Thursday, October 21, 2010

Trade Forex In The USA or Offshore?

Congressmen Dodd Frank
New US Financial Reform and Its Forex Regulation Effects


There have been many questions about the upcoming regulation changes and how they will impact your forex account, your forex broker and 'introducer' relationship now that the introduction of the new NFA regulations on October 18th 2010 are in effect which are in response to the Frank Dodd financial reform bill.

How Will The New US Forex Rules Affect You?

Some forex brokerage firms will repatriate US clients to their US branch, forcing US clients trading with these firms to hold their accounts at the US firm. For example, US based clients of FXCM UK were transferred to FXCM US on October 15th.

Some brokerage firms will cease accepting US clients and close all US accounts and others will cease accepting US accounts and transfer the accounts to a different broker. For US clients who have faced account closure or transfer and do not wish to remain at an onshore US broker, we have the following suggestion.

Forex Account Protection or Restriction?

Its obvious the new USA forex trading regulations now are a forced effect on US fx clients on the amount of leverage thats allowed to be used, and the no longer allowed use of hedging. Does this protect you or restrict you as a global currency trader? I'll let you decide that question for yourself as there many things to consider when opening an fx account.

I would suggest it will restrict US based clients from trading on a level field in the global forex market. Trading forex offshore still allows you leverage from 1:1 to 1:500 in most cases, and allows you to hedge and or lock by buying and selling the same currency pair at the same time.

What is this new financial reform bill actually doing? Is it to protect US clients or is it to help save the US financial system? Or other? I'll let you do your homework to be the judge.

Forex Brokers List and the New US Forex Regulations

Study the list below to view the brokerage firms that will continue to accept and not accept US clients.

We recommend InstaForex Standard & ECN, FXCBS ECN, and AVAFX. You can download free demos by clicking their links to review their interbank pricing, spreads, and service.

1. Instaforex: Will continue to accept US clients.

2. FXCBS ECN: Will continue to accept US clients.

3. AVAFX: No changes, does not accept US clients.

4. E Forex: Will maintain existing US clients but will not take new US clients after October 18th.

5. Tadawul FX: Will continue to accept US clients.

6. Alpari UK: No changes, does not accept US clients.

7. FXDD: All US clients will be moved to the NY, USA branch and leverage will be changed to 1:50.

8. FXCM UK: All US clients will be moved to FXCM US and leverage will be changed to 1:50.

9. MB Trading: Leverage will be changed to 1:50.

10. Go Markets: All US clients were forced to close their account on October 18th.

11. FX Pro: No changes, does not accept US clients.

12. Dukascopy: Will continue to accept US clients.

13. Nord Markets: Will not accept US clients.

14. Marketiva: Will continue to accept US clients.

15. Gallant FX: All US clients will be moved to Gain Capital and leverage will be changed to 1:50.

16. IamFx: All US clients will be moved to Gain Capital and leverage will be changed to 1:50.

17. Forex Yard: Will not accept US clients.

18. FX Solutions UK: All US clients will be moved to FX Solutions US and leverage will be changed to 1:50.

19. FX Open: Will continue to accept US clients.

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Good day, and good fx trading!