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

  • #1,181
  • Aug 31, 2010 10:37pm Aug 31, 2010 10:37pm
Quoting The Fool
Yeah, let's stay sharp by pissin away as much time as possible writing in this thread.
Well not so much any longer. September 1 is almost here! Hang in there!!
Make your losses in demo. Earn your profits live.
  • #1,182
  • Aug 31, 2010 10:46pm Aug 31, 2010 10:46pm
http://opinionator.blogs.nytimes.com...know-nothings/
  • #1,183
  • Sep 8, 2010 10:23pm Sep 8, 2010 10:23pm
It's official, all FX foreign accounts, of US residents will have to be repatriated, if the CFTC would have jurisdiction over those brokers if they were in US,...stay tune for the deadline, but it is a done deal. Don't think it applies to banks offering FX products. Citi, DB, Dukascopy and other banks thank Gensler for that. FXCM will have to repatriate...they and the coalition should have challenged this when they had a chance...there goes all the offices that they opened all over the place.
  • #1,184
  • Sep 8, 2010 11:15pm Sep 8, 2010 11:15pm
Quoting wwwin
It's official, all FX foreign accounts, of US residents will have to be repatriated, if the CFTC would have jurisdiction over those brokers if they were in US,...stay tune for the deadline, but it is a done deal. Don't think it applies to banks offering FX products. Citi, DB, Dukascopy and other banks thank Gensler for that. FXCM will have to repatriate...they and the coalition should have challenged this when they had a chance...there goes all the offices that they opened all over the place.

What is your source for this?
  • #1,185
  • Sep 9, 2010 2:44pm Sep 9, 2010 2:44pm
Quoting wwwin
It's official, all FX foreign accounts, of US residents will have to be repatriated, if the CFTC would have jurisdiction over those brokers if they were in US,...stay tune for the deadline, but it is a done deal. Don't think it applies to banks offering FX products. Citi, DB, Dukascopy and other banks thank Gensler for that. FXCM will have to repatriate...they and the coalition should have challenged this when they had a chance...there goes all the offices that they opened all over the place.
I trust you have a source Win, but no need to share it if the news isn't public yet.

I'm also interested to see what happens to the solely-foreign brokers and US clients (LCG, Duka, etc)
  • #1,186
  • Sep 9, 2010 2:52pm Sep 9, 2010 2:52pm
Quoting Trader KGB
I trust you have a source Win, but no need to share it if the news isn't public yet.

I'm also interested to see what happens to the solely-foreign brokers and US clients (LCG, Duka, etc)

Other than tax us...what can they do? There is not policing agency setup etc...
  • #1,187
  • Sep 9, 2010 2:58pm Sep 9, 2010 2:58pm
Quoting pilotui
Other than tax us...what can they do? There is not policing agency setup etc...
Well it's been speculated they could be coerced into not accepting US clients if they don't adhere to the NFA's rules. After all, the offshore CFD brokers don't accept US clients..
  • #1,188
  • Sep 9, 2010 3:19pm Sep 9, 2010 3:19pm
Quoting pilotui
Other than tax us...what can they do? There is not policing agency setup etc...
1) Financial strip search.
2) Physical strip search.

http://www.nytimes.com/2010/07/09/wo...e/09swift.html
  • #1,189
  • Sep 9, 2010 4:46pm Sep 9, 2010 4:46pm
Quoting Trader KGB
I trust you have a source Win, but no need to share it if the news isn't public yet.

I'm also interested to see what happens to the solely-foreign brokers and US clients (LCG, Duka, etc)

Here's Proof: http://www.fxsolutions.com/support/l...n-leverage.asp


" I knew this would happen. Now all those that wont have enough funds and would consider futures (currency), I have several years experience and would be glad to elaborate details.
"Look Left Think Right"
  • #1,190
  • Sep 9, 2010 5:42pm Sep 9, 2010 5:42pm
Quoting CurrencyAnalyst
Here's Proof: http://www.fxsolutions.com/support/l...n-leverage.asp
Where does it say anything about the UK subsidiary? edit - and sweet heavenly lord, those spreads are horrific!


Quote
" I knew this would happen. Now all those that wont have enough funds and would consider futures (currency), I have several years experience and would be glad to elaborate details.
If EUR/JPY and AUD/JPY futures are ever liquid, I'd consider going back.
  • #1,191
  • Edited 10:05pm Sep 9, 2010 9:31pm | Edited 10:05pm
OK, more on the subject, FXCM has already stated in it's thread that their US residents will have to repatriate any foreign accounts with them.
Also, here is a post today from somebody that got a response from the CFTC by email.
http://www.forexfactory.com/showpost...4&postcount=10

It's official folks, get used to it. And it will apply to foreign banks too at a later date, as of July 2011. The noose has been tighted folks.

"foreign affiliates of US FCMs will no longer be able to offer to serve as counterparties to US retail customers unless they become registered with the CFTC as FCMs or RFEDs."

And if a foreign affiliate registers, 50-1 or 20-1 and no hedging is the deal

But currently there appears to be a loophold if the foreign broker is not an affiliate of an U.S. FCM., or is not a foreign bank.

I can see brokers with no affiliation to US FCMs popping up in China or Russia or places that don't like US to meddle in their business. Other countries will probably be coerced to not allow it. What kind of protection is the CFTC after and who are they protecting?
  • #1,192
  • Edited 10:22pm Sep 9, 2010 9:57pm | Edited 10:22pm
"foreign affiliates of US FCMs will no longer be able to offer to serve as counterparties to US retail customers unless they become registered with the CFTC as FCMs or RFEDs.

Second, although foreign banks are currently able to offer to serve as counterparties, the recently pass Wall Street Reform and Consumer Protection Act has once more amended Section 2(c)(2)(B) eliminating the provision permitting foreign banks to serve as counterparties. This change will be effective in July of 2011."

According to what Penner says, foreign brokers might serve as fx counterparties for a US citizen-held account if they are registered w/ CFTC as FCM or RFED.

Bad news about the banks, though - haven't heard anybody from Dukascopy or DB or other fx dealing foreign banks comment on this yet.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,193
  • Sep 9, 2010 10:24pm Sep 9, 2010 10:24pm
Quoting wwwin
OK, more on the subject, FXCM has already stated in it's thread that their US residents will have to repatriate any foreign accounts with them.
Also, here is a post today from somebody that got a response from the CFTC by email.
http://www.forexfactory.com/showpost...4&postcount=10

It's official folks, get used to it. And it will apply to foreign banks too at a later date, as of July 2011. The noose has been tighted folks.

[color=black]"[color=#1f497d][i][b]foreign...
...unfortunate. Sure, I trade with OANDA, but when will this stop? Next thing you know, it will be 2:1 with no more multiple trades within a 24 hour period (or something similarly zany)...I really do wonder if "too many" people have been successful, and this is just a way to reign in the "imbalances" in the market.

Jeff
  • #1,194
  • Sep 9, 2010 11:00pm Sep 9, 2010 11:00pm
Quoting stljeffbb
...unfortunate. Sure, I trade with OANDA, but when will this stop? Next thing you know, it will be 2:1 with no more multiple trades within a 24 hour period (or something similarly zany)...I really do wonder if "too many" people have been successful, and this is just a way to reign in the "imbalances" in the market.

Jeff
You know, I do not recall hearing a shitstorm of protest from Oanda. The US brokers might have sent in a letter to the CFTC during the comment period, but I wonder how upset they really are about this coming to pass.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #1,195
  • Sep 10, 2010 12:05am Sep 10, 2010 12:05am
Quoting wwwin
OK, more on the subject, FXCM has already stated in it's thread that their US residents will have to repatriate any foreign accounts with them.
I didn't see Jason Rogers make that comment, do you have link to the post?

The CFTC email looks pretty definitive, though it's strange that they didn't come out and say it in the original rule release two weeks ago, or the subsequent clarification a few days later.
  • #1,196
  • Sep 10, 2010 12:11am Sep 10, 2010 12:11am
Quoting Trader KGB
I didn't see Jason Rogers make that comment, do you have link to the post?

The CFTC email looks pretty definitive, though it's strange that they didn't come out and say it in the original rule release two weeks ago, or the subsequent clarification a few days later.
http://www.forexfactory.com/showpost...postcount=1356
  • #1,197
  • Sep 10, 2010 12:38am Sep 10, 2010 12:38am
Quoting wwwin
http://www.forexfactory.com/showpost...postcount=1356
Must have just missed it, thanks.
  • #1,198
  • Sep 10, 2010 9:53am Sep 10, 2010 9:53am
Quoting The Fool
You know, I do not recall hearing a shitstorm of protest from Oanda. The US brokers might have sent in a letter to the CFTC during the comment period, but I wonder how upset they really are about this coming to pass.
Hello The Fool....well, they did include some things on their forums, however, my hunch is that once if has the chance to affect them more, they COULD be more vocal....however, if 25:1 is the CFTC's target (notwithstanding all the 10:1 talk), the customers at OANDA are used to trading with lower leverage...I would guess that most traders there would accept it. I would too, but I strongly disagree with the path this is going based on philosophical grounds....

Here is a little bit from one of the head people at OANDA (bold added for emhasis):

Quote
[size=2][i]By Tiernan Ray
Interesting chat this afternoon with Michael Stumm, CEO of something Called Oanda, a private company based in New York that offers retail trading in the spot currency market.

Stumm, who has an academic background in operating system software and large computer systems science, got started in 1996 with a Web site that just listed currency exchange rates. After the DotBomb collapse, he realized there was no future in providing an info Web site, so he converted the business into a market maker in forex.

Retail forex is upward...

I ripped this off from the OANDA forums....here is the link to the blog

http://blogs.barrons.com/stockstowat...rex-investors/

Regards,

Jeff
  • #1,199
  • Sep 10, 2010 10:18am Sep 10, 2010 10:18am
Quoting The Fool
You know, I do not recall hearing a shitstorm of protest from Oanda. The US brokers might have sent in a letter to the CFTC during the comment period, but I wonder how upset they really are about this coming to pass.
You have hit the nail on the head. Just follow the money. I'm willing to bet the US brokers got these rules put in there.
  • #1,200
  • Sep 11, 2010 6:35am Sep 11, 2010 6:35am

"I can see brokers with no affiliation to US FCMs popping up in China or Russia or places that don't like US to meddle in their business."


I'm looking at Go Markets. They have no affiliation to US FCMs and I think they still accept US citizens. Will Australia cave to CFTC pressure in the future, I hope not. My big concern is that the CFTC will try to lean on the individual trader if they would move their account to someone like go markets. Is there any line in the regulation( through their eyes) that they can point to and say a US citizen can't have a foreign broker even if the broker has no affiliation to a US FCM? I don't think so.
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