According to FXCM, NFA New Margin Rule Effective 11/30/09 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Margin Levels and Margin Calls 23 replies

Margin/Free Margin/Equity 11 replies

difference between Usable Margin and Used Margin 9 replies

FXCM UK: NEW margin requirements 1 reply

Understanding Margin and Margin Calls 0 replies

According to FXCM, NFA New Margin Rule Effective 11/30/09

  • #1
  • First Post: Edited 7:44pm Oct 21, 2009 7:30pm | Edited 7:44pm
Effective 11/30/09, NFA margin rules limits as follows:
According to "FXCM", the clear industry leader in rule interpretation, this is the applicable rule....
Link to Rule http://www.nfa.futures.org/news/news...ArticleID=2362
According to FXCM...who is always looking out for you.

USD/JPY AUD/USD (most USD based pairs) max is 100:1
EUR/USD EUR/JPY (most EUR based pairs) max is about 62.5 to 1
GBP/USD GBP/JPY (most GBP based pairs) max is about 58 to 1
Exotics variable.

FXCM is making effective a week earlier on 11/22/09

Thank you very much NFA or FXCM, to whom it may concern, Happy Thanksgiving.
  • #2
  • Oct 21, 2009 7:36pm Oct 21, 2009 7:36pm
cool doesnt affect oanda
  • #3
  • Oct 21, 2009 7:37pm Oct 21, 2009 7:37pm
yep, taking all of my accounts overseas the week after thanksgiving. I plan on taking full advantage of the margin I have available until then.
  • #4
  • Oct 21, 2009 8:41pm Oct 21, 2009 8:41pm
I just chatted with my broker, GFT and here is a list of pairs that will be 100:1 them

GFT32: Group 1 = 100:1 leverage:
GFT32:
GFT32: US dollar (USD)
GFT32: British pound (GBP)
GFT32: Swiss franc (CHF)
GFT32: Canadian dollar (CAD)
GFT32: Japanese yen (JPY)
GFT32: Euro (EUR)
GFT32: Australian dollar (AUD)
GFT32: New Zealand dollar (NZD)
GFT32: Swedish krona (SEK)
GFT32: Norwegian krone (NOK)
GFT32: Danish krone (DKK)

Every other pair not listed will be considered exotics and the Margin rate will varie for each. Sort of sad though, I was enjoying my 400:1 leverage. Now it looks like I will have to put more on the table for each trade. Currently 1 full Lot of EURUSD= $320 margin. Afer the NFA rule, 1 full Lot of EURUSD= $1,500 margin.

The NFA is on a ball this year. First was hedging rule now the margin rule. Makes you wonder what do they have up their sleeves. For those who think moving their account to the UK will help ... it will only be a matter of time.
  • #5
  • Oct 21, 2009 10:09pm Oct 21, 2009 10:09pm
No hedging

FIFO

Margin limitation (Effective 11/30/09 )

Next Rule...???????????
  • #6
  • Nov 2, 2009 8:49pm Nov 2, 2009 8:49pm
Quoting ramdas
No hedging

FIFO

Margin limitation (Effective 11/30/09 )

Next Rule...???????????
Don't worry the next rule will clearly be a requirement for all accounts to have a minimum of $10,000-$100,000 in order to trade. Remember it's all for (the herd) your protection so that you can't risk your little money by trading the Forex/Futures market.

It's a big dogs world only and all these rules will be applied globally soon enough (the U.S. market is just first for testing). The rich will get richer and the poor will get poorer (taxed to death), that's how it works and it will be enforced as needed through new regulations. The little guy's opportunity to possibly make fortunes is going to finally get stumped hard and that's the plan...
  • #7
  • Nov 2, 2009 10:05pm Nov 2, 2009 10:05pm
i totally agree... i dont know who to be mad at the goverment idiots making the rules or the idiots that caused the goverment to make the rules.. what idiots am i talking about? the idiots that blow their accounts due to their own stupidity and then blame their broker and then complain to the nfa. everybody knows who im talking about cause everybody has at least one idiot at their workplace that make it hard for everybody else.


Quoting Aad
Don't worry the next rule will clearly be a requirement for all accounts to have a minimum of $10,000-$100,000 in order to trade. Remember it's all for (the herd) your protection so that you can't risk your little money by trading the Forex/Futures market.

[b][color=dimgray]It's a big dogs world only and all these rules will be applied globally soon enough (the U.S. market is just first for testing). The rich will get richer and the poor will get poorer (taxed to death), that's how it works and it will be enforced...
  • #8
  • Nov 14, 2009 11:58am Nov 14, 2009 11:58am
I think people have it backwards here - the oppressive NFA isn't going after brokers, they're going after the individual trader - they want to shut down the small trader. The oppressive NFA doesn't care about the individual trader so they're certainly not going to listen to individuals complaining about a broker. They have their own agenda for wanting to shut down forex trading as we know it(or knew it). Doesn't help moving your accounts to fxcm UK either - I did that and got a notice from them that they are doing the same thing as the oppressive NFA is dictating anyway.

Dear oppressive NFA:

If you want to actually do something constructive and actually help people instead of beating them down and taking away their dreams, why don't you actually do something worthwhile and go after brokers for their stop hunting and other practices that give them an unfair advantage over the individual trader instead of just going after the individual trader? How can you guys sleep at night?
  • #9
  • Nov 14, 2009 12:33pm Nov 14, 2009 12:33pm
Quoting Aad
Don't worry the next rule will clearly be a requirement for all accounts to have a minimum of $10,000-$100,000 in order to trade. Remember it's all for (the herd) your protection so that you can't risk your little money by trading the Forex/Futures market.

[b][color=dimgray]It's a big dogs world only and all these rules will be applied globally soon enough (the U.S. market is just first for testing). The rich will get richer and the poor will get poorer (taxed to death), that's how it works and it will be enforced...
Sadly this makes sense - they are going to "protect" us by making us risk even MORE of our hard earned money. Thanks NFA.
  • #10
  • Nov 14, 2009 12:54pm Nov 14, 2009 12:54pm
Quoting mofuniverse
i totally agree... i dont know who to be mad at the goverment idiots making the rules or the idiots that caused the goverment to make the rules.. what idiots am i talking about? the idiots that blow their accounts due to their own stupidity and then blame their broker and then complain to the nfa. everybody knows who im talking about cause everybody has at least one idiot at their workplace that make it hard for everybody else.
The NFA is *not* a government agency. Here is a quote from this post which sums it up quite nicely:

Quote
NFA membership is voluntary. Its a private club ran by the largest brokers to make the NFA seal seem legit so they can brag that you should trade with a NFA shop. They keep raising the capital requirements to squeeze the smaller brokers out of the club while they setup rules to help brokers beat traders. - I'm actually at the point where I DON'T want to trade with NFA brokers. The rules are just to make it easier for brokers (their club members) to beat you. - If these rules were so good why hasn't the rest of the world been trading with...

There are at least a few Forex brokers in the US who are not NFA members and still offer some of the features stripped by the NFA, FXDD comes to mind.

So don't be upset at the government, be upset with the forex brokers who chose to be dictated by the NFA (National Futures Association), when neither their traders nor the brokers themselves (based on recent conversations I've had with numerous brokers) are happy about it.
  • #11
  • Nov 14, 2009 1:03pm Nov 14, 2009 1:03pm
Quoting Pipvalhalla
Sadly this makes sense - they are going to "protect" us by making us risk even MORE of our hard earned money. Thanks NFA.
Yes, I never understood this either. If someone wants to use 1 standard lot each trade and withdraw profits monthly, they will now need to keep 4x the funds with their broker. Just sitting there.

If your trade hits the 25 pip stop loss, you lose $250. You can lose $250 on a $2,500 account or you can lose $250 on a $10,000 account. $250 is $250.

Let's not kid ourselves here, we're dealing with the National Futures Association, not the National Forex Association. The Futures market is losing more and more customers to Forex every day, who do you think they are looking out for?
  • #12
  • Nov 14, 2009 1:09pm Nov 14, 2009 1:09pm
Quoting Pipvalhalla
I think people have it backwards here - the oppressive NFA isn't going after brokers, they're going after the individual trader - they want to shut down the small trader. The oppressive NFA doesn't care about the individual trader so they're certainly not going to listen to individuals complaining about a broker. They have their own agenda for wanting to shut down forex trading as we know it(or knew it). Doesn't help moving your accounts to fxcm UK either - I did that and got a notice from them that they are doing the same thing as the oppressive...
FXCM UK is switching to 200:1 leverage and keeping all hedging and FIFO rules pre-NFA.

I think between FXCM UK and GO Markets AUS (300:1) we US Residents have some good choices moving forward. FX Solutions UK is staying at 400:1, FXDD US is not NFA related and is ignoring all of their regulations, keeping 200:1 leverage and ignoring FIFO/Hedging. CMSForex UK is 400:1. IBFX is creating a UK office too, maybe they will keep it at 400:1
  • #13
  • Nov 14, 2009 3:39pm Nov 14, 2009 3:39pm
Quoting ramdas
No hedging

FIFO

Margin limitation (Effective 11/30/09 )

Next Rule...???????????

No trading..
  • #14
  • Nov 17, 2009 4:32pm Nov 17, 2009 4:32pm
Quoting DodgeV83
FXCM UK is switching to 200:1 leverage and keeping all hedging and FIFO rules pre-NFA.

I think between FXCM UK and GO Markets AUS (300:1) we US Residents have some good choices moving forward. FX Solutions UK is staying at 400:1, FXDD US is not NFA related and is ignoring all of their regulations, keeping 200:1 leverage and ignoring FIFO/Hedging. CMSForex UK is 400:1. IBFX is creating a UK office too, maybe they will keep it at 400:1
Hey thanks Dodge for the info - and I hope correction. I was at FXCM and moved it to FXCM UK but thru my platform I got a notice that they were switching to the same leverage oppression as I've seen on NFA notices, but now after your post I'm hoping that notice was just popping thru because I am still actually using the same platform I originally got for the US FXCM even though my account is in the UK now and I hopefully can ignore it.

Also, I would like to end with - "I HATE YOU NFA AND YOU SUCK." But it does make sense that they want to kill forex to help futures trading. Hopefully other countries(who recognize the American dream more than this country does now) will keep the forex dream alive and not oppress us.
  • #15
  • Nov 17, 2009 9:55pm Nov 17, 2009 9:55pm
Being old balls, and having been around for a while I thought I'd throw in some devil's advocation.

Futures are not necessarily a bad thing. If anything, they offer several key advantages that we do not enjoy in the spot market. The futures market is a centralized market for one. There is a distinct and strict transaction register and true market matching instead of what we have currently. IE, it's not possible to have a dealing desk as all orders are going to the true market. As an extension of that point, you have true and legitimate volume counts. Futures are allowed to be traded within IRA's, which is useful to those of us in the united states. Futures brokers are traditionally more financially stable, vis a vis the fact that all trades are passed through to the market, not from within their own liquidity pool. Most futures brokers also allow trading of equities and bonds too.

I can understand the angst against the new rules, but having been in this game long enough, I can honestly say that these rules should not hamper your trading style that much. People who want to bitch about FIFO rules, sorry, but that's how it's done on a true bank desk. Margin rules, understandable, but if you think about it, you really need at minimum $10,000 to trade anyways. Going from 400:1 to 100:1 is still pretty fat and juicy considering the leverage that is used in other markets. You think banks trade with 400:1? You think Deutsche Bank's desk would give you even "just" 100:1 with a $100k account?

The simple fact of the matter is, the world is not out to get the individual trader. They're simply trying to shake out the wheat from the chaff.
  • #16
  • Nov 18, 2009 12:36am Nov 18, 2009 12:36am
I think NFA is just trying to get attention at all cost. Don't you see virtually all brokers in USA are gradually moving to the UK?

Despite the fact that there's no regulation from NFA to treat clients' funds as segregated, yet they come up with unrealistic and uninteresting rules.

To hell with NFA.
  • #17
  • Nov 18, 2009 1:14am Nov 18, 2009 1:14am
Quoting sgnlskn
I think NFA is just trying to get attention at all cost. Don't you see virtually all brokers in USA are gradually moving to the UK?

Despite the fact that there's no regulation from NFA to treat clients' funds as segregated, yet they come up with unrealistic and uninteresting rules.

To hell with NFA.
I agree - and if the NFA really wanted to help the individual trader, then they would be doing things like investigating stop hunting and other unfair practices that brokers do. Why don't they do things like that and let us traders trade freely. NFA sucks and they can bite me.
  • #18
  • Nov 18, 2009 1:23pm Nov 18, 2009 1:23pm
Quoting Pipvalhalla
Hey thanks Dodge for the info - and I hope correction. I was at FXCM and moved it to FXCM UK but thru my platform I got a notice that they were switching to the same leverage oppression as I've seen on NFA notices, but now after your post I'm hoping that notice was just popping thru because I am still actually using the same platform I originally got for the US FXCM even though my account is in the UK now and I hopefully can ignore it.

Also, I would like to end with - "I HATE YOU NFA AND YOU SUCK." But it does make sense that they want to kill...
Darn, I was hoping it was a thing with my platform but I just got an email from FXCM UK and they are going to jack with leverage too so they are following the NFA's lead. Thanks NFA - now other countries are following your oppressive rules. Well, so far FXsol Australia is still cool so I hope they don't cave to the NFA's lead. Dear NFA - I hate you and you suck.
  • #19
  • Nov 18, 2009 1:35pm Nov 18, 2009 1:35pm
NFA regulation is a good thing, I welcome it.
  • #20
  • Nov 18, 2009 1:36pm Nov 18, 2009 1:36pm
Quoting Pipvalhalla
I agree - and if the NFA really wanted to help the individual trader, then they would be doing things like investigating stop hunting and other unfair practices that brokers do. Why don't they do things like that and let us traders trade freely. NFA sucks and they can bite me.
I doubt you understand what stop hunting is.
0 traders viewing now