TDFX is dropping U.S. clients

[ecafyelims]

Just got this today, I'm angry to lose my broker of over two years. Damn, this sucks.

Any recommendations for a replacement?

Dear Valued Client,

You might be aware of the recent changes in U.S. regulations regarding off-exchange retail foreign exchange. The new regulatory rules-implemented by the Commodity Futures Trading Commission (CFTC), the U.S. government agency responsible for the regulation of retail foreign exchange-apply to retail forex transactions that are offered or entered into by entities registered with CFTC under the Commodity Exchange Act (CEA).

Tadawul FX Ltd. is regulated by Cyprus Securities and Exchange Commission (CySec) and complies with all applicable European Union laws and regulations, including those under the European Markets In Financial Instruments Directive (MiFID). Although, Tadawul FX does not have any offices or operations in the US and is not subject directly to the licensing laws of U.S. regulators, further to our compliance checks it appears that the CFTC does not allow retail forex transactions to be provided to U.S. clients by entities not registered with the CFTC.

Due to the regulatory restrictions in the U.S., it is with great regret we inform you that Tadawul FX will no longer be able to accept any transactions from U.S. residents from 8th July 2011.

Procedure for USA resident clients

By 8th of July 2011 (22:00 CET) all open positions and all pending orders must be closed. Any positions left open will be automatically closed at the last available price, and all pending orders will be cancelled.

All funds in the trading account must be withdrawn to the original source. To collect all remaining balances from your trading accounts, you are kindly requested to send a withdrawal form, which will be processed once it is received. If you have recently sent funds to your trading account, the funds will be sent back to your original source, as soon as these are received. As of Wednesday 6th July 2011, no deposits will be processed from U.S. residents.

The status of the trading account will be changed to "Read Only," allowing you to access your account with your existing login details, just to view history and generate reports as you require.

We sincerely apologize for any inconvenience this may cause you, but unfortunately changes in U.S. regulations are beyond our control. Nonetheless, we will continue to reevaluate the U.S. laws and would be happy to accept U.S. residents in the future, should the laws and regulations change. We have thoroughly enjoyed working with you and would like to thank you for your business. Please feel free to seek independent legal advice to further determine how the regulations affect you or your company.

If you have any questions, please do not hesitate to contact us and will be very glad to help you.

Best Regards,
Tadawul FX

 

[Matt Miller]

Yeah I got that today too, god it pisses me off. I'm honestly considering moving to Europe or something, these regulations are getting entirely out of control. If anyone knows of any brokers that we can still use that offer higher leverages and spot metals please let me know.

 

[Stephen M Dodd]

Hey I got the same thing from Tadawul. Pissed me off too. All regulation in the states is likely to do is drive up spreads as broker loose competition.

BUT I was casting about for a new broker. I got in a chat with Vantage. They are Aussie. He ended up calling me. The guy was Damien or some such. He said he was speaking with their account managers and thought they might still be able to take me on. I am not sure how that would work but I'm interested. They have many American clients and don't seem interested in dropping them.

They loo pretty good on paper and have lots of banners on Forexpeacearmy. Sometimes they are below 1 pip on EURUSD for example.

I hope lost of post continue on this subject here if you guys have suggestions on new brokers too.

 

[Stephen M Dodd]

Oh, I also got Demo account with 1PipFix.com as I have a course going on and have to have an account after loosing Tadawul. They are showing 1-2 pips and no market spread requirements for stops and take profits. I read some stuff on this site about them that make me concerned that they may not actually use that in their live accounts. But I'm trying them as their rates on the Demo are low.

 

[Matt Miller]

I got in a chat with Vantage. They are Aussie. He ended up calling me. The guy was Damien or some such. He said he was speaking with their account managers and thought they might still be able to take me on. I am not sure how that would work but I'm interested. They have many American clients and don't seem interested in dropping them.

Stephen,

Please let me know how this works out, I would love to keep higher leverages and the ability to trade metals. I'm just using my old Forex.com account because its already open and I don't have to hassle with opening a new one, but if I can avoid trading with american brokers I will at any cost.

I'm going to get in contact with them myself, hopefully they can be our savior in this horrible tragedy. Thanks for the tip.

 

[Matt Miller]

I talked to some live chat guy named Matthew for Vantage and he said the minimum deposit would have to be 50k and we would need to have a net worth of over $1,000,000 to open an account there as US citizens.. That counts me out.

 

[ecafyelims]

I talked to some live chat guy named Matthew for Vantage and he said the minimum deposit would have to be 50k and we would need to have a net worth of over $1,000,000 to open an account there as US citizens.. That counts me out.

I've been hearing the same from other foreign brokers. I find it funny how millionaires are specifically exempt from the law.

 

[Boko Maru]

Just got this today, I'm angry to lose my broker of over two years. Damn, this sucks.

Any recommendations for a replacement?

Hey brah...might try these guys SmartTradeFX - Online Forex Trading. Currency trading..

They accept US clients, 200:1 leverage I think, lots of good FPA reviews, etc. But they aren't regulated and I've not traded with them myself. Know a few people who have though and they are happy...

 

[Matt Miller]

Hey brah...might try these guys SmartTradeFX - Online Forex Trading. Currency trading..

They accept US clients, 200:1 leverage I think, lots of good FPA reviews, etc. But they aren't regulated and I've not traded with them myself. Know a few people who have though and they are happy...

Youre the man!!!!

 

[Matt Miller]

I've been hearing the same from other foreign brokers. I find it funny how millionaires are specifically exempt from the law.

Honestly I've come to accept it, no matter what we do as retail investors we will continue to be **** on and looked at like parasites by the rich and the banks.