Proposed NFA Capital Requirement

Discussion in 'Forex Brokers' started by forexsavior, Jun 28, 2007.

  1. Top Forex Dealers by Volume

    Michael Greenberg at Forex Magnates has released an interesting new survey on forex broker trading volumes (in the billions).

    http://forexmagnates.com/top-forex-brokers-report-over-105b-in-daily-traded-volume/

    Monthly Trading Volume

    1. FXCM $560,000,000,000
    2. Oanda $338,000,000,000
    3. Saxo Bank $225,000,000,000
    4. Gain $200,000,000,000
    5. GFT $175,000,000,000
    6. ACM $150,000,000,000
    7. PFG $85,000,000,000
    8. IBFX $80,000,000,000
    9. Alpari $60,000,000,000
    10. IG Index $60,000,000,000

    This is a useful tool for determining a broker’s size and stability (in addition to the net capital numbers.)

    The following firms have net capital below $20 million
    Easy Forex $15,552,000
    Ikkon Royal $16,423,000
    Alpari $16,557,000
    MB Trading $17,031,000
    Advanced Markets $19,686,000

    The following firms have net capital above $20 million
    Forex Club $21,354,000
    CMS Forex $29,360,000
    PFG $30,444,000
    Interbank FX $38,393,000
    FX Solutions $45,032,000
    GFT Forex $87,169,000
    Gain Capital $95,879,000
    FXCM $113,463,000
    Oanda $161,723,000
     
    #711     May 28, 2009
  2. Hm, more than i thought. Wonder if every firm did report corrct figures.

    FXCM is not that far behind the CME fx-contracts in terms of monthly turn-over (if my quick and dirty calculation is correct - based on APR09 figures). Intuitively i would have thought the CME is miles ahead from the biggest spot retailers.
     
    #712     May 28, 2009
  3. Hi Savior

    Thanks for the great work from you!

    Do you know whether they include the figures of any or some of their white label businesses?

    Do you, or anyone else other me, find the ratio of Volume:Net-Capital for individual firms based on the above figures would be interested?

    1 => FXCM => 113 => 560000 => 4956
    2 => PFG => 30 => 85000 => 2833
    3 => IBFX => 38 => 80000 => 2105
    4 => Oanda => 162 => 338000 => 2086
    5 => Gain => 96 => 200000 => 2083
    6 => GFT => 87 => 175000 => 2011

    Perhaps that would indicate more of a certain type of traders trading with an individual firm!?

    Is there any Norm in this industry for retail traders, or 2000 should be a norm?


     
    #713     Jun 3, 2009
  4. good question, not sure
     
    #714     Jun 3, 2009
  5. April Net Capital Report

    The CFTC has just released their latest net capital figures. These appear to be the finalists who have survived the net capital guillotine:

    http://www.cftc.gov/marketreports/financialdataforfcms/index.htm
    The following firms have net capital below $20 million

    Easy Forex $15,549,000
    Ikkon Royal $16,355,000
    MB Trading $17,100,000
    Advanced Markets $19,796,000

    The following firms have net capital above $20 million

    Alpari $20,975,000
    Forex Club $21,795,000
    CMS Forex $29,649,000
    Interbank FX $36,507,000
    PFG $36,843,000
    FX Solutions $41,546,000
    FXCM $60,472,000
    GFT Forex $80,693,000
    Gain Capital $90,801,000
    Oanda $159,739,000
     
    #715     Jun 3, 2009
  6. Forex Dealer Dead Pool Alumnus Busted for Fraud

    Former SNC Investment CEO Peter Son has been hauled into court by federal regulators a year after he disappeared during an NFA investigation into missing funds covered on this thread back in October of 2008:

    http://www.fxstreet.com/forum/showthread.php?t=1005&page=21

    The feds are now confirming that Peter Son was running an $80 million ponzi scheme:

    http://www.sec.gov/litigation/complaints/2009/comp21076.pdf

    Among the SEC’s findings:

    After covering these poorly capitalized firms for years I’m not the least bit surprised that SNC illegally used customer funds to meet their capital requirements back when they were still registered with the NFA. That’s why cap requirements had to be raised and thankfully the worst of these brokers are long gone in the U.S.

    But let this be a lesson to the trading public to avoid opening an account with any poorly capitalized firm, or a firm that is not regulated and does not disclose their financials.
     
    #716     Jun 9, 2009

  7. What kind of buying leverage do you get with IB?

    At least 100x? Also, what is the mnimum for an FX account there?

    Thx
     
    #717     Jun 9, 2009


  8. FXCM decreased net capital by $50MM from May thru June

    That can't be good? What would be the legitimate reason for such a large decline?
     
    #718     Jun 9, 2009
  9. MrAngry

    MrAngry

    It says it paid out a lot of dividends and had a tax liability. Don't think it's anything sinister
     
    #719     Jun 10, 2009
  10. That sounds very suspicious.......

    Dividends? They don't have public shareholders! Tax Liability of tens of millions?????
     
    #720     Jun 11, 2009