FXCM Discussion | Page 486 | Forex Factory

Options

Go to
Permalinks
Print Thread

Related Instruments

EUR/JPY

Similar Threads

FXCM with Sierra Charts - Discussion and alternatives 8 replies

Elliott Waves discussion 4 replies

FXCM gets another CFTC fine, while Drew Niv leaves FXCM UK board 17 replies

Euro/Dollar discussion 9 replies

Forward Testing Discussion Thread 241 replies

Attachments: FXCM Discussion
Exit Attachments

FXCM Discussion

  • #9,701
  • Nov 29, 2016 10:57pm Nov 29, 2016 10:57pm
Quoting pipmaster77
{quote} Well you can start with a google search of FXCM fines or forex.com fines. Yeah, yeah ,they cleaned it up. If they weren't caught, they would be continuing the same practices. The main issue I have is with the regulations, the rest of the civilized world enjoys much greater leverage, no FIFO and can hedge. This is all claimed as protection for the trader, when it is the exact opposite. Risk has absolutely nothing to do with leverage. If I have $10K to trade with, and I want to risk $1K, I am risking 10%, the difference is by using a non-US...
Waiting for when/if you ever make some real money. IRS will rip you a new one for not paying the proper tax on money made overseas.

As a US citizen you are truly trading bucket shops as no *regulated* brokers will touch you. So all your BS about regulated brokers means nothing since you can not trade with a regulated UK or Aussie broker.
Mark ... Everything you have been told is a LIE
  • #9,702
  • Nov 29, 2016 11:01pm Nov 29, 2016 11:01pm
Quoting spzd
{quote} Current margin for CME NZD/USD futures contract: {image} Y'all need to stop whinning. You are still getting a better deal than futures.
Or trade with ANY OTHER BROKER in the world other than US and get a WAY BETTER DEAL
  • #9,703
  • Nov 29, 2016 11:05pm Nov 29, 2016 11:05pm
Quoting spzd
{quote} Waiting for when/if you ever make some real money. IRS will rip you a new one for not paying the proper tax on money made overseas. As a US citizen you are truly trading bucket shops as no *regulated* brokers will touch you. So all your BS about regulated brokers means nothing since you can not trade with a regulated UK or Aussie broker.
I pay taxes on forex every year, actually hold an accounting degree. As far as the BS about regulated brokers, that is exactly my point. The NFA claims they are "protecting" us but restrict us from trading with anything but US bucketshops. Theym have brainwashed folks into believing it's best to put up more money fro margin in an unprotected account than it would be to trade with 10% of the deposit where funds are insured for 100,000 CHF. And the US traders believe them, it's absurd.
  • #9,704
  • Nov 29, 2016 11:38pm Nov 29, 2016 11:38pm
Quoting pipmaster77
{quote} I pay taxes on forex every year, actually hold an accounting degree. As far as the BS about regulated brokers, that is exactly my point. The NFA claims they are "protecting" us but restrict us from trading with anything but US bucketshops. Theym have brainwashed folks into believing it's best to put up more money fro margin in an unprotected account than it would be to trade with 10% of the deposit where funds are insured for 100,000 CHF. And the US traders believe them, it's absurd.
I doubt you make enough trading make paying taxes worth it. If you did you would not go on like you do.

You keep whining about regulation, but I think it all comes down to leverage. Since you can not make 50:1 work you have started this BS crusade about regulated brokers.

FACT (and this is for 90% here): Forex, even US brokers, allow more margin than any other retail traded instrument. Every one of the complaints from every one of you complainers is nothing but whining. If you could actually trade you would be doing that instead writing these long winded diatribes of drivel that you do.

Ciao
Mark ... Everything you have been told is a LIE
  • #9,705
  • Edited 7:32am Nov 30, 2016 5:07am | Edited 7:32am
Quoting spzd
{quote} I doubt you make enough trading make paying taxes worth it. If you did you would not go on like you do. You keep whining about regulation, but I think it all comes down to leverage. Since you can not make 50:1 work you have started this BS crusade about regulated brokers. FACT (and this is for 90% here): Forex, even US brokers, allow more margin than any other retail traded instrument. Every one of the complaints from every one of you complainers is nothing but whining. If you could actually trade you would be doing that instead writing...
LOL. Actually make quite a substantial side income, bu that is not even relevant to the point. I still risk the same amount of my actual trading capital as I would using a low leverage US broker, the difference is the majority of my capital spends most of the time in my FDIC insured bank account instead of uselessly at a broker where it is far more at risk. Once again, for anyone who doesn't get it, leverage has nothing to do with risk. If I want to risk 2%, 3%, 10%, whatever of my actual forex capital on a trade, it does not matter what leverage the broker is offering. What matters is HOW MUCH MORE the broker requires than what I am actually risking. If i am trading 3 million of USDJPY with a 40 pip stop, I am risking around 12K, so I hold 12K at my broker. So I ask you, is it more or less riskier to give a US broker $120K to execute the same trade? Anyone saying it is better to give the US broker $120K where yours funds ARE NOT PROTECTED needs their head examined. But go ahead, keep drinking the NFA kool aid, it must taste pretty good.
  • #9,706
  • Nov 30, 2016 7:39am Nov 30, 2016 7:39am
Actually, I am going to break this down so even simple minds get it. We have trader A and trader B, each has 500K in trading capital and each earns 20% per year, therefore each turns a profit of 100K.
Trader A uses a US base, NFA regulated broker and trader B trades with an unregulated offshore broker. Both traders are in the same scenario as far as protection of funds, meaning none at all.
Trader B will actually appear to earn 200% on his deposit with the broker, as he has only been required to deposit 50K to execute the same exact trades, although he is only actually earning 20% of his 500K risk capital just like Trader A.
Now here is the difference....drum-roll please........

TRADER A HAD $450K MORE AT RISK THAN TRADER B FOR THE ENTIRE YEAR TO EARN THE SAME EXACT PROFIT
  • #9,707
  • Nov 30, 2016 10:23am Nov 30, 2016 10:23am
Wonk, wonk, wonk.
  • #9,708
  • Nov 30, 2016 12:25pm Nov 30, 2016 12:25pm
Quoting pipmaster77
Actually, I am going to break this down so even simple minds get it. We have trader A and trader B, each has 500K in trading capital and each earns 20% per year, therefore each turns a profit of 100K. Trader A uses a US base, NFA regulated broker and trader B trades with an unregulated offshore broker. Both traders are in the same scenario as far as protection of funds, meaning none at all. Trader B will actually appear to earn 200% on his deposit with the broker, as he has only been required to deposit 50K to execute the same exact trades, although...
ok great, you're so smart thinking that your money at your bank is insured. Thinking everybody is "simple minded" for putting their whole capital with a broker. The thing is, you don't realize you're delusional on a different scale..

http://demonocracy.info/infographics/usa/fdic/fdic.html
  • #9,709
  • Edited 2:05pm Nov 30, 2016 1:43pm | Edited 2:05pm
Quoting PharLap
{quote} Hey pip, why are you always spreading misinformation. Your funds ARE NOT insured by ANY Australian brokers. If the broker goes belly up IN Oz. so do your funds. It has happened before and it will happen again. That said, the regulations are pretty strict here, but not as strict as USA. I am Australian and have used plenty of brokers here and also FXCM. The Oz brokers are much better than average bucketshops, but in my experience FXCM is even better on most points. I really have no idea why you have such a vendetta against FXCm and other...
Thanks for pointing that out, PharLap

While client funds with ASIC-regulated brokers (like FXCM Australia) are segregated in accordance with Australian client money rules, there is no insurance for client funds.

For comparison:

  1. Client funds with FCA-regulated brokers (like FXCM UK) are segregated in accordance with UK client money and insured for up to 50,000 per client by the Financial Services Protection Scheme.
  2. Client funds with IIROC-regulated brokers (like Friedberg/www.FXCM.ca) are segregated in accordance with Canadian client money rules and insured for up to $1 million by the Canadian Investor Protection Fund.
  3. Client funds with CFTC/NFA-regulated brokers (like FXCM US) are neither segregated nor insured.

Like all other US traders, I would love to see more protections provided here for retail forex. This seems only fair considering the latest stats comparing trading volumes in retail forex to FX futures: http://www.forexfactory.com/showthre...78#post9209978

Quoting pipmaster77
Trader A uses a US base, NFA regulated broker and trader B trades with an unregulated offshore broker. Both traders are in the same scenario as far as protection of funds, meaning none at all.
However, it would be wrong to assume US regulations provide no protections to retail forex traders currently. In the absence of client fund segregation and insurance, it becomes all the more important to have information about your broker's financials. In the US, retail forex brokers are regulated by the CFTC and NFA, the same two bodies that oversee futures trading on the CME. Regulated forex brokers in the US must maintain a minimum $20 million in capital in addition to higher requirements based on the trade position sizes of their clients. Furthermore, the CFTC has electronic access to the bank accounts of these brokers to verify the status of their funding levels.

Another priority for traders is the quality of trade execution they receive. Again, this an area where US regulators lead by example. In compliance with rules regarding price slippage and price re-quoting that were finalized in 2012, retail forex brokers in the US provide daily trade reports to the NFA which monitors and supervises our activity including information on the price where all client orders are filled and the corresponding price where those orders are offset with our liquidity providers.

Trading with an unregulated broker not only means you give up these financial and trade execution safeguards but it makes it extremely difficult for you to have any recourse against this broker in the event of a dispute. This is especially concerning when you keep in mind that this broker is actively avoiding government oversight. Should traders do their own due diligence when choosing a broker above and beyond checking whether a broker is regulated? Absolutely, but making sure a broker is answerable to some government authority by being regulated is a bare minimum when it comes to the safety of your funds.

If a broker is unregulated, it means they are unable or unwilling (which is worse?!) to meet even the minimum standards of financial responsibility and transparency set by government regulators. Furthermore, a broker accepting US clients without being regulated in the US is violating government regulations. If an unregulated offshore broker is willing to break one law to get US clients what's to stop them and who's to stop them from breaking other laws to the detriment of their clients?

Below are some examples:

Collective FX

Where Is My Money? http://www.financemagnates.com/forex...efx-goes-awol/

The Collective FX Recovery Effort http://www.forexfactory.com/showthre...04#post7782704


Crown Forex

"Although some people with accounts were still able to get their money out at this early stage, many accounts were not refunded... the company had no authorization from the SFBC for any activity in the financial sector in Switzerland." Unfortunately, that wasn't the end of the story. A couple of years after going bankrupt, the people from Crown Forex were at it again, this time helping others become unregulated brokers.


Jade FX

"fraudulently solicited and misappropriated more than $3.2 million from more than 500 customers in the United States and throughout the world to trade forex... None of the defendants has ever been registered with the CFTC."



The fact that regulated brokers hold themselves accountable to government bodies is a key reason why traders have over half a billion dollars in US-based forex accounts:
Attached Image (click to enlarge)
Click to Enlarge Name: cftc capital figures 2016-09-30 2016 November 30.png Size: 24 KB
  • #9,710
  • Nov 30, 2016 2:25pm Nov 30, 2016 2:25pm
Quoting spzd
{quote} Current margin for CME NZD/USD futures contract: {image} Y'all need to stop whinning. You are still getting a better deal than futures.
You make an excellent point about FX futures margin requirements, Spzd

In addition, it's worth noting that the minimum trade size for one NZD/USD futures contract on the CME is NZ$100,000 or 100K. That means you have to risk at least $10 per pip. By contrast, FXCM US lets you open micro lot positions or 1K NZD/USD with only $24 margin (after the December 5th increase). This allows US traders to risk as little as 10 cents per pip or any multiple of 10 cents (such as $5.30 per pip or 53K) which is great for risk management.
  • #9,711
  • Nov 30, 2016 2:38pm Nov 30, 2016 2:38pm
Quoting PharLap
I don't understand why you think UK Aussie brokers are better than FXCM apart from the leverage issue and that UK brokers customers get insurance.
This is particularly puzzling when you consider the fact that FXCM is regulated in the UK, Australia and the US with offices and staff in all three countries, and we provide the same trade execution quality (NDD for Standard/Active Trader accounts and DD for Mini accounts) for our clients in all three jurisdictions. The differences, as you have noted, are to comply with local regulations.
  • #9,712
  • Nov 30, 2016 4:39pm Nov 30, 2016 4:39pm
Hi Jason,
I haven't joined FXCM yet but I wanted to ask questions regarding tax reporting from your brokerage. For spot forex traders in the US, does FXCM send their clients a 1099 with a profit or loss figure or something else? Does FXCM report US spot forex traders' profits/losses as section 988 (ordinary income) or as section 1256 (60/40 split like futures) to the IRS or no reporting at all? In other words, when I'm trading just spot forex with FXCM as a US client, what will I receive from your brokerage for reporting profits/losses for doing my taxes? Thanks...
  • #9,713
  • Nov 30, 2016 7:18pm Nov 30, 2016 7:18pm
Quoting hilmy83
{quote} ok great, you're so smart thinking that your money at your bank is insured. Thinking everybody is "simple minded" for putting their whole capital with a broker. The thing is, you don't realize you're delusional on a different scale.. http://demonocracy.info/infographics/usa/fdic/fdic.html
OK, so I'll keep it under my mattress and then have a 2 step process of putting it in my bank and then transferring to broker. You're bringing up something completely irrelevant to the point. The rest of the world can trade forex with much less money at risk than in the US. The regulations are not protecting us, they are to drive the business back to futures where the NFA wants it. I trade GBPAUD and EURAUD all day, can anyone show me where I can get liquidity in futures for those crosses. The rest of the world can close in any order, has the ability to hedge, can trade gold, silver, oil, stock indicies. What is the point of prohibiting them to us?

To be honest, I have no idea why I am even posting in this thread debating with a bunch of brainwashed, naive US broker loving traders. You guys keep doing what you're doing and I'll keep doing what I am doing. When one of the US brokers goes belly up or the next black swan takes place, we can see who has the higher % of their capital left to trade.
  • #9,714
  • Nov 30, 2016 7:51pm Nov 30, 2016 7:51pm
You can count on one hand how many U.S. brokers have ever gone belly up WITH customers who were not made completely whole. Read that second part again.

Meanwhile there are forex brokers worldwide closing shop every day of the year ... running from their customers.
  • #9,715
  • Nov 30, 2016 8:03pm Nov 30, 2016 8:03pm
Quoting pipmaster77
To be honest, I have no idea why I am even posting in this thread ...
To be honest it would not offend us in the least if you stopped posting in this thread.
Mark ... Everything you have been told is a LIE
  • #9,716
  • Dec 2, 2016 2:18am Dec 2, 2016 2:18am
Quoting pipmaster77
{quote} So now I need 25 times the deposit for margin in the US than I do with my broker to execute the same trades involving the GBP. But hey why not deposit $25,000 instead of $1,000. Atleast in the US, our funds are protected. Is it making sense to any of you brainwashed folks yet?
You often mention that you use an offshore broker but I don't think you've ever mentioned who they are. I'd be interested to know of a few legit offshore brokers to look at.
  • #9,717
  • Dec 2, 2016 6:19am Dec 2, 2016 6:19am
Quoting Jason Rogers
{quote} Hi Timos, TradingView completed their beta testing. To place trades on your live account using their charts, you must have a Standard FXCM account, and a TradingView account which you can set up using the instructions on their site.
Jason,thanks for your answer.

I tried the demo with TradingView. However,there are few things I noticed with trading view which don't fit my strategy.

1.Heding is not allowed
2.Positions are combined to 1 (netted )
3.Partial close is not allowed (This may be tradingview function,so I understand this part)

Are these conditions the same (especially 1 & 2) if I open a real account with Fxcm Uk or other parts of Europe and use TradingView?
  • #9,718
  • Dec 2, 2016 6:51am Dec 2, 2016 6:51am
" The regulations are not protecting us, they are to drive the business back to futures where the NFA wants it."
  • #9,719
  • Dec 2, 2016 6:52am Dec 2, 2016 6:52am
Truer words have never been said ......
  • #9,720
  • Dec 2, 2016 11:19am Dec 2, 2016 11:19am
Quoting C0unterp0int
Hi Jason, I haven't joined FXCM yet but I wanted to ask questions regarding tax reporting from your brokerage. For spot forex traders in the US, does FXCM send their clients a 1099 with a profit or loss figure or something else? Does FXCM report US spot forex traders' profits/losses as section 988 (ordinary income) or as section 1256 (60/40 split like futures) to the IRS or no reporting at all? In other words, when I'm trading just spot forex with FXCM as a US client, what will I receive from your brokerage for reporting profits/losses for doing...
Hi C0unterp0int,

First, I must emphasize that I am not a tax specialist. I strongly suggest you seek guidance from a tax professional for details regarding your specific circumstances.

That said, since I trade in the US like you, I can direct you to some links that I have found useful personally:

  1. http://www.investopedia.com/articles...ion-basics.asp
  2. http://winnersedgetrading.com/forex-....Hgi7uTZ5.dpbs
  3. http://www.traderplanet.com/articles...e-their-taxes/
  4. https://www.fatwallet.com/forums/finance/990801

Regulations don't require forex brokers to send 1099s, so FXCM doesn't report any tax info regarding our clients to the IRS. Instead, you can go to MyFXCM.com to get a statement summary showing your P/L for the year. That is what I do.

3 traders viewing now