Authorized Forex Dealer History and Membership Requirements

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July 29, 2008 by admin

An authorized forex dealer is any financial institution that has received approval from a regulatory body to act as a dealer for the act of buying and selling currencies.  In the United States the National Futures Association (NFA) is responsible for registering and auditing entities involved in the Forex business.

The NFA was formed in 1982 and since that date has been responsible for all regulatory and auditing activities of companies involved futures business with the general public.  There is a mandatory membership in the National Futures Association and it is illegal fo an authorized forex dealer to do business with non-NFA Members.

The annual dues for participating in the forex market is quite expensive.  Below is the list of annual fees associated with becoming an authorized dealer.

Authorized Forex Dealer Annual Dues Schedule

 

FCM Forex Dealer Member - Exchange Member with annual forex revenue of $500,000 or less: ** $45,875
FCM Forex Dealer Member - Exchange Member with annual forex revenue of more than $500,000 but not more than $2 million: ** $70,875
FCM Forex Dealer Member - Exchange Member with annual forex revenue of more than $2 million, but not more than $5 million: ** $95,875
FCM Forex Dealer Member - Exchange Member with annual forex revenue of more than $5 million: ** $120,875
FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of $500,000 or less: ** $50,000
FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of more than $500,000 but not more than $2 million: ** $75,000
FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of more than $2 million, but not more than $5 million: ** $100,000
FCM Forex Dealer Member - Non-Exchange Member with annual forex revenue of more than $5 million: ** $125,000

Authorized Forex Dealer Penalties for Unregulated Ent

If for some reason you do not pay your annual dues on time, there are a number of penalties you will have to pay as well.  Below is a list of those penalites:



Number of Unregulated Entities Annual Fee
0 $         0
1-4 $  5,000
5-19 $10,000
20-99 $25,000
100 or more $50,000