I have been trading with Interactive Brokers for over a year. I love the platform and the service. Unfortunately, they abruptly instituted some regulatory changes requiring leveraged forex traders to be "eligible contract participants." This is loosely defined as an individual or entity worth in excess of $10mm. I am in search of a new broker. I am a very active, high volume day trader and maintain a relatively large account (around $250k). I do well over $3 billion notional on average per month so commission schedule is important. I am looking for reliability and dependability. Can the experienced FX traders on the board please suggest an alternative to IB. I would rather not pursue the prime of prime route. Thanks very much in advance!
I've seen this recently even among the larger brokers. It seems that several people even with several million dollar accounts have gotten shut out of their trade because they were suddenly required to be an ECP. IB might have been the last place standing.
If it's a stable, scalable trade with a good risk profile I might be interested in taking in on. I wouldn't do it for less than 70% (to me). Otherwise, you might find someone who will basically rent you their balance sheet for some monthly fee. Not sure who would do that. But someone might.
I don't know what caused this sudden shift. At least the ECP thing is pretty simple. You just declare and show a balance sheet. Whatever you do, don't lie.