...at least it looks like that in the USA. If you read carefully the recently approved Dodd-Frank Act, we can conclude that in 90 days US traders probably won't be able to trade currencies as they do now. Check the following article:
Below is a list of brokers from a Forex Yahoo group that will continue accepting and servicing US customers after October 18, 2010 with no restrictions:
Members of the Yahoo MTandI list have developed a list of brokers
who will accept US residents and offer leverage of 100:1 and
higher. We are providing this list to help traders who are
interested in pursuing accounts with brokers who offer greater than
1:50 leverage. We have not vetted this list and do not endorse any
particular broker. It's offered as a starting point for further research.
Revised List 10-16-10 4:45 pm CST
Brokerages that Will Accept US Citizens
AAAFX (added 10-12-10)
Arab Financial Brokers (added 10-13-10 Jake)
Askobid.com (added 10-13-10 Hope Boyce)
Broco (added 10-12-10)
Dukascopy (added 10-13-10 from CashBackForex. Note: Bridge
from MT4 to their proprietary platform)
FBS (added 10-12-10)
Fin FX (added 10-15-10 C Franks www.finfx.fi)
Forex4You (added 10-13-10 Jake)
FOREX MMCIS: (added 10-13-10 Jake)
FXCBS (added 10-13-10 from CashBackForex). Jake confirmed.
FXCompany (added 10-12-10 NB: The Govt of Mauritius stated
it's revoking the business license of FXCompany in May 2010.
Current status is unclear)
FXM Trade (added 10-15-10 Jake)
FXOpen (May be the same as FXCompany)
GotMoneyFX (added 10-13-10 Jake)
InvestTechFX - Canada (added 10-14-10 Terri Horton)
InvestorEurope.com (added 10-14-10 Jake)
MF Financial (mffx.com) - UK
PrimeBank Forex (added 10-15-10 Abhay )
RVMarkets (added 10-13-10 Jake)
United World Capital (added 10-14-10 Jake)
Windsor Direct (added 10-12-10 Brian Durnil)
E Forex: Will maintain existing US clients but will not take new US
clients after October 18th.
ACM Forex (Swiss-based) (added 10-12-10) Note: FPA
recommends caution in dealing with FCM due to legal action
against them www.ac-" target="_blank">http://www.forexpeacearmy.com/public/review/www.ac-
The idea is to get all fx trades to switch to forex futures traded on an exchange instead of over the counter spot.I think we will have to get use to that idea.Not good at all.Is anyone trading forex futures? What is the difference?
Hi Trinbago, the main difference is that futures are traded in a regulated market which means you can check anytime time and sales data.
Also rollover interests are discounted in futures prices while when you're trading spot Forex if you leave overnight positions then your broker will charge/credit interests. Another difference is that futures has standardized lot sizes (for example EURUSD futures has standard = 125,000 €, mini = 62,500 € and micro = 12,500 €) while in spot Forex you can usually trade any lot size using micro and mini lots.
Finally when trading futures you will have to pay a commission plus the spread (usually 1 pip) while when trading FX, unless you trade using an ECN, you will only pay the spread.
Anyway if you have more questions about FX futures traded at CME, please visit their website:
"No over-the-counter foreign currency transactions, unless it is through a government-approved agency."
That means CFTC and NFA approved agencies. We already know this, and it doesn't mean the sky is falling. Even the specific effects of FIFO are short term. Even the non-subtle effects of repatriation will have improvements on the Forex. In light of so much regulation, I've heard a lot of violins being played.
"The primary effect of the reform act is on fund managers.."
Fund managers that are dealing in commodities will have to do some juggling. And there is a concern of the shrinking size of the Forex in US markets. Market Makers have already been aware of this, and have been positioning themselves in non-US markets, in preparation for the emerging markets (the Asian Century).
Non of this is a signal for the 'end' of Forex in North America. Only the end to the wild west where brokers can rip off clients that work hard to learn their trade only to be ripped off. Thought that was a good thing. Education is the key, and then there won't be any regulation. I am side-ways at how you have to go to a resource that reports on the broker to get information about that broker, rather than from the broker's website. FXCM is an exception to that. Oanda another. I'm sure there are others. Even FXCM seems to emphasize scalper trading as well. All of this wide-open Vegas style of child's play has got to be put in check. This is black-Jack ...It's trading. And trading demands a mind-set. As far as I can tell, the new leverage requirements force new traders to not look specifically toward high leverage, but to compound interest, to build upon. Again ...Thought that was a good thing?! YO ...Cheers!