NFA raises dues – death knell for smaller Forex firms

The National Futures Association (“NFA”) in the U.S. yesterday posted notice that its overseeing body, the CFTC, had approved a chabge to its fee structure for Forex Dealer Members. The main changes involve a large increase in the fixed portion of member fees. Variable fees will remain roughly the same, depending on the type of trading done by customers.

The larger, fixed nature of the fee basically makes it (even more) impossible for smaller Forex firms to operate in the U.S.

For Introducing brokers (“IBs”), annual dues will increase from $750 to $2,500.

For Forex brokers (RFEDs) – note that there are only 14 registered RFEDs left in the U.S. – maximum annual dues increase eight-fold from $125,000 to $1,000,000, as follows:

To access the NFA’s notice click here.

For more detsails on Forex regulation, and the changes made over the past several years in the U.S., Europe, China and elsewhere, see the LeapRate-Dow Jones Forex Industry Report for 2011.


Annual Revenues up to: Old Dues New Dues $500K $50,000 $125,000 $2M $75,000 $125,000 $5M $100,000 $125,000 $10M $125,000 $250,000 $25M $125,000 $500,000 $50M $125,000 $750,000 > $50M $125,000 $1,000,000

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