10:1 could be the new leverage rule

Quote from Wallace:

recent changes to fx regulation Only in the province of British Columbia, Canada has meant
that BC residents are limited to a choice of 3 fx brokers, and a 100:1 leverage limit
UK companies such as FXCM and Alpari will not accept an account application from BC
residents due to the BC regulations. FXCM closed their Canada operation in September 09

Jason Rogers, can you explain how it came about and why BC residents can't open accounts
with FXCM UK ?

...

as far as alternates are concerned, while at present i have an account with Oanda using
50:1 leverage, i've yet to take a leap to higher leverage ( i discovered FXCM and Alpari's
restriction when attempting to apply for an account ) with an 'offshore' broker particularly
'Russian' and 'Caribbean' brokers (must qualify Alpari Moscow is one of the oldest fx brokers
and has UK and US branches) i am more confident now about Some brokers in Cyprus due
to: http://www.elitetrader.com/vb/showthread.php?s=&threadid=184795
and point to Windsor Brokers as one example of a 'home grown' Cyprus broker who has
always complied with FSA, CySec and MiFID regulations

....

from my overly suspicious pov, i have to wonder if the US is trying to prevent - specifically
selling of the US $ at a time when many feel there will be a collapse of this currency

so far as leverage is concerned, imo it's not leverage that kills but the 'trading system'
high leverage means a fast death, low leverage is 'death by a thousand cuts', in either case,
if the trader is unable to trade profitably, they will 'die'
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Hi Wallace,

BC regulations require any broker accepting accepting accounts from BC residents to be regulated by the British Columbia Securities Commission. Any broker not registered in BC and accepting BC residents would be subject to legal actions. FXCM UK is regulated by the FSA in the United Kingdom and not British Columbia, therefore it cannot accept BC residents.

from my overly suspicious pov, i have to wonder if the US is trying to prevent - specifically
selling of the US $ at a time when many feel there will be a collapse of this currency
More...

If this were the case, I doubt the retail forex market would be targeted due to the size of retail trading volumes compared to the whole. According to data in this recent Financial Times article (http://www.ft.com/cms/s/0/97077034-ffaf-11de-921f-00144feabdc0.html), retail forex trading is a little over 3% of daily FX volume.

-Jason
 
Quote from Gcapman:

Wouldn't you think that the chances of this proposal getting approved are extremely high?
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I would think so unless there is a large public response. Proposals put forth by our regulators are usually made with intent to enact. That's why it's important to voice your concern.

FXCM and other brokers are actively lobbying against it, but our opposition will not have the same impact since the proposal was made from the stand point of the public's interest. Francesc from FX Street has a post on his blog with the list of brokers in the coalition. http://blogs.fxstreet.com/francesc/...ond-cftc-proposal-to-limit-leverage-10-to-1/.

-Jason
 
Quote from Jason Rogers:

I would think so unless there is a large public response. Proposals put forth by our regulators are usually made with intent to enact. That's why it's important to voice your concern.

FXCM and other brokers are actively lobbying against it, but our opposition will not have the same impact since the proposal was made from the stand point of the public's interest. Francesc from FX Street has a post on his blog with the list of brokers in the coalition. http://blogs.fxstreet.com/francesc/...ond-cftc-proposal-to-limit-leverage-10-to-1/.

-Jason
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Thanks for your honesty and professionalism...

So how would FXCM UK traders be affected? Were this 10:1 leverage to be passed in the US.

Thanks!
 
Quote from Gcapman:

Thanks for your honesty and professionalism...

So how would FXCM UK traders be affected? Were this 10:1 leverage to be passed in the US.

Thanks!
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Can anyone, Jason, answer my question about whether US citizens are even allowed to trade retail Fx hrough foreign brokers without being accredited? Seems people keep dancing around this question.
 
Quote from Gcapman:

Thanks for your honesty and professionalism...

So how would FXCM UK traders be affected? Were this 10:1 leverage to be passed in the US.

Thanks!
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Hopefully not at all. I switched to FXCM UK back at the last leverage lowering.

I don't need the leverage, but these US regulators can eat shit. If FXCM opens up shop in some third world country I'll be the first to join up. Screw all these regulators.
 
Quote from PlusMinus:

Can anyone, Jason, answer my question about whether US citizens are even allowed to trade retail Fx hrough foreign brokers without being accredited? Seems people keep dancing around this question.
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Foreign fx firms outside of US don’t really follow the US CFTC/NFA rules. They follow the guidelines set by their own government. You can trade whatever leverages they give in their countries unless their regulations specifically forbid US citizens to trade in their countries, which is very very rared. If this passed, US retailed forex sector will be decimated. Thousands of people work in US firms will proably lose their jobs. Big players like Goldman Sachs, JPmorgan, Citibank, etc. won’t be affected that much though.
 
Quote from hoffmanw:

Foreign fx firms outside of US don’t really follow the US CFTC/NFA rules. They follow the guidelines set by their own government. You can trade whatever leverages they give in their countries unless their regulations specifically forbid US citizens to trade in their countries, which is very very rared. If this passed, US retailed forex sector will be decimated. Thousands of people work in US firms will proably lose their jobs. Big players like Goldman Sachs, JPmorgan, Citibank, etc. won’t be affected that much though.
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I'll say it again. A large broker in the UK told me that they won't open up accounts for US citizens unless they are accredited (wealthy). This broker claimed that the NFA set this rule in the US, implying that the regulation limits the citizen, and they the broker were just following and honoring it. Is this true, or is it BS? Has the CFTC or NFA barred citizens from trading FX outside of US unless they are accredited? Jason should know this since works for a large UK broker. Jason are you ignoring the issue because it's true, or because you don't know the answer?
 
Quote from PlusMinus:

I'll say it again. A large broker in the UK told me that they won't open up accounts for US citizens unless they are accredited (wealthy). This broker claimed that the NFA set this rule in the US, implying that the regulation limits the citizen, and they the broker were just following and honoring it. Is this true, or is it BS? Has the CFTC or NFA barred citizens from trading FX outside of US unless they are accredited? Jason should know this since works for a large UK broker. Jason are you ignoring the issue because it's true, or because you don't know the answer?
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Hi PlusMinus,

Thanks for the question, and I apologize about the delay in replying to your post. I will ask our compliance department specifically about this.

I have heard of non-US brokers not accepting US residents as well. At this point my guess is that it's because they are not registered in the US therefore don't want to run afoul of US regulators. But I will try to get a definitive answer for you, and reply back once I have more information.

Jason
 
Quote from Jason Rogers:

Hi PlusMinus,

Thanks for the question, and I apologize about the delay in replying to your post. I will ask our compliance department specifically about this.

I have heard of non-US brokers not accepting US residents as well. At this point my guess is that it's because they are not registered in the US therefore don't want to run afoul of US regulators. But I will try to get a definitive answer for you, and reply back once I have more information.

Jason
More...
Thanks. Naturally your compliance department would know. Look forward to what they say.
 
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