US broker that still allow hedge and no FIFO, Earn Rebate

Hello everyone:

With the new NFA rules, almost all US brokers now no longer allow hedge and they implemented FIFO (First In First Out). There are many forex traders who do not like these rules and decide to move their account oversea. That is fine, but think about it, if you move your account oversea, the risk is greater. Except UK, other countries may not have good regulation like the US.

When you wire fund, the bank charge you more wire fee than domestic wire. Further more, sending fund to or request for fund from oversea broker may take longer, sometimes much longer than account with US brokers.

So how can we stay with US broker and still able to hedge and trade freely without the restriction of FIFO. Well, as far as I know, FXDD still allow hedging and still do not implement FIFO yet. The reason is, their application for NFA member is still pending, they are not full member yet. We do not know when they will become full member. It may take them a few weeks more or many months. But until then, we can still enjoy the benefit of US broker and the freedom to trade without FIFO or hedge restriction.

Another Benefit is that FXDD pay some rebate to their referral brokers who registered with the NFA. In turn, the registered RB can share some of the rebate back to the customer who use them as referral. The customer pay not extra fee, no extra spread but he can get rebate up to around $5 per lot or half a pip. So this is a win win system, that benefit the broker, RB and customer. The customer or trader end up saving half a pip from every trade. For example if the broker charge them 2 pips for eur/usd, and he get half a pip rebate back from his RB, then he only pay 1.5 pip per trade.

FXDD as you said is still okay to hedge with, and I’m about to switch to Jadefx from Fxpro (FXPro is discontinuing all US accounts in Jan 2010). Jade looks great, very low spreads, hedging, EA’s, and scalping all welcomed. And best of all no dealing desk or funny business for your trades. AND they’re right here in the good ole USA.

Please, give the whole picture.

What makes you think that the only way to transfer funds out of the US to a European or some other country is by wire?? You are factually wrong, my broker accepts Cc, PayPal (they even cover the transfer fee for you!)

[I]“They pay some rebate to their referral brokers who register with the NFA”[/I]

FYI, legaly you are [U]required to be registered with the NFA[/U] if you want to be an IB and are based in the US, or registered with the equivalent regulator from whichever country you are based in.

Hedging and FIFO was bad enough, but don’t forget Leverage caps as of Nov 30th 2009. Gone will be your 200:1 leverage, if your broker wants to show the NFA they are willing to comply, or perhaps they’ll still offer it and maybe ruin any chances of getting the licence. What if they never get it, where will they move to? Will you follow, or will you want to close down your account, and will that be easy?

Latest rumours across the web are that the NFA in 2010 is looking at intoducing a rule where traders will only be permitted a maximum use of 50% of their margin at any one given time. Watch those margin calls multiply!