As the title says new brokers these days are growing like mushrooms, every morning you open your eyes and find a new broker in the market Don't you think there are already many brokers out there and we don't need any mores? Just a thought.
What? Seriously? Have you seen the retail FX spot market growth number over the last 10 years? It's a low barrier to entry business (with most regulators that is) where the market space is expanding rapidly. I'd expect nothing else but tonnes of new brokers... there's money to be made after all. Standard industry boom cycle.
Its not so cheap in UK or the US. In the US the number of firms is actually way down compared to a few years ago, and hardly any newcomers in the Uk. I think the retail-market is already rather mature with only very limited groth potential(except maybe Asia/EM). Personally i only consider London based firms, who are in business for a few years.
there's a lot of money in china looking for ways to invest, brokers who can crack this china regulatory puzzle will make heaps.
As long as people expect to earn a lot of money by opening a new brokerage firm the number of brokers will increase. It will take a while for them to realize when the market is full and it is not as easy as they thought.
Its just a sign that Forex trading is indeed booming. If there are many brokers, then we have a number of brokers to choose from. I mean we have a lot of options.
Yeah, new brokers pop up looking for easy money (at the closer end of the dodgy dealing scale) but quickly realize that sustainable growth requires adherence to a regulatory framework, a transparent business model and, most of all (and sadly lacking with many brokers it would seem), respect for the Customer. Still, let us traders soldier on, navigating the choppy terrain of playing the markets while whistling furiously at our trendlines...:eek: