Regulation deters currency managers from retail FX

Despite the boom in retail foreign exchange volume, some currency managers are wary of increasing their footprint in the retail market due to the increase in regulatory controls on the market, stemming particularly from the review of the European Union's Markets in Financial Instruments Directive (Mifid II).

"Regulations around retail appear to be so burdensome that it is something that should be avoided at all costs," says one European currency manager. "To acquire a retail client for $50,000