If the CFTC does this, say goodbye to retail forex in the USA

[pipaholic]

"This 'dumbing down' of humankind will have us reading goverment guidance pamphlets before we cook an egg!"

Astute observation.
Too many Americans today are complacent about Big Brother taking over because they feel certain he is THEIR Big Brother.
They haven't stop to think about how they might feel if their enemy's Big Brother assumes control of all that power, or, more likely, their Brother completely loses his head with power.

 

[ForexRazor]

Cftc/nfa

They are trying to protect the US Futures market

Scams are like energy, they do not disappear but simply change form...and more importantly beneficiaries...

 

[briansnj]

WOW! All the garbage the big banks and Wall Street did and their answer is to squeeze the little guy till he can't make a buck any more and let the gap widen between the have and have nots.

Mean while the credit card companies still get to leverage me to the hilt with 36% interest and higher! Geeeeeeeeeeez.

Oh yeah, count on me writing to these guys numerous times weekly until this is resolved.

Unbelievable!

 

[drbarney2]

New leverage proposal...

Not sure if this is correct or not, but in the 193 page document I couldn't find anything about a 10:1 leverage. what I did find regarding this matter:

Paragraph (a) of the proposed rule change states that no member shall permit a customer to initiate a forex position (as defined below) with a leverage ratio greater than 1.5 to 1. Thus, at the time a customer initiates a forex position, the customer must deposit at least 2/3 of the notional value of the contract. Using the example in supplementary material .01, a customer entering into a forex contract representing $750,000 of a foreign currency must have an initial deposit of at least $500,000. The proposed rule change differs from the leverage limits in the FCM channel, where depending on the foreign currency selected, a customer at 400 to 1 leverage would need only an initial deposit of $1,875.

 

[Firstfx]

Email sent.

I hope it helps.

10:1 ratio is way too low. Current 100:1 is good.

 

[drbarney2]

Private contact to Pharaoh

I live in South Florida... are you near me???

 

[mago]

very fustrating

Just found the answer to above. Traders who trade at international brokerages like FXCM UK would NOT be affected. See here:

NEW CFTC proposed regulations for retail Forex: Leverage Subject to a 10-to-1 limit - Forex Forum | FX Forum

Like I said, the CFTC already killed retail forex in the US with their no=hedging rule. So this will just accelerate the flow of money out of the USA.

I hope this wont go through..ive been demo trading for 6 months..finally decided to go live next week..opened an account with FXDD...guess ill have to find out if they have a UK account...just yesterday i piped 6000$ in 24 hrs..lol...should i wait??/..when do they intend to put this through ..anyone know..thanks in advance...and thanks for the info..this site is very very helpfull...peace to all of you...pip to you all....

 

[Awais Rasheed]

That is harsh. I am not living in the USA but love to do business with the US registered brokers because of the rules and regulations that are followed here.

If this happens then this will definitely ruin the business.

 

[JohnL]

More Clarification

CFX members are happily not going to affected, but I'm going to send my protest anyway.

It is really getting hard to practice capitalism in this country.

MM

Music Man, who is "CFX" that you're referring to here?

 

[rpaco]

If it all collapses, you can speadbet on forex at £1 per pip which is 100:1.
I recommend Capital Spreads who are subject to FSA rules. They also have relatively small margin requirements.
Capital Spreads - Financial Spread Betting Homepage