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

  • #761
  • Mar 7, 2010 2:32pm Mar 7, 2010 2:32pm
Quoting Scarlett
Thanks for this,wwwn....

FXCM UK slips your account like crazy if you have a mini or micro.

I had my account there and the slippage was frequently 5pips or more in a SLOW market.... I'd watch it go past my TP orders and wonder what the heck was going on!

I just moved my account out of there last week.
Thanks Scarlet, I am researching to move it out FXCM too, any recommendations?
I am seriously looking at MBTrading, about 1.2 pip on EU after adding the commission costs...but I am not sure if they are planning to have an offshore office to get away from the madness, so maybe Duskascopy or DBFX? Those are the 3 choices for me so far. What do you think?
  • #762
  • Edited 3:01pm Mar 7, 2010 2:42pm | Edited 3:01pm
Quoting Jhig
BTW, I forgot to mention,

E-micro (CFTC retail fx replacement) will be up and running on March 22-23.

If that doesn't help you wrap your head around the notion that retail fx is over, then I don't know what will. CTFC will not use this new futures market to "compete" with retail fx. As I said before, if you want to get rid of the competition, regulate it and start something new on your own terms (enter E-Micros) ... just as CFTC is doing.

Estimated commission rate for E-micros futures will be between $2.25 up to $5.00 or greater (Round...
e-micros have already been trading in EU and some others for some time, so I don't see where you are getting your info about starting on 3/22/10.
http://www.interactivebrokers.co.uk/...conid=68532408
http://www.cmegroup.com/trading/fx/f...-e-micros.html

On your previous post you stated "For those who think moving their business overseas, good luck. There is an rule that prohibits traders from trading overseas and I'm positive more regulations will be attached to that rule."

So under your theory, how could you move the account offshore????

And would you care to post where is the rule you described in this post
http://www.forexfactory.com/showpost...&postcount=750
that traders are prohibited to trade overseas, what ever that means.
  • #763
  • Mar 7, 2010 2:48pm Mar 7, 2010 2:48pm
Quoting wwwin
Thanks Scarlet, I am researching to move it out FXCM too, any recommendations?
I am seriously looking at MBTrading, about 1.2 pip on EU after adding the commission costs...but I am not sure if they are planning to have an offshore office to get away from the madness, so maybe Duskascopy or DBFX? Those are the 3 choices for me so far. What do you think?
I'm not sure what the order of your priorities are....

You might look at FXDD Malta (not US). There is alot of variability there depending on account size and size traded....ECNs, etc. They also have a bonus right now for opening an account. I think it's 8% of the account size....

Let me know what you decide...thanks and good luck.
Scarlett
  • #764
  • Mar 7, 2010 2:50pm Mar 7, 2010 2:50pm
Quoting Scarlett
Really....

Why don't you post your account confirmation sheets and show us how profitable you are and what size you are trading....

Trading is NOT an overnight success story for most traders but a craft which takes alot of screen time, mistakes and patience to finally become profitable.
Those who perservere will eventually become successful....
That's right....refine what? LOL...those are the things that make you profit, for you to win somebody got to lose...I would sure like to see this refined trader's account..why is there a need for change if successful now?
  • #765
  • Mar 7, 2010 3:30pm Mar 7, 2010 3:30pm
Here's where Gensler's recent opening statements to the house agriculture committee should be, but the PDF doesn't look to be up yet, even though there's a link:

http://agriculture.house.gov/hearings/statements.html

The full transcript page hasn't been updated since November -_-
Hindsight is 20/20
  • #766
  • Mar 7, 2010 4:21pm Mar 7, 2010 4:21pm
Quoting Scarlett
If Congress or the Senate would ever dare to oppose Goldman, they would be delivered to the Gulag post haste or worse. Goldman installs these people along with the President of the US and other "elected" officials. Public office is a gravy train as long as you keep your mouth shut and go along.
Which is why Gensler's head needs to be served up on a plate. He is not a fit person, nor competent enough to be Chairman of the CFTC. There are 4 other Commissioners who could easily slot into the job, and do it with much greater skill and sensitivity for the political ramifications of the actions the CFTC takes.
  • #767
  • Edited 9:35pm Mar 7, 2010 9:08pm | Edited 9:35pm
Quoting Scarlett
I'm not sure what the order of your priorities are....

You might look at FXDD Malta (not US). There is alot of variability there depending on account size and size traded....ECNs, etc. They also have a bonus right now for opening an account. I think it's 8% of the account size....

Let me know what you decide...thanks and good luck.
It seems that FXDD is trying to move all non-US accounts to Malta
http://www.forexfactory.com/showthread.php?t=224531
http://www.esatrader.com/news/fxdd-malta/
  • #768
  • Mar 8, 2010 3:37am Mar 8, 2010 3:37am
Will the new rule apply countries other than US? I trade in Asia with IG Markets which is a London based broker.
Any thoughts are much appreciated.
  • #769
  • Mar 8, 2010 3:56am Mar 8, 2010 3:56am
No mate,

Unless US decide to invade your country.. ( not un precedented in world history )

  • #770
  • Mar 8, 2010 8:09am Mar 8, 2010 8:09am
Its like they don't want to have traders in US anymore ... everybody moves to Eurasia ... its actually funny now that i wanted to move to US 2 years ago ... it would be a ridiculous and short trip i guess ... But it could actually work for me now as im not a newbie anymore and trade with big-boy numbers ...
But still thats too bad for starters i guess ? not everybody invests lots of money immediately ...

Move to Europe if you're newbie .. thats how it sounds to me
  • #771
  • Mar 8, 2010 9:13am Mar 8, 2010 9:13am
Quoting Fxamaze
Its like they don't want to have traders in US anymore ... everybody moves to Eurasia ... its actually funny now that i wanted to move to US 2 years ago ... it would be a ridiculous and short trip i guess ... But it could actually work for me now as im not a newbie anymore and trade with big-boy numbers ...
But still thats too bad for starters i guess ? not everybody invests lots of money immediately ...

Move to Europe if you're newbie .. thats how it sounds to me
Come to SG...Jim Rogers already made this place his new home...
  • #772
  • Mar 9, 2010 8:47am Mar 9, 2010 8:47am
Quoting wwwin
Thanks Scarlet, I am researching to move it out FXCM too, any recommendations?
I am seriously looking at MBTrading, about 1.2 pip on EU after adding the commission costs...but I am not sure if they are planning to have an offshore office to get away from the madness, so maybe Duskascopy or DBFX? Those are the 3 choices for me so far. What do you think?
Interbank fx has announced they will open an office in London, the original timeframe was March, the last announcement did not include a date, so I'm guessing the date was pushed back.
  • #773
  • Mar 9, 2010 10:20pm Mar 9, 2010 10:20pm
Quoting Jade Gate
Sometimes, when confronted with a dilemma, the best solution is to think outside the box. Don't think any of us want the nanny-state to babysit us, but that doesn't mean there might not be new solutions for the OTC market that meet everyone's agendas, including traders.

http://cftc.gov/ucm/groups/public/@l...10-001c095.pdf
This link is now broken (the excellently penned IBFX argument) ...anyone know what gives?

Also listed on the main comments page (http://www.cftc.gov/lawandregulation...10/10-001.html) is:
Quote
March 8, 2010
CL0095 ERROR Pages: 0
Hindsight is 20/20
  • #774
  • Mar 9, 2010 10:41pm Mar 9, 2010 10:41pm
Quoting pipnu2me
Interbank fx has announced they will open an office in London, the original timeframe was March, the last announcement did not include a date, so I'm guessing the date was pushed back.
thanks...I am currently testing FXDD Malta PowerTrader...it appears to be an excellent platform...great spread, less than 1 pip on EU and commission only 2/10 of a PIP ($20 per million notional volume). It also shows market depth. Looks like a winner to me.
  • #775
  • Mar 12, 2010 1:38am Mar 12, 2010 1:38am
Quoting cosgrove
This link is now broken (the excellently penned IBFX argument) ...anyone know what gives?
Interesting that it's gone, pity there isn't an index for all the comments, if it has been moved at least we could find it again.

Here's GFT's comment paper, starts on page 15 of this PDF file, logged in on March 10.

http://cftc.gov/ucm/groups/public/@l...10-001c177.pdf
  • #776
  • Mar 12, 2010 5:56am Mar 12, 2010 5:56am
I agree with Susan's post on the CFTC website. Whether they will even read it let alone see sense and realise they are "killing the goose that laid the golden egg" by destroying retail forex in the USA, is highly doubtful. Bureacrats are well known for their sense of self importance and rightness. But who knows, maybe they will surprise us all. I'm glad I live in Australia, is all I can say, and I hope this lunacy does not infect the financial authorities on this side of the Pacific.
  • #777
  • Mar 13, 2010 3:16am Mar 13, 2010 3:16am
Quoting ForexAuto
Bureacrats are well known for their sense of self importance and rightness. But who knows, maybe they will surprise us all. I'm glad I live in Australia, is all I can say, and I hope this lunacy does not infect the financial authorities on this side of the Pacific.
Whatever the CFTC eventually chooses to do with this proposal, the final outcome will not be decided by the CFTC. Congress will decide what legislative/regulatory change is ultimately approved. Gensler is already in hot water with the Ag Committee over the 10:1 provision.

It's an important issue for traders in all parts of the globe, because while many of us are domicilled in other places, for some, our brokers are US based. A concern also exists among traders that Gensler's tentacles may seek to similarly suffocate trade in other parts of the globe.

At this point, 10:1 is looking rather unlikely given the swamping the CFTC have received from trader comments.

Congress is slow-walking the proposal, so although comments close on March 22, it is possible there will not be any kind of immediate decision or firm outcome until after the US summer break.
  • #778
  • Mar 15, 2010 6:16pm Mar 15, 2010 6:16pm
Comments from Senator Orrin Hatch against the 10:1 leverage requirement:

http://www.cftc.gov/ucm/groups/publi...10-001c172.pdf

Alpari US also:

http://www.cftc.gov/ucm/groups/publi...10-001c178.pdf
Hindsight is 20/20
  • #779
  • Mar 19, 2010 3:20pm Mar 19, 2010 3:20pm
http://ftalphaville.ft.com/blog/2010...it-their-fate/
  • #780
  • Mar 19, 2010 3:48pm Mar 19, 2010 3:48pm
That last article posted by FT Alphaville says "On Monday, the CFTC will issue its decision on leverage caps in the forex punting business. It’s a make or break moment for all those firms that offer margin trading to those wanting to play currency pairs."

Somehow, with the recent voices against this proposal, I wonder if we will have any decision this early.
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