Retail forex is a fairly new business, having started in 1998, and really only taken off in 2001. Initially, many forex brokers started with little capital. As the market has matured and become more mainstream, the requirements to stay in business have become more rigorous. The NFA (National Futures Association) is increasing capital requirements for US based firms - forex dealers will now need to have at least US$5 million in net excess capital.
This is a relatively small amount for a large firm, but only 1/3 of forex brokers will be able to meet these requirements. That leaves around 10 brokers in the US. The remainder will have to either find new capital or close their operations later in December when the new regulation takes effect.
The risk is that there may be delays in getting your money back if your broker is forced to close.
ForexGen strives to give incomparable professional and individualized trading services.As a professional online trading service, ForexGen provides several facilities for all kinds of traders
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