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Author Topic: New CFTC Rules --- Foreign Brokers for Americans  (Read 27930 times)

Offline Robot PiP Denarii

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #15 on: September 08, 2010, 06:18:19 PM »
I could stand having a 50:1 leverage but implementing all that retarded trading conditions: FIFO, no hedging, and what else?? I'd be headed for disaster as a trader. I am so pissed, Go can have all my business. 

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #16 on: September 08, 2010, 07:51:58 PM »
Actually, I just increased my leverage from 1:100 to 1:200 with Go.  I've had no problems at 1:100, but do some grid trading now where I could potentially need lots of liquidity to make things work.

That said, I took my affairs abroad with the FIFO and no-hedge rules.  I agree those are totally retarded and there's no reason for them.

The CFTC has plenty of stuff they shoudl be doing (position limits and manipulation in the precious metals markets on the part of the JP Morgans of the world would be a good start).  The silver markets in particular are an accident waiting to happen given the extensive business/industrial uses, the ridiculously outsized JP Morgan short.  If silver doubled or tripled in price overnight, there would be economic repercussions.  Yet these clowns continue to be purposefully obtuse.  They could put in place some basic safeguards for our money at US brokers like requiring segregated accounts as Go has or providing some insurance as the FSA has.  But they don't want to do anything useful.

Instead the CFTC has done for trading what panty hose did for finger-f&*ing.  They are just a license to steal by the US brokers.  Legal or illegal, I'll have nothing to do with the US brokers and will do anything I need to do to stay away.
« Last Edit: September 08, 2010, 11:19:56 PM by aicohn »

Offline fxcica

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #17 on: September 09, 2010, 12:06:22 AM »
Scratch off FXCM UK as an available foreign broker for Americans.  Jason Rogers of FXCM posted the following statement on ForexFactory (http://www.forexfactory.com/showpost.php?p=4008828&postcount=1356):

"It is our interpretation of the Dodd-Frank Bill and CFTC intentions that US residents will be required to repatriate their accounts back to the US. The big question at this point is when will traders be required to do so. This is what we are waiting for our regulators to clarify. A solid indication of a date has not yet been given. Again, as soon as we have these details, I will let you know."

fxcica

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #18 on: September 09, 2010, 02:24:57 AM »
Why would you want to trade with FXCM anyway?  Their spreads stink.

If they try to force me to repatriate my Gain Capital UK account back to the US, I'll simply pull the money out & send it to Australia.  They'll welcome me with open arms.  So much for my IRA!

Offline jsp

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #19 on: September 09, 2010, 02:44:24 AM »
Why would you want to trade with FXCM anyway?  Their spreads stink.

If they try to force me to repatriate my Gain Capital UK account back to the US, I'll simply pull the money out & send it to Australia.  They'll welcome me with open arms.  So much for my IRA!

I think the idea is this could happen anywhere outside the U.S.  It's still open to interpretation, though--like the thousands of other pages in that bill. 

To think, Chris "Countrywide Scandal" Dodd and Barney Frank, who once ran a male prostitution ring from his house, are now micromanaging retail FX and many other parts of our economy.  Welcome to Amerika...


Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #20 on: September 09, 2010, 03:18:50 AM »
What isn't open to interpretation is their inability to enforce this beyond US borders with a broker that has no US presence.  The foreign broker can say "yo mama!" with impunity.  GoMarkets has done just that & will likely get away with it, since they have no US presence.  Therefore US authorities have no leverage over them unless they wish to involve the US State Department or go to war over this.  Given recent US adventurism, that possibility can't be completely discounted.

They have chosen to try regulating the broker, not the investor, so I need fear nothing by continuing my relationship with GoMarkets.  GoMarkets seems perfectly happy to continue doing business with americans at 500:1 leverage, hedging allowed, and no FIFO.  So, at least with me, the relationship will continue.

I agree the situation may be different at Gain Capital UK where I keep my Roth IRA, since they have a business on US soil.  If, as I suspect, they try to make me transfer it back to the states, I will instead withdraw the money & send it to GoMarkets.  Yes, I'll eat a 10% penalty, but will gain it back pretty quickly from the increased flexibility I'll have with the assets.  And I would rather chew on broken glass, wash it down with gasoline & have a match for dessert than deal with a CFTC regulated US broker again.

So much for the butt-heads at the CFTC.
« Last Edit: September 09, 2010, 03:21:15 AM by aicohn »

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #21 on: September 09, 2010, 03:40:00 AM »
Just checked with Gain Capital UK, and situation is similar.  They are waiting for a final directive from the NFA, but state that I'll have to move the money to the US.

And that means I withdraw the money & send it down under.

G'day Mate!

Offline robl45

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #22 on: September 09, 2010, 03:43:02 AM »
the collectivefx isn't subject to this stuff, didn't you leave them over a bad trade?  they are bar none the best forex broker anywhere.

Offline jsp

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #23 on: September 09, 2010, 03:45:52 AM »
It looks like Cuba is starting to see the light...

http://news.yahoo.com/s/ap/20100908/ap_on_re_us/cb_cuba_fidel_castro

It would be the irony to end all ironies if they opened up their country and became another offshore haven for banking and FX brokers one day.   :D
« Last Edit: September 09, 2010, 03:47:58 AM by jsp »

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #24 on: September 09, 2010, 04:08:15 AM »
Yes, I left collective in part over a trade left hanging for 2 minutes then subject to a horrendous execution.  The execution on that one cost me $2K (it was 20 standard lots of EURCHF).  They promised some accountability, but it never came & my emails went unanswered in the end.  That by itself is ample reason to leave a forex broker.  Add that to some horrible spreads in the asian session, an extremely rude representative, and there were at least 5 reasons to leave them.  I've not seen anything of the kind with gomarkets.  Collective is atrocious, and expensive.  They'll still have 100:1?  WHoop-de-dooo!  At gomarkets I have 200:1, and could get 500:1 with an online chat session.  At 100:1 collective is still atrocious and expensive, but with more leverage.
« Last Edit: September 09, 2010, 04:27:41 AM by aicohn »

Offline fxcica

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #25 on: September 09, 2010, 04:42:40 AM »
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/

I just tried the CitifxPro MT4 (which is also under the BT bridge) demo, and MT4 supports microlots (minimum lot size of 0.01). I also tried the web-based platform (demo), and it accepted a minimum order size of 1,000 (equivalent to 0.01 lot).

Of course, CitifxPro does require a minimum deposit of $10,000 and has high spreads.

Offline hazelj80

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #26 on: September 09, 2010, 06:35:01 AM »
you would have to request institutional accounts with comissions and lower spreads. ..but then that's way more than 10k.  retail and scalping is an oxymoron and don't even belong in the same sentence
« Last Edit: September 09, 2010, 06:38:38 AM by hazelj80 »

Offline robl45

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #27 on: September 09, 2010, 09:54:55 PM »
collective has some of the best spreads anywhere and doesn't filter there feeds.  plus they aren't half way around the world.  it is the best broker for most americans.

Yes, I left collective in part over a trade left hanging for 2 minutes then subject to a horrendous execution.  The execution on that one cost me $2K (it was 20 standard lots of EURCHF).  They promised some accountability, but it never came & my emails went unanswered in the end.  That by itself is ample reason to leave a forex broker.  Add that to some horrible spreads in the asian session, an extremely rude representative, and there were at least 5 reasons to leave them.  I've not seen anything of the kind with gomarkets.  Collective is atrocious, and expensive.  They'll still have 100:1?  WHoop-de-dooo!  At gomarkets I have 200:1, and could get 500:1 with an online chat session.  At 100:1 collective is still atrocious and expensive, but with more leverage.

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #28 on: September 09, 2010, 10:05:28 PM »
Quote
collective has some of the best spreads anywhere and doesn't filter there feeds.  plus they aren't half way around the world.  it is the best broker for most americans.

The spreads at go are pretty close to collective, and at times (e.g., asian session) are markedly better.  They don't charge me $1K/month to trade there; instead I get a commission rebate of $3 per standard lot via Aslan.  Finally, a colossally botched trade resulting in a $2K loss will cover a whole lot of minor spread differences.  And a trade left hanging for a full 2 minutes in forex is colossally botched.  Without some accountability for what happened, it's absolutely criminal.

Finally, half way around the world has some advantages.  The account funds are held in a segregated account at National Bank of Australia, and they are relatively immune from creditor attachment.  Finally, Go is a regulated broker.  Collective is not.  They have skirted the law to make sure they aren't.  If you have problems with collective, as I did, you are totally alone.  Your only recourse may be to vote with your feet as I did.  Playing with them is like playing russian roullette.  If you choose to do that, you really are a gambler not a speculator and I wish you luck.  Sooner or later, you'll need it!

A.

One minor addendum:

I request a withdrawal from my Go account by email & the money is in my checking account in the states within 2 business days.  Withdrawals at Collective are glacially slow & expensive.  5 business days is the norm there, not the exception.  So "halfway around the world" is a non-sequitur.  Functionally my funds are closer to home at GoMarkets.
« Last Edit: September 10, 2010, 12:07:17 AM by aicohn »

Offline FXDave

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #29 on: September 09, 2010, 11:31:06 PM »
The debate over brokers ---->>> Good or bad----->>> will never be settled.

The CFTC rules are what they are----->>> personal adjustment is needed.

US Citizens Constitutional Rights are being violated------>>> changes must be made.... VOTE!


Fortunately I anticipated the passing of such legislation and neatly diversified my accounts before such action could take effect.

I agree with aicohn and his opinion of Go Markets. I have never been treated better by any other broker. Their spreads are very competitive and even more so if you use the Aslan Group as your Introducing Broker.

Unfortunately for me I do not qualify for the Aslan Groups negotiated rebate because I have an existing Go Markets account but that does not change my view on Go Markets. They are the top rated Oceana FX broker and Australia has some of the strictest laws in regards to account holder protection.

If you are considering a change I highly recommend Go Markets. Take full advantage of the current situation and contact Gavin from the Aslan Group. I guarantee he will do everything in his power to make sure you are taken care of.

Go Markets is not the only alternative. Ask Gavin what your options are and I am sure he will provide you with information that best serves your interests.

Those who desire to give up freedom in order to gain security will not have, nor do they deserve, either one. 

- Benjamin Franklin


Peace....

FXDave
"Absurdum est ut alios regat, qui seipsum regere nescit."

 

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