I�m sure that when a book on retail Forex will be written a few years from now one of the biggest flops mentioned will be Saxo Bank.
Saxo Bank, as I have extensively covered and claimed in the past, should have become a leading Forex brokerage company a long time ago. Instead Saxo reached the top and then just stagnated for years and years without making any real progress. Saxo should have been much more aggressive by buying other brokers and establishing new subsidiaries years ago. However, I guess the executives were satisfied with their ostensibly leading position in the market and made little or no use of the large investment they received from a Portuguese bank.
Saxo Bank has finally woken up, but it might be too late. Saxo is chasing after FXCM�s tail wherever it goes - first in Dubai then in Asia, AND losing ground in Western Europe which should have been its stronghold plain and simple.
A few days ago Saxo announced the acquisition of a Japanese Forex broker and establishment of Forex service to Japanese clients. This move is nothing shy of a complete fiasco. It resembles the last minute move Alpari�s made, creating a US subsidiary. This move came few weeks or months before the new NFA requirements were announced which made it virtually impossible to operate a Forex brokerage in the US.
Alpari is surely sorry for the hasty step it made and Saxo will be sorry for its Japanese move sooner rather than later too.
First of all the Japanese market is already crowded with FXCM, Gain and IG Index controlling a pretty large portion of the market, but that�s not enough reason by itself. What�s making this move really disastrous is the new upcoming Japanese regulation which looks to reduce Forex leverage to 1:50 in the first step and then 1:25. Does this remind you of some other unbalanced regulator?
Any serious forex trader would’nt utilize more than 1:50 leverage and not even that really, so I don’t get your point quite?
Nor do I understand why Alpari would be so sorry about having opened in the US? They’re big enough to survive while smaller broker’s go out of business and frankly you need a US office to be taken seriously. Plus thanks to the NFA madness they may be able to get clients to move over to their UK operation.