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New CFTC And NFA Restrictions On US Brokerages And A Solution

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:: Repatriation

This little gem only affects US traders who have accounts with overseas branches of US brokers (companies such as Alpari, FXCM, FXDD, etc). Last year, most US brokers offered their US clients the option of moving their accounts to offshore offices. For example, Alpari US clients could move to Alpari UK, FXDD US clients could move to FXDD Malta, etc.

The reasoning was that by holding the accounts in different jurisdictions, traders could legally circumvent the CTFC / NFA restrictions and continue to enjoy the benefits available to traders everywhere else in the world i.e. hedging, sensible leverage and no FIFO.

Unfortunately, the CFTC / NFA have enforced even tighter restrictions so that loophole has now been firmly closed and ALL accounts belonging to US citizens are being returned to the US during this weekend.

For traders who have been taking advantage of the more flexible facilities available offshore (position traders, for example) this move could result in devastation of their accounts simply due to the sudden reduction in leverage! Think about it… an account currently at 50% margin at 200:1 would find itself at between 200% and 500% margin when the market reopens on Sunday, at which point the broker would be forced to close most, if not all, open positions. Fortunately, there’s a solution to all of these issues and taking advantage of it is simplicity itself!…US citizens can still open UNRESTRICTED accounts with brokers who have no presence in the US.

Of course, there are many brokers advertising on the internet but the difficulty is identifying brokers that you can rely on. Fortunately, we’ve been researching this issue for quite some time (having seen the writing on the wall last year) and we’ve set our sights on one brokerage in particular. Why? Well…

* “Raw” market spreads as low as 0.4 pips
(no mark-up, unlike 99% of other brokers)

* Extremely low trade commission
(just $3.50 per full lot per side)

* True ECN trading facilities
(they do not trade against you)

* Based in Europe
(in one of the most financially stable countries – rated even higher than the UK!)

* Scalping fully supported
(provides far greater trading flexibility)

* Hedging fully available
(provides even greater trading flexibility)

* High leverage available
(up to 300:1)

* FIFO not applicable
(First In, First Out stops many EAs from being used)

* Incredibly simple account opening process
(some accounts opened in just minutes!)

* Wide selection of funding options
(Wire transfer, Visa, Mastercard, MoneyBookers)

…PLUS great customer service – all in all, the ideal brokerage for any sensible trader! Now, US traders will be rightly cautious regarding the security of their funds – after all, few are likely to have experienced overseas banks. This, in our opinion, is the icing on the cake… Think of how many US banks went to the wall over the last 2 years or so… plenty! By contrast, we were unable to identify a single Finnish bank that failed – EVER!

So, there it is – the problem and the solution all in one post :-) We hope you decide to take back control of your trading and move to a broker that can provide the facilities you deserve. Don’t let your trading career fall victim the overbearing influence of the CTFC and NFA. For US traders, especially, remember the last line of the national anthem:

“…the land of the free (unless you’re a Forex trader!) and the
home of the brave”

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