E-Trade has announced its entry into the retail FX field by partnering with FXCM to offer a white-labeled FXCM Trade Station platform to the E-Trade client base. Interestingly, E-Trade is an Introducing Broker rather than an RFED. As an IB their NFA/CFTC requirements are far less expensive than had they chosen to become an FCM doing business as an RFED or as simply as an RFED. Full details on the e-Trade.com website.
As we have posted here previously and in other forums, we believe that some large corporate names will be entering the retail FX space in the next 24 months. Asian brokers will buy US entities (Monex bought Tradestation and then InterbankFX) with their strong currencies relative to the US dollar. Now that the industry has matured, even the large cap companies here in the US will look to enter the space. Note that Deutsche Bank left the space but they were registered as an FCM and had all the NFA/CFTC hassles that went with that designation. E-Trade as an Introducing Broker is an interesting model.