Thread: CFTC NEW Document - Overseas Accounts OK?

The document given to me by FXCM customer service

It says nothing about overseas accounts at ALL

So US citizens with UK accounts are secure?

http://http://www.cftc.gov/ucm/group...efactsheet.pdf
https://www.forexsoutheast.asia/atta...1291282110.pdf

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FXCM - Liana: Welcome to FXCM's Live Chat Support. Please provide me a minute to assess your question.
FXCM - Liana: Hi Darren
FXCM - Liana: How are you now?
Darren: stressed
Darren: really very worried
FXCM - Liana: I know
FXCM - Liana: The good thing Darren
FXCM - Liana: Is that FXCM is forward of class in terms of many matters
FXCM - Liana: This being one of them
FXCM - Liana: We already knew what the impacts of the laws were going to be before it had been passed
FXCM - Liana: and have already implemented them before they were passed
FXCM - Liana: therefore, nothing changes on our conclusion
Darren: therefore what's going to happen to US clients using UK accounts?
FXCM - Liana: Nothing
Darren: ' are you saying I get to maintain my 400:! leverage?
Darren: 1
Darren: sorry
FXCM - Liana: No
FXCM - Liana: nicely
FXCM - Liana: You have a standard account directly Darren?
Darren: micro and standard
FXCM - Liana: I know
FXCM - Liana: Micro division communies with their customers via email
FXCM - Liana: Would you prefer me to offer you their link?
Darren: no, only tell me whats up with the standard account then
FXCM - Liana: Unless you would like to upgrade to a standard account
Darren: are we going to 50:1 leverage?
Darren: I have a standard account
FXCM - Liana: Okay thanks
Darren: certain thing
FXCM - Liana: Well, I'm unsure what's happening with micro
FXCM - Liana: however your standard account, the UK default leverage is 200:1
FXCM - Liana: and that is not going to change
Darren: WOW. . .that is amazing news.
Darren: I guess I will email the micro men then to see whats up
FXCM - Liana: Well let me explain
FXCM - Liana: I can't state it is not going to change
FXCM - Liana: because I can't far into the future
FXCM - Liana: but the laws have not changed the default leverage on UK based accounts
Darren: OK
FXCM - Liana: http://www.cftc.gov/ucm/groups/publi...efactsheet.pdf
Darren: Is FXCM going to release a public statement such as IBFX did? It would help. . .there are a lot of individuals on Forex forum boards going nuts in a panic over this
FXCM - Liana: This is something that you might want to read Darren
Darren: ok..so what's FXCM a FCM or RFED?
Darren: this is the Last record from the gov't? I don't see anything about overseas accounts or anything like this in the rules or approved suggested rules with exceptions
FXCM - Liana: Yes
FXCM - Liana: You're right
FXCM - Liana: you need to keep in mind that people want to speculate too
FXCM - Liana: So what you read about the forums
FXCM - Liana: might not necessarily be true
Darren: Therefore on 18 OCT there will be no changes made for my leverage onto a standard account? I understand I must contact Micro for Micro specifics. . .thanks
FXCM - Liana: You're welcome Darren
Darren: Thanks

Hey, I can't get the connection in the initial article to work...

The connection in the next article works fine though.

Originally Posted by ;

HeyI can't get the connection in the original post to perform...

The connection at the next post works fine however.

So what exactly do you believe. . .there's nothing regarding anything regarding inner acct's!

Looks like IBFX believes US citizens might need to move their offshore accounts back.



August 31, 2010
by http://www.ibfx.com/Corporate/author...l.degraff.aspx
As most of you are aware, the U.S. Commodity Futures Trading Commission (CFTC) announced today final regulations regarding off-exchange retail foreign currency transactions. These principles are encouraged by Interbank FX, LLC, in providing an enhanced regulatory environment that will help protect retail Currency Market investors and will also create a level playing field for all rules and regulations within the United States.
The new rules will impact tens of thousands of U.S. customers with tens of thousands of dollars invested in foreign brokers. Starting October 18, 2010, overseas brokers will no longer have the ability to support U.S. customers. These rules ensure U.S. customers will get the protections given by U.S. regulations. Interbank FX has invested significant resources to produce our trading platform, MetaTrader 4 (MT4) US compliant for newly passed FIFO rules by the National Futures Association (NFA). We think we have one of those sole NFA/CFTC compliant MetaTrader 4 platforms out there. We allow all kinds of trading and all kinds of Expert Advisors to trade our platform.
Interbank FX has continually supported the original Farm Bill of 2008, enabling the CFTC more authority over Currency Market traders. As a result of this, we have predicted such possible CFTC regulation changes, paving the way for our U.S. thing to be armed with efficient operations, engineering and total transaction transparency to serve our expanding client base. We've mandated Cash Managers and all US attorneys to be registered with the CFTC and members of the NFA, expecting the changes in the regulatory framework that were published today.
In addition, we consider the CFTC has reached a fair compromise with the Forex Dealer Coalition (FXDC) regarding leverage demands --making 50:1 leverage available to all U.S. customers. This compromise on leverage, as opposed to 10:1 from the rules, allows the United States Currency Market community to remain competitive with global opponents.
We believe these rules to be in the best interest of our customers, and incessantly strive to improve industry standards while accommodating client expectations. That is the way we do business. That is our culture. That is our technology.
Interbank FX looks forward to continuing to give a clear and open trading environment for many of our customers.For more info on our transparency metrics, please view our report card http://www.ibfx.com/Corporate/post/2...PORT-CARD.aspx.
To observe the official CFTC launch, click on http://www.cftc.gov/PressRoom/PressR...pr5883-10.html.
Questions and Answers About Final Retail Foreign Exchange Rule, clickhttp://www.cftc.gov/ucm/groups/publi...nalrule_qa.pdf.
The IBFX Family

Yeah, but if you follow this hyperlink to the CTFC news release, it will not corroborate anything they are saying. So, one can just assume they got it.

Either that or it is purely hearsay, and they are only saying it because they do not need anybody to transfer their accounts overseas. I really don't understand? ...

Of course with all the new leverage set to 50:1, I do not believe that they have a lot to worry about. Most folks would probably just assume remain here when they have accounts at the U.S.

Originally Posted by ;

Yeah, but if you follow the link to the CTFC news release, it will not corroborate anything they're saying. One can only suppose they got it from some other source.

Either that or it is only hearsay, and they're just saying it because they don't want anybody to move their accounts abroad. I don't know? ...

Of course with the new leverage set to 50:1, '' I don't think that they have too much to worry about. Most people would probably just assume stay here if they have accounts at the U.S.

I've heard from several sources that IBFX is accurate. I'm told that the next thing to expect is a statement from SEC in which they don't get lower and involved leverage for B/Ds to 50:1, about sending money abroad, and we receive a coverage. It is possible that FXCM is currently on motivating people to move capital for overstepping. Now let's see if these funds come back. I just needed a friend with FXCM lose everything instantly, so see if they're pulling from the chips, spent in a fund.

Originally Posted by ;

FXCM - Liana: The fantastic thing Darren
FXCM - Liana: Why is that FXCM is ahead of course in terms of many things
FXCM - Liana: This being one of these
FXCM - Liana: We knew what the effects of the laws will be before it had been passed
FXCM - Liana: and have implemented them until they had been passed
FXCM - Liana: so, nothing changes on our end
Darren: so what's going to happen to US clients using UK accounts?
FXCM - Liana: Nothing

Why is this rep so certain here...

Originally Posted by ;

FXCM - Liana: Well, I am unsure what is occurring with micro
...
FXCM - Liana: Well let me explain
FXCM - Liana: I can't say that it is not going to modify
FXCM - Liana: because I can't far into the future
FXCM - Liana: but the laws have not altered the default leverage on UK based accounts

. . .but not quite certain here? This doesn't qualify as a answer to me. And of course the legislation have not altered the leverage to get UK accounts because they're governed by the FSA.

Originally Posted by ;

I have heard from multiple sources which IBFX is accurate. I am told the next thing to expect would be a statement from SEC in which they don't get involved along with lower leverage for B/Ds to 50:1, about sending money abroad, and then we receive a policy. It is even possible on encouraging people to move funds, for overstepping that FXCM is already. Let's see if these funds come back. I simply had a buddy using FXCM lose everything so watch out if they are pulling in chips invested in a fund.

Yeah, but I don't recall hearing about the analysis (until just a couple of days back ), or their soliciting comments from anybody, so I am wondering if this was likely to happen? It does not sound like anybody else has heard of it until recently either.

This really is what I got:

gt;gt;gt; Darren 8/31/2010 gt;gt;gt;

I was told by a FXCM customer service rep that the UK account I hold (standard) will not have it's leverage influenced by the new CFTC rules. Great!

Now what about micro. . .will it still be 400:1 following 18 Oct? ANY INFO will be greatly appreciated!

Thanks

-Darren

--

Hello Darren,

Thanks for your email. No, please be mindful that CFTC regulates US accounts not UK accounts. UK accounts are governed by the FSA.

FXCM Micro is a branch of FXCM that provides new traders using the currency markets for as little as $25. With small (1K) commerce sizes and access to No Dealing Desk implementation, FXCM Micro provides a great way to learn how to trade currency.
Regards,

Helene Zhu
FXCM Micro - Sales Client Services
-----
From: Darren Willis[SMTPARREN.******.COM]
Sent: Tuesday, August 31, 2010 8:50:35 PM
To: fxcmmicro-helene
Subject: Re: NEW CFTC RULES and Micro Acct Effect
Auto forwarded by a Rule
Hello Helene, thanks to the answer back...I am a US citizen with a UK account...I am still OK?

Thanks again!
--
Hello Darren,

Thanks for your email. Yes, as long as your account is with FXCM UK, you need to abide by the FSA regulatioins.

FXCM Micro is a branch of FXCM that provides new traders using the currency markets for as little as $25. With small (1K) commerce sizes and access to No Dealing Desk implementation, FXCM Micro provides a great way to learn how to trade currency.
Regards,

Helene Zhu
FXCM Micro - Sales Client Services
For the quickest answer 24 hours a day, place your queries on the FXCM Micro Forum.

--
From: Darren [[email protected]]
Sent: Tuesday, August 31, 2010 9:12:20 PM
To: fxcmmicro-helene
Subject: Re: the inquiry
Auto forwarded by a Rule
Ok (playing devil's advoe here) Can I be forced to transfer my account back into the US on 18 Oct?

THANKS AGAIN!!

--

Hello Darren,

Thanks for your email. At this point, I do not see why you'd be foced to return to the United States.

FXCM Micro is a branch of FXCM that provides new traders using the currency markets for as little as $25. With small (1K) commerce sizes and access to No Dealing Desk implementation, FXCM Micro provides a great way to learn how to trade currency.
Regards,

Helene Zhu
FXCM Micro - Sales Client Services
For the quickest answer 24 hours a day, place your queries on the FXCM Micro Forum.