Forex Trading in the Last Two Years

The forex market has seen a number of changes in the last two years. Many new brokers have appeared and are now returning. A lot of changes have occurred and they’ve impacted on forex trading worldwide. Has there been a shift in how forex traders choose their broker, recommended site?

The following is a list of Regulations

A number of countries tighten their markets and apply massive regulation to money that leaves the country. Dodd-Frank was the first to come into effect in USA back in 2010. The CFTC is the US’s financial regulator of Forex. They issued a law that imposes certain restrictions on foreign brokers when opening US accounts. Forex brokers could not open US-based accounts unless they were registered by the CFTC. This is not an easy task, as the required minimum capital for opening a Forex Broker is $20 million US Dollars. Japan closed its own market next and all brokers were prohibited from opening Japanese accounts. The regulators also set limits for leverage. In the USA, it was restricted to 50:1; in Japan, 25:1. It means that only really large players have the opportunity to participate in the market.

India decided to also regulate its Forex Market, however they went even further by imposing restrictions on the banks. These included preventing them from making outbound transfer if it was for Forex Trading. Oh no! Turkey recently closed down its entire market.

Forex Brokers

Few years back, only 2 brokers were registered each day. Whether or not they are regulated, the only thing that is required from them is to have a small sales team and buy MT4 Software. The opposite is happening. In order to achieve more stability, brokers continue to merge. ODL has merged with FXCM. The trend of the forex broker market has changed.

Automated Trading

Two years ago, it was an enormous business. Brokers started offering free virtual hosting so traders could host trading systems. Automated trading systems like zulutrade and tradency were used. Here again, there’s a downward trend. Many people have come to the conclusion there are no robots that ever win, and they’re right.

What else can you do?

We can conclude that overall, the Forex market will become more challenging for all participants.