http://www.cftc.gov/newsroom/general...pr5772-10.html
CFTC put out a new rule submission yesterday in trying to lower retail FX leverage down to 10-1 from the now 100-1. So it would be 10k per standard lot and 1k per mini lot. And thats on usd based pairs any other pairs like the euro based or pound based would be about 15k or so. So lets see if any brokers can speak on this new rule submitted. There is as usual a 60 day comment period before they vote to put the rule in action. It seems from looking at the past the CFTC usually passes these things. Which would be detrimental to FX trading and brokers business. This is for NFA/CFTC regulated firms, but we saw other firms out side the US drop their leverage a month or so ago when the NFA/CFTC lowered the leverage from anything above 100-1, to 100-1. Which was fine and smart but 10-1 is riduculous for this especially with the protection the firms offer not to have a negative balance, unlike futures.Just my 2 cents but would be nice to hear what some brokers think of this or have heard of this.
CFTC put out a new rule submission yesterday in trying to lower retail FX leverage down to 10-1 from the now 100-1. So it would be 10k per standard lot and 1k per mini lot. And thats on usd based pairs any other pairs like the euro based or pound based would be about 15k or so. So lets see if any brokers can speak on this new rule submitted. There is as usual a 60 day comment period before they vote to put the rule in action. It seems from looking at the past the CFTC usually passes these things. Which would be detrimental to FX trading and brokers business. This is for NFA/CFTC regulated firms, but we saw other firms out side the US drop their leverage a month or so ago when the NFA/CFTC lowered the leverage from anything above 100-1, to 100-1. Which was fine and smart but 10-1 is riduculous for this especially with the protection the firms offer not to have a negative balance, unlike futures.Just my 2 cents but would be nice to hear what some brokers think of this or have heard of this.