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Attachments: Could 10:1 be the new leverage in US Forex?
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Could 10:1 be the new leverage in US Forex?

Quoting Forexia
Actually the net capital requirement was raised to $20 million as of Sept. 30 of 2009 as per the info. on the NFA site.
Yep, I remember that, thanks. But the new rules establish a new category - RFED's - that will cover anybody that is acting as a US forex broker but that has previously flown under the FCM radar - the CollectiveFX comes to mind - are they still in business? - and there must be others... it seems everybody will have to be in the $20 million club now...

Anyway, I am still reading the rules and I am not sure about all that - it doesn't really affect me anyway.
"If The Fool persists in his Folly he will become wise." - William Blake
Quoting The Fool
The rules are in the Federal Register. The new Risk Disclosure statement is especially ..... a hoot. Forex brokers now will be RFED's & will have to have the $20 million (+) capitalization that FCM's have had to carry. Since it won't affect me, I won't look, but I wonder if there are not more than a few US forex brokers who don't measure up to that as of now.

http://www.cftc.gov/ucm/groups/publi...ster083010.pdf
Killer! I forgot about that list. Looks like db is already self regulated under CBOT and registered, same as citit.
Quoting The Fool
The rules are in the Federal Register. The new Risk Disclosure statement is especially ..... a hoot. Forex brokers now will be RFED's & will have to have the $20 million (+) capitalization that FCM's have had to carry. Since it won't affect me, I won't look, but I wonder if there are not more than a few US forex brokers who don't measure up to that as of now.

http://www.cftc.gov/ucm/groups/publi...ster083010.pdf
Me too. I am still reading the rules. Seems to me, looks like they are giving lots of jobs to the NFA.

I am at the "Leverage" part. NFA now have to classify what currency pairs as "major currencies" which would get the 50:1 leverage. Plus they have to review not only the classification and the leverage rate each year.
Make your losses in demo. Earn your profits live.
They've really gone and done it. Can this still be fought in court?
Quoting 24HourTrader
They've really gone and done it. Can this still be fought in court?
Not necessarily in court but prob. through some kind of Committee or Review Appeal Board and etc. unless you feel CFTC is really violating certain rights. Best to consult an investment lawyer on this one.
Make your losses in demo. Earn your profits live.
Quoting 24HourTrader
They've really gone and done it. Can this still be fought in court?
Probably not. Coulda been worse. If you sent in a comment to the CFTC earlier this year, give yourself a pat on the back - it seems that the overwhelming antipathy towards 10:1 in the 9,100 comments they received had an effect and 50:1 is not too bad considering what might have been.
"If The Fool persists in his Folly he will become wise." - William Blake
Quoting The Fool
http://www.nydailynews.com/ny_local/...#ixzz0xcaSNfyW
What the f*ck is that sh*t??!!

I'm from Spain and 20something too and I was planning go some months to USA and trade from there, lucky of me that I have read this! Here in Spain if you win something trading you pay ~20% of what you have won and if you lose you pay nothing. What the hell is the IRS???

And he has to move back to their parent house, like many million here in Spain because the crisis! (more than 20% of unemployment), he has to pay 172 millions dollars now?! HAHAHA, from where? There's not so much cash in all Spain together xD.

So, is this NOT true?:

Quoting Slack
Quoting Scott_16
I was wondering if you lose money trading forex (over a few months) and then quit trading, do you still have to report this to the irs?
No.
Quoting The Fool
Probably not. Coulda been worse. If you sent in a comment to the CFTC earlier this year, give yourself a pat on the back - it seems that the overwhelming antipathy towards 10:1 in the 9,100 comments they received had an effect and 50:1 is not too bad considering what might have been.

I think 50:1 is great in fact......I used to have a different opinion. Although I don't agree w/ 20:1 for minor crosses.
Quoting The Fool
The rules are in the Federal Register. The new Risk Disclosure statement is especially ..... a hoot. Forex brokers now will be RFED's & will have to have the $20 million (+) capitalization that FCM's have had to carry. Since it won't affect me, I won't look, but I wonder if there are not more than a few US forex brokers who don't measure up to that as of now.

http://www.cftc.gov/ucm/groups/publi...ster083010.pdf
The new Risk Disclosure Statement requirement is a bit of an overkill.

If I am a Retail Forex broker, I would feel they are anti-competitive and unfair.

I speculate this new Risk Disclosure Statement Requirement would encourage more ECN's as that would resolve the "Conflict of Interest" issue and then they can appeal against this Risk Disclosure requirement which was created to compensate for this "Conflict of Interest" issue.

Just my 2 cents.
Make your losses in demo. Earn your profits live.
A big to the CFTC! I cannot believe they read, and digested, all the comments even ones that came in after the expiration date.
Quoting Forexia
I speculate this new Risk Disclosure Statement Requirement would encourage more ECN's as that would resolve the "Conflict of Interest" issue and then they can appeal against this Risk Disclosure requirement which was created to compensate for this "Conflict of Interest" issue.

Just my 2 cents.
wouldn't more ECN's be a good thing? Wouldn't hazing out the bucket shops be a good thing?

The Risk Disclosure statement is accurate and reflects the reality of what you are doing when you trade forex with a bucket shop.
"If The Fool persists in his Folly he will become wise." - William Blake
Quoting Forexia
Me too. I am still reading the rules. Seems to me, looks like they are giving lots of jobs to the NFA.

I am at the "Leverage" part. NFA now have to classify what currency pairs as "major currencies" which would get the 50:1 leverage. Plus they have to review not only the classification and the leverage rate each year.
And the minor/exotic currency pairs? How much leverage will they have??????
Quoting Trad3r
And the minor/exotic currency pairs? How much leverage will they have??????
20:1. I hope they use the same definition of "major" as the NFA did, which pretty much covered anything offered by most brokers.
Quoting 24HourTrader
20:1. I hope they use the same definition of "major" as the NFA did, which pretty much covered anything offered by most brokers.
Thank you, where can I find that NFA list?
any thoughts on US traders with UK accounts...?
Quoting Trad3r
Thank you, where can I find that NFA list?
Can't recall...I remember reading it when the NFA decided they wanted to cut leverage. If you find that release it'll be in there.
I'm reading the document too, they are going to disclose the % of winners and losers ROFLMAO! I hope brokers don't cook numbers to make believe customers that they have "only" a 80% of losers instead of 95%.
Quoting Trad3r
I'm reading the document too, they are going to disclose the % of winners and losers ROFLMAO! I hope brokers don't cook numbers to make believe customers that they have "only" a 80% of losers instead of 95%.
LOL...maybe the'll stop...STOP HUNTING

50:1, well there you go!

All that panic over the little guys rights and his exclusion from being able to trade, all the scaremongering and shouting fire about retail FX being banned in the US, all the nonsense about avoiding extraterritorial jurisdiction..........all for nothing!

Well if you guys can't 'manage' with 2% margin requirement then there's definitely something wrong somewhere!

Quoting Trad3r

...they are going to disclose the % of winners and losers
Great! Maybe we'll finally be able to find out if the 95% myth is actually true!
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