I'm in the US with IB but I didn't receive a message on any of this so not sure if it applies to everyone or what the deal is. With that being said I haven't placed a forex trade in probably 6 months or more so that could be why I didn't get a message
IB leveraged forex, uh what?
- Thread starter i960
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There are inevitably elements of both, among the various statutory and regulatory requirements.
(The realities perhaps even predicate that protecting traders from themselves is more easily achieved than protecting investors' rights? Though I imagine not everyone would agree with that?)
In the case of forex, in particular, one can perhaps understand governments being concerned about the ease of availability of combinations of extremely high leverage with a panoply of heavily misleading promotion (especially online, which is harder to control) designed specifically to attract the type of naive and inexperienced traders from whom some counterparties make their livings without any securities actually changing hands at all. Otherwise it would probably be the closest widespread thing there is to "unregulated gambling", and increasing numbers of countries worldwide have gradually but consistently learned, throughout the previous Century, that that's a disaster for public policy.
(I'm talking in general terms: I don't suggest that such considerations apply to the services IB provides, of course.)
I already trade FX futures. I was talking about the non-USD crosses specifically. Those do not have usable liquidity.
Thay are too expensive & very thinly traded.