Good Idea?
Are you sure you know What are you talking about it? This broker is out side of the Country . Regulations will cost a lot more money to the end user, (The trader, means us) that will be almost impossible to trade. I don't think that will be good idea. right here in America we have NFA and CFTC as you say, We also we have FOREX PEACE ARMY as you can see. I think that will be enough protection for us.
In this case a Great job have been done by Ken and the FPA.
I personally encourage to all soldiers here to take action to rule "Forex" all around the world. Since I’ve seen by my own experience and the forums opinion, we need to take action confronting the institutional governments and demanding the following:
-The Brokers must act as "agents" and/or "principals" for the customer only.
-Each broker must legally represent only one side on each transaction and its inherit interests must be stated in the "Costumer Agreement Contract". The agreement must be worded as a contract to represent "You" (his/her client). Instead of destroy and ruin in you; as it’s been till today. We have the right to be treated in an equal position.
-All broker's "Costumer Agreement Contract" must be worded the same way. The Government must take action in standardizing this.
-Brokers can't act anymore as a counter party against the costumer’s positions.
-Brokers must be paid for services only by the costumers, through spread and/or commission.
-Brokers must be ruled to avoid adjudication of any "rollover fees", partial or total.
-The term "Arms be ware" and its definition must be included in the contract with IB's and Brokers.
-IB's that bring advisory to his/her costumers must be ruled to be paid only in the costumers closed winning positions. That is to avoid churning. It could motivate IB's to be the best traders allies at all times. Costumers must receive from time to time a statement with all monies received by the IB from the broker, on the specific account.
-"Slippage" must be ruled as a major deceptive industry practice, with zero tolerance, by regulating financial government institution in each country. License will be suspended.
-Licensing must be mandatory to all Forex brokers and IB's, as wheel as a maintaining of a clean record requirements to each person licensed as a broker or an IB.
-Continuing Education must be implemented to each scope of job (IB or Broker). A bunch of money deserves that kind of studying sacrifice, right or not?
- A central government data price must be recorded and it will be available to compare prices in every dispute. Not to be used in regular daily trading, but it’s necessary because the whole industry needs to have a patron where every Forex Institutional or Individual will count in arising disputes.
My plan of action is:
1-Write to your Local and State Department of Financial Services about your concerns.
2-Encourage your politicians to take action on your side. Show them how a big capital is drained for letting Forex brokerage, without any strict and enforceable regulations. Show how Local and States governments could benefit through the new system of regulations for brokers (for example: Broker fines must be huge amounts of money and new jobs must be created to regulated the industry).
3-Ask to Local Schools that make Licensing Test in other regulated industries, how to encourage and involve the government in regulating the Forex industry, with Licensing and Continuing Education.
4-Write to the best allies of the Forex Brokers (the ) about your concerns and for the needs of strongest regulations in the USA. Write to those organizations, that you do not agree with "Forex Casinos" in the USA.
5-Write to CEO’s of the greatest U.S banks, about what we all Traders want access to the open "Interbank". Competition between banks for the new industry will be reward to every one.
To all my folks here,
Andres Leiva
Miami, FL. USA
Are you sure you know What are you talking about it? This broker is out side of the Country . Regulations will cost a lot more money to the end user, (The trader, means us) that will be almost impossible to trade. I don't think that will be good idea. right here in America we have NFA and CFTC as you say, We also we have FOREX PEACE ARMY as you can see. I think that will be enough protection for us.