FXCM Discussion

And ok i see the post above addressing my question.

Hopefully we'll get to keep our accounts.

________________________

Under the new rules will a US resident still be able to hold a FXCM UK account?
Havent seen that mentioned but a few days ago it sounded like US residents were going to be banned from having out-of-country FX accounts

Thanks

or do you know anyone who has deposited large amt of money with them ? how big waas the amount and How did it go ?
were they able to pull out their money right away when they wanted to,
with no delays ?

for example, if you put $ 50K, were you able to pull out the whole $ 50K upon request ?

On DailyFX+ I have to login every 5min if inactive...Does anyone else has same problem and how to resolve it...It wasnt before like this...it just started a week ago...

Jason,

It looks like a conspiracy of stock and derivatives brokers as they see outflow of client funds to forex brokers. So, they try to make it harder to trade FX...Several months ago they told us that the leverage would have been 1:50...and now? 1:20!!!...what leverage will be in the future? 1:4 or 1:1???? Much the same as in any of stock brokers....But in case of 1:1 leverage retail traders will not be able to open a transaction with 2.5 lots as minimum. So, people will get back to stock and futures market again.
CME Group already started large online advertising campaign about FX futures saying that it is much better than spot FX.

Same problem, I now use forex.com
no probs there.

Earlier today I was watching CNBC and heard that on 15 September the EU countries and UK will take a decision if short selling of derivatives will be further allowed or not.

Anyone anymore info on this? Would this bring them to the same rules as US?

No Short selling will SUCK, but just have to only bother to day trade with Pairs that are going up, there is generally always 1 pair that goes up while others go down so it's fine I think failing to find such an example tonight though.

Excuse my ignorance, but from what I just searched about this, doesn't this issue only apply to UK stock markets and *not* forex?

They were talking about all derivatives. So I guess that means forex to, or not?

Forex and Derivatives are two different things.

I think this would be difficult for the regulators to achieve their desired goal. For example, if you could not short E/U you could just buy the futures contract.

FXCM Files Registration Statement for IPO


New York – September 7, 2010: FXCM Inc. announced today that it has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its Class A common stock.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Citi will act as joint book-running managers of the offering. Barclays Capital Inc., Deutsche Bank Securities, Inc., Sandler O’Neill & Partners, L.P. and UBS Securities LLC will act as co-managers. The offering will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained by contacting Credit Suisse Securities (USA) LLC, Attention: Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010, or by calling: 800-221-1037, J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, or by calling: 866-803-9204 and Citi, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, or by calling: 800-831-9146, or by e-mailing Citi at: [email protected].

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy these securities be accepted prior to the time the registration statement becomes effective.
Trading foreign exchange and CFDs on margin carries a high level of risk, and may not be suitable for all. Read full disclaimer.

Media Contact:
Jaclyn Sales
[email protected]
646-432-2463

I have questions and comments for Jason Rogers of FXCM, and/or any other FXCM representative. First a comment on "major currencies." It is very important for FXCM to clearly state what it understands to be the "major currencies" for 50:1 leverage rules. I actually spoke by phone with the CFTC who stated that their definition of "major currencies" is taken from the financial regulations section of the NFA manual:
http://www.nfa.futures.org/nfamanual...N+12&Section=7
There it states clearly that "major currencies" include pretty much any currency currently offered for trading at companies like FXCM, ie the USD, EUR, GBP, JPY, CHF, AUD, NZD, CAD, and even the Scandinavian currencies. It is important to state this fact because some traders worry that "major currencies" are only the first 4 or 5 of those listed above. But to the CFTC and NFA, ALL of those currencies are indeed major currencies for 50:1 leverage. Jason can you please confirm that FXCM will offer 50:1 leverage for all these currencies?

Second, some questions. It remains unclear to the thousands of US traders with FXCM Ltd (UK) accounts what is going to happen to our accounts. In my phone discussions with the CFTC, they made it quite clear that as of Oct 18, it will be illegal for a non-registered counterparty to have US customers. The worst case scenario is that Oct 18 comes along and FXCM has not been able to put changes in motion yet. All of a sudden on Oct 18, FXCM Ltd is forbidden by law to allow US traders to trade, and our accounts are suddenly just shut down. Almost as bad is the situation where FXCM is overloaded with requests to transfer money out of FXCM Ltd into new accounts at FXCM LLC with a week or two before the deadline and as a result of this overload it takes a month with no trading possible before FXCM gets our new US accounts activated and we can start trading again. We really need to understand what exactly is going to be required of us traders and we need to have a plan in place very soon so that we can start doing whatever it is we need to do in order to minimize the disruption.

So what is the timeframe by which FXCM is going to know what we traders in this situation must do? When will you have a plan, with sufficient FXCM personnel to execute the plan, so that US traders with UK accounts can minimize or (preferably) avoid any disruption in trading?

Thanks.

Hi Marc,

Thanks for your message. I can confirm that the major vs. exotic currency pair classification will be according to the list on the NFA website. So any pairs currently set to 1% for FXCM LLC (US) accounts will goto 2% margin by October 18, 2010 when the rules go into effect.

The time-frame in which we know how US traders will be affected is dependent upon the CFTC issuing guidance on the provision and clarification on a time-frame. Regardless of the CFTC's eventual clarification, this isn't something where we are waiting until October 17 to start planning for possible contingencies.

At the moment, I don't have official information I can share since we haven't received definitive information from our regulators. But as mentioned previously, I will post notification on the forum as soon as I have more information I can share.

-Jason

Even I think FXCM is not a good broker, but I still like its platform rather than MT4 for placing order.

I have more specific information I can share to help shed some light on what is developing.

It is our interpretation of the Dodd-Frank Bill and CFTC intentions that US residents will be required to repatriate their accounts back to the US. The big question at this point is when will traders be required to do so. This is what we are waiting for our regulators to clarify. A solid indication of a date has not yet been given. Again, as soon as we have these details, I will let you know.

For non-US residents, FXCM UK will continue offering hedging, 200:1 leverage and non-FIFO position trading.

-Jason

They will kill the US based Forex industry then if that is their intention. Traders will just close their accounts from US based brokers all together. Why trade at a huge disadvantage to rest of the world?
I don't know any that will be happily oppressed and continue have a US account under those restrictions. You know they are going to down the wrong path when USA based traders are preparing to leave en masse for Russian based brokers, lol.

I would like someone to tell me just what CFTC plans to do to those US citizen who refuse to bow down to this ridiculous mandate...?

What actual impact legally could this have for me?

If I switch to gomarkets, or some russian based dealer...other than tax me what can they do???

I guess this means I will have to close my account with FXCM UK. Sorry to hear this. Good luck FXCM.

This is a bit of a pain but it isn't horrible. I can live with 50:1 leverage. I'm not thrilled with the no-hedging rule since there are times where hedging can come in handy but I don't use it very often. All in all, I can live with this, aside from the temporary disruption.

But for traders who insist on going elsewhere, one good option is Dukascopy Bank. Yes they are a BANK so according to Dodd-Frank they are not regulated by the CFTC. Also they are a terrific broker, based in Switzerland, super-reliable etc. They use JForex instead of MT4 which may be an issue for many traders, but they are still well worth considering. No I don't have any vested interest in promoting them, I just think they are good.