Meinungen erwünscht:
Joe Ross zum Forex-Trading
This Week's Chart Scan<SUP>(TM)</SUP> with Joe's Commentary
Zitat
Forex Warning
Rather than showing you a chart this week, I am following up on last week's forex-to-futures comparison. I am a subscriber to the Sovereign Society's newsletter, and they have issued a warning to all forex traders. I repeat the article below, adding my own comment at the end.
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A Whopping 66% of Forex Brokers Will Close Their Doors This Month: How to Keep Your Forex Account Safe and Protected
The retail forex industry is still in its infancy. It's only been open to the public
since 1998. Many of the largest foreign-exchange firms just opened their doors
around 2001.
In the early days, you didn't need much capital to set up a forex shop and become
a forex dealer. However, those days are quickly changing.
Starting this month, U.S. forex dealers will have to meet certain requirements to
stay in business. The NFA (National Futures Association) is raising the capital
requirements for these U.S.­based firms. According to the new rules, all forex
dealers must have US$5 million in "net excess capital" to keep their firms open.
Now, for large forex firms, this won't be an issue. However, only about 1/3 of the 30
forex dealers in the U.S. are expected to make the cut. In other words, roughly 66% of forex brokers will be forced to close their doors when these rules go into effect later this month.
With these new regulations, many brokers will be scrambling to get more capital on
their books so they can remain open. If they can't meet the newest capital reserves
required by their regulators, then they'll have to close their doors. Many are so small
that this will be the case. These new regulatory requirements go into effect Dec. 21st!
So What Can You Do if You Already Have an Account?
1. Check out your broker on this public site to see how much they have in
"net excess." Don't rely on them to tell you. See for yourself by visiting http://www.cftc.gov/marketreports/finan ... /index.htm. While the minimum
requirement is going up to US$5 million, you really want a firm with US$20-30 million
set aside. The more padding they have, the more your forex accounts are protected.
2. See if your forex broker is regulated elsewhere. Check if your broker is
regulated in Europe, Canada, Hong Kong, etc. If so, that's even better because
more regulators are watching over their shoulders. Also, they'll have to meet capital requirements in those countries, too. So if they're regulated in several places, that's good news for you. Canada, the U.K., Hong Kong, and the U.S. offer some of the best regulation out there. Believe it or not, the regulation in Switzerland really isn't that great.
If a firm is regulated outside of these areas, it's a red flag that your broker doesn't
measure up. Why are they dodging the most credible sources of regulation? For instance, those that run to Belize are dodging the strict regulators for loose
regulation.
3. Look at a firm's size and regulation first. Pick a well-capitalized firm (the bigger the better). Their size and regulation are the most important, and then
you can look for a broker's pip spreads and slippage, etc., after that.
4. If you choose a "no dealing desk" type of broker then you're not going to have them trading against you. The biggest Firms will even have multiple inter-banks competing in their quotes to win your business. A dealing desk is taking the other side of your trade and you'll find that slippage is much worse especially around news events.
5. Ask how many employees they have. This will give you an idea of how many
accounts they may have to service and how much customer service means to them.
Believe it or not, some firms only have 20-30 employees. They also can't even be
reached 24 hours a day (in a 24-hour tradable market). You want a firm with 100-500 employees. Then you know they're accessible when you need them. It is also "proof" of their size and capitalization. After all, a firm isn't going to have US$5 million to their name and 500 employees too.
6. If they will tell you, ask them approximately how many accounts they service. Some only have 2,000-10,000 accounts while others have 90,000+ accounts.
What To Do if Your Broker Doesn't Measure Up
If you find that your broker doesn't make the cut after you ask them these questions, you should promptly move your money over to one of the bigger firms. Be sure to "interview" them with these same questions before going with them also. Be comfortable with your choice.
So what happens if you just stick it out with a small firm that has to fold and close up shop? You may be delayed in getting your money back if they're forced to close. Worse case scenario: You won't get your money back. Some firms could have your assets tied up in bankruptcy court for quite some time. Either way, it spells disaster, so choose a well­capitalized, well-regulated firm so you can avoid any of these headaches this holiday season.
Which Forex Brokers Will Survive This Month's Cut
1. FXCM - Forex Capital Markets is one of the largest retail market makers in the world. They've got over US$120 million in firm capital. Over US$47 million of it is held with the NFA/CFTC. However, they are also regulated in Hong Kong, the U.K. and Canada. So they have to meet capital requirements in all of those places. They have over 500 employees with a seamless research team. So they are the "Goldman Sachs" of forex brokers in my opinion.
2. Oanda - They have over US$148 million dollars in net excess capital. So while FXCM's capital is spread between many regulators, Oanda just has to meet the capital requirements in the U.S by the NFA and CFTC. They are sufficiently regulated and capitalized with loads of cash on hand also.
3. GFT Forex - They are registered as Global Futures and Forex and they are regulated in the U.S. by the NFA/CFTC. They have over US$40 million dollars in net excess capital.
4. Gain Capital - They are regulated in the U.S. by the NFA/CFTC. They have over US$32 million in net excess capital.
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Not a single one of the above firms has a good reputation among traders, especially FXCM and Gain Capital. Horror stories abound concerning all four of them. Among traders who have actually traded at these firms, out of a possible 5 stars, FXCM and Gain Capital have only a 1-star rating; GFT forex rates 2 stars, and Oanda rates 3 stars. There is not a single 5-star broker in the whole bunch. Last week we saw that the volume at FXCM, the largest of them all, was far less than the volume traded in the futures markets.
If you insist on trading forex, consider yourself warned.
Das wollte ich Euch nicht vorenthalten. Ist aus dem Newsletter von Joe Ross vom 21.12.2007.
