New York, September 14, 2010—Last week, the U.S. Commodity Futures Trading Commission (CFTC) released its final rules regarding off-exchange retail forex trading, which will take effect on October 18, 2010. FXCM would like to address some questions concerning the new leverage rules.
By October 18, 2010, the maximum leverage available with FXCM LLC for trading will be 50:1 for major currency pairs and 20:1 for exotic currency pairs.
“We believe that the reduction in leverage is a reasonable compromise from the initial CFTC proposal of 10:1 leverage. FXCM does believe lower leverage will be to the benefit of traders as higher leverage can often times result in a few losing trades offsetting many winning trades,” commented Drew Niv, CEO of FXCM. “FXCM has already implemented 50:1 as the default margin setting on FXCM LLC standard accounts and, as a result, the new leverage requirements will have a minimal impact on our Standard 10k LLC accounts.”
Additionally, as of October 18, 2010, all referring brokers introducing business to registered Futures Commission Merchants or Retail Foreign Exchange Dealers will be required to formally register with the CFTC as Introducing Brokers and become National Futures Association members.
In anticipation of this rule, FXCM has already initiated procedures to be in compliance as of October 18, 2010. In fact, FXCM began encouraging all referring brokers to seek registration as Introducing Brokers months before the CFTC published its final rules.
About FXCM Holdings, LLC
FXCM Holdings, LLC (FXCM) is a leading global forex and CFD broker* that caters to both retail and institutional markets. Founded in 1999, FXCM is one of the largest brokers, regulated by several of the world's most respected financial authorities.
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients have market access to some of the world's largest providers, which enables FXCM to offer clients spreads as low as one pip on major crosses. Clients also have the benefits of mobile trading, one-click order execution, and trading from real-time charts. Forex Capital Markets, Ltd.'s CFD product* offers no re-quote trading and allows traders to trade oil, gold, silver, and stock indices, along with forex on one platform. In addition to currency and CFD trading, FXCM offers educational courses on forex trading and provides free news and research through DailyFX.com.
*Please be advised that CFD accounts are not available to residents of the U.S. or its territories. Additionally, Forex Capital Markets, Ltd., a U.K. subsidiary of FXCM, offers spread betting exclusively to UK residents. Residents of other countries are NOT eligible.
Trading foreign exchange and CFDs on margin carries a high level of risk and may not be suitable for all. Read full disclaimer.
International Public Relations Manager
Results 1 to 1 of 1
09-14-2010, 12:09 PM #1
FXCM Comments on New CFTC Margin Rules: "We've been ready for this"
By SniperBrian in forum Has anyone heard of?Replies: 5Last Post: 05-23-2013, 02:46 PM
By wildguess in forum Scam Alerts FolderReplies: 8Last Post: 03-18-2012, 06:26 PM
By KKurt in forum General Forex TalkReplies: 1Last Post: 09-21-2011, 06:40 PM
By player_x in forum General Forex TalkReplies: 2Last Post: 01-06-2010, 06:27 AM
Replies: 0Last Post: 01-23-2008, 07:23 PM