Even with the higher leverage? The CFTC or NFA must not have caught on to them yet lol
Probably, because they can’t. If they could, would have done it a long while ago.
That’s good I’m glad. I can understand regulating US brokers, but to go as far as telling brokers in other countries that they can’t accept clients just because their address is in the US, is basically an issue of exercising control, stripping freedom and much more. I’m glad there were a couple out there that stood their ground when another country (US) tries to tell them what they can do.
Are there hoops to jump through or future regulatory risks with opening a foreign account with these brokers?
why leverage 1:10 is bad ???
I think is is really good idea - on futures market it is industrial standard and professional trader don’t use so high leverage because it is very danger and they know that !
I think 1:50 is good all around leverage, when you do 100 % plus is when most people get in trouble.
I don’t think anyone should tell you what you can use, and it should be up to the individual trader. I also think the CFTC is a pathetic joke and will make sure the U.S. will be a very uncompetetive financial market.
I agree with you there. Our government is just finding more and more ways to exercise control over us, It’s citizens!!!
I think it is a very sad development. Makes me sick.
I don’t really have strong feelings about this because I tend to stay away from leverage, considering I’m still a new trader. But I can see how this affects seasoned traders. Why do they impose these kinds of limits anyway? I think traders should have the ability to trade however they want.
Leverage was never the problem, it does not matter how high leverage is. Risk management was the issue but our idiotic regulators who do not understand it went after the wrong part of trading as always.
I think the leverage cutting is to low the overall market volumes & leverage derivative
It has nothing to do with trader protection … all these trillions running on US market …are 100x US GDP
9 Biggest Banks’ Derivative Exposure - $228.72 Trillion
I really don’t see what the problem is with 10:1 leverage - I think it will actually make traders safer and more consistent.
Nanny state vs freedom of choice - that’s the problem here.
I agree with bravehststamps, its about choice after all is your money to lose or make.
That is incorrect. Leverage has nothing to do with that. Your strategy does that, your risk management does that and not leverage.
Im glad Im not an American, I feel for you guys,
but you can allways trade options, then it will not affect you,
you can chose whatever leverage you want.
I agree with you there. We can’t deny it that regulation is almost doing more harm than good. Yes regulation is good, but it is really hurting the market, last year the US lost millions to brokers who pulled offshore to escape the suffocating jurisdiction onshore. Go and see the very close relationship between the CFTC and White House and see the big political interest of govt in the forex; must times, regulatory pronouncements are well aimed at protecting the “big” traders and the Wall street. I have not really seen any petty trader who is comfortable with the FIFO; most people are happily now trading offshore.
And aside from all the harm that it’s doing to the industry AND investors, this ridiculous regulation is NOT even doing what it was set out to do, protecting the investors. Leverage rate is NOT what’s making investors losing money. 1) Lack of trading and money management skills/education/training and 2) Unscrupulous brokers are making investors losing money. You think with the current leverage rate, if investors trade with no money management skill and/or sign up with Fast Profit Forex based out of Nigeria (which is where the investors are actually flocking to due to the unreasonable regulations in the US), they will not lose money? Even with 0 leverage rate, if the investors don’t know how to trade and/or they sign up with scam brokers they will still lose money. Plenty of investors lose money on mutual funds and ALL of the investors lost their money when they traded with Bernie Madoff and yet ALL of them trade(d) on cash, NO leverage (well except until the very end when the scheme was on the verge of collapsing). Is CFTC or SEC going to shut down all the mutual fund companies then? And what did the SEC do during the NINE years that the whistleblower Harry Markopoulos was telling them to investigate Bernie Madoff? (I’ll give you hint: It rhymes with Nero)
You want to regulate an industry? Do some studying and research and find out what really needs to be regulated and come up with rules and regulations that are relevant and effective, otherwise stay the hell out!! We investors are NOT stupid and don’t need some Big Brother watching over our shoulders.
I agree with everything you wrote , I don’t like that fifo either. I had to change some my strategies.