Us can regulate only US based exchanges, brokers and related services . I thought that forex is UK based . I might be wrong though . Walter
True about the US only regulating US based exchanges, But I believe that since Forex is interbank that it is not based in any one country...any forex gurus out there care to explain?
There is no central exchange for forex. There are basically two levels of forex, retail and interbank. Retail is for guys like me who can only play with small amounts of money. For this we go through brokers and trade in small sizes. For the interbank market (between actual banks), you have to really have money. The minimum order size is 1 million. Most likely to get decenst service you would need a minumum order size of 10 million. As far as regulations, the US can only regulate US based retail firms. Some are already regulated by the CFTC. Like in most cases the regualtions to protect the little guys like me only wind up hurting us by making it harder for us to operate or harder for our legit brokers to operate. If the crooks would be publically hung in a very visible fasion perhaps some of the financial worlds problems would be reduced. regulations are no good unles they are enforced with a heavy hand. Thats the readers digest version.