The CFTC has announced a major reversal of their most draconian forex regulations. Over the next two weeks, all U.S. retail forex traders, including U.S. residents trading through offshore brokers, will benefit from the new regulations.
Effective on Monday, April 15, trading conditions will be greatly enhanced at the three U.S. retail brokers – Forex•com, Oanda, and IG Markets – as follows:
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Maximum allowable leverage will be increased to 100:1 (corresponding to 1% margin) on all currency pairs, including minor pairs and exotic pairs.
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The current prohibition against hedging will be eliminated.
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The current FIFO (first-in-first-out) rule will be rescinded.
For U.S. residents who trade through offshore brokers, the news is even more dramatic:
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Effective immediately, the CFTC will suspend its efforts to prosecute offshore brokers for hosting U.S. clients.
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Equally important, major financial regulatory agencies including the CFTC will immediately end their policy of prosecuting banks (and other money-transfer intermediaries) involved in moving funds to and from offshore forex brokers.
For the full story, read the reports in – Finance Magnates, LeapRate, and Zero Hedge
