I do not post here often anymore but did want to stop in and say I hope every retail trader on Forex Factory comes out of this untouched. I left trading forex a long time ago for this reason alone. I went into Futures where I considered my money safer due to segregated accounts and being insured since I am in the USA. Of course no one wants to get corzined as the MF Global debacle but being insured and a centralized data feed where brokers can not manipulate was the correct path for me.
Forex appeals to most traders due to under capitalization. Its a way to make money for the small trader who is unable to open a futures account because he does not have enough cash or take money from a small trader who does not have the cash to open a FX account with a powerhouse like citifx.
Looking at this situation and depending on who gets hurt, I personally feel retail FX will still be around but traders will no longer be able to open up accounts with $500. FX will likely use the futures policies and require 5k or more for accounts to be open. Also will adopt margins and become strict like futures. You will have day margins and overnight margins. So if swing trading they may want 5k for overnight margins per contract. Each contract will be roughly $10 a pip/tick. They may offer micro or mini versions but they will still be a minimum of $1 to $5 a pip/tick.
In summary, I think the 10 cents or 1 cents a pip days of trading will be coming to an end by summer 2015. You will either have to pony up funding an account,save money to open an account or find a new hobby. I truly hope I am wrong because everyone has to start somewhere. Its a rich man's world where the little guy is always screwed. I wish everyone of you all the best and hope anyone effected by the SNB is not sought after from collectors.
Forex appeals to most traders due to under capitalization. Its a way to make money for the small trader who is unable to open a futures account because he does not have enough cash or take money from a small trader who does not have the cash to open a FX account with a powerhouse like citifx.
Looking at this situation and depending on who gets hurt, I personally feel retail FX will still be around but traders will no longer be able to open up accounts with $500. FX will likely use the futures policies and require 5k or more for accounts to be open. Also will adopt margins and become strict like futures. You will have day margins and overnight margins. So if swing trading they may want 5k for overnight margins per contract. Each contract will be roughly $10 a pip/tick. They may offer micro or mini versions but they will still be a minimum of $1 to $5 a pip/tick.
In summary, I think the 10 cents or 1 cents a pip days of trading will be coming to an end by summer 2015. You will either have to pony up funding an account,save money to open an account or find a new hobby. I truly hope I am wrong because everyone has to start somewhere. Its a rich man's world where the little guy is always screwed. I wish everyone of you all the best and hope anyone effected by the SNB is not sought after from collectors.