I am not an expert on statistics but I tend to believe that your numbers are off and that your statement is made up. From what I read the percentage of loosing traders is around 92%, with or without the said bill. Traders who master discipline and methodology will profit in the markets and those who lack the discipline and skill will get eroded in the market, with or without government protection. The Dodd-Frank bill is to the financial industry what Obama care is to the health care industry and coming from the same insightful “well-meaning” administration. I don’t need the government to protect me from myself, thank you. Why do you?
Foreign exchange is a zero sum game, the Dodd Frank bill reduced the risk for newer traders that get exploited by veteran traders who profit from their inexperience.
Now they have lower risk in the learning curve with 50:1 leverage instead of 100:1 leverage.
92 percent of traders fail because the leverage of 100:1 is irresponsible for a broker to allow an inexperienced trader to use in the foreign exchange market.
Ok sman, the government is out to protect it’s traders right? Then answer this question, why does the government allow people to blow their life savings at casinos everyday? They are not very concerned about protecting their citizens then, are they? That is why I don’t buy the whole “I am protecting the citizens” argument. Regardless of whether or not they are protecting traders, they have no right to dictate to us what we can and cannot do with our money. Also, what’s with the anti hedging and FIFO rules, these are ridiculous and completely unnecessary. I will agree that I do not need 100:1 leverage on my trades, that is just asking for trouble in my opinion. But, no hedging and FIFO!? RIDICULOUS!! And the fact that having a 10 million dollar account makes individuals exempt from this rule makes my blood boil, they are simply buying out the priveledge of not having this rule with their large account. That is pure corruption, plain and simple! The government does not have our best interests at heart!! NO GOVERNMENT DOES!! I don’t know how many times I have to say this to drive that point home to people.
sman1109 I appreciate your consistency and respect your opinion for what it is, your opinion, though I’m unable to agree with it. You mean well but you direct your trust towards the government instead of We the People and this is where we differ. I can’t find in the American constitution an obligation for the government to make the financial markets safe for people to participate in the same way that it makes no obligation for the government to make casinos safe for people to play in - to extend liggy002‘s analogy. It’s clear that you have the smarts to trade at leverages that will keep your account safe but you lack the trust in other fellow traders to be just as smart. You also feel the obligation to protect those who do not have the smart to protect their account. In my opinion, this kind of traders will waste their account away at 1:20 leverage just as well, therefore, they will not be saved but an arbitrary rule. Like I said I do appreciate your opinion and glad to see you expressing it here in spite of the opposition you face. I wish you were in a minority but judging by the way our US of A is going, I tend to believe that I’m in a minority and you are in the majority.
If someone is an inexperienced Forex trader and doesn’t know what he/she is doing on Forex, he/she will blow their account with any leverage, however small. Don’t touch Forex if you don’t know what you’re doing there.
Nope. If leverage is small, no one will ever think to use his last $1000 on this. Because there will be no hope to win big , no “magic”. No trading - no loss. Who needs to work hard everyday with such a small money only to have… say $100 growth at the end of the month? 
Every beginner should have a fair opportunity to participate in Forex and every veteran trader knows losses are part of learning to trade Forex
These new CFTC rules merely ease the burden of those losses for new traders and makes the market a bit more fair to them
A fool will always find a way to part with his money. I thus see no need to also deprive the wise ones of their opportunities.
I really don’t see how FIFO and anti-hedging benefit new traders in any way.
One of my Friend were like to open live account with Hotforex but as he said he contacted with Hotforex support but they said they are not taking USA customers anymore. So Simply answer is Hotforex does not accept US customers.
You are correct. Thanks for the update. The Offshore Broker List has been updated to remove [B]Hot Forex[/B] from Group 1. (The Offshore Broker List is now post #1, #2, and #3 at the beginning of this thread.)
The Hot Forex website has been updated. If you are a U.S. resident, it is no longer possible to fill out their Live Account online application form — the first step in the process of opening a live account.
Their application form requires that you select your country of residence from a drop-down menu, but the menu does not contain “United States” as one of the choices available to you.
Isn’t that just great?
You can open an account with Hot Forex if you live anywhere on the planet
EXCEPT in the Nanny States of America.
Thank you, Chris Dodd. Thank you, Barney Frank. Thank you, Gary Gensler. Bunch of jerks.
Every American who cares about restoring liberty to this nation needs to join the movement
to overthrow the Fascist Ruling Class which has seized control of our government.
Let’s thoroughly clean house, starting with Obama.
The Hot Forex website has been updated. If you are a U.S. resident, it is no longer possible to fill out their Live Account online application form — the first step in the process of opening a live account.
Yes Clint, you are right, where are you from man ? and what is your FX experience so far ?
I’m a US citizen currently trading with FinFX as one of my brokers. I think it’s just a matter of time before the CFTC sues them as well. The first list of brokers the CFTC went after had a US presence. But the second had some brokers that appeared to be offshore only. I think it’s just a matter of time before the US government goes after FinFX as well.
So what I would like to do to protect that income stream is create an offshore company that can trade with FinFX. I’d be interested in hearing from anyone who has done this and is trading with that particular broker.
Thanks for any replies and if this is the worng thread for this question I apologize to the OP. Please redirect me.
Thanks!
Re: CFTC interference - From what I’ve read, it seems the CFTC might be relying on memorandums-of-understanding with some offshore brokers’ regulators to turn over the info to them. Since FinFX’ regulator is the Finnish national government, I doubt that they have entered into such an agreement; since it may be interpreted as a form of ‘economic aggression’ against a sovereign country. Furthermore, I have great respect for FinFX because they are the only broker I’ve come across that treats all client accounts (large and small) with the same high-level of care and privacy.
Re: Setting up an offshore business for trading – Current law requires information on all foreign businesses, owned by US citizens, be reported, annually, to the federal government. Who knows if some future ‘authorization’ might cause problems?
My personal solution is to relocate to places that are fiscally\physically
eighborhood friendly – so I can always remain free to enjoy ‘the good life’. I’ve lived in a few, but there are many more I have, yet, to explore… Check it out: and you too, may find that these days, ‘the grass really is greener on the other side’!
Thanks Sunland. I like FinFX for many reasons too. That’s interesting about reporting US-owned foreign businesses to the US government. One of my goals is to never go to jail so I pay my taxes and plan to continue to do so. I’ve seen several people mention they have foreign corps or LLCs. How do you all deal with these reporting requirements?
I think that you and I have had this conversation, once before. Here’s a reminder — 301 Moved Permanently
Check the paragraph that begins, “But, when you track down the “IOSCO Library” here —IOSCO Library Section — you find there are two lists of countries, including: Finland…”
Here is a direct link — IOSCO Library Section
Of course, all profits need to be reported, annually, whether incorporated or not. I didn’t mean to imply otherwise. It’s just that I’d rather, also, enjoy the other benefits of daily life in a relaxed environment - outside of the nanny-state. If relocating is not for you, then offshore incorporation may be a practical alternative. I’d also consider funding accounts with several brokers, though, in case funds at one (or more) become unavailable at some point down the road.
There is no FinFX regulator. Forex isn’t regulated in Finland; that’s what FinFX told me. If no one regulates forex in Finland, I don’t understand how anybody could have influence on FinFX. Isn’t it the regulators who sign the MOUs and then enforce them on the brokers? The regulators are the government from what I understand.
That’s good to know. If forex is unregulated in Finland, then [B]the IOSCO MOU (which Finland clearly has signed)[/B] must cover financial activities other than forex. It would be very interesting to know exactly what it [I]does[/I] cover.
Clint, that would be interesting indeed. I was saddened to hear that yet another broker closed its door to the U.S. Anyway, on the bright side, It seems that Mitt Romney may want to repeal the Dodd Frank Bill. If he gets elected, I sincerely hope he does but you never know with these politicians. Case in point: Barack Obama, who could have seen this coming! I would also like to point out that it is not only Obama/ U.S Government that is corrupt but all of these other governments that have signed the M.O.U. as well. These upcoming elections may be the most important of our lives but I’m saddened to see that Ron Paul won’t make it in the races.