Is there any update on CFTC proposed rules for restricting leverage to 10:1? When are they going to decide on this, any soon? Im thinking of opening an account with an USA fx broker but i dont want to do if they going to institute this rule in a couple of months? Does any one have any insights on this ruling?
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No announcement yet.
leverage to 10:1 - any update?
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As far as I'm aware, it was just a marketing ploy by an Expert advisor salesman claiming to be a wall street trader. Although there were sugestions on an investment news website that this may happen in the US, but not for atleast 12 months.
Also, I dont think this will have any affect on traders; brokers will just migrate their offices overseas in order to escape regulations.
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Originally posted by chrisbenjy View PostAs far as I'm aware, it was just a marketing ploy by an Expert advisor salesman claiming to be a wall street trader. Although there were sugestions on an investment news website that this may happen in the US, but not for atleast 12 months.
Also, I dont think this will have any affect on traders; brokers will just migrate their offices overseas in order to escape regulations.
So you dont think it is going to happen any soon. There was a big talk a few moths ago but now it is all silent...
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I doubt it will happen, as then most traders will move accounts outside USA or switch to futures (I believe futures max leverage is at 25:1 but could be wrong). If happens more will probably move to off shore brokers than switch trading instruments, so it would be a huge loss in US revenue.
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Hi Ajata,
Why do you want to open an account with a US broker in the first place?
US brokers already have to abide by the anti-hedging (FIFO) rules, which makes them useless for any traders who scale-in or scale-out of positions.
There are lots of good non-US brokers and many US brokers have anticipated this pointless regulation causing big problems and have set up sub-divisions outside the US.
As for the 10:1 proposal lol, this means that if you want to trade 1 lot of GBP/USD then you need an account of around $16,000 to cover your margin - that will ensure that the the final nail is driven in the coffin of US retail Forex spot trading.
Congress are looking again at the CTFC proposal after the CTFC were bombarded with objections to the proposal, I'm not aware of any further news.
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Originally posted by soundfx View PostHi Ajata,
Why do you want to open an account with a US broker in the first place?
US brokers already have to abide by the anti-hedging (FIFO) rules, which makes them useless for any traders who scale-in or scale-out of positions.
There are lots of good non-US brokers and many US brokers have anticipated this pointless regulation causing big problems and have set up sub-divisions outside the US.
As for the 10:1 proposal lol, this means that if you want to trade 1 lot of GBP/USD then you need an account of around $16,000 to cover your margin - that will ensure that the the final nail is driven in the coffin of US retail Forex spot trading.
Congress are looking again at the CTFC proposal after the CTFC were bombarded with objections to the proposal, I'm not aware of any further news.
regards
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