FIFO Rule

Re: FIFO Rule

If someone living in USA, That’s not a good idea. I tried before but very inconvenient.

Money deposit and withdraw, etc. And also, you have to file the money laundry act.

It can have more regulations. That’s why I decided not to use out of country brokerage firm.

This is my personal opinion. If someone has better idea, please write in here. :hammer: :-S

Re: FIFO Rule

There are some US broker that are not NFA members. GallantFX.com... US broker they are not NFA but they are registered with SEC. They seem to be a new broker... so not tested or proven

I am looking to see if they do inter-broker transfer. If they do... then I might probably try them. If not I can always do inter-broker transfer between my ibfx to my alpari account...

Re: FIFO Rule

another non-us broker is http://www.fxpro.com

bmw rulez!

not regulated by NFA \m/

Re: FIFO Rule

FXDD is not NFA compliant so it should not be effectd.

Re: FIFO Rule

I understand this rule will start after July 31

Re: FIFO Rule

Metaquotes says that they will have a solution for FIFO rule for MT4 by July 31.

Re: FIFO Rule

I really don't understand why no hedging and the FIFO rule are problems. I'm trading with Oanda since several years, I have no hedge with my accounts and they apply the FIFO rule since a long time. I have never had any problem. So, what's the concern ?

Re: FIFO Rule

Just FYI

IBFX account trader need no changes in their trading style regarding FIFO regulation. IBFX deal with NFA and bring the FIFO solution by the modification of daily and monthly statement.

Detail IBFX statement:

Interbank FX Announces Compliance with the New NFA FIFO Rule, Retaining All Platform Order Functionality Including Expert Advisors

Interbank FX’s proprietary backoffice solution offsets positions adhering to FIFO rule

Salt Lake City, July 20, 2009 — Interbank FX (IBFX.com), a worldwide provider of online foreign currency (Forex/FX) trading, announced today a solution for NFA Compliance Rule 2-43 affecting all NFA regulated Forex brokers.

Using our proprietary backoffice solutions, Interbank FX will allow our Meta Trader 4 platform to remain 100 percent compliant, while retaining order functionality and flexibility for customers trading. The MT4 platform will continue to function as our customers have experienced over the last several years. This includes the ability for customers to use fully functional Expert Advisors, Stops Losses, Take Profits, Trailing Stops and Limit Orders without making any needed adjustments.

"Certain US competitors have decided that their solution to the new FIFO rules are to move their customers overseas, rather than being compliant," said Todd Crosland, Chairman and President of Interbank FX. "At Interbank FX, we have embraced the NFA's efforts to help protect customers and provide a seamless solution without any changes to their current trading strategies."

The only modification for customers will be their daily and monthly account statements, coming directly from the proprietary Interbank FX backoffice system using NFA FIFO offsetting procedures. The FIFO rule takes effect beginning July 31/August 1, 2009.

Interbank FX is currently working on a step-by-step video which will be available shortly on our web site, http://www.ibfx.com.

Q. Does FIFO apply to all of my trades?

A. First in / First out applies ONLY to trades of the same size.

Q. Will my Expert Advisor still work?

A. All of your Expert Advisors will continue to work with all of your pre-programmed stops, limits and trailing stops.

Q. Will I still be able to use Stops and Limits, Trailing Stops and Take Profits?

A. Absolutely – With the IBFX solution, you won’t have to make any changes from the way that you are trading currently. No need to make any adjustments to Stops and Limits, Trailing Stops or Take Profits.

Q. Will I still be able to close any of my orders of the same currency pair in any order?

A. Yes, with the IBFX solution, your trading will still be fully functional without any changes to your current trading strategies.

Q. How will this affect my daily statements?

A. Interbank FX Official Statements will come directly from Interbank FX’s proprietary back office system using our FIFO offsetting and accounting procedures. These statements will be accessible through a client’s Web Site Login. You will still be able to pull an Unofficial Trade Journal using the Trade Journal feature within the IBFX website. You will also be able to produce Unofficial Trade Journals using MetaTrader 4 as your Trade Manager.

Q. Does this NFA rule apply to all U.S. based brokers?

A. Yes, this rule affects any broker in the U.S. that is a member of the NFA. Other brokers have attempted different approaches to this new ruling. We at Interbank FX strive to make trading in the forex market as simple as possible for our clients, all the while in full compliance with the NFA.

Re: FIFO Rule

Interbank FX Announces Compliance with the New NFA FIFO Rule, Retaining All Platform Order Functionality Including Expert Advisors

-Interbank FX's proprietary backoffice solution offsets positions adhering to FIFO rule-

SALT LAKE CITY July 20, 2009 Interbank FX (IBFX*com), a worldwide provider of online foreign currency (Forex/FX) trading, announced today a solution for NFA Compliance Rule 2-43 affecting all NFA regulated Forex brokers.

Using our proprietary backoffice solutions, Interbank FX will allow our Meta Trader 4 platform to remain 100 percent compliant, while retaining order functionality and flexibility for customers trading. The MT4 platform will continue to function as our customers have experienced over the last several years. This includes the ability for customers to use fully functional Expert Advisors, Stops Losses, Take Profits, Trailing Stops and Limit Orders without making any needed adjustments.

Certain US competitors have decided that their solution to the new FIFO rules are to move their customers overseas, rather than being compliant,?said Todd Crosland, Chairman and President of Interbank FX. It Interbank FX, we have embraced the NFA's efforts to help protect customers and provide a seamless solution without any changes to their current trading strategies.?

The only modification for customers will be their daily and monthly account statements, coming directly from the proprietary Interbank FX backoffice system using NFA FIFO offsetting procedures. The FIFO rule takes effect beginning July 31/August 1, 2009.

Interbank FX is currently working on a step-by-step video which will be available shortly on our web site, www*ibfx*com.

About Interbank FX

Headquartered in Salt Lake City, UT, Interbank FX, LLC (IBFX) is a provider of online Forex trading services, offering individual traders, money managers and institutional customers proprietary technology, tools and education to trade spot foreign currency online.

Unlike other off-exchange retail foreign currency brokers, IBFX has distinguished itself among industry leaders with its unique multi bank liquidity feed, proprietary tools and services, and remarkable focus on customer care. This has led to longer term relationships and to numerous awards and industry accolades, including Best Online FX Provider, Best Foreign Exchange Broker, Best Chairman, Ernst and Young Entrepreneur of the Year, and Inc 500.

IBFX serves more than 35,000 clients from more than 140 countries around the world and has supported a trading volume in excess of US$80 billion in a single month. The company is regulated as a member of the National Futures Association and is also registered with the Commodity Futures Trading Commission as a Futures Commission Merchant. Trading in the off-exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. With all major news releases, there is the possibility of significant price volatility. IBFX is not liable for any loss or damage, including without limitation any loss of profit, which may arise from the use of Dow Jones FX Select or reliance on such information.

:berbusa: :berbusa: Always Trader's fault ??? Darn... :hammer:

Re: FIFO Rule

IBFX's response shows how evil they are by embracing the NFA's policies as everybody else is trying to find ways around them

Re: FIFO Rule

I've been in touch with MBTrading and they're still talking with NFA about this FIFO rule, so I don't think it's so easy as IBFX says on its email

Re: FIFO Rule

Hi all,

i also think that it is not so easy for the nfa compliant brokers.

several of them also opened their offshore platforms in Uk, australia and canada.

for example....

forex.com only offers their MT4 platform for their UK business. but they switch all customers to this platform as i checked with their NY office.

and there is also fxcm that can switch their customers to their canadian platform...and an other one that offers their australian platform for US residents...

so i know from my colleaques that most of them will switch their accounts to a broker who offers trading without nfa rules and offering an offshore platform.

i think that the nfa needs to get somthing on their eyes... =D>

and if you see the statistics you will recognize that most of the trades are done at london/europe. that is 30% of the trades. only 16% are done in NY. ok. they handle bigger volumes per trade.

i had telephone calls with my UK brokers...all of them said that there is nothing planned from fsa or themselve...and there is also no small talk about at this time.

several calls with US brokers gave me the response that the nfa wants to stop the robots...

i think a lot of capital is going out of USA as a reaction to this. where will be the major place for them??? i think London is a god solution...

so yes thank god that there are other countries in the world :)

Re: FIFO Rule

I think IBFX has mentioned recently that FIFO will only impose for same lotsize same currency. So I planning to change my ea to auto increment 0.01 lots as a work around

Re: FIFO Rule

there are many offshore brokers that are good

.... most of the brokers in the USA are bucket shops anyhow, why anyone would open with them to begin with is only because they do not know better, once you see their tactics if you have not moved offshore you deserve whatever happens to you and any rules they impose

Re: FIFO Rule

future is also using FIFO,

can not have the oppisite position in the same time

i heard that in UK FIFO is not in use yet.

Re: FIFO Rule

As long as they allow to scalping trade. I think if we doing with scalping then it's O.K. One trade at a time.

:-? :)>-

5-10 pips per trading x 10 trading per day = 50 - 100 pips a day. It's not bad. :-bd

Re: FIFO Rule

which is a problem? location of the server or company address? :-??

Re: FIFO Rule

Australia company excluded from these rules

Re: FIFO Rule

can someone clarify what hedging is?

Thanks

Re: FIFO Rule

Hedging is when you do buy and then sell position with the same currency.

Re: FIFO Rule

I just got an account with a broker not regulated by NFA. You just need to make sure your broker is reputable. Beyond that, choose the "free-est" broker you can find.

Re: FIFO Rule

A lot of messy rules....need to open with a broker not regulated by NFA too.....bye bye NFA

Re: FIFO Rule

I'm trying to decide where to go, anybody out there happy with FxPro or FXCM UK?

Re: FIFO Rule

Here is a point to consider regarding the NFA hedging/fifo rules.

They appear to be designed for market makers, where counter-party transactions take place, but I don't think they would apply to any (US) broker which was purely ECN.

ECN brokers wouldn't have any counter-party setup, so the rules would be irrelevant. But, are there any pure ECN brokers? :-?