Forex trading $3 Trillion per day (lack of liquidity)

Discussion in 'Forex Brokers' started by talknet, Jan 22, 2009.

  1. talknet


    Worldwide Forex Trading transactions are worth $3 Trillion per day. So forex trading is one of the biggest indicators of world money.

    But now Forex Brokers/Platforms are having lack of liquidity because of $60 Trillion to $120 Trillion loss which has destroyed world economy.

    True, due to lack of liquidity most of the brokers are winding up their business and moving back to their places. Seeing the present market condition’s it has become very difficult for brokers to generate brokerage from trading.

    You are right that big forex brokers are nice brokers but the market conditions are so bad that people are not in a mood to invest money in such a market. Therefore, brokers are just winding up their business and moving. There are few brokers in the market not allowing their customers to keep any position open. They are just having intraday trading and making money.

    NFA has increased minimum capital requirement to $10 Million to $20 Million for Forex brokers operating in USA. If there is lack of liquidity how will Brokers maintain minimum capital with NFA.