Diesel 10 Posted April 21, 2010 Report Share Posted April 21, 2010 There's been a lot of talk about the CFTC's proposed change of leverage to 10-1. If they do it and you live in the US, you may be screwed. I wouldn't put it past them to block you from opening an account outside the US (and force you to close any that are open) ! Â A good alternative to Forex is US Currency Futures. For instance the highly liquid Euro Globex futures contract is traded on the CME, with a point value of $12.50/point. Margin is $2500 for a day trade and $3375 for contracts held overnight. Lightning quick fills and no more of those hideous "spreads" and "requotes" to deal with. Commissions are minimal; about $2 at Interactive Brokers where I trade. Also, your broker isn't trading against you, so no funny business... Â Anyway, just thought I'd bring this to light for the benefit of all you fine folks ! cazador and cubicrey 2 Quote Link to comment Share on other sites More sharing options...
detrader Posted April 21, 2010 Report Share Posted April 21, 2010 While I don't disagree if you can afford those margin requirements you can afford to trade a mini Forex account so I don't see how this is a better option, just a different one. Quote Link to comment Share on other sites More sharing options...
Diesel 10 Posted April 22, 2010 Author Report Share Posted April 22, 2010 While I don't disagree if you can afford those margin requirements you can afford to trade a mini Forex account so I don't see how this is a better option, just a different one. IF leverage goes to 10-1 on FX in the US, you will get a much greater bang for your buck with the futures. 1 EUR/USD FX contract would have a $10,000 margin requirement. 1 EUR Globex Futures contract would have a $3,375 margin requirement. That's a huge difference between same sized contracts.  A mini contract is not comparable as it offers mini price appreciation... Quote Link to comment Share on other sites More sharing options...
fxwin Posted April 25, 2010 Report Share Posted April 25, 2010 There are many brokers request only 300-400$ for a contract. (Look at infinity, velocity and Mirus) Quote Link to comment Share on other sites More sharing options...
Guest grump Posted April 25, 2010 Report Share Posted April 25, 2010 Well I have no doubt that the US will try to stop all Forex trading as it is now in the future. However that should not stop you from trading. There are proven ways you can still trade with overseas brokers no matter what the US. Â good luck the grump Quote Link to comment Share on other sites More sharing options...
Diesel 10 Posted April 25, 2010 Author Report Share Posted April 25, 2010 Well I have no doubt that the US will try to stop all Forex trading as it is now in the future. However that should not stop you from trading. There are proven ways you can still trade with overseas brokers no matter what the US.  good luck the grump Agreed, but the US authorities are a mighty determined bunch of azzclowns. What if they somehow outlaw or prevent US citizens from having overseas accounts? Any US citizen would have to close their overseas account or face the fury of "the law". Hope it doesn't happen, but if it does, Currency Futures are an attractive alternative. That is all I was trying to bring to light. I have nothing to gain no matter what folks end up trading... Quote Link to comment Share on other sites More sharing options...
Guest grump Posted April 25, 2010 Report Share Posted April 25, 2010 Hi Diesel, Yes I know ..what I was trying to say is even if the US makes a law about no overseas brokers it means very little as you can trade with overseas brokers without the US having any knowledge at all. I showed my friends how it's done because they wanted to trade with FXPro which is a very good overseas broker but they stopped taking US citizens as clients. The same with Alpari,UK. But my friends are happily trading these 2 brokers as I will when I return to the US.. the grump Quote Link to comment Share on other sites More sharing options...
afuturestrader Posted June 2, 2010 Report Share Posted June 2, 2010 If CFTC's proposed change of leverage to 10-1 is enacted - it seems unlikely to me that many U.S. based traders (perhaps a small minority) will attempt to skirt that law by opening an overseas account. Trading is risky enough as is. Let us hope U.S. regulators don't make it their mission to de-leverage retail traders. Retail traders did not cause the issue they are trying to solve. Quote Link to comment Share on other sites More sharing options...
litxus82 Posted August 30, 2010 Report Share Posted August 30, 2010 Anyone trading futures here? The more I look into day trading and shorter time frames the more I start to lean toward futures. I see no use of forex high leverage (or even using all of it) as most brokers will not give you good execution and play many other games. Did you notice that forex brokers with very high leverage and bonuses usually have worst executions? In my opinion high leverage + bad execution = easy money for forex broker. Any ideas welcome. Quote Link to comment Share on other sites More sharing options...
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