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CFTC Forex Rules In Effect October 18, 2010

Discussion in 'General Forex Talk' started by fxguy77, Aug 31, 2010.

  1. RahmanSL

    RahmanSL Major

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    "The CFTC is the government regulator that has authority over Forex Trades. This industry desperately needs some regulations. The problem is that they mix improvements with crazy stuff."

    Seems like the guys at CFTC either went to the same school as my country's ex-finance minister or they must be related somehow...But mine went one step better by making forex trading outright illegal! : )
     
  2. Dirk58

    Dirk58 Sergeant

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    great ;-)



    ever thought about an affordable real offshore business???
     
  3. m r p

    m r p Recruit

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    Truthfully...I believe you. If I'm honest, I'll admit to a nagging, underlying anxiety that this will all go away someday. Or at least evolve (de-volve?) to a point where I'll no longer be able to participate.

    It may very well be governments that ruin it for us. Every time I read about someone trying to rally the nations together to develop a fixed system for currency values I have a tiny little heart attack. When I read about the proposed 10:1 leverage I went from terrified ("I'll be retirement age before I have the kind of cash I'll need to make this worthwhile anymore...") to angry ("...how many suckers had to get scammed or traded out of their life savings to get currency leverage to show up on the Federal government's radar? During wartime???").

    Corporations could do it, too (mirroring your sentiment on capitalism). Toyota, for example, stands to lose millions this year due to the yen being a juggernaut right now. We'll watch for broad, sweeping, across-the-board strokes that won't be limited to the US when enough corporations decide they've had enough (and figure out how to make their move).

    My biggest fear, though, it the antagonist you don't see coming. When I was a kid, there was a network of realtors in my town (as in any town). They hired my dad to do a simple, long-term job for them. My dad - a resourceful guy (much like your average trader) - developed a system over a period of several years that became so streamlined and effective that, by the time I was thirteen, my dad was pulling in more money than, as it turned out, 95% of the local realtors out there.

    You can imagine how this story ends. The rates were competitive (slightly lower than what these folks had paid for this service for the years prior to my dad showing up), there were zero complaints, the operation was transparent and nothing even marginally unethical going on. So when the axe dropped, all the board could say to my dad was: "We just can't have you making more money than us."

    So, in response to your closing question (in my long-winded way)...I worry over typical US over-regulation stemming from too many folks losing their homes & shirts in this market, yes. But that's nothing compared to how terrified I am of what could happen if the wrong group gets it into their head(s) that we're more successful than we ought to be.

    I guess you & I can take comfort in the fact that, for the most part, forex traders are not a high-profile bunch...

    I'll check back here periodically just to see what's up and/or share anything interesting I might pick up out there. Take good care -

    MP
     
  4. mrcoldcream

    mrcoldcream Recruit

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    Screw the us brokers



    Dirk, please send a copy of the pdf. you mentioned to my email: mrcoldcream@hotmail.com. Thanks very much
     
  5. pipsbuster

    pipsbuster Sergeant

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    One of my friends decided to clarify the matter with the new CFTC regulations and sent them a couple of questions. Below are his questions and the CFTC answers to them. I think you will find this info very informative.



     
  6. Steve0001

    Steve0001 Recruit

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    Draconian CFTC Forex Rules

    So, in a few words, if you are a US citizen wanting to trade FX, you're screwed.

    What can we do to fight back? I notice we have Barney Frank and Chris Dodd to thank (and other Democrats). I strongly encourage all Forex traders who are US citizens to VOTE IN NOVEMBER and to VOTE OUT EVERYONE WHO SUPPORTED THE LEGISLATION which lead to this lousy short-sighted new CFTC regulation. I would like to see a list of those who supported it. I am sure it is made up almost entirely of democrats, but any repubs found supporting it should also be looking for a new line of work come November.

    Unfortunately, this will likely cause long-lasting damage, because even if Congress changes from Dem to Repub hands, there may not be enough votes to repeal or revise the piece of crap legislation. Not only that, but I have serious concerns that retail FX trading will be that high on the list of things to be fixed.
     
  7. pipsbuster

    pipsbuster Sergeant

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    My friend also spoke with a representative of IBFX Australia. Below is a transcript of their conversation containing some valuable info in it:


     
  8. Pharaoh

    Pharaoh Colonel

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    Errr. . . . that "until July of next year" part from the CFTC is a bit scary. Any chance of writing back and finding out what they are talking about?
     
  9. m r p

    m r p Recruit

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    This is physically difficult to type out. Dirk58...if you could send your PDF to me at foulmouthedmike@hotmail.com, I'd be very much appreciative.
     
  10. pipsbuster

    pipsbuster Sergeant

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    It's clear in fact. Only those overseas brokerages that have the status of a bank (e.g. Deutsche Bank) may continue servicing the US customers without getting registered with the CFTC first and complying with its regulations, but only until July next year.
     

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