I have read over the proposal a few times, and I'm a bit puzzled by the language. I have just one question...In the following statement,
"and require RFEDs or FCMs engaging in retail forex transactions to collect security deposits in a minimum amount in order to prudentially limit the leverage available to their retail customers on such transactions at 10:1"
what is meant by the term "prudentially" and how are they using the term? and how does that affect any of this?
Im wondering if what they're saying is they want the account holder to manage his account size so that any single trade does not overleverage the account. For example, with 100:1, if your account size is $10,000, and you place a trade with one standard lot, then your margin is $1,000 and your trade is controlling $100,000. In that case, the leverage in "the transaction", is $100,000:$1,000 or 100:1. But it is only $100,000:$10,000 or 10:1 within the account. But if you place a second trade of 1 standard lot, then the leverage within "the transaction" is again 100:1, but within the account is now 20:1.
Perhaps in this way, they would be able to prevent the trader from placing any additional trades and overleveraging his account, where the current limit of 100:1 imposed by NFA does not do that.
I don't know if this would address fraud, but I think it might have some impact on money laundering
This is just a question about the intent of the cftc. I hope this or something like this is their intent. Does anyone know?
They offer a NDD forex account with 1:400 leverage and a minimum deposit of 250 euros and don't charge commissions, I doubt that they are a trully non dealing desk, but they say that yes and they are regulated by FSA, anyone has an account with them?
From their FAQs:
Q: Are you an ECN broker? A: No, in a true ECN client bids and offers are matched. We can offer a similar service on our Interbank Account where you can trade directly on our liquidity providers’ quotes. The spreads you receive include a cost of dealing and profit for ActivTrades. We don’t have any human dealers, all execution is automated.
They offer a NDD forex account with 1:400 leverage and a minimum deposit of 250 euros and don't charge commissions, I doubt that they are a trully non dealing desk, but they say that yes and they are regulated by FSA, anyone has an account with them?
From their FAQs:...
Ignored
Used them, very serious, segregated accounts, the spread includes the commission.
Only issue was cfd spreads too wide, no problem on forex spot.
Do you have a funded account with them? to what degree are you dependent on your trading--primary income? secondary income? growth of account balance?
Ignored
I had a funded account with them (scalping account), made some profits then closed the account. They were very fast, and only asked why I was closing.
They have a very good reputation here in Europe.
I am using windsor broker, my view its the best, Good Reputation, Good Spreads, 3 Type of Trading accounts, no manuplation in client trades, Forex, Futures, Commodities available.
