Interbank FX Opposes CFTC's Proposed Leverage Limits of 10:1 | Forex Factory

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Interbank FX Opposes CFTC's Proposed Leverage Limits of 10:1

  • #1
  • First Post: Jan 19, 2010 12:24pm Jan 19, 2010 12:24pm
Hey All,

As many of you are aware, the CFTC published proposed rules for the retail Forex market on January 13, 2010. These rules relate to the final proposal from the CFTC relating to the FARM Bill that passed in 2008, and would limit leverage that US firms are able to offer customers to 10:1, among other things.

The CFTC has proven to be a premier regulator in the Forex industry. However, the new leverage requirements will undoubtedly negatively affect our customers trading abilities and force a great majority of Forex business overseas. If this proposed regulation passes, our biggest concern is that U.S. Forex customers would not be protected by the CFTC.

Interbank FX has joined forces with other FDM’s to speak with one voice, working diligently to lobby against the passing of the rules. As we fight for fairness in Congress and with the CFTC, we’d like to encourage customers to submit their comments directly to those agencies as well.

We invite you to voice your concern for or against the proposal. Contact the CFTC by sending an email to [email protected] with "Regulation of Retail Forex" in the subject line.


Keep checking our Interbank FX web site for updates, and also keep your eye out on word from the Forex Dealer Coalition—the coalition formed by all US FDM’s.


Thanks everyone,



Abigail~
  • #2
  • Jan 19, 2010 2:09pm Jan 19, 2010 2:09pm
nfa and cftc .. suck .. alot
  • #3
  • Jan 19, 2010 3:13pm Jan 19, 2010 3:13pm
Most of the retail forex industry seem to use 1:100 to 1:400 leverage. (big guns mostly use 1:10 and 1:20)

The move to limit leverage in US at 1:100 (i remember using 1:400 with my US based broker, and was happy to see a small amount reserved for margin ) , most of fellow traders moved their accounts to UK. I also just did that recently.

And now this

LOL

It seems like CFTC does not want small - medium guys in the game anymore
  • #4
  • Jan 19, 2010 9:05pm Jan 19, 2010 9:05pm
This leverage rule is directly linked to the sad state of Forex and its Brokerages. I dont like it.No one likes it. It will KILL retail USA Forex-but what did they(the brokers) expect? Forex brokers had no small part in this CFTC ruling. Maybe they shoulda treated their clients better? Good bye USA retail Forex-it wasnt that fun while it lasted either-Its just sad their are so many sheep in this(USA)country. Everyone crying for Mother Government to fix their lives-pathetic really.
FF = Forex Faggots
  • #5
  • Jan 20, 2010 3:53am Jan 20, 2010 3:53am
I can't see many forex brokers left in USA after this rule is passed. Who's gonna trade at 10-1 when the rest of the world is offering up to 500-1?

I doubt that at the end of the day CTFC will leave leverage at 100-1. The goose is cooked and in this case they are cooking the goose that lays the golden eggs
  • #6
  • Jan 20, 2010 6:51am Jan 20, 2010 6:51am
Regulation of Retail Forex


Wed, January 20, 2010 8:45:36 AM
From:[email protected]:[email protected] Cc:hayseed <[email protected]>


dear secretary....... i'm reasonably sure you will, but feel compelled to ask ..... please give the IBFX and Forex Dealer Coalition's view on the impact of the leverage reduction worthly consideration.....

while in my mind any additional reduction might seem unnecessary, a reduction of from 100:1 to 10:1 clearly seems to foretell of an industry changing event..... of course this is just one persons mind......

the Forex Dealer Coalition would be perfect position to offer indepth advice on the matter......


so again, please give their thoughts just due ........h
to trade and code, keep both simple... no call to impress....h
  • #7
  • Jan 20, 2010 1:30pm Jan 20, 2010 1:30pm
I understand that everyone thinks that the US Forex market is done for, but really there is still so much that can be done to prevent these rules from going into place. All of us traders need to write to the CFTC and voice our concerns to our local congressmen so that we have the ability to trade in the country that we live in.

Don't you think its logical that if the CFTC's 10-1 leverage passes that other countries are going to follow suit? Its important that we take a stand now and demand the things that we deserve so that the CFTC does not set a precedent for other regulators.

Comments from the traders have already begun to be posted by the CFTC: http://www.cftc.gov/lawandregulation...10/10-001.html
  • #8
  • Jan 20, 2010 3:24pm Jan 20, 2010 3:24pm
The recent changes in regulation by NFA and proposed changes by CFTC are concerning to me. Though I'd like to believe the main reason for government to implement these changes is for consumer protection, seems like consumers actually are inconvenienced by these changes and are just opening up accounts with the foreign counterparts of the US brokers. Most US brokers now have operations in London and other countries where they can circumvent the US restrictions. Now, my question is - how is the US consumer better protected if he is sending his money to another country. Not only that, I mean you're investing less in US companies and driving business abroad.

All of this just seems pretty bizarre to me. Any thoughts?
  • #9
  • Jan 20, 2010 5:15pm Jan 20, 2010 5:15pm
Quoting CallMeCarrie

Comments from the traders have already begun to be posted by the CFTC: http://www.cftc.gov/lawandregulation...10/10-001.html
wow, they didnt post a single comment for the proposal, might have not been able to find any.

Nice
ok Friendo? This is madness!?!? - THIS, IS, FOREX!!!
  • #10
  • Jan 20, 2010 6:14pm Jan 20, 2010 6:14pm
Well, it's time to move to another broker from another country ....
  • #11
  • Jan 20, 2010 7:26pm Jan 20, 2010 7:26pm
I dont think thats going to work-the door is closing on that loop hole too. How wonderful that the USA gives our money away to the same asswipes that almost destroyed the Global economy-then-in more than 1 year our government still hasnt produced ANY jobs(we are still losing them although at a slower rate) and now they want to stop Americans from Investing out of the country(it seems). Change happens so slowly we dont seem to notice. The only 2 jobs left in this country seem to be criminals and cops-and I cant stand either.
FF = Forex Faggots
  • #12
  • Jan 21, 2010 4:46am Jan 21, 2010 4:46am
I like the idea of CFTC's leverage limit of 10:1

Let's be honest: The only ones that profit from a very high leverage are the brokers, not the traders. That's of course the reason why Interbank FX opposes those new regulations. They don't do that for you, the trader. They only do that for their own profits.

Most professionals that are REALLY profitable in the FX market, don't use more than 10:1 leverage anyway. And if you're not able to make money using 10:1, you will not be able to be profitable by a higher leverage either.

I think this is a good way to protect the "small fish" forex traders from losing a lot of money.
Forex is a losers game.
  • #13
  • Jan 21, 2010 5:19am Jan 21, 2010 5:19am
Quoting trader121
I like the idea of CFTC's leverage limit of 10:1

Let's be honest: The only ones that profit from a very high leverage are the brokers, not the traders. That's of course the reason why Interbank FX opposes those new regulations. They don't do that for you, the trader. They only do that for their own profits.

Most professionals that are REALLY profitable in the FX market, don't use more than 10:1 leverage anyway. And if you're not able to make money using 10:1, you will not be able to be profitable by a higher leverage either.

I think...
I agree 100% with you!
  • #14
  • Jan 21, 2010 9:05am Jan 21, 2010 9:05am
Quoting trader121
I like the idea of CFTC's leverage limit of 10:1

Let's be honest: The only ones that profit from a very high leverage are the brokers, not the traders. That's of course the reason why Interbank FX opposes those new regulations. They don't do that for you, the trader. They only do that for their own profits.

Most professionals that are REALLY profitable in the FX market, don't use more than 10:1 leverage anyway. And if you're not able to make money using 10:1, you will not be able to be profitable by a higher leverage either.

I think this is...
I'd be interested to hear how you feel that brokers benefit more from customers trading at 100:1?
  • #15
  • Jan 21, 2010 9:34am Jan 21, 2010 9:34am
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting trader121
I like the idea of CFTC's leverage limit of 10:1

Let's be honest: The only ones that profit from a very high leverage are the brokers, not the traders. That's of course the reason why Interbank FX opposes those new regulations. They don't do that for you, the trader. They only do that for their own profits.

Most professionals that are REALLY profitable in the FX market, don't use more than 10:1 leverage anyway. And if you're not able to make money using 10:1, you will not be able to be profitable by a higher leverage either.

I think this is...

Thats really nonsense. Since a lot of traders forced out of USA, some brokers have fear to go belly up. Hence a lot of their employees will lose their job...

BTW Who cares in USA about all the "small fish" loosing everything in a Las Vegas casino?? The mafia? U got it...

Nobody is forced to trade forex, so whats the point of this leverage down grade?

Thx the heaven, I m not affected anymore by all these BS
---------------------------------------------
http://www.myfxbook.com/members/pc8multifx
  • #16
  • Jan 24, 2010 4:38am Jan 24, 2010 4:38am
Quoting CallMeCarrie
I understand that everyone thinks that the US Forex market is done for, but really there is still so much that can be done to prevent these rules from going into place. All of us traders need to write to the CFTC and voice our concerns to our local congressmen so that we have the ability to trade in the country that we live in.

Don't you think its logical that if the CFTC's 10-1 leverage passes that other countries are going to follow suit? Its important that we take a stand now and demand the things that we deserve so that the CFTC does not...

Carrie is right, don't take the attitude that this rule has already been passed. Now is the time to complain about it as much as possible to the CFTC, congressmen etc.

Spread the word to other boards you frequent.
  • #17
  • Last Post: Jan 24, 2010 4:43am Jan 24, 2010 4:43am
Quoting trader121
I like the idea of CFTC's leverage limit of 10:1

Let's be honest: The only ones that profit from a very high leverage are the brokers, not the traders. That's of course the reason why Interbank FX opposes those new regulations. They don't do that for you, the trader. They only do that for their own profits.

Most professionals that are REALLY profitable in the FX market, don't use more than 10:1 leverage anyway. And if you're not able to make money using 10:1, you will not be able to be profitable by a higher leverage either.

I think this is...
Ok, lets flip the coin...

tell the board the amount of equity in your trading account... you and Vontrader both. Since you seem to think high leverage favors only the broker.

Because only knowing what your account equity is can I make an example out of you.
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