Update on Swiss Regulation It appears that the winds of change are blowing in Switzerland according to FX Street: http://weblog.fxstreet.com/2007/06/wind-of-importa.html Hi Everybody As you may probably already know, SFBC (Swiss Federal Banking Commission) is decided to regulate the Foreign Exchange business in Switzerland . This process already started a couple of months ago and some important brokerages are already going through the process of getting SFBCâs approval. One of my sources in Switzerland told me this morning that SFBC is implementing big changes in the way Swiss brokers use to work... The restrictions that SFBC will require to brokers to implement to get their approval will probably force those not strong enough to disappear and this process could be faster than we think and could take place before the end of the year. Iâll keep you posted about all this very interesting process. Under my point of view, the fact that SFBC puts order in the Swiss Foreign Exchange business should be considered as a very good news for all the community, but we must remain alert over the whole process. Francesc So it could be that by the end of the year Switzerland will have instituted forex regulation at the retail level and the industry will not have to suffer any more Tradex Swiss AG style shenanigans.
Forexsavior you are a good man with good information. I wish there was something I could do for you in exchange for all this free help and informations.
PFG Buys ANTC The great consolidation has begun. A few days ago PFG purchased Dead Pool Member American National Trading Corporation. Expect more of these types of purchases in the months ahead as the FX world contintues to evolve in light of the proposed capital requirement increase: August 23, 2007 Peregrine Financial Group, Inc. (PFG) today announced it is purchasing the assets of American National Trading Corporation (ANTC), which is headquartered in Los Angeles, CA. ANTC is a successful FCM which conducts business in futures, foreign exchange, and managed accounts. PFG will transfer ANTC customer accounts as quickly as possible. "PFG and ANTC are joining forces to better serve ANTCâs customers," said PFG Chairman and Chief Executive Officer Russell R. Wasendorf, Sr. "There are so many synergies, and we believe there will be significant benefits to ANTC customers including: Ability to utilize PFGâs proprietary online trading system, BEST Direct⢠The opportunity to use multiple electronic trading platforms Unique and additional suite of managed futures and forex product offerings Auto trading systems and other exclusive electronic capabilities for clients." PFG, one of the largest non-clearing U.S. FCMs, was registered in 1990 and has headquarters in Chicago, IL with customers, affiliates and brokerage offices in more than 80 countries. It has experienced rapid expansion in the past several years through organic growth as well as through strategic acquisitions. ANTC was founded in 1988. It is led by Chairman Don Varden and President Guy Zummo in Los Angeles, CA.
KVincent, No one is stopping you from starting your own thread on FXCM and any "dirt" you have on them. Feel free to do so, but make sure it is researched with facts - not opinions. As for this thread, I've been following it ever since it's creation, and I never felt obliged to go sign up with FXCM. I'm an Oandian, actually.
I have been following this thread pretty closely as well, and I would just as easily guess that forexsavior may be employed by any of the top forex firms. I know how to sniff out bullshit when I see it, and his stuff has been fairly unbiased and very informative. So as to whether FXCM is behind this: who cares? Nevermind that it could just as easily be GFT or Oanda, I for one don't really care very much.
Breaking News: RFXT about to Merge? Well it's clear that the NFA proposal is having an impact in the industry already. For the second time in a week a smaller firm in the Dead Pool has announced merger plans. They wouldn't be doing this if they had the capital to stay in business on their own. This shows you how serious an issue this is. The pressure is being wratched up and the time is fast approaching when those firms below $5 million will have to either join the borg, or die. Royal Forex Trading LLC. Future Plans Dear Valued Client, I am pleased to announce that there has been a very big development for Royal Forex Trading. Before that, I wish to bring to your attention the minimum adjusted net capital requirement proposed by the National Futures Association (NFA). The NFA recently circulated a proposal calling all the FCM's to adjust their minimum net capital requirement from $1 million to $5 million to avoid risks to the customers. Royal Forex Trading fielded many inquiries for several days and we addressed the issue in our last corporate newsletter. We believe the NFA is taking appropriate measures if they decide to increase the net capital limit for FCMs. Bottom line; this eliminates many inexperienced brokers. RFXTâs management has been in the industry for many years and we believe we have adequate resources as well as a full fledged backup plan. In the midst of all this, we have been approached by several companies inviting us to form a partnership. After further due diligence, we are very close to striking a deal with a company whose name cannot be mentioned at this juncture. This entity has an 8 year track record and does not hold a single complaint with the NFA. Their net capital is well over $5 million and they are licensed to do business in many continents. In the past few weeks, we have been holding several conferences and meetings to finalize the deal. Upon completion of the deal, the following will occur: Ã Royal Forex Trading will join as a division of a much larger entity. Ã Royal Forex Trading will officially re-locate to Wall Street, the Hub of major financial institutions. Ã Royal Forex Trading will retain its Service Desk. Ã Royal Forex Trading will in the very near future be providing various other products like including Crude, Gold and Silver CFDâs, Currency Options as well as many other new and exciting products. Ã Royal Forex Trading will be opening branches around the world. Ã Royal Forex Trading will continue to provide superior execution and excellent customer support. Ã Royal Forex Trading will be developing an Institutional Desk. In the end, you as a client will benefit immensely from this merger and that is what we have always wanted; world class service for our clients. I thank you from the bottom of my heart for all the trust you have put in us and I appreciate the excellent feedbacks we received during this "critical" phase. As we promised, our main goal and mission is and will always be to satisfy our clients beyond expectation. Thank you -- Rayan Elannan President & Co-founder Royal Forex Trading LLC
So what he's saying is bullshit? Please, by all means, point out the statements that he is saying which are incorrect. I'm keenly interested in both sides of the story.
I'm not into dirt and, I, too, appreciate the facts as they have been presented in this thread. That being said, I really think a lot of what has been posted should be taken with a grain of salt. The Refco debacle wasn't a result of undercapitalization but mismanagement (fraud) and, apart from Spotfx (Coesfx), the vast majority of the FCMs who have gone out of business appear to have been simply mismanaged. To date, I have yet to hear of a single trader losing money when the NFA took action to close them. If Alexa ratings are any indication, the entire OTC, retail industry appears to be losing ground so from my perspective all this hoopla about capital requirements may turn out to be much adieu about nothing. It could be that this concerted campaign on multiple forums is nothing more than an effort to by one of the big boys to regain marketshare. IMHO BTW, I trade on Oanda and MBTrading through EFX.
IMHO, using Alexa ratings is a strange way to gauge the health of the overall industry. Your point is taken, but I think it's far more useful to monitor changes in Net Capital as per the CFTC website. I haven't done this personally, but maybe someone out there has?