The end of NFA?
Goodbye NFA's nightmare, Hello SEC!
It’s been long known behind the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term industry’s curtains that the NFA is not the only US regulatory agency that allows you to open a Forex brokerage. The lesser known alternative is the SEC – and it is also now the most preferred one, thanks to much lower net capital requirements and much more sensible business requirements, unlike the NFA’s.
With the SEC’s current requirements all you’ll need to do in order to setup your own Forex brokerage and operate it in the US – is make sure that the custody of clients funds is with a SEC regulated advisor. That’s it. This can easily be done with hundreds of entities opening up room for the increasing number of US regulated Forex brokers, instead of decreasing their number as result of NFA’srequirements.
Reuters cited a US Senator who said that the SEC may have an advantage over CFTC in OTC derivatives (probably includes Forex as well) – halleluyah! The sanity is back.
It remains to be seen who the regulators will decide is the right agency to regulate Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term. We all hope that it’s the SEC and not NFA/CFTC who went from being a regulation watchdog for the simple trader to an anti-Forex brokers evangelist.
Goodbye NFA's nightmare, Hello SEC!
It’s been long known behind the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term industry’s curtains that the NFA is not the only US regulatory agency that allows you to open a Forex brokerage. The lesser known alternative is the SEC – and it is also now the most preferred one, thanks to much lower net capital requirements and much more sensible business requirements, unlike the NFA’s.
With the SEC’s current requirements all you’ll need to do in order to setup your own Forex brokerage and operate it in the US – is make sure that the custody of clients funds is with a SEC regulated advisor. That’s it. This can easily be done with hundreds of entities opening up room for the increasing number of US regulated Forex brokers, instead of decreasing their number as result of NFA’srequirements.
Reuters cited a US Senator who said that the SEC may have an advantage over CFTC in OTC derivatives (probably includes Forex as well) – halleluyah! The sanity is back.
It remains to be seen who the regulators will decide is the right agency to regulate Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term. We all hope that it’s the SEC and not NFA/CFTC who went from being a regulation watchdog for the simple trader to an anti-Forex brokers evangelist.