CFTC Leverage change to 10:1 in the US?...What do you think?

nothing. fxopen is probably the best offshore, since they’re ECN.

FXOpen no longer accepts US customers after they got sued by the US CFTC for maintaining servers and telephone lines in the US while not being registered with the US CFTC.

I agree with someone who said that they want to shutdown this industry for good. And the reason for this is that, more and more people are making money from this industry, and clearly the rich are feeling threatened. They always find some excuse and they always tend to win. Capitalism, it’s either you or them. There is no ‘between’.

God I hate this game.

The leverage change in the US gives forex traders less flexibility.

Also, traders from both the US and abroad may look more to stocks and pair options, as these trading vehicles may provide investors with the opportunity to make large profits without the leverage factor.

I think that our margin should be zero as long as our average price is 100 pips in profit.

& I still want the 50:1 leverage TYVM :18:

Without wanting to offend anybody: Thank God I am not a US citizen.

Over the last 20 years US Governments, no matter whether Republican or Democrat, have shown a regrettable tendency to regulate (not to say supervise or control) every single tiny aspect of their citizens’ daily life. America just isn’t fun anymore; and (sorry to say it) America just isn’t FREE anymore.

I can understand the Government’s desire to protect its citizens from harm … that is a Government’s ‘job’, after all.
But there is a difference between taking measures to ensure a fair and secure environment for everybody and regulating every single thing.
The CFTC seems to think that the average US citizen is too dumb to make sound financial decisions.
Granted, many laymen have lost their money trading forex; but instead of educating them how to go about it properly, rules which are harming the whole retail industry are being introduced. And a weakened or wiped-out retail industry means less revenue for the Government as well.
In conclusion, the measures already taken and those proposed hurt everybody, without achieving anything positive.

My suggestion would be:
Let the CFTC create a simple webpage where people interested in trading forex retail have to pass a test, making sure they fully understand the concepts of leverage, margin and whatever the regulators feel is vital for safe and fair trading.
This would help traders (they can trade properly), brokers (they can earn money) and the Treasury (they increase tax revenue).
I think a ‘Retail Trader’s License’ would be simple to introduce and beneficial to all sides involved.

Cheers,
O.

Glad I’m in LA. Will move to San Diego and apply for Mexican residency (Tijuana, Tecate or Ensenada). Have many addresses where I can register a utility bill (required to obtain an offshore forex account). I’ll ‘commute’ between both my residencies.

In Texas you couldn’t get ‘an equity’ loan on your house, -Texas protecting it’s IGNORANT citizens? -It was THE ONLY state in the nation with such IDIOTIC ‘rules.’

Of course THE IDIOTS saw the light and now you can borrow on your ‘homestead.’

I don’t like this ‘FIFO,’ no hedging IDIOCITY and stupid LOW leverages!

Those freaking ‘fat asses’ (law makers?) don’t have anything to do but raise hell for the rest of us.

Still beating the dead horse years later? Move forward and adapt, find loopholes, be creative…or maybe pick up some different investment activities [B]like a real investor and not some bum FX speculator/gambler[/B].

THIS.

If you can’t even figure out what leverage you are effectively using knowing your stop loss and entry price, why the hell do you think you need to even open a live account?! Lack of education is what makes people loose! Make everyone take a test and let them have whatever leverage they want after that. Then it’ll really be the traders own faults! I’d do it.

Thank goodness we are still 50:1…

Guys I very much doubt this will happen, look at whats going on in the rest of the work, how can CFTC force more brokers offshore, the answer is they wont. Why would you when the Obama Admin makes so much from taxes.

I just was stung by the demise of PFG Best. Would you mind sharing what broker you use and if they are an ECN broker?

Thanks for your time.

actually that is incorrect. short term = ok to use high leverage. the longer the expected trade duration, the lower the leverage you should use.

now, while i disagree with someone REGULATING how much leverage a trade should use, i agree that most traders SHOULD only use 10:1 anyways. 100:1 gets to be quite dangerous if/when you have a 5-figure or larger account balance. think: 10k balance, at 10x leverage, means 100k position, means $10USD per pip of movement - up OR down. same account with 100x leverage is a 1M position, which is a $100USD per pip movement. won’t take a lot of pips going the wrong way to blow half of your 10k account at that rate!

unless all of you like to fund your accounts with no more than $1000 and trade as if you actually had $10k in there (because you’ve got the other $9k in your neighbourhood bank account anyways).

my take is - SHOULD NOT be regulated, but traders SHOULD limit their behaviour to that level anyways.

Im all about the US government keeping their hands out of my pockets. They already are in them deep enough as is.

If I want to blow my account in one trade with 500:1 leverage on 2 standard lots, no SL, held by some obsure unregulated broker, I should be able to do just that.

Its just depressing to know that the greediest financiers and politicians have to swindle the people through the hidden tax of inflation.

First, I live in Canada, but I use a US based broker ~ Capital Gains ~ or forex.com.

They should limit it to 5:1 and they should make anyone that has never been profitable only trade with 1:1 It might make some people THINK instead of gamble, double up, and do all sorts of crazy stuff that just makes their account hit 0 faster.

if you need leverage then you probably dont have enough capital to trade full time to begin with.

This also serves to limit the gains of small investors that have learned to use leverage carefully and only when everything lines up for an individual trade. Leverage is a means making the most of your careful study and management. This makes it much much harder to start small (like I did) and increase the size of your account to the point at which you can make real money. Don’t be under the illusion that this will help small investors.

If we took action against this if passed, for example: Boston Tea Party, then they would care. If they don’t want to listen to us and stop us from making money, then we’ve got to put their nuts on a chopping block and show them who is boss. This is a democracy and it is our individual freedoms that make up the spirit of this country.Remember to write and call again and again and again and to prompt your friends, etc. to do the same folks. Being angry and motivated now is nicem just don’t forget about it. Being angry and motivated and fighting this until it is dead and gone is BETTER.

Im trading trendlines and i can use 10.1 leverage if i wanted but i do not have the capital to do so and even if i did i would still prefer the 400/1 leverage im using right now. I know how to control my risk, i have set stop loss and take profit on every single trade i make. The reason they want to lower the leverage is because they feel short term that the econmy will suffer because of successful traders. Traders who are making $10,000 per day are hurting the economy in their eyes as few of them as there may be. They want to control how much money us traders make and by lowering leverage they can do this. Luckily for me im in the UK so this wont effect me. And if it ever did come to the Uk, well i just hope i have made my first 2million by then :wink:

If you use a proper stop loss and take profit you can trade 1000:1 leverage, doesnt make much difference if you use proper money management and trade lots which match your equity.