Some may have read my posts in other threads regarding the ridiculous restrictions US regulators impose on US traders/brokers.
Most everyone is aware, unlike the rest of the free world, US traders leverage is limited to 50:1, now 33:1 on AUD and JPY, 20:1 on CHF (after the fact, makes as much sense as everything else they've done), no hedging, FIFO. Most intelligent traders know leverage is not the issue, leverage only allows you to make more money when used correctly. If I want to risk $200 on a trade, why do I need to put up $3,000 in margin? Risk is risk, leverage is simply the margin required to open a trade. One has nothing to do with the other. If I have $10,000 to trade with and I want to risk 2% ($200), once again why does my broker need more than that, especially since there is no protection of funds.
What most are not aware of, however, is the fact this is impacting trading forex worldwide. Remember when the New York afternoon was tradable, there was still volatility. Now it's like watching paint dry. The trading day is over at London close. This is directly due to the fact the NFA has forced all but 5-6 brokers to exit the US market, coupled with the fact nobody really wants to trade under such ridiculous restrictions and this is the result.
Why is it that everywhere else in the world, with the exception of North Korea and Iraq, can trade basically restriction free AND the regulatory bodies allow segregation of funds and insurance to protect clients monies.
Please share your thoughts and opinions
Most everyone is aware, unlike the rest of the free world, US traders leverage is limited to 50:1, now 33:1 on AUD and JPY, 20:1 on CHF (after the fact, makes as much sense as everything else they've done), no hedging, FIFO. Most intelligent traders know leverage is not the issue, leverage only allows you to make more money when used correctly. If I want to risk $200 on a trade, why do I need to put up $3,000 in margin? Risk is risk, leverage is simply the margin required to open a trade. One has nothing to do with the other. If I have $10,000 to trade with and I want to risk 2% ($200), once again why does my broker need more than that, especially since there is no protection of funds.
What most are not aware of, however, is the fact this is impacting trading forex worldwide. Remember when the New York afternoon was tradable, there was still volatility. Now it's like watching paint dry. The trading day is over at London close. This is directly due to the fact the NFA has forced all but 5-6 brokers to exit the US market, coupled with the fact nobody really wants to trade under such ridiculous restrictions and this is the result.
Why is it that everywhere else in the world, with the exception of North Korea and Iraq, can trade basically restriction free AND the regulatory bodies allow segregation of funds and insurance to protect clients monies.
Please share your thoughts and opinions