Forex Regulation Spotty
The retail Forex market is relatively young a
nd has been open to the public since 1998. Many of the largest Forex traders did not enter the business until the early part of this century. Regulation has been spotty at best and until now there were no capital requirements for brokers.
New Capital Requirements For Forex Traders
This month the National Futures Association (NFA) will require all Forex Traders to have $5 million dollars in net excess capital to do business. For large firms and banks there should be no problem but almost 66% of Forex traders could be forced out of business under the new regulations. The new regulations will go into effect on December 21st and many Forex traders are scrambling to meet the new regulatory requirements.
