Does the NFA plan to destroy MT4 in the USA?

[marsh56]

I am certainly no fan of either the NFA or CFTC. However, I am certain that most or all of the regulated US brokers will come up with solutions to these issues.

As an American citizen just coming off our celebration of Independence Day, I am embarrassed that the US has strayed so far from the freedoms that we all cherish.

The good news is that I have accounts with both FXDD and Gallant FX and neither one is affected by these troublesome regulations. In fact, I have not had to make any changes to my accounts.

FXDD is a market maker but I have not had any major issues with them. Gallant FX is an STP broker, so you don't have to be concerned about them taking opposite positions.

Mark

 

[SAMMYFX]

Thanks A Lot!

Thank you so much for sharing this with us Pharoah. Like I said in my reply to the post he made concerning the new rules, AMERICA is on the verge of collapse! Now don't call me a religious fanatic but if you care enough to know what is happening to America from a general view I recommend ONE book for you:- THE SECRET TERRORISTS BY BILL HUGHES. I can recommend a dozen other ones but this little book that will really open your eyes wider.

I see all this from a prophetic point of view. And BELIEVE ME it's so sad that Americans are gradually loosing their God-given freedom that made the nation the GREATEST AND MOST PROSPEROUS. How sad! How sad!! May God be with America!!!!!

 

[limitup]

It has power over the member fcms. you can still trade with non-member fcms should you choose to who will not be subject to this regulation.

Doesn't anybody get it? NFA stands for National "FUTURES" Association...not National Forex Association. FCM stands for "FUTURES" Commission Merchant...not Forex Commission Merchant. Membership is only required if broker clears futures contracts. That is the law as per the CFTC. Forex brokers cannot be regulated by the NFA. Period. Until there is a new act or actual amendment to the commodities act, then brokers can do what ever they want. If you choose to believe a broker and their bull**** to sell you an account then, be my guest...and when you lose your ass your broker's legal department will defend itself by stating that you have no recourse because we are not regulated....even if they are a member. If the Obama commie Administration is hell bent on destroying what is left of capitalism, I for one will not stand for this. My three corner hat and I will pull his ass out of office. I'm sure Rick Santelli will follow. What is need is sound regulation..not shooting from the hip for traders wallets.

 

[Pharaoh]

You may want to recheck that. The CFTC has granted broader power to the NFA over time. Both are heavily involved in controlling forex brokers in the USA.

 

[Dispicable]

Thankyou for your information

Thankyou for your information but you should also know that our current government at hand is working hard to make sure that we are no longer able to hold ANY financial account outside of the u.s. Do your own homework on this but laws are being passed as we speak.Forex is such an awesome way to make great money but I fear it will be taken away from us in the very near future through excessive regulation,excessive taxes,and other forms of tyranny.We the little guy are able to make large somes of money and therefore be a voice that stands up for what is right ,what we believe in.And they know it.Crushing us by removing our source of power,which is our ability to earn in forex.It:s what they need to do so we wont be able to resist when they drop the hammer on us.Don't blame our Government,blame the puppet master who's really behind all this.The world banking system is that puppet master,and how ironic is it that we the profitable forex traders rank so high on there list as to who they consider a real threat.Is this NFA thing a coincidence?? Maybe. But I bet it's not.What do you want to bet that it's just the beginning of much more trader targeted manipulation.Specifically small trader under 100 million. Well like I always say "Time has a funny way of always telling the truth."So we shall see.
As always I thankyou for keeping us informed,it is greatly appreciated.

 

[duck]

This is what GFT Forex has to say about this issue. They say they won't be affected by it.

From: GFT: Get the Facts

NFA Rule 2-43 (b) requires a "first-in, first-out" (FIFO) method of trading, which simply means that orders must be closed in the order in which they were opened. In many dealers’ systems, stop and limit orders would violate this rule. The new rule also eliminates “hedging,” which is the practice of taking contrary positions in a market in the hope that one of the positions will prove profitable.
​

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GFT already complies with this rule because we use a net-based system rather than a position-based system.

* In a position-based system, it is possible for a trader to take multiple positions at different levels on the same market. For example, a trader could have three positions in the EUR/USD pair and then close out each position based on its individual performance, which would violate the FIFO rule.

* In a net-based system such as GFT’s, when a trader enters a new position in a market where he or she already holds a position, the new position is simply added to the old position and the price difference between the two is averaged. So it’s not possible to hold multiple positions in the same pair and therefore it is not possible to violate the FIFO rule.​

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I believe MB Trading also operates by aggragating existing positions.

If the above is accurate, it would be good to have a list of which brokers operate in which manners.

 

[faytyman]

Weldone Guys

I am delighted to know this because i trade with NFA broker.You guys are BOMB.More grease to your elbows.Thanks for being my personal guide.

 

[sutivserv]

Thanks for the info, please keep us updated when necessary.

 

[Aldragon]

NFA regulations

This sounds to me like the us federal reserve getting 100 leverage for their bonds from.... themselves. Weird....
CUT IT!!!!

 

[PistolDave]

Regulation? Fighting the war against corruption.

Since this seems to be a hot topic right now, I would like to put in my 2 cents worth.

My opinion is that the NFA is actually trying to regulate the forex industry brokers (bucket shops) and help keep them from screwing the small traders.

I know that is not the most popular belief here right now, but please read on and allow me to explain why I think this is the case.

Face the facts people, we are small fish in a huge ocean of sharks here. We are the food that the big traders eat, and the source of ALL the profits for these scummy bucket shops. Yes, they do provide us the "opportunity" to trade in the forex market. And yes, without them we would not be able to have the chance to make money with our tiny little accounts. So you could say they provide us with a valuable "service." But at what price? A loan shark will provide you with the funds you need and call it a loan. Get it?

I have been around since before this forum was created, and all I have heard is how corrupt, cheating, lying, and unreliable most retail brokers are. Most people moan and groan about how the industry needs regulation to protect us from their unscrupulous tactics of helping us lose our money. And I agree 100% with that.

But common sense would tell you that brokers of any type are simply businesses that are set up to take advantage of an opportunity. The opportunity for them is that there are thousands (if not millions) of inexperienced, get-rich-quick minded, eager wanna-be traders out there who can easily be parted with their money. So, without any industry regulation they can make false claims, create trade entry platforms that appeal to the unsophisticated beginners, manipulate data feeds, and manufacture and promote bogus "hedging" schemes that take advantage of the unwary newbie.

The real business opportunity in forex has always been in starting your own business as a forex "broker." Virtually anyone with some rudimentry programming skills and a relatively small investment can start up. In the perfect environment too. No regulation. No penalties for breaking laws because there really are no laws. No restrictions on what kind of false claims or hyped-up marketing ploys can be used. And best of all, lots of suckers out there who are more than happy to throw away a few hundred bucks on the chance to "make it big" in the "3 trillion $ per day" forex market.

In case you forgot for a second, they are NOT here to help us. They are here to help themselves -- to a very tasty piece of a very lucrative pie.

Face the facts people. Most (if not all) retail market makers are simply in the business of fleecing the public out of as much money as they can as fast as they can. Nothing else. We have to deal with them as a necessary evil of this money making opportunity called forex. But don't ever think for one minute that they EVER have your best interest in mind.

So my point is, no matter how inefficient, plodding, and unfair the regulatory agencies are, without some kind of control it will continue to be a free for all for the bucketshops to continue to have a license to steal from us as it has been until now.

Don't get me wrong. I believe in freedom. I believe everyone should have the right to make money without government interference in our lives. But without regulation in this industry the broker's greed will know no bounds.

So what are we to do? I suppose we could just believe that they will begin to do the right thing if we as individuals "move our funds offshore" and that will show them. Yeh, right. You gave up believing in the tooth fairy and the easter bunny at some point didn't you, remember? They know there is a steady line of fresh cattle being lead to the slaughter every day by the false claims and they expect them to always be one time players anyway.

Actually this reminds me of what a futures broker told me one time back in the early 80's when I started trading in the grain markets. He said "As a commodity broker, I'm mainly here just to hold the customer's hand until they lose all their money, which they almost always do."

In forex, the SOB's don't hold your hand, or even kiss you before they screw you.

Friends, I'm sad to see it, but I think that the time is at hand where the government has decided to clamp down on all this feeding frenzy. And yes, we are all going to suffer for it as anyone who is honest always will. But without regulation, laws, and penalties for violating those laws there will never be a limit to the greed of the bucketshops and this "industry" in general.

The time has truly come to clean up this scummy mess and make it possible for people like us to make honest profits without worry of brokers screwing us to the max along the way. We also owe it to the next group of newbies to be the leaders who have paved the way to make it safer and fairer for them to take advantage of this incredible opportunity.

Thank you for taking the time to read this,
PistolDave