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SEC bans Broker-Dealers from retail forex transactions

  • #41
  • Aug 14, 2016 8:57am Aug 14, 2016 8:57am
Quoting avibe
Interactive Brokers have stopped offering leveraged FX trading
Yes,last remaining ECN gone.
  • #42
  • Aug 14, 2016 9:05am Aug 14, 2016 9:05am
Quoting pipmaster77
{quote} Oh, I know where they are located. I only use Trader's Way as I only need to keep 20% of my forex capital with the broker as they do not require the insane margin the US brokers do. So, in reality, my money is safer than with any US broker as they do not offer any protection of funds within their regulations. Not to mention, I trade an ECN , where all of the remaining US brokers are market makers, a clear conflict of interest. They will freeze platforms, delay execution, hunt stops whatever it takes to get YOUR money. No Thanks. The 3 in...

I believe ATC is also a ECN broker regulated in the US.
Learn, a forex trader must, unlearn and relearn he will.
  • #43
  • Aug 14, 2016 9:10am Aug 14, 2016 9:10am
Quoting COGSx86
{quote} I believe ATC is also a ECN broker regulated in the US.
They were an IB of FXCM, who just recently screwed them. Few months back I believe. Yes, they were using FXCM price feed but without all the games. I hear Canada sucks for forex as well?
  • #44
  • Aug 14, 2016 9:16am Aug 14, 2016 9:16am
pipmaster pm'ed you
  • #45
  • Aug 14, 2016 1:29pm Aug 14, 2016 1:29pm
Quoting pipmaster77
{quote} They were an IB of FXCM, who just recently screwed them. Few months back I believe. Yes, they were using FXCM price feed but without all the games. I hear Canada sucks for forex as well?

You heard right friend, haha. FXCM has a division in Canada but other then that, Quest trade and Interactive Brokers are your only other brokers. Maybe others but I can't seem to find anything else.

Hence me using IC markets.
Learn, a forex trader must, unlearn and relearn he will.
  • #46
  • Aug 14, 2016 1:46pm Aug 14, 2016 1:46pm
I think SEC is at the behest of CME bidding to ban OTC FX...am push all americans to CME GROUP FX FUTURES PROGRAM
practising coitus interruptus
  • #47
  • Aug 14, 2016 2:12pm Aug 14, 2016 2:12pm
Quoting avibe
I think SEC is at the behest of CME bidding to ban OTC FX...am push all americans to CME GROUP FX FUTURES PROGRAM
Absolutely. That was the entire point of the regulations. On top of that, prohibiting us to trade with any other regulated broker in the world, or should I say prohibiting them from accepting us as clients.I always find it funny though when people tell me I'm crazy for trading at an offshore "bucketshop". These are the same folks trading with a US broker. Always makes me laugh. They somehow think they are "protected" by US regulations. Meanwhile, these are the shadiest brokers in the world.
  • #48
  • Aug 14, 2016 2:17pm Aug 14, 2016 2:17pm
Quoting COGSx86
{quote} You heard right friend, haha. FXCM has a division in Canada but other then that, Quest trade and Interactive Brokers are your only other brokers. Maybe others but I can't seem to find anything else. Hence me using IC markets.
Well at least your country allows you to trade with other regulated brokers in other countries. I'd love to trade at IC Markets or Pepperstone. It's funny how they claim they are protecting us, but yet prohibit us from trading where our funds would actually be protected.
  • #49
  • Aug 14, 2016 2:51pm Aug 14, 2016 2:51pm
Quoting pipmaster77
{quote} Well at least your country allows you to trade with other regulated brokers in other countries. I'd love to trade at IC Markets or Pepperstone. It's funny how they claim they are protecting us, but yet prohibit us from trading where our funds would actually be protected.
Last time I checked pepperstone doesn't take Canadian clients, that could of changed as I seen someone mention in this thread and their website now allowing Canadian denominated funding/trading.


As for Canadians/Americans trading outside of country we experience much of the same restricting of Canadians not being able to use foreign brokers.

An example last year NADEX started offering its service to Canadians but within 6 months the Ontario SEC banned NADEX from operating in Ontario. I'm in Alberta and I can do whatever it is I want but NADEX won't accept me!

Will have to check back this week!
Learn, a forex trader must, unlearn and relearn he will.
  • #50
  • Aug 14, 2016 4:29pm Aug 14, 2016 4:29pm
Quoting COGSx86
{quote} Last time I checked pepperstone doesn't take Canadian clients, that could of changed as I seen someone mention in this thread and their website now allowing Canadian denominated funding/trading. As for Canadians/Americans trading outside of country we experience much of the same restricting of Canadians not being able to use foreign brokers. An example last year NADEX started offering its service to Canadians but within 6 months the Ontario SEC banned NADEX from operating in Ontario. I'm in Alberta and I can do whatever it is I want but...
Aussi brokers not accepting Canadian traders has nothing to do with IIROC. Nothing has changed from the IIROC SO FAR regarding trading with foreign brokers. That was purely some individual Aussi brokers' decisions.

It's true Canadian traders face the same restriction when it comes to foreign brokers especially in Futures trading. No Futures brokers in USA would accept Canadian traders except maybe 1 or 2 that has like $2 million net capital. All the decent big ones all refuse us and they all cite it's because of IIROC and each of the provincial law. Until this day I know BC disallows trading with any foreign brokers altogether; it's the most backward of all the provinces. In Forex, LMAX doesn't accept Canadian traders either and yet they actually accept US traders. Go figure.

They all blame on the regulators but some I suspect are really individual firm decisions. For example, the now defunct MB Trading, another true ECN broker just decided never accepting Canadian traders until the day they got bought. They blamed on Canadian regulators but really it was their own decision because other brokers in the same situation as them did accept traders from Canada. Well, suits them right. That's why they are no longer existing. LOL
Make your losses in demo. Earn your profits live.
  • #51
  • Aug 14, 2016 4:42pm Aug 14, 2016 4:42pm
Quoting Forexia
{quote} Aussi brokers not accepting Canadian traders has nothing to do with IIROC. Nothing has changed from the IIROC SO FAR regarding trading with foreign brokers. That was purely some individual Aussi brokers' decisions. It's true Canadian traders face the same restriction when it comes to foreign brokers especially in Futures trading. No Futures brokers in USA would accept Canadian traders except maybe 1 or 2 that has like $2 million net capital. All the decent big ones all refuse us and they all cite it's because of IIROC and each of the provincial...
You got me kind of excited there, however, just went to LMAX website and they do not accept US clients.
  • #52
  • Aug 14, 2016 4:44pm Aug 14, 2016 4:44pm
Quoting pipmaster77
{quote} You got me kind of excited there, however, just went to LMAX website and they do not accept US clients.
Oh saw somewhere else on FF that they do. Sorry about the misinformation.
Make your losses in demo. Earn your profits live.
  • #53
  • Aug 14, 2016 4:47pm Aug 14, 2016 4:47pm
Quoting Forexia
{quote} Oh saw somewhere else on FF that they do. Sorry about the misinformation.
No problem. I've been trading offshore for 3 years. I know there are absolutely no regulated brokers outside of the US that will accept US clients. Which, as I always state, is so hypocritical of the US regulators who claim they are protecting us. Regulated brokers in the UK and Australia are MUCH BETTER options than US brokers. We no longer have an ECN offfering at all now.
  • #54
  • Aug 14, 2016 5:09pm Aug 14, 2016 5:09pm
Quoting avibe
I think SEC is at the behest of CME bidding to ban OTC FX...am push all americans to CME GROUP FX FUTURES PROGRAM
This is exactly what it is
  • #55
  • Aug 14, 2016 7:06pm Aug 14, 2016 7:06pm
Here is Pepperstones reasoning -


Quote
Pepperstone Support Chat Live -
We do not have licensing across all provinces, so we have decided not to accept any new Canadian clients
06:04 PM
Sorry for any inconveniences
06:04 PM
COGS
ah
06:05 PM
ok thanks for clarifying
Learn, a forex trader must, unlearn and relearn he will.
  • #56
  • Aug 14, 2016 7:36pm Aug 14, 2016 7:36pm
Quoting pipmaster77
{quote} No problem. I've been trading offshore for 3 years. I know there are absolutely no regulated brokers outside of the US that will accept US clients. Which, as I always state, is so hypocritical of the US regulators who claim they are protecting us. Regulated brokers in the UK and Australia are MUCH BETTER options than US brokers. We no longer have an ECN offfering at all now.
I know I agree. They claim that they are "protecting US traders" but what they are doing by forbidding US traders to trade with legitimate regulated foreign brokers is basically pushing US traders to trade with offshore brokers in countries with worse or non-existent brokers, leaving US traders completely vulnerable to fraud and unscrupulous practices with no recourse.

They were probably hoping with their ban that we somehow would all of sudden give up on forex trading LOL Yeah NOT a chance!!! Obviously they have no clue about the strength of human will. LOL It's very sad.
Make your losses in demo. Earn your profits live.
  • #57
  • Edited 8:27pm Aug 14, 2016 7:49pm | Edited 8:27pm
Quoting avibe
I think SEC is at the behest of CME bidding to ban OTC FX...am push all americans to CME GROUP FX FUTURES PROGRAM
Except spot FX and fx futures are TOTALLY different financial instruments and not really replaceable or interchangeable. You are in a foreign country NOW and need to spend and live on foreign currency NOW, what's good if somebody tells you I will give you foreign currency in exchange for your domestic currency 1 month from now?
It's ridiculous.

Those regulators are clueless. All they are is just obsessed with their hidden agenda fueled by the industry groups that give them money and they have no idea what is really good for the investing public or even how the economy works. The ONLY reason why they are pushing for this futures program is because fx futures can't compete with spot fx and it's those futures dealers who pay those member fees to NFA. There is lot less trading volume in fx futures than in spot fx thus less revenue for the futures industry. But what they don't understand is that there is less trading volume in fx futures simply because there is less demand for fx futures than in Spot fx and that's just the nature of the FX. FX is MONEY, liquid cash!! WHO would want to wait 1 month or 6 months to get money for goods/services rendered? Everybody would want to get paid NOW thus naturally there is more demand for Spot cash, Spot FX hence more trading in Spot FX. This has nothing to do with market structure. Even if EVERY SINGLE former fx trader in US starts trading in fx futures, fx futures volume would still be low. So they would've just killed Spot Leveraged FX for NOTHING just like how they killed stock daytrading!!
Make your losses in demo. Earn your profits live.
  • #58
  • Aug 14, 2016 8:11pm Aug 14, 2016 8:11pm
Quoting Forexia
{quote} This has nothing to do with market structure. Even if EVERY SINGLE former fx trader in US starts trading in fx futures, fx futures volume would still be low. So they would've just killed Spot Leveraged FX for NOTHING just like how they killed stock daytrading!!
Some really interesting points that you have made. I'm curious about the last point though where you say that they killed stock day-trading?--How did they kill stock day-trading? (I've only been watching FX and trading etc since approx 2008).
  • #59
  • Aug 14, 2016 8:21pm Aug 14, 2016 8:21pm
Quoting altrader
{quote} Some really interesting points that you have made. I'm curious about the last point though where you say that they killed stock day-trading?--How did they kill stock day-trading? (I've only been watching FX and trading etc since approx 2008).
By introducing a mandatory $25K minimum capital requirement for daytrading. Majority of the traders won't have that and hence no more daytrading.
Make your losses in demo. Earn your profits live.
  • #60
  • Aug 14, 2016 8:42pm Aug 14, 2016 8:42pm
Quoting Forexia
{quote} By introducing a mandatory $25K minimum capital requirement for daytrading. Majority of the traders won't have that and hence no more daytrading.
I see what you mean now. What do you think the time frame could be for a similar capital requirement for retail forex trading? Do you think we have a few years of good retail forex trading before they start with these $25k type minimum deposits?

Most people in this thread think they are safe by putting their money into an overseas FX broker but if they start to have 25K min deposits and therefore obviously the leverage would change as well, then that would follow suit across all countries (ASIC etc would eventually demand the same requirements as SEC etc). I like on Oanda etc how you can trade with a small unit size or large unit size and adjust leverage depending on the amount of risk I want to use. However, if we start seeing futures type pricing where each PIP is worth $30, then that is the end of FX trading for me. It's too expensive. It truly would kill retail spot fx trading for most people.

Edit: I guess no one knows what this means yet but it doesn't look good to me at the moment.

How long did it take for them to ruin stock day trading by requiring a minimum 25K deposit?--Did this initiative take several years?
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