Brokers are telling me that FIFO doesn't affect SLs and TSs..?

[Merchantprince]

So I am totally new to forex these past few weeks and heard all about the NFA regs which mandated this new FIFO policy. I was reading everywhere that this would totally hamstring most speculators, as it would prohibit the ability to set a stop loss and/or a trailing stop with any broker based in the U.S.

Now, as I try to determine which broker will meet my needs, I have spoken with representatives from Forex.com and heard from some of you using Oanda that this is not the case and somehow everyone can still use SLs and TSs with their American trading accounts.

Can anyone clear this up for me?

[o990l6mh]

Originally Posted by Merchantprince

So I am totally new to forex these past few weeks and heard all about the NFA regs which mandated this new FIFO policy. I was reading everywhere that this would totally hamstring most speculators, as it would prohibit the ability to set a stop loss and/or a trailing stop with any broker based in the U.S.

Now, as I try to determine which broker will meet my needs, I have spoken with representatives from Forex.com and heard from some of you using Oanda that this is not the case and somehow everyone can still use SLs and TSs with their American trading accounts.

Can anyone clear this up for me?

Most likely, what happens is that when you place a trade with a SL and a TP these two are no longer automatically tied to the trade as far as the broker's logs go.
Instead some sort of dormant order is input which then does the exact same thing but without technically violating the FIFO rules.

Brokers that are unable to do this "trickery" will be the ones no longer able to offer a trade with SL and TP packaged in one order.

[rhodytrader]

Originally Posted by Merchantprince

So I am totally new to forex these past few weeks and heard all about the NFA regs which mandated this new FIFO policy. I was reading everywhere that this would totally hamstring most speculators, as it would prohibit the ability to set a stop loss and/or a trailing stop with any broker based in the U.S.

The way some folks are presenting this FIFO thing reflects either a lack of basic morality or total ignornace. It doesn't probit the use of stop or target orders. As o990l6mh said, it just limits the ability to directly link exit orders to open trades. They can still be put in seperately.