All USA FX dealers may not be able to support MT4

Hi,

According to the mail I received from the FXCM. (see below)
USA FX dealers may not be able to support MT4 due to NFA regulation.

I am familiar with regulations and not saying it is the case.

However, do you think they twisted the regulation and use it to force clients to
switch to FXCM UK for un-speakable reason.

David


Dear Client:

KEEP MT4 AND YOUR EXPERT ADVISORS:
TRANSFER YOUR MT4 ACCOUNT TO Forex Captial Markets Limited (FXCM UK)

The primary regulatory authority for forex in the United States, National Futures Association (NFA), has implemented new requirements that will have dramatic consequences for your MT4 account.

Hedging functionality has already been removed, and after July 31, 2009, First In, First Out execution will be required, which mandates that the first order in must also be the first order closed. Regulatory requirements in the United States will also likely restrict Forex Dealer Members from offering more than 100:1 leverage on major currency pairs and will be limited to 25:1 leverage on non-majors. FAQ, videos, and live Q&A are available in the DailyFX forums. Learn More

What does this mean for your MT4 account?

To date, we have received no indication from MetaQuotes that they will be able to comply with First In, First Out execution by July 31, 2009. As such, the combined changes brought about by NFA Compliance Rule 2-43 will mean that traders will no longer be able to trade MT4 with U.S. regulated brokers. Assuming that MetaQuotes is able to comply, there will still be major implications:

Traders will have fewer order choices
Traders will have drastic limitations to their risk management options.
The vast majority of Expert Advisors will no longer be functional
How can you avoid these changes?

To keep your current MT4 platform functionality, we recommend that you immediately fill out the FXCM UK opt-in form to have your account transferred before the regulatory changes go into effect. It is our understanding that the MT4 FXCM UK option is the ONLY solution for U.S. clients who wish to: trade with a regulated MT4 broker, maintain their MT4 platform functionality, and send funds to a U.S. bank.

FXCM UK is regulated by the Financial Services Authority (FSA) in the UK. London is the main trading center for forex in the world and the retail forex market has been regulated in the UK much longer than it has been in the U.S. Under FSA client money rules, FXCM UK accounts are fully segregated. This means client assets will not be exposed to any bankruptcy proceedings. Learn More

If you wish to transfer your trading account to FXCM UK, please complete the one page form. Account Transfer Form

DEADLINE TO COMPLETE EARLY-OPT IN: JULY 8, 2009*

Important Notice: If you completed the transfer form, your account will be operational prior to the implementation of new NFA regulations. You will be notified via e-mail when your account is transferred.

Your account number and password will remain the same and your open positions will remain intact. Moving an account to FXCM UK involves some changes in deposit and withdrawal instructions, and changes in charges for transferring funds. However, FXCM UK clients have the option to send funds to the United States and fund via credit card. MYFXCM.com will also be available.

Deposits | Withdrawals | MYFXCM.com

If you have any questions about the new regulations or their effect on your risk management, please don’t hesitate to contact us at 1-888-503-6739, or e-mail us at [email protected].

We look forward to serving you.

Best regards,

FXCM
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005
1-888-50-FOREX (36739)
[email protected]
www.fxcm.com

* Please be advised that FXCM makes no guarantees as to the exact date of transfer. Accounts may not be transferred on their scheduled dates. In any event, clients will be notified via e-mail confirming the fact that their account has or has not been transferred at the scheduled time.

Yes from what I heard, MT4 will no longer be applicable for US trading laws, that’s why metaquotes is rushing out the MT5.. I also heard, despite MT5 is no were near ready for retail release MQ will be releasing a beta version that will only have loads of issues.

As for FXCM’s UK MT4 powered by Boston Technologies, , it’s a piece of crap. And yes I do have a real account to back up my words.

WTF, quit being gay NFA! Why would they do that

I have a live Beta MT4 account with MB and it is working stunningly well. Forget Boston Tech, they have been peddling that crap for years. I talked to someone at MB this week about the FIFO thing and they said there is already a better solution in the works. Might want to attend their Monday webinar on their launch...

Is NFA an USA government owned organization ? does not look like.
Who are the members of the NFA.

How does it define the regulation ?

Whom do the NFA discuss with when defining the regulation ?

How come we as a consumer have no say in it ?

What if the defined regulation is not actually protecting us but to help
big player achieve some hidden purpose ?

Is there anything we can do ?

There is an easy way around the FIFO rule.

Instead of placeing 3 x 1 Lot Orders at EUR/USD just place one with 0.99 one with 1 and one with 1.1 Lots now you can close them in every order.

Aslong as they are not the same size you can close them as you see fit.

Hi David,

Traders could stay with FXCM US but would then have to live with a potentially un-supportable MT4 platform. The FXCM UK option is being given for the benefit of continuing to use MT4 with hedging and complete ticket management as you've always used it.

The NFA is a self-regulatory agency, independent from the government. New regulations can come about by one of two ways. It’s either a proposal that the NFA makes to the CFTC for approval, or a new requirement coming directly from the CFTC. What you could do is contact the NFA to voice your opposition to the plans.

-Jason

Wrong

I am moving. This isnt the country I helped protect in GulfWar 1.3 . Ever since the AntiChrist of Politics(Bush#2) gained power, USA has been powersliding into the abyss . I wonder what type of country my children will have to fix? Brokers having an NFA registration and a USA address is meaningless. I agree that some Broker regulation is in order but after July 09 I will not be trading with ANY US based Broker in any capacity. ( How unbelieveable that in only 10 short years this great country has slipped into 3rd world status and falling) I predict that in 10 years the Mexican and Canadian governments will build their own fence to keep US out and our road signs will be in Chinese..

Yeah right that's an official statment from my broker.

Either u misunderstood or ur broker misunderstood it. I am not gonna explain it to u cause its long and extensive

It is not all that bad, and the US did not need protection from Saddam in the first war...or the second one. But we could agree on one thing...Cheney F***ed everyone

Attached is picture.

Whoever told you that is wrong for MT5...


Row 1 in the table below (3 buy scenario)
In row the 3 trades are joined together into 1 position (1 overall trade). What this means is that the trades of 0.99 + 1 lot have their profits or losses recognised at the entry point of the 1.1lot trade. Hence the (0.99+1lot) trade is added to the 1.1lot at the entry ask quote of the 1.1 lot trade.
If the 0.99 and 1 lot were in the positive it has little effect. However, if they were in the negative, you have a loss being recognised prior to the obvious up run that you were expecting. Hence you immediately lose balance. If the trade does move in the completely in the correct direction you will recover the equity loss, but if it does not you have lost it.

Row 2 in the table below (2 buy then 1 sell scenario)
With this scenario you lend up with an overall 0.89lot BUY at the 1.1lot SELL entry. In other words you lend up with a worse position on the BUY.


Overcoming this MT5 stuff

What you do to overcome this is to place a new BUY order at what would have been your take profit point of your sell.

This new MT5 position trading scenario means that to have the BUYs in the initial direction that you wanted you would have to re-enter a new trade at your take profit point of your Sell. This means that you have had to place an additional trade to cover the long term BUY trade.

This MT5 trading adds a little to the complexity as it would be last trade only that would determine the overall position, overall take profit point and overall S/L point. This is unless you set up multiple partial stop loses, and multiple partial take profits.




This new MT5 system that MT5 brokers will have:

1. Can only maintain or increase the costs for the trader.
2. Can only maintain or increase the profits for the broker.

MT5 will now obey NFA's silly rules. Because these rules, still allow for "hedge" trading at an increased risk by using multiple accounts, these MT5 changes and NFA rules do not appear to have been made for the benefit of the trader.

But because it had to appear for the trader there were deadlines for this trading style elimination for the trader, broker and trading platform developer.

But LOL, the rules are coming in too quick for the safe bug free release of MT5 platform, hence, USA NFA regulated brokers are quickly asking all their clients who want to use Metatrader with them, to transfer their funds by the 8th July, 2009 to international accounts. Otherwise because Metatrader 4 breaks the silly new NFA rules, brokers will not be allowed to offer the trader MT4.

Solution go to an international broker. (Australia, Canada, Great Britian, Japan, New Zealand and supposable Switzerland brokers are all well regulated.) I am now with an Australian based broker.

If you would like a list of MT4 brokers scroll to the bottom of the first post of this link.
http://www.forexfactory.com/showthread.php?t=174626

MT4 brokers list.

this fifo rule could be the final bs that traders will take. because of this rule. i'm gonna look 4 a broker that is non-u.s based. who knows what they'll come up with in the future??? an exodus from u.s based brokers may unfold. although some have already shifted since the hedging rule came out.

traders will move to a non-u.s broker because of all this funny regulations coming out. it makes people feel nervous and uneasy, as they don't know what's next. it's like people smell war coming and fled first. rather than waiting for war to come.

I thought FIFO was based on their Order ID how come it can be tricked by lot size

Anyway, these new changes makes me hate NFA more

By the way MT5 are also behind these changes. Make sure you do not support MT5 brokers, as MT5 developers have been forced to do things to support the NFA rules.

Below is a link to a list of MT4 brokers that are not NFA regulated, the list is at the end of the first post.
http://www.forexfactory.com/showthread.php?t=174626

I am attempting to keep this up to date.

I was told that the ICTS platform will be NFA compliant and still be used by non us brokers. It seems that the broker could just change it through the system. Does that mean that Metaquotes is a thing of the past? Or will the NFA overturn their decision?

Hello! As you all know, I work for Interbank FX. We will continue to offer MetaTrader 4 as well as comply with the pending regulation. We have released the following statement:

To our valued clients,

As you may know, the National Futures Association (NFA), has implemented new First-in, First-out (FIFO) requirements that will be in effect as of July 31, 2009. We at Interbank FX have been working hard on a solution and are confident that our traders will be able to use our MetaTrader 4 platform with little or no interruption. They will also continue to be able to use their MT4 expert advisors.

The NFA is striving to ensure the highest levels of integrity from all market participants and their intermediaries. We want to assure you that Interbank FX strives to be 100% compliant with the NFA.
We are currently working on some informational and instructional videos regarding the FIFO requirements and our solution, however most of you will be able to continue trading without any impact to your platform or strategies. In our effort to provide the best solution for your trading, you will be fully advised prior to any proposed changes.
We thank you for your continued support and wish you the best of luck with your trading.

Best regards,

Todd Crosland
and the Interbank FX Team

Well u guys shouldnt have a problem, even if u end up losing some money. You only pay your staff 12$ an hour. Another thing, all of what you have said were assumptions. No confirmed statements "I am confident" "most of you" "little or no interuption" . Smooth talking won't always get u off the hook buddy.

Release: 5670-09
For Release: June 29, 2009


CFTC Sanctions Foreign Currency Broker Who Allowed Confidential Personal Information of its Customers to Appear on the Internet



Interbank FX, LLC Ordered to Pay $200,000 and Establish Systems to Ensure the Safety of Consumer Records and Information

Washington, DC – The U.S. Commodity Futures Trading Commission today simultaneously filed and settled charges against Interbank FX, LLC (Interbank), ordering Interbank to pay a $200,000 civil monetary penalty for violating rules designed to protect the confidential personal information of consumers. The CFTC order also requires Interbank to establish a comprehensive security program that provides administrative, technical, and physical safeguards for the protection of consumer records and information.