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The banking system fell into turmoil in 2008 after counterparty confidence evaporated because of the debt crisis precipitated by the subprime mortgage scandal. The US government let Lehman Brothers collapse and orchestrated the purchase of Bear Stearns and Merrill Lynch by JP Morgan Chase and Bank of America respectively. The US legislature along with the Commodity Futures Trading Commission was the first in the World to bring in new regulations (the Dodd-Frank Act) to stabilize the banking system, restore confidence and protect investors. US banks have since recapitalized and their proprietary trading has been curtailed. The United States has gone through the pain of a banking collapse whilst other countries are experiencing or have yet to experience the full effects of their own banking crises. The Dodd-Frank is a huge act that has elements that impact on Forex trading. Foreign Exchange dealers used be grouped with FCMs (Futures Commission Merchants), under the new regulation they are now called RFEDs or Retail Foreign Exchange Dealers. A US Forex broker's financial data are a matter of public record held at the Commodity Futures Trading Commission (CFTC). RFEDs are required to hold a minimum $20 million in net capital which they must maintain at all times. This $20 million does not include client deposits. That's a huge amount of money just to do business. As a result of the new regulations, US Forex brokers have a lot of credibility in the World financial markets. Michael Weissman, President and Founder, BeamFX