Looks like that trend is making its way into the world of Forex trading.
They have been co-hosts on our series of podcasts covering these new CFTC forex trading rules.
Some foreign forex trading platforms offer 200:1 leverage and spread betting with no requirement for LIFO accounting.
There are plenty of people asking these important questions, as thousands of Americans have offshore retail forex trading accounts.
We think this same extraterritorial concept may apply to retail forex trading too.
Gox platform and facilitate larger transaction sizes for better liquidity, maybe even adding forex trading APIs and FIX protocol support.
Therefore, I presume many tax-haven forex dealers may lose forex trading business to CFTC-registered RFEDs who will be happy to win back this business.
Both Mentor and First Capital claimed to engage in Forex trading, and offered and sold investments through a network of salesmen and investor referrals.
FXMarketSpace, is a centrally-cleared OTC foreign exchange trading platform which Reuters says takes advantage of the 16% annual growth rate of the forex trading market.
He said if a person files for bankruptcy in the U.S., their UK forex trading account capital and rights are protected from U.S. bankruptcy courts.
Currency mutual funds and hedge funds that deal in forex trading need account managers and professional forex traders to make buy and sell decisions.
Starc bands are available on many forex trading platforms as well.
With Dodd-Frank, retail forex trading will become illegal for non-participants (traders) unless the CFTC finishes its new forex regulations in short order (Dodd-Frank Bill Section 742(c)).
With retail investors looking for a one-stop-shop for all their financial transactions, and with forex trading becoming increasingly popular, Schwab cannot afford to be left out.
Tax-haven platforms may never get CFTC sanction, so will they be illegal under Dodd-Frank, or, will it be a viable way to navigate around the U.S. forex trading leverage constraints?
Still, the harsh investing reality of forex trading lives on: You need to be on the right side of the trade to make money, and you can lose your shirt if you are not careful.
As discussed on prior blogs, the recently enacted Dodd-Frank Fin Reg bill forced the hand of the CFTC to act by Oct. 19 because it would otherwise bar non-eligible contract participants from off-exchange retail forex trading.
To spring a prohibition on foreign financial institutions offering forex trading to U.S. customers as of Oct. 18, 2010 (the effective date of the new CFTC rules) would be extremely undiplomatic on a global country-by-country dealing basis.
Notice how the CFTC may not allow Americans to get higher leverage offshore with new forex trading rules. (See my past blogs and podcasts.) Could regulators and tax authorities use extraterritorial reach on an FTT too?
FORBES: European Union To Talk Bank Levy, Financial Transaction Tax
This gives EU banks offering forex trading to U.S. customers time to register in the U.S. But I think FI refers to banks and not CFTC-registered FCMs, which probably include the FDMs (forex-dealer merchants, the prior designation) too.
According to the forex dealer executive I spoke with, the NFA plans to issue a notice to members perhaps today or in a few days to clarify DF and the new CFTC retail forex trading rules, mostly for implementation issues.
Assuming that Schwab adds forex trading to its portfolio of offerings, and this results in an almost 6% growth in the number of trades (as demonstrated by Ameritrade), we can estimate a 6% increase in the average number of trades per brokerage account.
So, a brief bit of online due diligence would have warned you that you had been approached to engage in Forex trading with someone who was not registered to conduct such a business and, worse, had been barred from the securities industry years earlier for fraud and forgery.
FORBES: Convicted Bank Fraudster Starts Forex Ponzi After Prison
If you have been consistently successful trading forex on your own, you may have what it takes to become a professional forex trader.
Most online forex traders have accounts with retail off-exchange forex brokers, most of whom only offer trading in the forex spot market.
Professional and institutional forex traders like larger hedge funds have access to trading directly with forex dealers in the Interbank market.
It seems these new rules will put a stop to Americans trading retail forex offshore to evade CFTC rules.
Starting in 2008 and continuing to the present day, we read of increasing numbers of cases involving so-called trading platforms, FOREX scams, and all sorts of odd investment opportunities offered by registered persons to their brokerage firm customers.
FORBES: FOREX Private Securities Transactions Earn Stockbroker Fine And Suspension
More forex traders may want to consider trading currency futures too.
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