyone who is currently trading at one of the “Dead Firms Walking.”