CFTC Rules - Broker Q&A for Traders

onenikos

Corporal
Messages
89
The effected parties

As the US market is a prime client base for brokers the burden is on foreign based brokers that must comply within very short time in order to keep their US citizen clientele intact. Some international brokers might face a question of continuing operation without the chunk of US citizen clients. This is especially true on reporting issues involved that if complied with will drive a large part of clients away! For the average US citizen trader, the effects in my opinion are either minimal or easy to overcome whether now or in the near future. Therefore in conclusion if you are a US citizen check now how your broker is effected. If you are not a US citizen still check your broker as to the percentage of US clients he holds!
 

JohnT

Recruit
Messages
2
CFTC over-regulation

Coming from Australia one of the most over regulated "free" countries in the world, so much so that locals refer to us as being the "nanny state", I shudder when I see the US, bastion of freedom, succumbing to this type of socialist regulation without so much as a whimper from those whose freedoms are being threatened. Guys, be aware, once it starts there is no stopping, and it is a relentless cancer, and it is always done "for our own good". I for one knows what is good for me and I don't need some bureaucrat to do it for me.

What scares me is once our seriously socialist government gets a smell of this we are next. :unhappy:
 

aicohn

Corporal
Messages
107
The ultimate irony is that I just opened an account in Russia, as a result of being forced out of Australia & will fund it today to escape from the creeping socialism/nanny state in the good ol' USA. I've always been a law abiding citizen with respect to my forex trading out of my Australian account.

Who knows whether I will be in the future.
 

Sharief

Recruit
Messages
1
U.S. and UK accounts with the same broker...

I'm a U.S. citizen and resident and I have 2 accounts with the same U.S. broker that just so happens to have a UK branch location as well and I have an account in both branches... one U.S. account and one UK account with that same broker.

My U.S. account I believe I have a 100:1 margin requirement ($1,000 required per standard lot) that I use and my UK account I get a 400:1 margin ($250 required per standard lot) that I use more frequently than the U.S. account or better yet, I use instead of my U.S. account.

Now, if I'm understanding this correctly, my U.S account now is going to go down from a 100:1 margin requirement ($1,000 required per standard lot) to a 50:1 margin requirement ($2,000 required per standard lot) and my UK account is basically going to be closed all together simply because I'm a U.S. citizen and/or resident.... and all of this is suppose to go into affect on Monday, October 18, 2010.... am I correct?
 

nubchai

Recruit
Messages
3
The ultimate irony is that I just opened an account in Russia, as a result of being forced out of Australia & will fund it today to escape from the creeping socialism/nanny state in the good ol' USA. I've always been a law abiding citizen with respect to my forex trading out of my Australian account.

Who knows whether I will be in the future.

Which Russian broker did you go with? That's the irony of this legislation. US citizens who want higher leverage will find it with unregulated brokers who may be riskier in the long run.
 

nubchai

Recruit
Messages
3
I'm a U.S. citizen and resident and I have 2 accounts with the same U.S. broker that just so happens to have a UK branch location as well and I have an account in both branches... one U.S. account and one UK account with that same broker.

My U.S. account I believe I have a 100:1 margin requirement ($1,000 required per standard lot) that I use and my UK account I get a 400:1 margin ($250 required per standard lot) that I use more frequently than the U.S. account or better yet, I use instead of my U.S. account.

Now, if I'm understanding this correctly, my U.S account now is going to go down from a 100:1 margin requirement ($1,000 required per standard lot) to a 50:1 margin requirement ($2,000 required per standard lot) and my UK account is basically going to be closed all together simply because I'm a U.S. citizen and/or resident.... and all of this is suppose to go into affect on Monday, October 18, 2010.... am I correct?

Yes and Probably. Your UK broker would probably have notified you already if they were going to close or move your account. Some UK brokers have an affiliated corporate office in the US. Others don't but may have agreements in place with the US to cooperate in situations likethis
 

Jason Rogers

FXCM Representative
Messages
511
Is there an official listing yet for which pairs will be classified as major pairs that trade at 50:1 as opposed to other pairs that trade at 20:1?

The official list of major currencies has been released by the NFA. Here are the major currencies: USD, GBP, CHF, CAD, JPY, EUR, AUD, NZD, SEK, NOK, and DKK. (NFA Manual / Rules . ) Any currency pair comprised of the currencies listed will be a major pair at 50:1 leverage. Any currency pair containing a currency other than what's in the list will be an exotic pair at 20:1.
 

carltonc47

Recruit
Messages
3
FXDD Malta has told me they will close all open positions, disable the account and transfer all US citizen accounts back to FXDD US by Oct. 18th. Only US citizens are effected. If you are a resident of the US but not a US citizen, you are not covered by the new rules.
 
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