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CFTC Final Retail Forex Rules - 50:1 Leverage

  • #61
  • Sep 4, 2010 11:28am Sep 4, 2010 11:28am
Quoting pilotui
SEC/FINRA brokers like Citi, JP Morgan Chase Bank, Deutsche Bank Securities or Interactive Brokers won't be affected for this rule and they will be able to offer the current 100:1 leverage.

http://community.nasdaq.com/news/201...?storyid=34573
Actually FINRA proposed a forex leverage limit of 1.5:1

http://www.finra.org/web/idcplg?IdcS...s/2009/P118864

This was iB's comment to it:
http://www.finra.org/Industry/Regula...mments/P118027

Hard to imagine they would allow 100:1 now.
  • #62
  • Sep 4, 2010 11:47am Sep 4, 2010 11:47am
Quoting pescador
Actually FINRA proposed a forex leverage limit of 1.5:1

http://www.finra.org/web/idcplg?IdcS...s/2009/P118864

This was iB's comment to it:
http://www.finra.org/Industry/Regula...mments/P118027

Hard to imagine they would allow 100:1 now.
1.5 to 1!!!! OMG are they crazy or something? Maybe 100 to 1 is a little high, but 1.5 to 1 is practically no leverage, why then trade through a br0ker? Better go to a bank and exchange directly the money...

I agree with other comments, in 1 or 2 years forex will be banned in the whole world. They are preparing us to stop playing with currencies, the only who will can manipulate value of money will be governments and central banksters.

Maybe they are also thinking in a global currency...
  • #63
  • Sep 17, 2010 8:35pm Sep 17, 2010 8:35pm
Quoting Trad3r
[size=6] thinking in a global currency...
China does want stability in currencies!

Bucket shop brokers still seam to accept US citizens, but the brokers worth using are turning us away.
  • #64
  • Sep 18, 2010 12:43am Sep 18, 2010 12:43am
Quoting pescador
Actually FINRA proposed a forex leverage limit of 1.5:1

http://www.finra.org/web/idcplg?IdcS...s/2009/P118864

This was iB's comment to it:
http://www.finra.org/Industry/Regula...mments/P118027

Hard to imagine they would allow 100:1 now.
I just skimmed through the 1.5:1 proposed rule change, but is it basically saying retail accounts should only be allowed 1.5:1 in order to protect them?

If so, how would that leverage protect them when there are so many bucket shops out there that can disappear overnight with no recourse. I'm thinking that with 1.5:1 leverage, they could disappear with much more retail money than they ever could before, so how does that protect anyone? It just discourages most of us from even trading. Luckily I don't live in the US, so I guess I'll be safe from that for some time still if it comes into law.

Like I said, I skimmed through the pages, so did not read everything.
  • #65
  • Oct 5, 2010 2:24pm Oct 5, 2010 2:24pm
See our blog on these new rules.
http://www.greencompany.com/blog/archives.php

Oct 01 10 - U.S. forex traders have 270 extra days to trade with foreign banks
Sep 23 10 - Offshore retail forex trading accounts are being forced back to the U.S.
Sep 01 10 - Can American off-exchange retail forex traders evade strict new CFTC rules by trading on offshore platforms?
Aug 31 10 - New CFTC forex trading rules call for 50:1 leverage
  • #66
  • Oct 5, 2010 6:02pm Oct 5, 2010 6:02pm
This is exactly what I've been trying to explain to the truly clueless that think the lowering of leverage was not a slippery slope. But no, they just sit there ignorant and say "well, lowering it to 50:1 is fine by me" or something like that.

What they don't realize is the a Pandora's Box of dumbassery has been opened and just like everytime before overregulatings will ruin what's good in a thing by them incompetently trying to weed out the bad.

Now when it finally gets to point where they actually care it will be too late for everybody. But then again they don't believe successful daytraders even exist because they themselves can't do it. So in their delusional minds we don't exist, lol. I'm not sure if it's misplaced arrogance or just then being able to admit their own shortcomings.

Quoting Trad3r
1.5 to 1!!!! OMG are they crazy or something? Maybe 100 to 1 is a little high, but 1.5 to 1 is practically no leverage, why then trade through a br0ker? Better go to a bank and exchange directly the money...

I agree with other comments, in 1 or 2 years forex will be banned in the whole world. They are preparing us to stop playing with currencies, the only who will can manipulate value of money will be governments and central banksters.

Maybe they are also thinking in a global currency...
  • #67
  • Oct 8, 2010 1:33am Oct 8, 2010 1:33am
that crap pisses me off. it definitely effects me as i trade almost any pair in the spot market. i could be running at least 14 trades at once. so you 50:1 lovers do the math on that. i need 100:1 at the least. most people here won't need it though but i want my goddamm leverage..and I get it..but not from the uSA. this coming from a US citizen. don't even bother to lecture me on how i will be fine with a shorter baseball bat that takes twice as much energy to hit a home run.... I'm not a newbie
  • #68
  • Oct 8, 2010 6:07am Oct 8, 2010 6:07am
At least US traders can hang in there for 1 more year with the overseas banks. I am switching to an overseas bank to forex trade at 100:1
  • #69
  • Oct 8, 2010 8:20am Oct 8, 2010 8:20am
Quoting EricF
At least US traders can hang in there for 1 more year with the overseas banks. I am switching to an overseas bank to forex trade at 100:1

All the banks I have come across thus far require at least a minimum deposit of $5000 to open an account. Does anyone know of any which require a lesser amount?
  • #70
  • Last Post: Oct 8, 2010 8:30am Oct 8, 2010 8:30am
Swissquote and a few others start at $1,000 but the spread is harsh if you are a scalper.

Quoting southernmind
All the banks I have come across thus far require at least a minimum deposit of $5000 to open an account. Does anyone know of any which require a lesser amount?
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