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Banning All Retail Forex In The United States?

  • #41
  • Nov 16, 2014 4:19pm Nov 16, 2014 4:19pm
Quoting 4xbones
November 12, 2014
CFTC Orders Five Banks to Pay over $1.4 Billion in Penalties for Attempted Manipulation of Foreign Exchange Benchmark Rates Citibank, HSBC, JPMorgan, RBS, and UBS Coordinated Trading with Other Banks in Private Chat Rooms in Their Attempts to Manipulate Washington, DC...
I think i got little bit different numbers

By Suzi Ring, Liam Vaughan and Jesse Hamilton Nov 12, 2014 4:17 PM GMT

VIDEO

Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM) were the hardest hit in the first settlements since authorities began a global probe into the rigging of key foreign-exchange benchmarks last year.
Citigroup will pay $1.02 billion to three regulators in the U.S. and U.K., and JPMorgan $6 million less, according to statements from the firms today. They are among six firms that will pay $4.3 billion to four regulators ranging from the U.S. to Switzerland’s Financial Market Supervisory Authority.
Banks and individuals could face further penalties and litigation following the 13-month probe into allegations dealers at the biggest banks colluded with counterparts at other firms to rig benchmarks used by fund managers to determine what they pay for foreign currency. The Justice Department, which is working with the Federal Reserve, and Britain’s Serious Fraud Office are still leading criminal probes into the $5.3 trillion-a-day currency market.
Broken Benchmarks
“Many will see this as drawing a line under this sad episode,” said Tim Dawson, an analyst at Helvea SA in Geneva who covers financial firms. “We are less optimistic,” he said. The banks are “likely to face a heavy burden of potential litigation in coming years.”

Attendees pass an advertisement for UBS AG during a break in sessions at the Swiss... Read More
Citigroup said in a statement “several” additional regulatory and enforcement bodies are still conducting probes. JPMorgan said it continues to cooperate with the Justice Department.
‘A Team’
UBS AG (UBSN) was fined about $800 million, Royal Bank of Scotland Group Plc $634 million and HSBC Holdings Plc (HSBA) $618 million by the U.S. Commodity Futures Trading Commission, Office of Comptroller of the Currency, Britain’s Financial Conduct Authority and Finma. Bank of America Corp. will have to pay $250 million to the OCC. London-based Barclays Plc (BARC), which had been in settlement talks, said it wasn’t ready for a deal.
  • #42
  • Nov 16, 2014 5:03pm Nov 16, 2014 5:03pm
Quoting roughtrader
{quote} This must be one of the most stupid things I ever heard, why would you think that by raising the balance would make these bucket shops more honest? the result would be that the intire industri would lose customers and also, for those few that could afford to trade, would still loose , but only more. that just doesn't ring as a good plan to my ears. why would it be better to loose more? I think it is a good thing everyone can afford trading, this is a birthright! it brings hope for a lot of people and is important. the scam brokers must be...

You spell as badly as you read. The "hope" you are rambling about is called delusion. Scam brokers prey on delusional people thinking 500 dollars is going to change their life. It's a joke
  • #43
  • Nov 16, 2014 5:29pm Nov 16, 2014 5:29pm
Quoting Almuten
I think raising minimum accounts sizes would worsen the problem because being able to trade .01 lots only improves the situation of the small-time trader. Why? Because he can trade with the same calm mentality of the large fund manager. For a newbie trader, losing $5 is the same as losing $50,000 for a professional - at least in terms of account size (though not in utility value). Years ago I only traded S&P futures - and this was prior to the E-Mini rollout in 1998. Minimum margin? $20,000 to hold overnight, $10,000 to day trade. At the time, I...


No one is saying that having a 10k minimum deposit would stop you from trading .01 lots. People who can't part with a small amount like 10k, then I really don't think they are ready to take trading seriously. The 1% could care less about 500 dollar micro account traders under this sad delusion that they will "rob the rich blind".
  • #44
  • Nov 16, 2014 7:13pm Nov 16, 2014 7:13pm
Sorry everyone, their right, FX is gambling but you can't ban it or you would need to shut down Vegas as well.
  • #45
  • Nov 16, 2014 7:43pm Nov 16, 2014 7:43pm
Retail forex trading should be banned not just in the United States but throughout the world, in every country, for people below age of 90 and the ones not having at least 3 "running" wives. For female traders, this limit should be 85 and minimum number of husbands should be based on male/female ratio in that country

Unless

somebody points out a system here on FF, out of several hundreds, that works, please exclude this from the list of workable systems.
The Thief of Wall Street
  • #46
  • Nov 16, 2014 7:55pm Nov 16, 2014 7:55pm
If they are thinking it, it could happen. Maybe a little watered down, but could happen. Dodd Frank a good example. What good has Dodd Frank done? It has only pushed US traders off shore and derived US brokers income. No one wanted it.
Understand the politicians don't see their job as protecting the public like you would think, like they were elected for. They see their job as being published, getting their name before the public as often as possible, creating bills whether they are good for the public or not, protection their job and all the benefits that go along with that job, getting reelected, getting that golden pension at the end.
  • #47
  • Nov 16, 2014 9:03pm Nov 16, 2014 9:03pm
Quoting roughtrader
{quote} This must be one of the most stupid things I ever heard, why would you think that by raising the balance would make these bucket shops more honest? the result would be that the intire industri would lose customers and also, for those few that could afford to trade, would still loose , but only more. that just doesn't ring as a good plan to my ears. why would it be better to loose more? I think it is a good thing everyone can afford trading, this is a birthright! it brings hope for a lot of people and is important. the scam brokers must be...
This is very true. Why would I trade live account if I cannot win in demo? Why would I trade 1 lot or more if I cannot even make make 100 dollar account grow into 110 dollars. If I decide to quit forex trading because my trading result is not convincing, it is just sensible to loose 100 dollars, accept the fact that forex trading is finally not for me rather than losing 10k or more.
  • #48
  • Nov 17, 2014 6:56am Nov 17, 2014 6:56am
It would be nice if they could make a rule where you can't trade live until you have traded a demo account for 3 years, but that will obviously never happen. It would definitely save a lot of folks a lot of money, lol.
Broker: chartsio, Trading Frequency: 1-2 per day
  • #49
  • Nov 17, 2014 8:59pm Nov 17, 2014 8:59pm
Quoting JumpJack
If they are thinking it, it could happen. Maybe a little watered down, but could happen. Dodd Frank a good example. What good has Dodd Frank done? It has only pushed US traders off shore and derived US brokers income. No one wanted it. Understand the politicians don't see their job as protecting the public like you would think, like they were elected for. They see their job as being published, getting their name before the public as often as possible, creating bills whether they are good for the public or not, protection their job and all the benefits...
In 2010 July the Dodd-Frank bill became law (Dodd–Frank Wall Street Reform and Consumer Protection Act).

Us plebs in the US could trade gold and silver on margin in the cash market. I was doing that, hoping to earn a living from it. Then it was gone. Only institutional traders could continue using margin; us plebs were excluded. The gold and silver Dodd-Frank rule took effect in 2011 July. My last trade was 20 oz of gold on July 15.

Us plebs in the US could trade FX with up to 200:1 margin. Then it was gone. Does anyone wonder where the 50:1 uniformity came from?

FX trading by us plebs in the US could be killed off in one, or both, of the common tactics used by lawmakers: embed the effective rule inside a large bill not aimed directly at the target (think Dodd-Frank & obfuscation), or simply change key parameters such as the allowed margin to 20:1, 10:1, 5:1, even 1:1 as was done with gold and silver in the cash markets.

Can they apply such rules only to the plebs while exempting the big players (aka, big political donors)? Already been done--see first paragraph above.
  • #50
  • Nov 17, 2014 9:08pm Nov 17, 2014 9:08pm
Quoting dereka
It would be nice if they could make a rule where you can't trade live until you have traded a demo account for 3 years, but that will obviously never happen. It would definitely save a lot of folks a lot of money, lol.

what would really be nice is if they would take away the dodd-frank act and give us some real freedom. But like mostly every one else said banning retail forex would never happen. If anything they would prefer it to stay more like gambling as that is just another tax on the poor and hopeful.
Life's Good & Why Wouldn't It Be? Im a Pirate After All!
  • #51
  • Nov 17, 2014 9:29pm Nov 17, 2014 9:29pm
What basis would they even have to ban forex? That it's risky? Banning forex, even if just to retail traders, would be a serious violation of free market principles. And anyway, in the end how much more different is retail forex from options or futures trading? It's just that the latter two occur on regulated exchanges. Well if it ever did come to this, there'll always be options on currencies for one, and binary options now as well. And never underestimate the ingenuity of Wall St. to skirt around any rules especially if it means the ability to get a few more easy - *risk-free* - bucks off the lay man.
Enter Signature
  • #52
  • Nov 17, 2014 10:00pm Nov 17, 2014 10:00pm
just noted several interesting quote from the article :
"Most retail currency investors lose money most of the time, according to the industry’s own data. Reports to clients by the two biggest publicly traded over-the-counter forex companies -- FXCM Inc. (FXCM) and Gain Capital Holdings Inc. -- show that, on average, 68 percent of investors had a net loss from trading in each of the past four quarters. These kinds of losses make for investor churn. "
adn another one :
Glenn Stevens, CEO of Gain Capital, says individual forex traders rarely do the market and risk analysis necessary to win consistently. Most traders don’t have a disciplined approach, he says.
“Unfortunately, most people don’t like to do homework,” he says.
Forex firms such as FXCM and Gain Capital make money from trading volume, with small markups on many transactions. Although forex trading is a big market, it isn’t a big business.
any comment ? or you just agree with the phrase, 68 percent net loss based on fxcm and gain capital ?
as the CEO said forex trading are not big business, it just a big market, then why most brokers still around for over decade.

please read the article first, dont get to fast reply others post without even knowing what link article contain, it's just another contreversy writing.
and i feel bad for us citizen, they recently been suffer enough with 1:50 leverage, fifo rule, no hedging capability, unless this what i experience while trading with us based client, traded with us regulated brokers.
  • #53
  • Nov 17, 2014 10:51pm Nov 17, 2014 10:51pm
Quoting smash1820
{quote} It will likely be some time (1 year? 2 years? 3 years?) before we see the repercussions from this discussion, HOWEVER, I am still VERY concerned that it is even on their minds at all.
The reason to be concerned is that these "authorities" are ... well, sorry, it's late, I was originally just going to use the word 'they' - but I'll say....evil and DO NOT want independent wealth creation going on in in the US.

Why else were all our jobs outsourced, small business made impossible with "Obamacare" and regulation, and education totally dumbed down - believe me, I know; I am around the Communist Core daily and the results are pathetic. In math, CC STALLS education so that students are preoccupied with drawing instead of learning to do simple addition with carrying. So much time is spent with this in first and especially second grade, that there is no time, later on, for higher math as in countries such as India, China, etc.

The point is: you are correct. There IS something to worry about. It is not nanny stateism - it is far darker than that. It is COMMUNISM. So many many proofs exist of the years this agenda has been in force in the US - the amount of infiltration into education, and elsewhere. Our media is totally controlled; our people are dumbed down and focused on sports; our diet is rigidly GMO with heavy-guns coming out right now against Maui County for standing up and protecting their communities from Monsanto.

Bottom line: NO SUCCESS OF INDIVIDUALS. Period.

Start by finding a broker abroad. It might help. I use one that welcomes US traders. Search around and you'll find my posts.
  • #54
  • Nov 17, 2014 10:58pm Nov 17, 2014 10:58pm
They want obedient stock holders who put their hard earned money in stocks for the long term. They don't want traders scalping 1M chats creating all kinds of noise for the banks... lol
  • #55
  • Nov 18, 2014 7:10am Nov 18, 2014 7:10am
Quoting Acroix70
{quote} You spell as badly as you read. The "hope" you are rambling about is called delusion. Scam brokers prey on delusional people thinking 500 dollars is going to change their life. It's a joke
it is not a joke, just because you can't do it doesn't mean anyone else can't do it, it is perfectly possible to start with a 500 dollar account and trade it up to a million, excuse my spelling
Bulls are stupid Animals!especially when Im short!
  • #56
  • Nov 18, 2014 7:16am Nov 18, 2014 7:16am
Quoting hjkl185
Sorry everyone, their right, FX is gambling but you can't ban it or you would need to shut down Vegas as well.
FX is Not gambling, its investing
Bulls are stupid Animals!especially when Im short!
  • #57
  • Nov 18, 2014 7:52am Nov 18, 2014 7:52am
Quoting fxindikator
Forex firms such as FXCM and Gain Capital make money from trading volume, with small markups on many transactions. Although forex trading is a big market, it isn’t a big business. .
Not true.
FXCM average monthly volume 300 billion
this is 50,000,000 yes 50 million in revenue per month just from spread and commission.
Forex is obcenely profitable if you are a broker !
Note that customers (as an agregated account) do not even cover spread and commission !
Huge churning in the accounts making the broker insanely profitable and the customers as a whole show no profit or they show a loss every month.
  • #58
  • Nov 18, 2014 10:51am Nov 18, 2014 10:51am
Quoting VaBikePacker
{quote} JENX FOR PREZ!!! ...a truly beautiful piece of literature....
It was sort of tongue in cheek you know? Although to an extent I do believe that inexperienced traders lose not only because of their mentality but also because they rely biblically on indicators and TA using Historic data. How on earth can past data (apart from PA) EVER tell you what is going to happen next?
Where price is now, it has been before, and will be again.
  • #59
  • Nov 18, 2014 11:10am Nov 18, 2014 11:10am
Quoting Mingary
{quote} Not true. FXCM average monthly volume 300 billion this is 50,000,000 yes 50 million in revenue per month just from spread and commission. Forex is obcenely profitable if you are a broker ! Note that customers (as an agregated account) do not even cover spread and commission ! Huge churning in the accounts making the broker insanely profitable and the customers as a whole show no profit or they show a loss every month.
i want to be a Broker

maybe we should all club together and start our own Brokerage, preferably somewhere hot
the British Virgin Islands looks like the idea location
Attached Image (click to enlarge)
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  • #60
  • Nov 18, 2014 11:11am Nov 18, 2014 11:11am
Quoting Carlsberg
{quote} i want to be a Broker maybe we should all club together and start our own Brokerage, preferably somewhere hot the British Virgin Islands looks like the idea location {image}

When do we start.
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