Francesc Riverola,
Hi everyone
As I think this is VERY IMPORTANT - unless I’m missing some information here - so I’m extracting it here from my previous post in order to highlight it.
Previous post: Retail Forex Industry Calm Reaction To CFTC Leverage 50:1 Decision
Here it goes:
….. But what it is really puzzling me is that while Bart Mallon at Mallon P.C. considers with a “probably not” the possibility that US traders will be able to move their accounts overseas.
Meanwhile, InterbankFX in its public note states: “Beginning October 18, 2010, overseas brokers will no longer be able to service U.S. customers.”
No one has spoken about this yet, but I know many many US traders that have already moved their account elsewhere… What will happen now?
Is that true?
Francesc
Now it’s really the time for U.S. retail traders to unite as one to protect our freedom of choice in this matter and any further interest conflicting with dealers or regulators.
The large U.S. brokers have done marvelously to save their own neck this past spring. They responded quickly by setting up FXDC to combine bargain power and mobilized individual traders to send comments. Now they successfully won the battle by capping leverage at 50:1 instead of 10:1 and banning U.S. traders doing business with overseas brokers if what IBFX claimed to be true. In what world does CFTC or NFA think they are doing a better job than ASIC and FSA?
Do we still believe U.S. regulators are knowledgeable and reasonable enough to protect our retail traders’ interest? Probably not. Do we still think largest U.S. brokers and traders have common interest? Not on every aspect. If we as traders can truly count on both of them, segregated accounts and insurance of our trading money would have become mandatory long time ago.
U.S. traders had a good experience, just look at how powerful the combined power was this spring. We really need a traders’ coalition just like the FXDC for the dealers, otherwise, the regulatory power and broker’s coalition will always be left unchecked and issues will keep emerging either from regulators’ incompetency or conflicts of interest with dealers.
You are absolutely right - brokers that want to offer and solicit US customers would have to either be regulated by the CFTC or be exempt from regulation (because they are regulated by the SEC for example)
– Asaf.