July 2009: Almost all US brokers lose money
It’s interesting to see that July was a bad month for all brokers. With the exception of GFT, Oanda and MB
It’s interesting to see that July was a bad month for all brokers. With the exception of GFT, Oanda and MB Trading all brokers lost money that month. It’s also very interesting to see that Gain Capital lost over $12 million dollars – I’m not aware of any reason behind that. It is in-line however with the $50 million loss so far that Gain reported couple of weeks ago in its IPO registration documents.
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Hi Michael:
I disagree with your analysis of the decreasing capital reported by many of the US clearing firms. The clearing firms are not losing money (Gain being an exception). The owners are able to pull equity out since clients are migrating to non-US clearing firms. Less US client deposits = less capital needed. Many large firms are pulling their US capital to deploy it to their overseas operations.
Hi Michael:
I disagree with your analysis of the decreasing capital reported by many of the US clearing firms. The clearing firms are not losing money (Gain being an exception). The owners are able to pull equity out since clients are migrating to non-US clearing firms. Less US client deposits = less capital needed. Many large firms are pulling their US capital to deploy it to their overseas operations.
Could the reason be tight range trading during July?
Could the reason be tight range trading during July?
another reason am thinking is the introduction of the new NFA rules.
A lot of people are not quite happy with it and i know a lot of people who have decided to look somewhere else (overseas).
another reason am thinking is the introduction of the new NFA rules.
A lot of people are not quite happy with it and i know a lot of people who have decided to look somewhere else (overseas).
I would like to confirm the 1st comment. The net capital and the trading results are not necessarily correlated. Net capital is like a savings account. It’s not necessarily (and right away) indicative of how a broker did during a month. And I can certainly confirm that nearly all FX business is moving oversees our outside the NFA. How many jobs did the US lose with these NFA rules ? If US is 20% of the world volume in FX and 10% of the US volume will move overseas , then US lost a daily volume of 3 000 *0.2*0.1=… Read more »
I would like to confirm the 1st comment. The net capital and the trading results are not necessarily correlated. Net capital is like a savings account. It’s not necessarily (and right away) indicative of how a broker did during a month. And I can certainly confirm that nearly all FX business is moving oversees our outside the NFA. How many jobs did the US lose with these NFA rules ? If US is 20% of the world volume in FX and 10% of the US volume will move overseas , then US lost a daily volume of 3 000 *0.2*0.1=… Read more »
George Popescu; while i believe you’re on the right track, you’re missing the integral parts of running a business… expenses…plow back…
Not every single penny is transfered to employees..or businesses wouldn’t grow.
George Popescu; while i believe you’re on the right track, you’re missing the integral parts of running a business… expenses…plow back…
Not every single penny is transfered to employees..or businesses wouldn’t grow.