CFTC Forex Rules In Effect October 18, 2010

Pharaoh

Colonel
Messages
19,777
So they plan to totally hose us by then. Lovely. :unhappy:

I wonder if this applies to US Citizen or US Residents. It may be time to get permanently offshored while I still can.
 

karlmarx

Recruit
Messages
5
CFTC - Big Brother

The problem as I see it, will be that US banks will not send your funds overseas to FX firms. At least that is what the banks had begun doing early last year. Closing or not opening accounts for "non-bank financial institutions". The real problem with the CFTC rule is preventing the small retail guy from accessing pools of liquidity. This is because each FCM is its own market since no central location for trading exists. Few retail guys have the resources to place funds at multiple FDM's. Had the CFTC really wanted to make FX legitimate they needed to mandate the creation of a exchange. Then and only then would you have price discovery.

So unless retail traders can pool their money they are just screwed no matter where they open an account.
 

Big Steve

Private
Messages
20
Confirmed the same answer

Hello Traders,
I just exited an online chat with customer service at FXCM-UK where I asked if US customers will be relocated to US brokers as of 10/18/10. The response I received was yes definitley the accounts will be moved to a US broker on that date. I also asked if open positions will be closed by the broker as an element in the transition or will the transition be shown as a change in leverage only. I was not given a clear answer. The rep did not know. Apparently their legal department is still trying to sort to the bottom of what all of this garbage is really about and what it means for their customers before they need to advise os of these horrific changes. This is another point I brought up as to why there are no communications from them informing me of this monster in waiting. I was told they will when they have all of the information on it. It is amazing with regard to how many email lists I belong to with brokers and IB's and I have not received a single drop of information from any of them. Not a single one of them sent me any notifications at all about 10/18. That's all I can say, yes we need to figure something out quickly. We can and we will. There will be a way to survive this. I am looking at an offshore company. More money I didn't need to spend but I cannot afford not to. :(
 

Jason Rogers

FXCM Representative
Messages
510
Hello Traders,
I just exited an online chat with customer service at FXCM-UK where I asked if US customers will be relocated to US brokers as of 10/18/10. The response I received was yes definitley the accounts will be moved to a US broker on that date. I also asked if open positions will be closed by the broker as an element in the transition or will the transition be shown as a change in leverage only. I was not given a clear answer. The rep did not know. Apparently their legal department is still trying to sort to the bottom of what all of this garbage is really about and what it means for their customers before they need to advise os of these horrific changes. This is another point I brought up as to why there are no communications from them informing me of this monster in waiting. I was told they will when they have all of the information on it. It is amazing with regard to how many email lists I belong to with brokers and IB's and I have not received a single drop of information from any of them. Not a single one of them sent me any notifications at all about 10/18. That's all I can say, yes we need to figure something out quickly. We can and we will. There will be a way to survive this. I am looking at an offshore company. More money I didn't need to spend but I cannot afford not to. :(
Hi Steve,

You're right, there hasn't been as much communication in the run-up to the October 18 CFTC rules as previous rule changes, in particular how US residents trading with foreign affiliates are affected. Reason for this is because there was a lot of uncertainty as to the sort of timeline the CFTC would give brokers to repatriate those accounts, but we have received more clarification from the regulators.

I can now confirm that all forex accounts for US residents trading overseas will be repatriated back to the US by October 18, 2010. For US residents with FXCM UK, the switch back to FXCM US will most likely occur the weekend of October 15. The switch will take place over the weekend so that there is no disruption to your trading, and any positions will remain open (though please check your margin levels since you will need to set aside more margin at 50:1 leverage). The existing username and password you use to login to your account will also remain the same. US residents will receive information very early next week by email confirming the timeline.

Please feel free to post any questions to the FXCM.com thread and I would be happy to answer any questions as best I can.
http://www.forexpeacearmy.com/forex-forum/forex-brokers/1125-fxcm-com-8.html

-Jason
 

Agent86

Sergeant
Messages
195
This stinks

I don't understand the reason why this is happening, buti hope it stays in the US only.

US seems be a terrible place for forex. All the FIFO rules and no hedging and now 50:1 leverage? Geez. I'll stick with my AU brokers :)
I've been practicing and practicing for years.

I traded live for a short time to test out some strategies

I finally narrowed down a coded EA I had made based on my parameters and has a low drawdown I can really live with.

OK, so now I'm finally ready to trade ????

And here is the leverage topic again.

I will likely still trade in the US but it's a larger burden to come up with the extra money to do this.

Someone please explain how I can work around this and open an account some place else.

Please advise
Thanks

P.S
Keeping in mind this is the typical sentiment of all small and new traders.
 
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