Category Archives: Regulation

See all posts talking about Regulation, from the Forex Figures – the DailyForex blog

FXCM Bounces Back over 70% to $19 on NYSE


FXCM, long considered one of the strongest and most reputable Forex brokers worldwide struggled notably in 2015 on the heels of the Swiss National Bank catastrophe. Among other dramatic turns the brokerage was forced to take out a loan and to sell off some of its assets. Then, in September, FXCM was notified by the New York Stock that it was not in compliance with the continued listing standards set forth in Section 802.01C of the Listed Company Manual of the New York Stock Exchange because its price had fallen below $1 per share for a period of over 30 consecutive trading days. At that time we’d speculated that anyone with confidence in the industry and in this leading company could turn a nice profit by investing in its undervalued stock.


At the same time FXCM confirmed its confidence in the company and presumed that it would turn things around – and it seems that this confidence was not purely smoke and mirrors. FXCM has come through for its clients and anyone who invested in the stock over the last few months and held their positions has likely seen massive profits – at the close of trading yesterday FXCM shares were valued at over $19. On a day where the Dow Jones Industrial Average lost 367 points, this is an even more notable victory. The price is more than trip the $5.20 that the stock was priced at only last month.

The turnaround in stock price is significant for FXCM, as it demonstrates confidence in the brand not only by its own traders but by other financial investors who are looking to invest in solid growth. We look forward to seeing what company brings forth in 2016 – and we’re expecting greatness.

NFA Raises More Margin Requirements

Following its announcement last week that it would raise the minimum security deposits for transactions involving the Norwegian krone, the Swedish krona and the Swiss franc, the US regulatory body announced that it will also be changing the margin for Forex brokers offering five other currency pairs. Although US brokers can currently offer leverage up to 50:1 (2% margin) on major currency pairs, the NFA announced its intention to raise the margin on two popular currencies, the Japanese yen and the Australian dollar, to 3%. The NFA also increased the margins on the Russian ruble, the Mexican peso and Brazilian real. The changes for these exotic pairs were increased to 20% for the ruble, 9% for the real and 6% for the peso. All increased margins will be valid until further notice. Though such limits may restrict profits on these pairs they also prevent extreme losses which, after last week’s challenging volatility, may be some form of relief for traders.

FXCM, one of the leading Forex brokers worldwide issued a statement on January 21, 2015 stating that it will adjust its margin requirements globally for all Forex instruments and for gold, to make the global margin requirements consistent with the firm’s US entity, FXCM LLC which has always had more conservative requirements as per the demands of the NFA. Despite rumors of trouble at FXCM, the industry leader has shown itself to handle recent losses with notable grace, responsibility and with an eye towards a strong future. The brokerage’s decision to keep the public fully aware of internal decisions, bailouts and policy changes is an excellent step in maintaining (and restoring) confidence for both retail and institutional traders worldwide.

Gain Capital, the parent company of, has also publicly acknowledged its own conservative approach; the broker was one of few that raised margin requirements for EUR/CHF in September 2014, making it possible for the broker to profit from the SNB decision and to weather the volatility without any major fanfare.

Though many traders enjoy the risk of high leverage and relish in the rewards (or potential rewards), it seems that the cautious policies of the NFA will be rolled out globally to help protect traders and brokers from dangerous losses.


NFA Imposes New Leverage Limits on U.S. Brokers

Early this morning, the U.S. National Futures Association announced new limits upon the maximum leverage that U.S. Forex brokerages may offer clients in trading certain currencies. The new limits will apply from 5pm CST today, Thursday 22ns January. Concurrently, the troubled FXCM which dominates the U.S. Retail Forex market announced even heavier limitations.

The National Futures Association made this move under NFA Financial Requirements Section 12, which had been limiting the leverage brokers may offer to 50:1 in 10 listed major foreign currencies (including the Swiss franc, Swedish krona and Norwegian krone), and to 20:1 in all other currencies.

From today, brokers will be required to limit leverage in transactions involving the Swiss franc to 20:1, and in transactions involving the Swedish or Norwegian krone, the maximum leverage will be 33:1.

FXCM have announced even more onerous limits, which will go as low as 2.5:1 on EUR/CHF. In fact, by the beginning of next week, FXCM will have reduced all the leverage limits they were offering yesterday by a factor of 4, meaning that FXCM clients will effectively have their maximum position sizes reduced by 75%.

FXCM have announced that these new limits may be temporary, owing to volatility that may be triggered by the ECB QE announcement expected later today, and the Greek general election due Sunday.

Several other brokers have also been lowering maximum leverage offered to clients. This should increase the pressure on clients with smaller account sizes to be more properly capitalised, and lower the risk to Forex brokerages of catastrophic losses.

Brokers that Got CySEC Regulation in 2014

cysecSqueaking in right under the wire, FXPRIMUS has joined the ranks of brokers that were granted CySEC regulation in 2014. In fact, 2014 has seen quite a number of brokers receiving CySEC regulation, with over 12 brokers listed among the Cyprus Securities and Exchange Committee’s growing list of CIF licensees (See list below). This number is considerably more than the brokers that received CySEC regulation in 2013 which included EZ Trader and OptionsXO.

Research has shown that by December 2013, only 16 of the world’s largest 47 brokers (34%) were regulated by an acceptable regulatory organization. However, with more and more brokers receiving regulation each year, there is a good chance that in the future Forex and binary options traders can expect to see a greater choice in brokers that offer security and reliability under an acceptable monitoring body.

Here is some of the brokers that received CySEC regulation in 2014:














LQD Markets Surrenders CySEC Regulation

As of July 31st, Forex broker LQD Markets Ltd will not be regulated by Cysec, the Cyprus Securities and Exchange Commission under which it has been governed until now. As first reported by Forex Magnates, LQD Markets has renounced its authorization to provide investment services and related activities and has allowed the CySEC investment firm’s license number for LQD to expire as of start of August 2014.

LQD Markets has been under scrutiny for some time now. Back in June 2013, they had been cited for potential violations of Article 36 of the 2007 Investment Services, Activities and Regulated Markets law wherein they had offered investment services through third parties without first receiving the proper authorization from the regulatory authority.

CySEC went on to confirm that Liquid Markets had ceased its relationships with the said third party entities and had paid the 80,000 penalty Euro to the watchdog. Very little detail was provided by the regulator in regards to the nature of the potential regulatory violations that Liquid Markets were meant to have been engaged in and the FX broker continued to conduct Forex services up until the present.

LQD Markets informed its clients two months ago that the Cypriot entity would stop functioning in July and that it must transfer its accounts to the British Financial Conduct Authority (FCA) regulated entity, LQD Markets UK. No explanation for the decision to abandon CySEC authorization was given but since an FCA license is more expensive to receive and maintain one might think that was an additional reason for the switch.

Ever since Cyprus became a member of the European Union in 2004, CySEC has become part of European MiFID regulation which provides firms registered in Cyprus access to all European markets. Many overseas firms have since jumped on the CySEC bandwagon, registering in Cyprus to take advantage of this regulatory regime.

Of the two regulators, the FCA license carries a bigger brand value, an important factor for those brokers focusing on attracting English-speaking clients or with potential M&A action in the UK market. Several other major Forex brokers such as AvaTrade and Markets have opted for FCA regulation to that of CySEC.

In accordance with the securities law in Cyprus, LQD Markets Ltd will remain under the supervision of the commission until it settles all its obligations arising from the investment services and activities that happened in the past. Received CySec Regulation

stock, operated by Nextrade Wordwide Ltd, is pleased to announce that it has recently received CySec (Cyprus Securities and Exchange Commission) regulation in accordance with the European Union Markets in Financial Instruments Directive (MiFID).

Stockpair, founded in 2010, is domiciled in Limassol, Cyprus and joins a limited group of binary option brokers, such as, and who are able to offer their clients the benefit of strict regulatory supervision that ensure the company’s activities are run according to rigorous conditions and obligations. has recently redesigned its website which is now available in English, French, Spanish, Arabic, German, Russian, Swedish, Dutch, Chinese, and Danish. Stockpair offers a unique system of Pair Trading, a simple way to evaluate and compare the relative performance of stocks and profit by predicting which stock within a given stock pair will perform better.

24option Gets CySEC Regulation

After months of anticipation, leading binary options broker 24option has received its regulatory approval by CySEC.  The authorization process began in March 2013 and 24option has just received the go ahead, as a possible result of EU countries taking a closer look into the regulatory procedures of binary options brokers. 24option will be operating under the registered business name Cbay Financial Services Limited.

With the CySEC regulation, 24option, one of the largest binary options broker by monthly volume and deposits, now has the ability to extend the boundaries of its existing marketing and increase its affiliate exposure internationally.

Regulation for brokers can often mean the difference between success and failure. A broker that is regulated is one that follows country rules under the authorization of a regulatory agency. A regulated broker presents traders with a feeling of trust and security. With a majority of brokers still unregulated worldwide and many brokerages domiciled in Cyprus, CySEC licensing has become a distinguishing feature in the world of binary options.

The EU has recently been scrutinizing binary options firms in an effort to weed out unregulated brokers and reduce fraud and scams which have occurred quite frequently of late. Several countries have banned IPs of unregulated companies. 24options was not among this group but EU’s gestures did help to encourage its licensing process.

24option’s website now boasts that it is the “EU top regulated binary option broker.” It still leads the way with the highest bonuses of any binary options broker in the industry and continues to offer an array of features easily accessible by both novice and experienced traders alike.

The CySEC license just puts the icing on the cake.