Over the course of the past two years, regulatory oversight in the US and the global financial meltdown have changed the landscape of what it takes to be a competitive Forex broker. As you read this a few regulated FX brokers are teetering on the verge of going out of business, most unregulated brokers are complacently moving on, while a new batch of brokers are entering the market, probably unprepared, driven by the allure of profits or by the zeal of sponsoring a perceived technological or business improvement.

The FX broker market is consolidating in regulated countries like the US, Switzerland and Japan. If a FX broker regulated by the U.S. National Futures Association (NFA) were to fail, chances are that one morning clients might receive an e-mail from the broker's CEO informing them that their accounts will be serviced by some big firm within days. In other words, the transition to a new broker would be a bit disconcerting, but smooth. But what about if a firm is regulated elsewhere or not regulated at all?

This article takes a look at how client perceptions of brokers may be leaving some firms more vulnerable than others in light of regulatory changes.

To continue reading this article online, and have free access to other broker industry analysis, register to FX Trader Magazine free subscription here