Tadawul Closing All USA Accounts

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Dear Valued Client,

You might be aware of the recent changes in U.S. regulations regarding off-exchange retail foreign exchange. The new regulatory rules-implemented by the Commodity Futures Trading Commission (CFTC), the U.S. government agency responsible for the regulation of retail foreign exchange-apply to retail forex transactions that are offered or entered into by entities registered with CFTC under the Commodity Exchange Act (CEA).

Tadawul FX Ltd. is regulated by Cyprus Securities and Exchange Commission (CySec) and complies with all applicable European Union laws and regulations, including those under the European Markets In Financial Instruments Directive (MiFID). Although, Tadawul FX does not have any offices or operations in the US and is not subject directly to the licensing laws of U.S. regulators, further to our compliance checks it appears that the CFTC does not allow retail forex transactions to be provided to U.S. clients by entities not registered with the CFTC.

Due to the regulatory restrictions in the U.S., it is with great regret we inform you that Tadawul FX will no longer be able to accept any transactions from U.S. residents from 8th July 2011.

Procedure for USA resident clients

By 8th of July 2011 (22:00 CET) all open positions and all pending orders must be closed. Any positions left open will be automatically closed at the last available price, and all pending orders will be cancelled.

All funds in the trading account must be withdrawn to the original source. To collect all remaining balances from your trading accounts, you are kindly requested to send a withdrawal form, which will be processed once it is received. If you have recently sent funds to your trading account, the funds will be sent back to your original source, as soon as these are received. As of Wednesday 6th July 2011, no deposits will be processed from U.S. residents.

The status of the trading account will be changed to "Read Only," allowing you to access your account with your existing login details, just to view history and generate reports as you require.

We sincerely apologize for any inconvenience this may cause you, but unfortunately changes in U.S. regulations are beyond our control. Nonetheless, we will continue to reevaluate the U.S. laws and would be happy to accept U.S. residents in the future, should the laws and regulations change. We have thoroughly enjoyed working with you and would like to thank you for your business. Please feel free to seek independent legal advice to further determine how the regulations affect you or your company.
If you have any questions, please do not hesitate to contact us and will be very glad to help you.

Best Regards,
Tadawul FX

I use tdfx. now that I will have to find a new broker, who would you recomend for me?

Not sure yet. I'm still working on that and will post back here when I've made a decision. My trading system works best with high leverage capability so that will be a priority behind credibility and reliability. If I end up having to live with 100:1 I'll probably go with Oanda.

Rex

50:1

Thank you.

Go to GFT USA or IG Markets

I think that TDFX should find a partner in USA like Duka and Saxo already did.

Please explain.
How does a US partner solve the issue? Won't the US partner be regulated the same as if they were in the US? If so, then what's the point of staying with TDFX or any broker that has a US partner? (other than you just like them).

You might as well just go to a US broker straight away and abide by their regulations. It seems to me that in both cases (US broker direct or US broker via a partnership agreement) you will regulated by US governing authorities and regulations, correct?

I traded with TDFX because I did NOT want to trade under the US regulations.

Since I am a new member and cannot post a thread, this will have to do.

MIG Bank is also closing the accounts of US Residents. They have partnered with Penson Future, but I have yet to have a chance to research them in depth.


Important Notice Regarding MIG BANK Clients Who Are US Residents

Dear Valued Client,

As you may be aware, due to the new Dodd-Frank Act which implements changes that, among other things, affect the Foreign Exchange Industry, we hereby inform you that MIG BANK will no longer provide online FX trading services for retail US residents effective at the end of trading on the 15th July 2011. US citizens living abroad may continue their FX trading activity with MIG BANK.

As a result we kindly ask all US-resident Clients to close any open positions and cancel all pending orders by 18:00 CET (Swiss time) on the 15th July 2011. Any open positions remaining will be closed starting CET 18:00 Swiss time and all pending orders will be cancelled.

We at MIG BANK believe that many of our current clients wish to continue trading with same quality of execution and spread, using our advanced technology and high level of transparency. For this reason we are proud to announce that MIG BANK entered into a strategic relationship with PENSON FUTURES, as our White Label Partner in the United States of America.
Penson Futures is a Penson Worldwide company (NASDAQ: PNSN), a leading independent execution, clearing, settlement, and technology firm servicing the global financial services industry. Penson Futures is registered with the Commodity Futures Trading Commission and is a member of the National Futures Association.

Penson Futures is a full service Futures Commission Merchant (FCM) and Forex Dealer Member (FDM) providing futures execution and clearing services to the world's major exchanges supporting a variety of clients including non-clearing FCMs, Introducing Brokers, Professional Traders, Institutions, Commercial Hedgers, AP Users, and Individual Investors. You can find further information about Penson Futures by visiting www.pensonfutures.com.

Clients who wish to resume their trading, receiving the same MIG BANK’s spreads, fast execution, and transparency may move their account(s) and balances to Penson Futures by instructing MIG BANK to do so and accepting Penson’s terms and conditions as the client’s new counterparty.


Sincerely,

Your MIG BANK team

Finding a USA partner (liquidity or otherwise) forces any broker to sign a "MOU" and thus wise they lose any US resident as a client due to CFTC influence.


MOU = Memorandum of Understanding.

YELLO! If they're a U.S. Partner then they will be under U.S. laws Er, ah, I mean regulations.

Kind of a moot point then, isn't it?