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US citizens won't be able to have forex accounts overseas

  • #21
  • Aug 23, 2010 7:41pm Aug 23, 2010 7:41pm
democRATS
BarrySDCA Commercial Network Services
  • #22
  • Aug 23, 2010 7:43pm Aug 23, 2010 7:43pm
'Client Services 20' might still be right according to this:

http://blogs.forbes.com/greatspecula...forex-traders/
  • #23
  • Aug 23, 2010 9:22pm Aug 23, 2010 9:22pm
how will this law impact non-us clients who have accounts with us brokers? will they also be forced to 10:1 leverage? These measures looks draconian in the first place and should be condemned.
  • #24
  • Aug 23, 2010 9:31pm Aug 23, 2010 9:31pm
This is exactly what a lot of us has been saying. I have to believe not a lot of traders read the proposal.

While traders are focusing on the 10:1 margin decrease, the real issue to Registering Brokers. The proposal basically says, non-US brokers will have to register with the CFTC/NFA to accept US clients. Brokers located in UK, Europe, Australia, New Zealand, etc with no ties to the US will have to either register to keep existing US clients and/or accept new US clients. At the moment, the rules doesn't state US traders can't trade with overseas brokers ... it just state US traders must use a CFTC registered broker.

The proposal is said to control risk and to look out for the financial well-being of US retail traders. I personally believe the proposal is a way to push US traders towards CFTC/CME E-micro futures which at the moment is a bust because of the shortage of traders. Remember, why compete with with forex when you could do away with it and drive clients towards your new, regulate commissioned product/market. Many believe its about the US looking after forex traders, and that is not the case. bottom line, forex traders have a free ride and the best tax structure of any industry. CME E-Micros isn't a free ride market. Its a market riddled with commission and fees. Money is the end game and CME offers a steady stream of it. The US government is not making any money off retail forex.

The only way around this proposal, if approved, would be to trade with a broker thats located in a country with no ties to the US as there are little legal ramifications. Theres a reason large brokers are moving accounts to Cypress and other countries similar. The problem with that is little regulation is available; traders will be at the mercy to their broker if something goes wrong. At the moment, the best thing to do is to wait, and see where this goes. We retail traders may luck up; the proposal may not get approved. At the moment, it is just that ... a proposal.

BTW, wake me when Dodd's political term is up. He has been the biggest problem to retail forex for the past three years.
  • #25
  • Aug 23, 2010 9:34pm Aug 23, 2010 9:34pm
Quoting Dr.PipFx
how will this law impact non-us clients who have accounts with us brokers? will they also be forced to 10:1 leverage? These measures looks draconian in the first place and should be condemned.
Yes it will affect non-US clients.

Non-US clients will also have to trade with a decrease in leverage if this proposal is approved. 10:1 will be for ALL US brokers.
  • #26
  • Aug 23, 2010 9:36pm Aug 23, 2010 9:36pm
Does anyone have a link or point of contact so we can voice our opinion to these criminals? Not that it probably matters.
Annoying Precision
  • #27
  • Aug 23, 2010 11:09pm Aug 23, 2010 11:09pm
Quoting erikte279
Does anyone have a link or point of contact so we can voice our opinion to these criminals? Not that it probably matters.
If you would like to comment for or against, please send an email directly to the CFTC at [email protected] that way your voice is heard. Include 'Regulation of Retail Forex' in the subject line of your message. The more feedback that you send to them, the better so they know that we are not a "silent majority".

This information was posted on the www.babypips.com Forex forum about this proposal when it was first introduced back in January of this year. This proposal drew quite an overwhelming response from the Retail Forex Trading community which includes traders like us and the brokers. Apparently, with the overwhelming negative responses that CFTC received regarding this proposal that a "meeting" was arranged to review this proposal. The outcome of this meeting? We were never informed. If you visit the www.babypips.com site forum, you will see the discussion and the updates there.
Make your losses in demo. Earn your profits live.
  • #28
  • Aug 23, 2010 11:19pm Aug 23, 2010 11:19pm
Quoting Jhig
Yes it will affect non-US clients.

Non-US clients will also have to trade with a decrease in leverage if this proposal is approved. 10:1 will be for ALL US brokers.
So if us Non-US clients don't like the decreased leverage in US brokers, we can go to other non-US brokers who chose not to register with CFTC. Quite frankly, other countries like UK and Canada have stringent regulations for the investment industry that protect the investors quite effectively.

The only parties hurt are really the US Retail Forex brokers and the US traders and the otherwise overall flourishing Retail Forex Industry.

CFTC has done it again. They first killed the Daytrading for stocks now they are killing Daytrading for Forex. They think this is going to force us to go back and invest with the "Big Boys" on Wall Street? Dream On!!
Make your losses in demo. Earn your profits live.
  • #29
  • Aug 23, 2010 11:22pm Aug 23, 2010 11:22pm
Quoting Jhig
This is exactly what a lot of us has been saying. I have to believe not a lot of traders read the proposal.

While traders are focusing on the 10:1 margin decrease, the real issue to Registering Brokers. The proposal basically says, non-US brokers will have to register with the CFTC/NFA to accept US clients. Brokers located in UK, Europe, Australia, New Zealand, etc with no ties to the US will have to either register to keep existing US clients and/or accept new US clients. At the moment, the rules doesn't state US traders can't trade with overseas...
I agree. Ever since when did CFTC has ever done anything genuine to protect us individual traders when we have really gone to them for help? When have we individual traders have ever mattered to them? Bunch of dim-wit, self-serving beaucrat fat cats!
Make your losses in demo. Earn your profits live.
  • #30
  • Aug 23, 2010 11:24pm Aug 23, 2010 11:24pm
Quoting billflet
'Client Services 20' used to work in the lunchroom but he broke too many dishes so they moved him to Client Services. Ya can't just fire the bosses nephew.
lol, and if he screws this one up he's being moved to Customer Complaints!
  • #31
  • Aug 23, 2010 11:35pm Aug 23, 2010 11:35pm
Quoting Jhig

Money is the end game and CME offers a steady stream of it. The US government is not making any money off retail forex.
They'll make even less if brokėrs move their operations offshore to somewhere beyond US jurisdiction!

For some traders it seems to be a lose/lose situation, for others it's not going to make very much difference as far as I can see. As for the 'freedom of choice' activists, well they're never going to win anyway, I don't know why they bother!
  • #32
  • Aug 23, 2010 11:48pm Aug 23, 2010 11:48pm
Quoting Jhig
The only way around this proposal, if approved, would be to trade with a broker thats located in a country with no ties to the US as there are little legal ramifications. Theres a reason large brokers are moving accounts to Cypress and other countries similar. The problem with that is little regulation is available; traders will be at the mercy to their broker if something goes wrong. At the moment, the best thing to do is to wait, and see where this goes. We retail traders may luck up; the proposal may not get approved. At the moment, it is just...
Well this proposal, if became law, will be a true test of the integrity and honesty of US Retail Forex brokers and the necessity of watchdog organization like CFTC and NFA. If US brokers really move their operations to countries with lax or non-existing laws governing the investment industries, then US traders would be really be going on a limb there to move their money to go invest with these US retail brokers. And if these US brokers, without the presence of any watchdog organizations or any governing laws, still treat their US customers with honesty and integrity then it just proved that CFTC and NFA was not needed in the first place anyway. They were just bunch of redundant beaucrats that everybody will be better off without them.

We won't have to wait for long to find out. According to the info. posted on babypips.com forum, the earliest this proposal can become law is this fall. Not that far away.
Make your losses in demo. Earn your profits live.
  • #33
  • Aug 24, 2010 12:04am Aug 24, 2010 12:04am
Quoting Forexia
Well this proposal, if became law, will be a true test of the integrity and honesty of US Retail Forex brokers and the necessity of watchdog organization like CFTC and NFA....
Do you think the numbers are really that great to warrant US brokers going into battle with US regulators?

I mean what percentage of US traders trade in an OTC market like retail forex anyway, and what percentage of those are bothered about FIFO and the possibility of a 10:1 leverage limit? I can't really see there being a mass exodus of retail forex traders out of the US, maybe ~10% if that, and the majority of those I expect are micro traders. Are US brokers really going to go out of their way to cater for a minority who produce minimal revenue?
  • #34
  • Aug 24, 2010 1:56am Aug 24, 2010 1:56am
Quoting Forexia
This new rule is totally unconstitutional....
i knew once we accepted all the other changes they made they was gonna walk all over us, we should put our foot down when they try to control our trading habbits but we didn't so now where at the mercy of these regulators.
  • #35
  • Aug 24, 2010 2:17am Aug 24, 2010 2:17am
Quoting pipmutt
lol, and if he screws this one up he's being moved to Customer Complaints!
Or he'll be running a trading desk.
  • #36
  • Aug 24, 2010 3:20am Aug 24, 2010 3:20am
Here is some food for thought:

http://blogs.forbes.com/greatspecula...forex-traders/

Nobody really knows what the CFTC is going to do with this, but Obamarama in his infinite Socialistic views would love to get his sticky fingers on US retailers.
  • #37
  • Aug 24, 2010 4:00am Aug 24, 2010 4:00am
with 10:1 leverage the process of blowing your account will just go much slower because you can't risk as much, it doesn't teach you how to trade and about MM and risk.
  • #38
  • Aug 24, 2010 4:02am Aug 24, 2010 4:02am
Quoting pipmutt
Quoting fxoxford
us citizens will no longer be able to have forex accounts overseas
Where does it say they won't?

I wouldn't rely on 'Client Services 20' too much if I were you...."I'm in the dark about most things.......There's a new law coming, or already happened, might make it illegal for us citizens to have accounts overseas.", he doesn't sound too sure about what he's saying!
Hey, I just signed up for an overseas account with GoMarkets and Oanda, but nobody said anything about it being illegal? Beats me?
  • #39
  • Aug 24, 2010 4:03am Aug 24, 2010 4:03am
Quoting fxoxford

we should put our foot down
You go for it dude, kick some Washington butt!!
  • #40
  • Aug 24, 2010 4:04am Aug 24, 2010 4:04am
Quoting ecTrade
Hey, I just signed up for an overseas account with GoMarkets and Oanda, but nobody said anything about it being illegal? Beats me?
not yet but it's comming
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