NFA is doing an amazingly effective job at spitting in the well it drinks from. In fact NFA behaves not as a regulator but as a controlling shareholder of its members – as it basically does whatever it wants when it comes to requirements and ‘membership’ fees. NFA just declared a new ‘dividend’ for itself by aggressively raising membership fees which for some strange reason will now be in the region of 2% of forex broker’s gross (!) revenue instead of being a flat yearly fee like up until now. To the best of my knowledge NFA is the only forex dictator regulator charging percentage of volume and/or revenue instead of just charging same membership fee from everyone.

Question is why NFA needs so much money? Is that because of the aggressive forex brokers consolidation in the US which led to the decrease of number of NFA members while leading to increase in revenue for the bigger brokers?

Or is it because NFA itself posed amazing number of restrictions and reporting requirements over its members in the past year or so that it itself cannot cope with the scope of work stemming from those requirements?

The whole NFA decision making structure is nontransparent and it’s not clear how those decisions are made. CEOs of major forex brokers reside in various positions in some of NFA’s committees however it’s unclear what power they actually have when it comes to making decisions such as this one. More often than not it was suggested that major brokers are behind these ludicrous requirements as they are trying to oust smaller competitors.

Whatever the case is NFA is acting like a dictator once again instead of acting in the best of interest  of ALL its members – small and big.

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