Hi everyone

This is the first notification I’ve received from a US based broker adjusting leverage to NFA’s new requirements. Maybe it is not the first one to make the move, but no doubt many more will follow.

Meanwhile, the fly to UK or Australia branches from US based clients continues

NFA…, are you sure that you are ruling to protect customers interests?

Sometimes, it seems to me that you a trying to protect the backyard of Futures firms… silly right?

Francesc

Important Notice: Reduction in Leverage

On November 30, 2009, the NFA will implement amendments to the Financial Requirements Sections 11 and 12. This amendment will limit leverage to 100:1 for U.S. held accounts on the ten major currencies and 25:1 on all others. Currently all instruments that FX Solutions offers will be leveraged at 100:1 when the rule is implemented. At the close of business on November 30, 2009, ALL open positions held with a FX Solutions accounts will be margined at 100:1.

The Majors Include: British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD), Japanese Yen (JPY),Euro (EUR),Australian Dollar (AUD) and New Zealand Dollar (NZD)

While using low margin requirements can sharply increase the percentage profit or loss potential, FX Solutions is able to provide an alternative to the new reducing leverage amendments.

FX Solutions customers have the option of continuing all current functionality by seamlessly opening an additional account with FX Solutions Australia or FX Solutions UK. These alternatives will allow you to:

* Maintain leverage up to 400:1 on Forex and up to 200:1 on Spot Metals†
* Continue to trade on a ticket-based system
* Place stop loss and limit orders on individual trades
* Utilize Hedging functionality††

Some customers will receive this email over the next few days. Below are the links for customers to create an additional account with FX Solutions AU and UK. Customers using the forms below must have no open positions; for customers with open positions they do not have to close their positions at this time. All new accounts created using the forms below will keep the broker assigned to that account.

Best Regards,
FX Solutions

†FX Solutions asks that you consider the risks associated with increasing your leverage. A relatively small market movement will have a proportionally large impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin and you may be required to deposit additional funds to cover a short margin position.

††When employing hedging as a trading strategy, traders should be aware of the costs associated with offset trading. Although hedged trades are opposite of each other, the trades will be treated as independent trades. Traders will pay the entire spread twice (buying at the high end of the spread and selling at the low end). Additionally, at the end of day, rollover/interest policy applies to both trades involved in the hedge; this may result in paying or in some cases receiving interest on both the long and short position. A hedged trade may limit your ability to benefit from market movement.