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What will US citizens do now with 50:1 leverage?

  • #21
  • Sep 21, 2010 7:00pm Sep 21, 2010 7:00pm
really? a bad selection?! i never bought any of their services, but yet i get what they talk about and use some of their methods without paying a dime. people should be able to read and practice what they say. nial and J16 make that nd they don't scalp
  • #22
  • Sep 21, 2010 9:46pm Sep 21, 2010 9:46pm
If you register as a LLC, would the 50:1 leverage cap still apply?
"GIVE ME 3 POINTS IN SPACE IN TIME AND WATCH ME CREATE MAGIC."
  • #23
  • Sep 21, 2010 10:32pm Sep 21, 2010 10:32pm
Would the new law also affect clients of USA Forex Brokers who are citizens of another country and still live in that country? eg. Cayman Islands
  • #24
  • Sep 22, 2010 12:10am Sep 22, 2010 12:10am
Quoting cica515
Pidgeon, more info in the following posts:

http://www.forexfactory.com/showpost...&postcount=406
http://www.forexfactory.com/showpost...2&postcount=50

It's not just CFTC rules, but also what the Frank-Dodd financial "reform" law says. According to the CFTC letter in the second post, the law will prohibit (for US traders) foreign banks from being FX counterparties, effective July of 2011. I don't know how that affects non-bank brokers like GoMarkets, time will tell.
Actually there are no laws in US prohibiting US citizens from trading oversea. Notice the different meanings between "prohibiting foreign banks/brokers" and "prohibiting US citizens." The CFTC rule only says prohibiting foreign broker/bank counterparties from trading with US citizens. It doesn't says prohibiting US citizens from trading with foreign bank/foreigner counterparties. Thus it is not illegal for US citizens to trade oversea. I highly doubt the CFTC can enforce its rule over foreign banks/brokers in another jurisdiction. The Frank-Dodd reform acts give CFTC the authorities and responsibilities to define and refine the laws to regulate the forex market. So far CFTC has not declared it is unlawful for US citizens to trade oversea yet.
  • #25
  • Sep 22, 2010 12:13am Sep 22, 2010 12:13am
Quoting kapital
If you register as a LLC, would the 50:1 leverage cap still apply?
It depends on who it is. Citifx was always 50:1 from what I know. dukas and db are 100:1 as far as I know, no matter what size account it is. usually, they start to lower your leverage all the way down 25:1 as your account gets bigger on most legit brokers I have seen that aren't banks
  • #26
  • Sep 22, 2010 12:31am Sep 22, 2010 12:31am
I just spoke with Onada's live chat. I double checked this but it looks like they don't see a conflict with stoploss on individual orders with the FIFO rules.

For example:

$10,000 long USD/JPY at 120.00 stoploss gets moved to breakeven. Order remains open.

Later you place another $10,000 long USD/JPY at 121.00 you end up putting a stop at breakeven for this order as well. Retracement knocks out the second order but doesn't affect the first order at all.

With FXCM US accounts can no longer do this.

Coastalfx
  • #27
  • Sep 22, 2010 1:04am Sep 22, 2010 1:04am
Quoting coastalfx
I just spoke with Onada's live chat. I double checked this but it looks like they don't see a conflict with stoploss on individual orders with the FIFO rules.

For example:

$10,000 long USD/JPY at 120.00 stoploss gets moved to breakeven. Order remains open.

Later you place another $10,000 long USD/JPY at 121.00 you end up putting a stop at breakeven for this order as well. Retracement knocks out the second order but doesn't affect the first order at all.

With FXCM US accounts can no longer do this.

Coastalfx
Yea your right, I trade with oanda and they never changed a thing, where as fxcm did.
  • #28
  • Sep 22, 2010 12:27pm Sep 22, 2010 12:27pm
you should stick to 1:10
Rule No.1: Never lose money. Rule No.2: Market is always right !
S&P 500 WTI/USD
  • #29
  • Sep 22, 2010 2:00pm Sep 22, 2010 2:00pm
Quoting Turveyd
As 99% of trades LOSE money you could argue the government is doing a public service here, personally I'm all for the dumb giving there money to the smart but hey!!
One could also argue that since over 90% of new businesses fail within the year, the government should ban business startups too. It's pretty much the same principle.

Nonetheless, there are always Binary Forex Options.
Binary Options Trader
  • #30
  • Sep 23, 2010 3:20pm Sep 23, 2010 3:20pm
As an American FX trader, I am furious at the CFTC. They say they are acting in the interest of the trader. I see their actions as treating American traders like children. I've heard all the argument for and against leverage. My position is that I don't think it should be a government decision, especially in a country that is always talking about freedom. I have been trading with UK brokers since the CFTC began their assault by removing hedging. I saw that action as only being the start of preventing Americans from trading FX and I was right. My UK brokers have been great and I highly recommend them.
  • #31
  • Sep 24, 2010 2:37am Sep 24, 2010 2:37am
Why is it that casinos are legal? There is no limit to the amount of money I can throw away, knowing full well that the odds are fixed.

The government operates state lotteries, also with fixed odds, 200 mil to 1...

Yet the forex market is singled out? It does nothing but reduce my bottom line.

What happened to freedom?
  • #32
  • Sep 24, 2010 3:41am Sep 24, 2010 3:41am
Quoting go4pips
It's a done deal .....and our accts are not welcome at FxSol(Aust) or IBFX(Aust) or FXCM-UK. What do we do now? I'd like to know what our options are.....
Just deal with it. Unless you have some friends with very, very deep pockets who can fight the Futures dealers. Don’t kid yourself thinking the Government is doing this because Joe or Jane Doe keeps losing money in the Forex market and they called someone to complain about it. No my friends the Futures dealers have been losing a lot of their traders to the Forex market so they put lobbyists to work and now we’re given new rules to try and stop the Futures market from losing even more money (traders).

As some wise person once said… Just follow the MONEY!

But what do I know?

JD
It's Easy To Get In;.. It's Hard To Get Out
  • #33
  • Sep 24, 2010 3:43am Sep 24, 2010 3:43am
Quoting jm8985
What happened to freedom?
Freedom got sold to foreign bankers.
  • #34
  • Sep 24, 2010 4:02am Sep 24, 2010 4:02am
I would rather say the mission was to bring your money home to the US and let it work there .
It would be easy for FXCM UK to let US clients only trade 1:50 on their accounts and give them a bit more protection with segregated accounts but they know exactly what the intend of this new regulation was and they don't want to mess with the regulators/gov.

same idea http://accounting.smartpros.com/x69065.xml
  • #35
  • Sep 25, 2010 3:12am Sep 25, 2010 3:12am
Quoting John D
Just deal with it. Unless you have some friends with very, very deep pockets who can fight the Futures dealers. [size=3]Don’t...
I think market will c much change - correction next 2 months for Trades and brokers. Good or bad time will tell.
I'm not American but i like my US broker and not interested to change it so far

Some info hope it help
http://www.forexfactory.com/showthre...80#post4048180

Let's C
  • #36
  • Sep 25, 2010 9:30pm Sep 25, 2010 9:30pm
Quoting BostonForex
Dukascopy is no longer accepting US clients.
any reference for this?
realize the universe is one thing, and attach it to your body
  • #37
  • Sep 25, 2010 10:14pm Sep 25, 2010 10:14pm
http://www.greencompany.com/blog/index.php?postid=95
  • #38
  • Edited 11:56am Sep 26, 2010 1:25am | Edited 11:56am
Quoting Kiado
http://www.greencompany.com/blog/index.php?postid=95
that is helpful, thanks. but does not say dukascopy has stopped taking usa traders. and this-

"Foreign commercial banks unaffiliated with any U.S.-based FCM or RFED may have a 360-day extension from registering as a U.S. financial institution."

-looks like dukascopy may have 360 days. they must have many dollars from usa traders and probably want to keep them. so maybe they will register.


or, being swiss, they may be exempt somehow. with no us-based operation the us govt cannot pressure them. hopefully they will ignore the cftc and we can too.

will need to wait for a response from dukascopy on whether they have stopped taking usa accounts.

does not seem right that us traders can only trade global markets from inside us-based brokers and banks. seems like a new windfall for us banks and brokers.
realize the universe is one thing, and attach it to your body
  • #39
  • Sep 30, 2010 1:38am Sep 30, 2010 1:38am
If I were american, I will move the account to UK or other country.
  • #40
  • Sep 30, 2010 10:36am Sep 30, 2010 10:36am
Quoting EricF
I have not done my google dd on this so forgive me but if I form an LLC in the US as I am a US citizen how does that enable me to work around this?
Only if the LLC would qualify as an ECP can you get around the restrictions, and if that was the case you would be able to get around the restrictions domestically, as well because ECPs are exempt. The bottom line is that you would be setting up a red flag for evasion, as the beneficial owner of the LLC is still US-based, meaning the regs apply.
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