What happens to brokers not meeting the NFA capital requirement?
In the coming months, the NFA will require for brokers to have $20,000,000 capital.
From what I understand there are three general choices, although most recently have chosen option 1.
1. Sell the US business to someone else. (ie: ODL USA, Hot Spot, EFX, etc.)
2. Continue on without NFA membership, which seems to be something that no one currently in the biz seems to want to do. Legacy situations like FXDD which is unregulated seem to be the only ones that can seem to get by (for now) this way. GallantFX is a much smaller shop that also comes to mind that is unregulated by the NFA.
3. Somehow operate under the radar if it is offshore based. Visit ACM-USA http://www.acmusa.com/ and you’ll see that the website is just a landing page directing you to it’s Swiss based website. They had a booth at the Traders Expo in NYC last month and were open about accepting accounts from the USA. Kind of a weird situatio
socialtrader, forexfactory.com