PipStop

One point that I forgot to mention in my various posts about the LA Traders Expo was a key development that is ready to hit the industry most likely in the next few and surely before the end of the year.

I got this information from the NFA booth at the expo, and I'm glad I stopped by. I was told that the following hasn't been officially announced as the NFA is waiting for the CFTC to set an effective date.

All Introducing Brokers (loosely defined in Forex circles as companies or people who introduce clients to a broker and are compensated on every roundturn executed - through the bid/ask spread) will be required to register with the National Futures Association as an Introducing Broker.

What this means is that the industry will enter a period of extreme consolidation because many current IB's will not be able to or will choose not to pursue NFA registration. With Forex it's been a feeding frenzy of sorts because anyone has been able to open an IB relationship up with a broker and receive compensation.

Some brokers have been extremely proactive in imposing their own rules ahead of what the NFA would impose. Just a few examples of these brokers from our experience would be Interactive Brokers and InterbankFX, and of course there is the odd broker that doesn't have an IB program at all, such as Oanda.

Trading Post Brokerage is registered with the NFA as an IB, and we are currently sifting through numerous brokers as we evaluate which would continue to provide a solid solutions to the end trader.