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Author Topic: New CFTC Rules --- Foreign Brokers for Americans  (Read 28376 times)

Offline aicohn

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New CFTC Rules --- Foreign Brokers for Americans
« on: September 02, 2010, 12:57:02 AM »
Sounds like the CFTC is going to try making US Citizens use US brokers subject to their pin-headed regulations & new margin requirements.  They're doing this by regulating the broker rather than the individual.  How will they enforce this against a broker located in the Ukraine?

I would rather chew on broken glass than use a US broker with 50:1 leverage, FIFO order rules & no hedging.  And they're all crooks.  I haven't dealt with one that isn't.  That's why I moved abroad in the first place. Any suggestions on a good broker in a country not friendly with the US?  I'd thought about Admiral Capital in Russia.  Any other ideas?

Offline dennerle

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #1 on: September 02, 2010, 10:23:33 AM »
Sounds like the CFTC is going to try making US Citizens use US brokers subject to their pin-headed regulations & new margin requirements.  They're doing this by regulating the broker rather than the individual.  How will they enforce this against a broker located in the Ukraine?

I would rather chew on broken glass than use a US broker with 50:1 leverage, FIFO order rules & no hedging.  And they're all crooks.  I haven't dealt with one that isn't.  That's why I moved abroad in the first place. Any suggestions on a good broker in a country not friendly with the US?  I'd thought about Admiral Capital in Russia.  Any other ideas?
has the 1:50 rule been passed? any link on it?

Offline nano_fx0

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #2 on: September 02, 2010, 12:13:12 PM »
I've read one's post at FPA that this new leverage only applied to MM broker and not STP/ECN broker... can someone clarify if this is true....

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #3 on: September 02, 2010, 03:33:32 PM »
Quote
has the 1:50 rule been passed? any link on it?

http://www.greencompany.com/blog/index.php?postid=92

http://www.cftc.gov/PressRoom/PressReleases/pr5883-10.html

http://blogs.forbes.com/greatspeculations/2010/09/02/new-cftc-forex-trading-rules-call-for-501-leverage/

This will certainly apply to STP and ECN brokers as well.  The only legal end-run would be a citibank or deutsche bank that isn't regulated by the CFTC.  But I think they're already at 50:1 or worse.  An illegal end-run would be to broker your money in a country that isn't friendly with the US or aftraid of them as I've mentioned.

As a result, and as a hedge, I'm going to open an account with admiral on the possibility they no longer market to americans but will continue servicing open accounts once this is implemented.

Offline hazelj80

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #4 on: September 02, 2010, 07:17:54 PM »
DB is at 100:1 and citifx was always 50:1 i can live with 100:1  since i effectively use 56:1 mostly

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #5 on: September 02, 2010, 09:00:06 PM »
Does DB use a metatrader platform?

Some of the stuff I do requires this.

A.

Offline hazelj80

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #6 on: September 02, 2010, 09:03:02 PM »
yes they do under the BT bridge.  i wrote about it a while back in this section of the forum.  no micro lot just minis  here:

http://www.bostontechnologies.com/

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #7 on: September 03, 2010, 01:34:13 AM »
Then this would be another possibility.  How is it trading at DB?  Any real shyster maneuvers (e.g., requoting for minutes until a gain turns into a breakeven or a loss)?

A.

Offline hazelj80

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #8 on: September 03, 2010, 01:41:22 AM »
i haven't traded live with these guys.  i really want to.  but i noticed that their demo spreads are at least lower than fxcm.  so that should clear up the whole fxcm is dbfx rumor.  but my educated guess would be no since that would mean if they did do anything bad and didn't do anything to fix it,  that it would put the reputation of the world's largets bank in jeporady.  if you can't trust the banks to trade forex with,  then who can you trust?  because banks come before brokers as far as liquidtity goes.  also, Im not a scalper so the spreads don't affect me that much or hardly ever at all

Offline Chip4Pips

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #9 on: September 04, 2010, 03:04:54 AM »
What a shame: these new "rules" which take away our right to do business with whomever we wish, under conditions we choose for ourselves. Nothing like experiencing government of, by, and for the sheeple first hand.

In these times, it seems I often weep for liberty. The whole expatriation thing, via acquisition of a St. Kitts passport, looks like a better and better deal every day....

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #10 on: September 06, 2010, 12:02:04 AM »
Quote
In these times, it seems I often weep for liberty. The whole expatriation thing, via acquisition of a St. Kitts passport, looks like a better and better deal every day....

I prefer Dominica in the category of economic citizenship.  A cheaper option for me would be Ecuador where I can get permanent residency essentially for free (would cost me a few dollars to get my medical diploma translated).  But it's slower.  I'd still have a few years before applying for citizenship.  With the economic route at Dominica or St. Kitts, I gather you can have citizenship and a passport in a few months.  I gather there is a gathering queue for renunciation of US citizenship, however.  Seems it's become a popular thing to do!

A.

Offline alamoland

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #11 on: September 06, 2010, 05:09:21 AM »
I went to Go Markets in Australia some time ago, and left a good broker to do it. I didn't believe those CFTC slime buckets would listen to the public input, (I was right) and I wanted to beat the rush. Anyway, Go Markets has been OK so far, they're well regulated and pretty friendly.
As far as the people in power in DC right now? Grrrr.

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #12 on: September 06, 2010, 06:40:47 AM »
Slime buckets is an apt description.

JP Morgan is short half the annual silver production for the world, the CFTC has a gold market manipulation described to them in real time as it happens right under their noses & they can't bring themselves to do anything about either one.  But by golly we can't have retail forex traders going abroad to "evade" a 100:1 leverage limitation.  What's wrong with this picture?

A forex brokerage regulated by the CFTC is like Meyer Lansky regulated by Bugsy Segal.
« Last Edit: September 06, 2010, 07:58:36 AM by aicohn »

Offline Chip4Pips

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #13 on: September 07, 2010, 12:22:19 AM »
Slime buckets is an apt description.

JP Morgan is short half the annual silver production for the world, the CFTC has a gold market manipulation described to them in real time as it happens right under their noses & they can't bring themselves to do anything about either one.  But by golly we can't have retail forex traders going abroad to "evade" a 100:1 leverage limitation.  What's wrong with this picture?

A forex brokerage regulated by the CFTC is like Meyer Lansky regulated by Bugsy Segal.

Exactly!!! They also sat by and allowed the outright manipulation of the crude oil market in the 2008 run up by the infamous "swaps dealers" (see the testimony of Michael Masters), but have decided that this "issue" must be fixed before they deal with major structural problems in the commodities trading marketplace.

Then you have the SEC not figuring out that the combination of ETFs, high frequency trading, and decentralized exchanges has fundamentally broken our equity markets. All in the name of "efficiency". Another "flash crash" is only a matter of time:

http://www.nanex.net/FlashCrash/FlashCrashAnalysis.html

These crop circle charts will bend your mind:

http://www.nanex.net/FlashCrash/CCircleDay.html

Frankly, all of our markets in the U.S. are a joke....
« Last Edit: September 07, 2010, 12:29:13 AM by Chip4Pips »

Offline aicohn

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« Reply #14 on: September 08, 2010, 09:34:57 AM »
Well, whatever problems I may have with GoMarkets, I have to tip my hat to them & probably keep my business there.  They are not being cowed by the CFTC's attempts to regulate the world. Looks like the CFTC can get really pissed and hold its breath until it turns purple, but my business will still be welcome there (at 500:1 leverage, if I decide that's what I want!).  Moreover, my funds are held in a segregated account at the National Bank of Australia, a pretty basic protection I can't reliably get at any CFTC regulated broker in this country.  You go to IBFX, Alpari, wherever, and you'll find your funds comingled with operating funds for the broker.  They go BK and you wind up an unsecured creditor and taking a number in bankruptcy court, just like the Refco clients.  Bugsy Segal regulating Meyer Lansky.

Dear Client,

Following a number of enquiries relating to the new CFTC regulations regarding Forex, we would like to clarify GO Markets position on these regulations.

GO Markets are regulated by ASIC (Australian Securities & Investment Commission) and are not regulated by the CFTC or any other US regulatory body. We have interpreted the Dodd-Frank bill to mean that we can still offer the same, great trading conditions including full hedging capabilities and up to 500:1 leverage for all clients.

We will continue to keep all clients informed on the matter.

Regards,
GO Markets Pty Ltd
www.gomarketsaus.com
« Last Edit: September 08, 2010, 09:45:29 AM by aicohn »

 

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