US traders really need to take a stand. The freedoms and protections that EVERY forex trader worldwide enjoys are not accessible to US residents. Why? They require us to deposit ridiculous amounts for margin, dictate the order in which you can close trades, must open and close positions if you have a long term buy but want to sell today and best of all...... don't offer any protection or insurance on your funds.
Here is a very simple solution, where your money is far safer and you can compound 10 times faster than with a US broker, exactly the way I do it, which I recently posted in another thread. I know it sounds crazy, but what if everyone simply stopped trading with US brokers under these ridiculous conditions. Would the brokers then fight the NFA/CFTC? Here is how to do it, folks:
Every broker I use is an ECN, no dealing desk, and I have verified this several different ways. They make money on commission, some have better spreads than others due to how many and which specific lp's they are using.
I always find it funny when (fill in the blank). Hint: they are publicly traded, has a 125 pip larger spike down on a pair when the largest I see is 10 with any of my 6 offshore brokers. Yet, this firm is regulated.
. I have seen every broker in the US freeze a platform, have huge price spikes that don't exist elsewhere, etc.
As far as moving money, I have a completely separate bank account with a debit card for my forex trading capital. I don't move money every single trade. I withdrawal at the end of every week and leave enough rollover to begin the next week. If I need to (which is rarely, due to the fact my margin requirement is anywhere from 1/25 to 1/10 of what is required with US brokers) I will transfer by debit card and it INSTANTLY hits my account, but cost is about 4%
So I leave my trading capital in my own bank, I have about a 100 pip cushion in my account, and will start my trading week with 1, maybe 2 trades only and then trade on profits the balance of the week. I use rather tight stops, so very rarely is it an issue. Here is a very basic example, with approximate figures:
Trading 1 standard lot at $10 /pip requires $1,000 in my account for 100 pip cushion, however only $200 is required in margin if I wanted to use a 20 pip s/l. That same trade in the US requires anywhere from $2,000 to $3,000 (AUD or JPY crosses) to $5,000 (CHF and exotics) and then if you want to open another trade, of course, requires double, a 3rd position, triple it, etc.
I also like to add to/compound winning positions while moving stops to break even. The extra leverage allows me to open much larger positions vs. the same scenario in the US. Another example:
I have $1,000 in my account and trade 1 standard lot, position moves 100 pips in my favor, that $1000 in profit allows me to easily open another standard lot, move average price s/l to break even and creates a risk free trade, now at double the size, where in the US I would be $2,000 short in margin requirements even though my position is 100 pips in profit and risk free. You can do this in 20 or 30 pip increments as well. You may get stopped at break even alot, but who cares? You are trading sizes 7,8, 10 times what you could in the US. THIS IS THE HUGE DIFFERENCE. It's not the initial leverage, but the additional leverage profitable positions affords. It is why people refuse to even believe my % gains weekly as it is not even possible to attempt with 50:1.
Just the way I do it, and while many may disagree, I will stick to my claim that not only is my money safer than everyone in the US, but at the same time I can compound up to 10 TIMES FASTER by adding to winners.
Here is a very simple solution, where your money is far safer and you can compound 10 times faster than with a US broker, exactly the way I do it, which I recently posted in another thread. I know it sounds crazy, but what if everyone simply stopped trading with US brokers under these ridiculous conditions. Would the brokers then fight the NFA/CFTC? Here is how to do it, folks:
Every broker I use is an ECN, no dealing desk, and I have verified this several different ways. They make money on commission, some have better spreads than others due to how many and which specific lp's they are using.
I always find it funny when (fill in the blank). Hint: they are publicly traded, has a 125 pip larger spike down on a pair when the largest I see is 10 with any of my 6 offshore brokers. Yet, this firm is regulated.
. I have seen every broker in the US freeze a platform, have huge price spikes that don't exist elsewhere, etc.As far as moving money, I have a completely separate bank account with a debit card for my forex trading capital. I don't move money every single trade. I withdrawal at the end of every week and leave enough rollover to begin the next week. If I need to (which is rarely, due to the fact my margin requirement is anywhere from 1/25 to 1/10 of what is required with US brokers) I will transfer by debit card and it INSTANTLY hits my account, but cost is about 4%
So I leave my trading capital in my own bank, I have about a 100 pip cushion in my account, and will start my trading week with 1, maybe 2 trades only and then trade on profits the balance of the week. I use rather tight stops, so very rarely is it an issue. Here is a very basic example, with approximate figures:
Trading 1 standard lot at $10 /pip requires $1,000 in my account for 100 pip cushion, however only $200 is required in margin if I wanted to use a 20 pip s/l. That same trade in the US requires anywhere from $2,000 to $3,000 (AUD or JPY crosses) to $5,000 (CHF and exotics) and then if you want to open another trade, of course, requires double, a 3rd position, triple it, etc.
I also like to add to/compound winning positions while moving stops to break even. The extra leverage allows me to open much larger positions vs. the same scenario in the US. Another example:
I have $1,000 in my account and trade 1 standard lot, position moves 100 pips in my favor, that $1000 in profit allows me to easily open another standard lot, move average price s/l to break even and creates a risk free trade, now at double the size, where in the US I would be $2,000 short in margin requirements even though my position is 100 pips in profit and risk free. You can do this in 20 or 30 pip increments as well. You may get stopped at break even alot, but who cares? You are trading sizes 7,8, 10 times what you could in the US. THIS IS THE HUGE DIFFERENCE. It's not the initial leverage, but the additional leverage profitable positions affords. It is why people refuse to even believe my % gains weekly as it is not even possible to attempt with 50:1.
Just the way I do it, and while many may disagree, I will stick to my claim that not only is my money safer than everyone in the US, but at the same time I can compound up to 10 TIMES FASTER by adding to winners.
-tah
Just prefer making more money doing so than I can with US broker. In addition, there is not one US broker worth giving my money to. Who do you trade with? FXCM- you came within an hour of losing your entire over-funded account,