Check out the latest breaking news from the dynamic world of forex trading. Maintain your edge with up-to-the-minute coverage of the latest regulatory changes, industry conferences, broker developments and more.
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Some interesting observations can be dissected from the recent Jacob Aaron piece New Scientist Bitcoin sells out as big business moves in. Jacob believes that by after meeting Bitcoin London invitees and linked with vague references to the latest Winklevii venture Bitcoiner's are now selling out on the founding principles of Bitcoin: A new generation of Bitcoiners is taking a different approach.
The world of binary options is never static. This relatively new form of trading has been gaining popularity for years now and has offered traders opportunities to make some quick profits within a short period of time.
The retail forex market in the USA has been consolidating. Industry statistics from 2012 show there are now fewer brokers providing the required liquidity to the retail market, but the remaining brokers are generally growing their client account and asset totals. Several brokers have recently left the market completely.
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Plus500, a global CFD broker, is going public. A leading broker, founded in Israel in 2008, Plus500 hopes to raise $50 million by posting an IPO on London's Alternative Investment Market (AIM).
Though constantly mocked for being perhaps the most lax financial regulatory body, the Cyprus Securities and Exchange Commission (CySEC) is continually working to discredit these rumors. CySec is the financial regulatory agency of the Republic of Cyprus. Since Cyprus became a member of the European Union in 2004, CySec has become part of European MiFID regulation, giving firms registered in Cyprus access to all European markets. Many overseas firms have since registered in Cyprus to take advantage of this regulatory regime.
Alpari US is in the headlines again. This is the second time in one year that the company has been cited for failing to supervise NFA (National Futures Association) compliance rules. In June 2012, the broker was accused for charging for forex trades and failing to produce timely reports to the NFA. The complaint was settled and the firm paid a fine of $200,000.
Asian Forex broker InstaForex has ceased cooperation with Liberty Reserve, the payment system they have used up until now, following the company's closure at the end of last month. According to InstaForex, all funds deposited at Liberty Reserve have disappeared and according to Clause 7.7.1 of the Public Offer Agreement, all money that has vanished in this manner is deducted from the trading account of a customer and is stored in the company's accounts.
We have now entered a Brave New World of Forex Trading following the disclosure of a US Surveillance program ("?PRISM"), central bank manipulation of currencies ("?currency wars") and random acts of regulators (which are not mutually exclusive). With the increasing politicization of the financial markets, Forex traders are now becoming more exposed to market changes from geo-political rather than economic risk factors. As we know markets subjected to political rather than economic risk factors create unpredictable sharp short term volatility risk and cross country correlation risk which is almost impossible to risk manage and therefore costly to FOREX traders.