Trump Dodd-Frank

Seems like Trump is going to dismantle these financial laws. Does this mean the US will no longer cap the 1:50 leverage?

1:50 is plenty of leverage. For anyone other than a super disciplined pro you can ruin your account with that much. I do hope that they eliminate first in first out though. That is just a pain in the butt.

Possible ... if he'll removes it then, considering their won't be a replacement, yes. If he just reforms it then maybe.

I think all that leverage cap and no fifo and whatever is stupid mainly because I don't agree with the view that traders are *consumers* of financial products but when it comes to politicians and influencers there is verry little or even nothing on the lobbying side that even cares about retail trading.

No the 1:50 capped leverage and mandatory FIFO will still stay in place because those rules had NOTHING to do with Dodd-Frank; it was a result of the Futures industries insisting the Retail Forex industry compete on "equal footing" with them because Retail Forex industry was(is) overtaking the Futures industries in terms of volume and etc. and since the Retail Forex industry was enjoying unlimited leverage and then 1:100 leverage and no mandatory FIFO, Futures brokerages were only allowed to offer 1:50 leverage and subject to FIFO so the Futures industry attributed Retail Forex's popularity to the increased leverage that they were allowed to offer to the investors and allowed FIFO so they lobbied to the CFTC/NFA to impose the same leverage cap and mandatory FIFO on the Retail Forex as well thinking that it will curtail Retail Forex's popularity a bit and give the Futures industry a chance to compete. I don't care how the CFTC/NFA spinned the leverage cap as "a consumer protection measure" (because we traders are babies and we don't know how to protect ourselves) blah blah blah, but the real reason was really about competition. The funny thing is now that the leverage cap is equal now between the two industries and Retail Forex industry also has to adhere to FIFO rules but Retail Forex is still more popular.

Dodd-Frank however was something else. It had to do with forbidding US traders from investing with foreign brokers. I dunno how and WHY Dodd-Frank feels it's necessary to come up with that rule. If you read its Wikipedia entry I am sure there was a reason but it was all bullcrap if you ask me. It did nothing so far but forcing US traders to trade with highly risky, unscrupulous and many times scam brokers offshore residing in countries that had no or very little financial regulations especially in the area of investor protection when they could've been trading with otherwise safe and professional brokers residing in countries with sound and well-rounded financial regulations especially for investor protections like UK.

So if it's about time that this ridiculous Dodd-Frank rule is revamped and hopefully this will give US traders more choices and in turn safety of their investment in choosing brokers and result in more vibrant but safer investment environment for all. Go Trump go!! Erase the useless Dodd-Frank rules already!!

Another round of "Fat Paychecks" when investment banks are allowed to open their own prop shops followed by "Occupy Wall Street" when shit hit the fan

Quite liberating for financials assuming US market didn't detonate prematurely, not so glorifying for retail traders when new bank algos entered the already rigged forex space

IMO 50 to 1 is plenty if there's no hedging involved

You are mistaken. It is not illegal for US traders to have a trading account with a foreign broker.

Consisting of 243 laws, I'm sure a few can be bi-passed and things won't blow up!

Ok let me rephrase what I said. It was a result of Dodd-Frank rule that US traders are limited in their choice of foreign brokers that they can invest with. According to Dodd-Frank rule, any brokers, whether abroad or in the US, if they want to deal with US traders, i.e. traders that reside in the US, they MUST be registered with either SEC, CFTC or NFA (see the attached document) and be subject to the ridiculous rules and regulations of CFTC such as capped 50:1 leverage and mandatory FIFO with only a few VERY limited exceptions and as a result majority of foreign brokers, many residing in countries with very sound financial regulations themselves like UK and Canada do not want to waste their resources on unnecessary paperwork and register with those US regulatory bodies and instead just ban US traders from trading with them outright. So as a result, US traders are forced to trade with offshore brokers who reside in less regulated countries who either manipulate themselves to appear to be complying with the limited exceptions or simply ignore the registration requirement of Dodd-Frank rule to solicit business with US traders anyway, thus exposing US traders to more chances of fraud and unscrupulous brokers.

So hopefully with Trump revamping Dodd-Frank, this rule can be either reformed and US traders can once again be free to trade with properly regulated brokers in the rest of the world again.

This article says otherwise.

http://www.financemagnates.com/forex...educed-to-150/


same with this one

http://www.forbes.com/sites/greatspe.../#373a16042f0b

you should be making good money at 50:1... if your not.. the 50:1 isn't your problem!

Hmmn... Didn't know that the decreased leverage cap was also the result of the anti-competitive and useless Dodd-Frank crap. I guess I owe the Futures industries an apology. So I hope Trump's re-vamping of the Dodd-Frank will lift the leverage cap as well and allow US traders enjoy the same investment freedom as the traders from the rest of the world. I mean traders from many countries with sound regulations like UK, Australia and etc. are all able to enjoy much higher leverage and yet American traders are mollycoddled with the ridiculous leverage cap that is so humiliating. Why does American traders need more "protection" than traders from the rest of the world?

I agree with you, you have so many brokers who accept US traders. Which means it not illegal at all, we only have few countries who don't allow such transaction.

hope they can atleast let us do hedging....

Laws are about CONTROL.

Thanks to President Trump, we (us Americans) are getting closer and closer to having our rights restored. Thank god Obama is gone, after all the damage he did (including signing the Dodd-Frank bill into law, as well as doing other damaging things).

Dodd-Frank Repeal Bill Advances in the House
http://www.foxbusiness.com/markets/2...-in-house.html

Not to mention US residents not being able to open accounts with higher-quality brokers. Instead they're forced to grovel to get an account with unregulated brokers who are likely to evaporate in short order in one form or the other.