Just as OANDA did not so long ago, MB Trading too attained FSA authorization and is preparing to launch within few months. In fact, MB attained authorization back in April 2011 while OANDA in May.
MB Trading European operations will be conducted under the name MBT Financial UK LTD, using the www.tradembt.eu website, and spearheaded by one Ila Jehl – formerly CEO and President of TradeOptimizer Group Inc and Director at NASDAQ OMX Futures Exchange (NFX).
Unlike OANDA, which received permissions to deal with just about every asset possible, MB’s permissions are limited to offering retail forex only.
Evyerthing I said about OANDA’s FSA situation obviously applies to MB’s case as well:
“FSA licensing process is a very lenghty and costly procedure and OANDA probably initiated it well over a year ago – prior to leverage restriction rules and Dodd-Frank reform which required all US brokers to repatriate US accounts back home. OANDA is the latest major US forex broker to attain FSA registration which is considered one of the best and fairest in this part of the world – US rules are very restrictive and capital intensive, so are Swiss ones, and FSA stands out in the current strict forex regulatory climate as the most balanced regulator. FSA registration will allow OANDA to offer more flexible conditions to its European clients.”
Now that MB too is regulated in Europe this means that all US forex brokers are now registered not only in the US but elsewhere as well. This is good for them for two reasons: first as I already described above it allows them to offer non-US clients more flexible conditions, such as higher leverage. Secondly it’s a safe house in case forex regulation in the US gets even more strict – they’ll have where to move all their business to.
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List of US forex brokers and their licensed entities:
* – interesting to note that IBFX though announced plans for UK office back in 2009 probably either failed or withdrew its application
** – FX Sol is a subsidiary of City Index which is registered in Europe and elsewhere
*** – Advanced Markets may operate under the Macquarie Bank’s brand elsewhere
Excludes the likes of PFG and Tradestation which are less focused on retail forex