This will be the end of the Forex trading through US-based brokers. Millions of retail traders' messages will fall on deaf ears, because this is nothing more than an extension of the out-of-control. beaurocratic micro-management that pervades the US these days. I doubt that even a concerted effort by US-based brokers will 'enlighten' them. And, if the brokers find ways around it (like they're doing for the FIFO\anti-hedging rules); there will be too many holes for traders' potential profits to fall through - and the smart ones will go abroad - sooner, rather than, later.

This will be the end of the Forex trading through US-based brokers. Millions of retail traders' messages will fall on deaf ears, because this is nothing more than an extension of the out-of-control. beaurocratic micro-management that pervades the US these days. I doubt that even a concerted effort by US-based brokers will 'enlighten' them. And, if the brokers find ways around it (like they're doing for the FIFO\anti-hedging rules); there will be too many holes for traders' potential profits to fall through - and the smart ones will go abroad - sooner, rather than, later.

Why absurd? Look at what happened to margin req for U.S. stocks after 1929Was that absurd. It was needed! Now we have out of control carry trade bubbles that have the power to cause major distortions in the global economy. In fact, fx might become much more trending as it was in the 1980s.

This may not fix anything, but I understand the impetus.

Why absurd? Look at what happened to margin req for U.S. stocks after 1929Was that absurd. It was needed! Now we have out of control carry trade bubbles that have the power to cause major distortions in the global economy. In fact, fx might become much more trending as it was in the 1980s. This may not fix anything, but I understand the impetus.

As you know fxterrapin. Retail forex has nothing to do with the actual market. These restrictions are meant for the retail forex industry, hence their will be no change in the price action resulting in a more "trending" environment

[quote=fxterrapin;3370666]Why absurd? Look at what happened to margin req for U.S. stocks after 1929Was that absurd. It was needed! Now we have out of control carry trade bubbles that have the power to cause major distortions in the global economy. In fact, fx might become much more trending as it was in the 1980s. This may not fix anything, but I understand the impetus.[/quote] As you know fxterrapin. Retail forex has nothing to do with the actual market. These restrictions are meant for the retail forex industry, hence their will be no change in the price action resulting in a more "trending" environment

I don't have a clear picture of the relationship between the CFTC and the CME, but the latter must surely be cheering this on. Even the published, "overnight" margin for EURUSD futures is about 30:1, with most brokers offering "day trade" margins at least twice that. The recently introduced mini FX contracts directly compete against mini-lots, with similar futures margin requirements. The major FX futures contracts are already fairly liquid, and their popularity would soar if this CFTC proposal were enacted.

I don't have a clear picture of the relationship between the CFTC and the CME, but the latter must surely be cheering this on. Even the published, "overnight" margin for EURUSD futures is about 30:1, with most brokers offering "day trade" margins at least twice that. The recently introduced mini FX contracts directly compete against mini-lots, with similar futures margin requirements. The major FX futures contracts are already fairly liquid, and their popularity would soar if this CFTC proposal were enacted.

It is going to force the retail 4x brokers out of the USA and although I am fan of low leverage I do not like it forced on me. Thaks for the heads up on this one!

It is going to force the retail 4x brokers out of the USA and although I am fan of low leverage I do not like it forced on me. Thaks for the heads up on this one!

I guess those that trade at 10 cents a pip won't be too concerned, but to someone such as myself who trades 10 standards ($100 a pip) and does well scalping 7-10 pips a day, this will be a disaster. I'd have to put down 100k on each trade instead of the 10k now. I'm really upset about this.

I guess those that trade at 10 cents a pip won't be too concerned, but to someone such as myself who trades 10 standards ($100 a pip) and does well scalping 7-10 pips a day, this will be a disaster. I'd have to put down 100k on each trade instead of the 10k now. I'm really upset about this.

More useless regulation - Given the fact that regulatory bodies are reactive rather than proactive this is just a way to make it seem like they aren't asleep at the wheel in light of the increased scrutiny they're under after the recent economic downturn.
I'm a big fan of personal accountability - if you blow your account up - don't blame leverage. You can effectively de-lever your trades, but you can only lever up to your brokers limit. This new reg would serve to cripple good traders, but wouldn't save bad traders from themselves.

More useless regulation - Given the fact that regulatory bodies are reactive rather than proactive this is just a way to make it seem like they aren't asleep at the wheel in light of the increased scrutiny they're under after the recent economic downturn. I'm a big fan of personal accountability - if you blow your account up - don't blame leverage. You can effectively de-lever your trades, but you can only lever up to your brokers limit. This new reg would serve to cripple good traders, but wouldn't save bad traders from themselves.

I like the 100:1 ratio. It allows me to keep smaller amounts of money with my broker. This in turn allows for good protection should my broker go bankrupt. Hence 100:1 ratio assits in good money management.

I like the 100:1 ratio. It allows me to keep smaller amounts of money with my broker. This in turn allows for good protection should my broker go bankrupt. Hence 100:1 ratio assits in good money management.

Exactly. Lower margin forces us to put up much more capital to make a decent living, but there's no protection in case the MM goes under (yeah, I've gone thru the RefcoFX fiasco)

Exactly. Lower margin forces us to put up much more capital to make a decent living, but there's no protection in case the MM goes under (yeah, I've gone thru the RefcoFX fiasco)

I'm all for a 10:1 leverage limit.

I'm all for a 10:1 leverage limit.

Leverage is the path to desaster, unless you know what you're doing exactly.

Leverage is the path to desaster, unless you know what you're doing exactly.

Right, driving a sports car or a superbike is a sure way to meet your maker, unless you know what you are doing exactly.
And I'm also all for a 50mph speed limiter on all passenger cars!

Right, driving a sports car or a superbike is a sure way to meet your maker, unless you know what you are doing exactly. And I'm also all for a 50mph speed limiter on all passenger cars!

This will not cause any big negative issues on a single profitable trader.

There is no secret that the FX industry need regulations.

This will not cause any big negative issues on a single profitable trader. There is no secret that the FX industry need regulations.

Who's side are these guys on anyway? First FIFO so you can't spot, swing and position trade on onw account. Then 100:1 demand which is tolerable, but 10:1?? If someone wants to blow-up their account then let them! It just forces traders to get better educated.

Who's side are these guys on anyway? First FIFO so you can't spot, swing and position trade on onw account. Then 100:1 demand which is tolerable, but 10:1?? If someone wants to blow-up their account then let them! It just forces traders to get better educated.

NFA and the CFTC have done little to nothing for the retail forex market. Security from unscrupulous brokers? Please, there all the same bucket shops. Some with more net cap then others. We as traders know who the decent brokers are and who the fly by nights are. Write your broker and tell them to quit their membership with NFA and the CFTC. Go back to running your platforms the way it used to be. This is the banking industry not the stock market! We can self regulate our own group.

NFA and the CFTC have done little to nothing for the retail forex market. Security from unscrupulous brokers? Please, there all the same bucket shops. Some with more net cap then others. We as traders know who the decent brokers are and who the fly by nights are. Write your broker and tell them to quit their membership with NFA and the CFTC. Go back to running your platforms the way it used to be. This is the banking industry not the stock market! We can self regulate our own group.

If you are for 10:1 why? what do you have to gain by such limitation?

Shouldn't it be the choice of the trader what margin level to use?

If leverage is causing you to blow accts, will you not wake up sooner or later?

If you are blowing accts at 100:1 or higher will you not blow accounts at 10:1?

Let's look at the facts: 90-95% of all traders lose. If you think this will change by reducing leverage you have been smoking cigars to long from the wrong end of your body.

If the 100:1 and higher leverage crowd is gone, next it will be 1:1. You won't be able to fight that legislation on your own because the majority will have already left the room. You will be simply there to shut out the lights. [Remember we were at 400:1 a nano second ago in the U.S.]

After the 10:1 is passed they can pass whatever rules they want and to no effect as all the rules to protect the consumer will be wasted because the consumer will be trading with an entity outside U.S. jurisdiction, most likely with less ethics and less protection.

So if this is to combat fraud: tell me how this will stop fraud in a global market place?

If you are for 10:1 why? what do you have to gain by such limitation? Shouldn't it be the choice of the trader what margin level to use? If leverage is causing you to blow accts, will you not wake up sooner or later? If you are blowing accts at 100:1 or higher will you not blow accounts at 10:1? Let's look at the facts: 90-95% of all traders lose. If you think this will change by reducing leverage you have been smoking cigars to long from the wrong end of your body. If the 100:1 and higher leverage crowd is gone, next it will be 1:1. You won't be able to fight that legislation on your own because the majority will have already left the room. You will be simply there to shut out the lights. [Remember we were at 400:1 a nano second ago in the U.S.] After the 10:1 is passed they can pass whatever rules they want and to no effect as all the rules to protect the consumer will be wasted because the consumer will be trading with an entity outside U.S. jurisdiction, most likely with less ethics and less protection. So if this is to combat fraud: tell me how this will stop fraud in a global market place?

You can easily expect an 1.5:1 as the next leverage level in a few years or months. That what was firstly suggested back on February 2009 by FINRA (Financial Industry Regulatory Authority) but it didn't pass.
So for those that do support the 10:1 leverage just give it a second thought.
I will write a complain email. Thats the only way to stop this.

You can easily expect an 1.5:1 as the next leverage level in a few years or months. That what was firstly suggested back on February 2009 by FINRA (Financial Industry Regulatory Authority) but it didn't pass. So for those that do support the 10:1 leverage just give it a second thought. I will write a complain email. Thats the only way to stop this.

So very soon you'll only be able to trade if you are a Soros or a Buffett.
Wonderful!!!

So very soon you'll only be able to trade if you are a Soros or a Buffett. Wonderful!!!

thanks all of u spesally Mr pip seeker,athan00,

thanks all of u spesally Mr pip seeker,athan00,

If you are blowing accts at 100:1 or higher will you not blow accounts at 10:1?

If you are blowing accts at 100:1 or higher will you not blow accounts at 10:1?

those who are rooting for 10:1 is either very rich or a fail trader.

those who are rooting for 10:1 is either very rich or a fail trader.

Folks,

There is a petition to sign to oust Gensler.
It just takes a minute:


http://www.petitiononline.com/gensler/petition.html

Folks, There is a petition to sign to oust Gensler. It just takes a minute: [url]http://www.petitiononline.com/gensler/petition.html[/url]