CFTC approves stricter rules on US brokers
The roster of forex brokers for US traders is ever-dwindling and the latest regulations will make it even more difficult for a retail trader to find somewhere to find a bid and ask.
The rule amendments and interpretive notice enhance protections afforded to retail customers of NFA Forex Dealer Members (FDMs) by, among other things:
- Imposing additional capital requirements on FDMs;
- Requiring FDMs to collect security deposits for off-exchange foreign currency transactions from eligible contract participant counterparties in addition to retail counterparties;
- Requiring FDMs to adopt and implement rigorous risk management programs; and
- Requiring FDMs to provide additional market disclosures and firm-specific information on their websites to permit current and potential counterparties to better assess the risks of engaging in off-exchange foreign currency transactions and with conducting business with a particular FDM.
They call it 'enhancing protections' but it's part of a longer term campaign to clear out all the upstart forex brokers and replace them with the old guard.
By the way, seen FXCM's stock price lately? Not looking so good.
And all that was after the fall from $17 following the SNB.
If you're looking for a forex broker, help Forexlive by checking out our broker listing or signing up for any of the advertisers on our site.