I noticed and its unsettling to say the least. From 100-1 in Novemeber to now 10-1 . I figured 100-1 is where they would stop becuase I read the letter explaining why the nfa and cftc came to 100-1. I would like to see some brokers speak about this and tell us what they have heard and think. Also I know people have said you can just move to overseas broker or UK broker if you are in the US but this past Nov the other overseas brokers also lowered their leverage inline with the new NFA CFTC proposal of 100-1. Now I was all for the 100-1 thats plenty but 10-1 is ridiculous. It is not even inline with currency futures. Plus regardless of what people think about FX they do have risk paramters in place not to let the account go into a negative balance unlike futures. So please FX brokers speak up
Proposed NFA Capital Requirement
- Thread starter forexsavior
- Start date
I noticed and its unsettling to say the least. From 100-1 in Novemeber to now 10-1 . I figured 100-1 is where they would stop becuase I read the letter explaining why the nfa and cftc came to 100-1. I would like to see some brokers speak about this and tell us what they have heard and think. Also I know people have said you can just move to overseas broker or UK broker if you are in the US but this past Nov the other overseas brokers also lowered their leverage inline with the new NFA CFTC proposal of 100-1. Now I was all for the 100-1 thats plenty but 10-1 is ridiculous. It is not even inline with currency futures. Plus regardless of what people think about FX they do have risk paramters in place not to let the account go into a negative balance unlike futures. So please FX brokers speak up
FXCM talking about new rule: This is from a FXCM rep, and just an fyi I do not use FXCM, he just posted this on another forum from a question I had asked.
I can give a basic statement from FXCM. A formal statement will most likely be released in the days ahead.
FXCM is opposed to the 10:1 leverage proposal and is actively lobbying against it.
The proposal definitely strikes a nerve for those both for and against the reduction in leverage. If you would like to voice your concern for or against the proposal you can contact the CFTC by sending an email to secretary@cftc.gov with âRegulation of Retail Forexâ in the subject line. Your message will be posted unchanged on the CFTC website.
It is important that you do not list fake personal contact information otherwise the CFTC may think it is simply a broker voicing their opinion.
That is how you can make a difference. The rules are being made by what regulators see as what is best for you. So they need to hear directly from you if you want them to know what you think.
Then another post of me asking about moving accounts to the UK:
That is a good point because many traders moved to FXCM UK due to past regulatory changes on hedging and FIFO. This will probably only cause more business to leave the US.
We do not believe the FSA will make the types of changes to leverage which are currently being proposed by the CFTC because the FSA takes a different approach to regulating.
The CFTC has a rules based system. If you meet requirements on the checklist you can open a forex brokerage. $20 million in minimum capital, check! customer identification program, check! etc. The FSA operates differently in terms of how they create their rules. They take a closer look at each broker not only at the minimum amount of capital the company has but at the amount of capital they have even exceeding the basic amounts. They also look at the experience of management in the financial industry, how long the company has been operating, how long the systems have been running and reliability, etc. all in order to gauge what a broker is allowed to do or even if they will license the broker. So the mindset is much different in terms of their regulatory approach.
I can give a basic statement from FXCM. A formal statement will most likely be released in the days ahead.
FXCM is opposed to the 10:1 leverage proposal and is actively lobbying against it.
The proposal definitely strikes a nerve for those both for and against the reduction in leverage. If you would like to voice your concern for or against the proposal you can contact the CFTC by sending an email to secretary@cftc.gov with âRegulation of Retail Forexâ in the subject line. Your message will be posted unchanged on the CFTC website.
It is important that you do not list fake personal contact information otherwise the CFTC may think it is simply a broker voicing their opinion.
That is how you can make a difference. The rules are being made by what regulators see as what is best for you. So they need to hear directly from you if you want them to know what you think.
Then another post of me asking about moving accounts to the UK:
That is a good point because many traders moved to FXCM UK due to past regulatory changes on hedging and FIFO. This will probably only cause more business to leave the US.
We do not believe the FSA will make the types of changes to leverage which are currently being proposed by the CFTC because the FSA takes a different approach to regulating.
The CFTC has a rules based system. If you meet requirements on the checklist you can open a forex brokerage. $20 million in minimum capital, check! customer identification program, check! etc. The FSA operates differently in terms of how they create their rules. They take a closer look at each broker not only at the minimum amount of capital the company has but at the amount of capital they have even exceeding the basic amounts. They also look at the experience of management in the financial industry, how long the company has been operating, how long the systems have been running and reliability, etc. all in order to gauge what a broker is allowed to do or even if they will license the broker. So the mindset is much different in terms of their regulatory approach.
I've sent my email opposing this rule. send comments to secretary@cftc.gov. We cand defeat this thing!
Lots of people are commenting on the cftc rules. just go here to see:
http://www.cftc.gov/lawandregulation/federalregister/federalregistercomments/2010/10-001.html
we are making a difference! Keep it up. Contact secretary@cftc.gov today!
http://www.cftc.gov/lawandregulation/federalregister/federalregistercomments/2010/10-001.html
we are making a difference! Keep it up. Contact secretary@cftc.gov today!
CFTC just published 5,000 comment letters for January alone! We can beat this back! Email secretary@cftc.gov today!!!
FREEEEEEEEEEEEDOM!!!!!!!!!
PatternRec
Guest
FIA's comment letter to the CFTC:
http://www.futuresindustry.org/down..._Retail_Forex_Transactions_Intermediaries.pdf
Excellent read.
http://www.futuresindustry.org/down..._Retail_Forex_Transactions_Intermediaries.pdf
Excellent read.
They want people to trade the emicro futures thats why they ban bucketshops.
a good thing IMO
the only reason people dont trade emicro is because high commission and low volume. When people are forced to trade emicro then that contract will really kick off.
a good thing IMO the only reason people dont trade emicro is because high commission and low volume. When people are forced to trade emicro then that contract will really kick off.
Quote from failed_trad3r:
They want people to trade the emicro futures thats why they ban bucketshops.
the only reason people dont trade emicro is because high commission and low volume. When people are forced to trade emicro then that contract will really kick off.
lol please ban them!
