Hi everyone
As some of you may know, FXstreet.com has signed IB agreements for several years, under the company’s name FOREXSTREET SL; primarily with US based FDMs. This allowed us to offer free premium services to traders as the company participated in the spread-rebate the FDM charges the customer.
Up to this point, traders could access FXstreet’s Premium service, either by paying its cost, or through rebates we receive from brokers. The more rebates a trader generated, the longer its Premium subscription was.
Additionally, we were on the verge of launching a new service in Premium that would allow traders to share in the rebate. This would allow traders to recover a portion of the spread associated with their trading and to withdraw the money or to spend it on paid services on FXstreet.com
However, as many of you know, Forex as an industry, is falling under new, more stringent regulation. FXstreet.com is dedicated to keeping itself compliant with regulators on a global scale. As a premiere Forex portal, we feel it’s our responsibility to lead the way and set the example of responsibility and honesty.
During this period of change, the firm will need to carefully measure itself against the compliance requirements of several governing bodies. As a result, not all services will be available to all traders, at all times, while specific compliance requirements are reviewed, developed and implemented.
The first measure we are taking is to withdraw ourselves from acting as a referral agent for US based traders. At this time we are unable meet the compliance requirements established by the NFA for Member firms registered as an Introducing Brokers. What it keeps us away from regulating is that to become a NFA member FXstreet.com as an informative site where everyone has room to place their opinions will dramatically change. We see a lot of problems to keep delivering webinars, analysis reports, blogs and even Forum and ITC could be in jeopardy.
So, until we determine how to properly meet NFA’s requirements without destroying FXstreet.com as it is, we will step aside.
The second measure is going to be to work with NFA in order to have FXstreet.com as much in line as possible with NFA’s requirements. Our compliance officer Mr. John Putman is already in contact with the NFA in order to do so. Even though we are not going to be a member of the NFA for the time being, we can´t ignore it as a most important body regulator along the FSA in this market. Also, over 30% of FXstreet’s traffic come from the US and we want them to feel comfortable at FXstreet.com.
The third measure will be to contact FSA in the UK in order to make sure we are in line with them. If we were not, we would not accept traders from the UK as well. In any case, John will work close to the FSA in order to have FXstreet.com as much in line as possible with FSA’s compliance.
The fourth measure is going to be to launch the rebate participation as described above, with non US clients and probably non UK clients and to carefully monitor the interest and success of the program. During this process we will check with other main world regulators to make sure we do not break the law acting as a IB of their citizens.
We at FXstreet.com want to keep this line of business open and consider its future expansion; if participation in the program will support the cost and implementation of compliance programs, we will look for alternatives to become a member of the most important body regulators through our company or creating a new one. This is our hope moving forward.
Francesc
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Francesc Riverola
CEO & Founder
Weblog: http://weblog.fxstreet.com/
FXstreet.com
FOREXSTREET S.L
Portaferrissa 7, 1er 2ona
Barcelona, 08002
Tel. +34 93 3040495
Fax +34 93 3040496
Francesc Riverola,
