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

  • #401
  • Jan 27, 2010 3:46am Jan 27, 2010 3:46am
Quoting The Fool
Show us the way, Master Platypus!
Nope....
  • #402
  • Jan 27, 2010 3:51am Jan 27, 2010 3:51am
Quoting Platypus
Nope....
shucks...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #403
  • Jan 27, 2010 5:01am Jan 27, 2010 5:01am
Quoting Platypus
Hummmm....so you kids are starting to think outside the box and see that there are other options evolving out there huh !

Dig a little deeper and you may find that with a decent account you can bypass the whole system and trade side by side with the big boys
Of course there are other options for traders with a few brains and some cash, once you know how to trade you can trade any instrument out there options, futures, equities (not sure why people bother with these), indexes, etc. Or of course you can just setup an account with saxo bank, duetche bank, mig, etc and trade forex with no issues
  • #404
  • Jan 27, 2010 8:23am Jan 27, 2010 8:23am
Problem is, this thread is about fighting the CFTC, not about how smart anyone is.

PS. CFTC jurisdiction to regulate forex was challenged before and the CFTC lost the case in US federal court (Zelener case) , the federal judge indicating that OTC forex is not futures.
So they lobbied congress, and some people say that the Farm Bill addresses the issue. Problem for the CFTC is that the farm bill is not law yet as it has not been ratified...and Obama's blueprint for regulation, at the moment, does not include regulating spot.
These are the current state of affairs.
  • #405
  • Jan 27, 2010 8:30am Jan 27, 2010 8:30am
Wait, so through all that bickering, we decided that the CFTC cannot regulate spot FX? I admit I skimmed most of it, but if they can't regulate spot FX, how can they impose minimum margin requirements?
Hindsight is 20/20
  • #406
  • Edited 9:04am Jan 27, 2010 8:35am | Edited 9:04am
Quoting cosgrove
Wait, so through all that bickering, we decided that the CFTC cannot regulate spot FX? I admit I skimmed most of it, but if they can't regulate spot FX, how can they impose minimum margin requirements?
Well they say can, but that can be argued in court and it has been argued before.

http://turnkeytradingpartners.com/wo.../category/blog

Go to 1-14-2010 posting, CFTC Breaks Silence on Forex

"is getting closer to requiring registration by all" getting closer does not mean that is there yet... “Farm Bill” which will amend the Commodity Exchange Act," which will amend means it has not amended it yet.

that is the whole issue, to fight it now. What they do is coerce brokers into registration b/c let's say the broker does not register, the jurisdiction issue is fought in court, and if the CFTC wins, then the broker is out of business, that is the way they coerce registration

And also consider the source of the blog, this guy is pro NFA as he formelly worked there...and even he states that is getting closer but not there yet. In addition, he owns a firm that advises people on how to register with the NFA...he has an agenda, and it is pro NFA as that helps his business.
  • #407
  • Jan 27, 2010 9:12am Jan 27, 2010 9:12am
Quoting wwwin
Well they say can, but that can be argued in court and it has been argued before.

http://turnkeytradingpartners.com/wo.../category/blog

Go to 1-14-2010 posting, CFTC Breaks Silence on Forex

"is getting closer to requiring registration by all" getting closer does not mean that is there yet... “Farm Bill” which will amend the Commodity Exchange Act," which will amend means it has not amended it yet.

that is the whole issue, to fight it now. What they do is coerce brokers...
And to add to this, as listed on the CFTC website for this proposal http://www.cftc.gov/lawandregulation.../2010-456.html

SUMMARY: The Commodity Futures Trading Commission (``Commission'' or
``CFTC'') is proposing to adopt a comprehensive regulatory scheme (``Proposal'') to implement the CFTC Reauthorization Act of 2008
(``CRA'') 1 with respect to off-exchange transactions in foreign
currency with members of the retail public (i.e., ``retail forex
transactions''). The Commodity Exchange Act, as amended by the CRA,
generally provides that the Commission's jurisdiction extends to
contracts of sale of a commodity for future delivery (or an option on
such a contract) or an option (other than an option executed or traded
on a national securities exchange), and to certain leveraged or
margined contracts in foreign currency that are offered to or entered
into with retail customers. The Commission is proposing a scheme that
would put in place requirements for, among other things, registration,
disclosure, recordkeeping, financial reporting, minimum capital, and
other operational standards, based on both the CFTC's existing
regulations for commodity interest transactions and commodity interest
intermediaries, as well as rules of the National Futures Association
(``NFA'') that are already existing with respect to retail forex
transactions offered by NFA's members. Additionally, the Proposal would
amend existing regulations as needed to clarify their application to,
and inclusion in, the new regulatory scheme for retail forex.


As mentioned in this FT article http://www.ft.com/cms/s/0/f5d027c2-f...nclick_check=1 about the loophole where the CFTC does not have jurisdiction over retail forex: "Congress addressed the loophole in 2008 but left the CFTC to write the regulations."

The proposal is the process of writing the regulation (law) to end the loophole.
  • #408
  • Jan 27, 2010 9:21am Jan 27, 2010 9:21am
Quoting Jason Rogers
....The proposal is the process of writing the regulation (law) to end the loophole.
Thank you soooooooooooooo very much Jason.
  • #409
  • Jan 27, 2010 9:26am Jan 27, 2010 9:26am
Quoting wwwin
Well they say can, but that can be argued in court and it has been argued before.

http://turnkeytradingpartners.com/wo.../category/blog

Go to 1-14-2010 posting, CFTC Breaks Silence on Forex

"is getting closer to requiring registration by all" getting closer does not mean that is there yet... “Farm Bill” which will amend the Commodity Exchange Act," which will amend means it has not amended it yet.

that is the whole issue, to fight it now. What they do is coerce brokers...
nice post with court case.
  • #410
  • Jan 28, 2010 5:42pm Jan 28, 2010 5:42pm
They have not posted any new comments.
http://www.cftc.gov/lawandregulation...10/10-001.html
  • #411
  • Jan 28, 2010 6:23pm Jan 28, 2010 6:23pm
I'm not trying to get too off-topic here, and I know it's a complex situation, but how would my taxes change if I had an FXCM UK account vs. an FXCM US account? I know you have to file a special form, but would I pay any more or less in taxes (assuming I had a gain)?

Let's keep it simple and pretend I have no earned income and live solely off of money taken out of my trading account.
Hindsight is 20/20
  • #412
  • Jan 28, 2010 7:38pm Jan 28, 2010 7:38pm
Quoting cosgrove
I'm not trying to get too off-topic here, and I know it's a complex situation, but how would my taxes change if I had an FXCM UK account vs. an FXCM US account? I know you have to file a special form, but would I pay any more or less in taxes (assuming I had a gain)?

Let's keep it simple and pretend I have no earned income and live solely off of money taken out of my trading account.
You will be taxed in the country of residence and make your money (trade) ie us if you live in us not the country where you have your account opened. and please if you're profitable do not be tempted to not declare your revenue as they will know. Brokers are audited.

On a side note, have you ever wonder why taxes topics are seldom discussed in forums? Answer: not too many traders have ever had to worry about reporting their trading revenues
  • #413
  • Jan 28, 2010 8:06pm Jan 28, 2010 8:06pm
Quoting Estero
You will be taxed in the country of residence and make your money (trade) ie us if you live in us not the country where you have your account opened. and please if you're profitable do not be tempted to not declare your revenue as they will know. Brokers are audited.

On a side note, have you ever wonder why taxes topics are seldom discussed in forums? Answer: not too many traders have ever had to worry about reporting their trading revenues
Or you can trade from an offshore corporation that resides in a country where you have established citizenship. If you draw a salary or dividend from the profits that said corporation makes from trading then that will be taxed in your other or "home" country. And corporate profits will be taxed in the country where the corporation "lives" - but some countries are not so greedy about that. And you need not draw so much out of the trading profits, since the corporation can own the various villas, yachts, etc that the corporation needs to do business in style - and the profits can be invested in those assets, which I hope you will enjoy.

Pura Vida!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #414
  • Edited 9:14pm Jan 28, 2010 8:39pm | Edited 9:14pm
Quoting cosgrove
I'm not trying to get too off-topic here, and I know it's a complex situation, but how would my taxes change if I had an FXCM UK account vs. an FXCM US account? I know you have to file a special form, but would I pay any more or less in taxes (assuming I had a gain)?

Let's keep it simple and pretend I have no earned income and live solely off of money taken out of my trading account.
I say if the U.S. wants to mess your business...you should do the same to them..Open an account with Dukascopy...Swiss courts told the IRS to go phuck in recent case vs. a client of UBS
http://www.nydailynews.com/money/201...ion_inves.html

PS. Now if these US broker's united and sought declaratory relief in federal court on the scope of the FARM Bill, this whole silliness might go away.

"certain margined contracts"...well certain does not mean all...if Congress wanted ALL they would have said ALL not CERTAIN CONTRACTS....also the bill talks about "contracts that are settled in more than 2 days"...well all spot transactions are settled in 2 days, or less for some pairs.
  • #415
  • Jan 28, 2010 8:55pm Jan 28, 2010 8:55pm
Great idea opening account in a nother country but... what happens if theres an issue, and you dont speak their language, I imagine it being really difficult too solve the problem...
  • #416
  • Jan 28, 2010 9:29pm Jan 28, 2010 9:29pm
Quoting The Fool
Or you can trade from an offshore corporation that resides in a country where you have established citizenship. If you draw a salary or dividend from the profits that said corporation makes from trading then that will be taxed in your other or "home" country. And corporate profits will be taxed in the country where the corporation "lives" - but some countries are not so greedy about that. And you need not draw so much out of the trading profits, since the corporation can own the various villas, yachts, etc that the corporation needs to do business...
Excellent thinking...and don't forget a Kayak for the Pacuare River...Pura Vida!!!

http://www.costaricatours.com/ph/Pac...ting%20web.jpg
  • #417
  • Jan 28, 2010 9:37pm Jan 28, 2010 9:37pm
Quoting ctmforex
Great idea opening account in a nother country but... what happens if theres an issue, and you dont speak their language, I imagine it being really difficult too solve the problem...
Nahh, they all speak English, if you can deal with the accent LOL
http://www.dukascopy.com/swiss/english/about/video/
  • #418
  • Jan 29, 2010 9:54am Jan 29, 2010 9:54am
Quoting ctmforex
Great idea opening account in a nother country but... what happens if theres an issue, and you dont speak their language, I imagine it being really difficult too solve the problem...
Hire an interpreter. Expensive! However, I'm sure it's worth it if you make enough money in this business.
Hindsight is 20/20
  • #419
  • Jan 29, 2010 10:46am Jan 29, 2010 10:46am
Quoting Estero
On a side note, have you ever wonder why taxes topics are seldom discussed in forums? Answer: not too many traders have ever had to worry about reporting their trading revenues
haha, and they all complain that the broker is hunting their stops..
  • #420
  • Jan 30, 2010 3:23pm Jan 30, 2010 3:23pm
Quoting Jason Rogers
Hi Scarlett,

You can email [email protected]

-Jason
Two points jump out at me when I look at the FXDC website.

Actually three come to think of it.

Most glaringly, there is no mention whatsoever of the individual brokers who comprise the Coalition. Now why would that be? It could be anybody or nobody since no individual entities claim responsibility.

Second, the Coalition claims to have been initiated in 2007.
If that is the case, they did a helluva job last time, when the ludicrous FIFO and anti-hedging rules went into effect. They did not make a peep, thereby characterizing themselves as peepless and gutless.

Third, what an anemic email address on the site for traders to make a comment or post a question. Not robust at all but rather an obligatory address and nothing more.

All in all, I am suspicious that such an entity as FXDC exists as anything more than a dead link in the vastness of the web.
Scarlett
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