Professional and institutional forex traders like larger hedge funds have access to trading directly with forex dealers in the Interbank market.
For warnings about hidden problems with forex brokers, see Erskine vs.
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.
The Feds further alleged that Lowrance had fraudulently misstated the expected return on and risk involved with Forex investments and the use of funds raised from investors.
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?
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Most online forex traders have accounts with retail off-exchange forex brokers, most of whom only offer trading in the forex spot market.
With final rules, a forex IB can simply register with the NFA on its own in the same manner as futures IBs do now.
For example, many forex traders had accounts with U.S.-based forex brokers first, and moved their funds to the foreign affiliates of their U.S. brokers in order to get higher leverage and avoid the hedging rule.
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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.
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The CFTC and NFA are scrutinizing forex brokers more now after their Oct. 18, 2010 effective date for RFED registrations in accordance with their new CFTC rules for forex transactions, sanctioned by Dodd-Frank Fin Reg too.
Currency intervention has been a growing concern for forex investors, with many now scrutinising the history of a central bank's interventions before deciding whether to invest.
Foreign exchange (or Forex) investing is the solution to market risk because you can offset your losses in the stock or bond market with your gains in the Forex market.
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 the rental income and his thriving forex business, Ruparelia continued to acquire more properties at low prices.
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U.S. forex traders may be left with two unfortunate choices.
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.
The retail forex industry should be run better with the new rules.
American forex traders are being forced to trade with no more than 50:1 leverage on the major currencies (20:1 on minors), FIFO (no hedging rule) and without any form of money protection.
Forex traders and global conspiracy theorists take note: with close to 600 million people using the system, we could be watching a Dollar rival spring to life.
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Many of these forex players may be drawn into registration in some capacity with the NFA and CFTC, perhaps as an IB, and many will want to avoid that registration for many different reasons.
Some foreign forex trading platforms offer 200:1 leverage and spread betting with no requirement for LIFO accounting.
With so many investors taking a beating from the equity moves of late, forex participation has been discouraged.
If the CFTC has extraterritorial powers on retail forex, then foreign-based brokers will probably not do business with non-qualified American participants.
Some forex brokers in the U.K. and other jurisdictions may register with the NFA as RFEDs and then continue to offer money protection in the UK, although they will still need to adhere to the new CFTC rules on leverage and more.
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With currency ETFs, investors can enjoy the benefits of the foreign exchange market without an actual forex account.
The man behind FX Player, David White, knows exactly what he's dealing with - he worked in the City of London for 28 years, including time as a Forex trader.
Some investors are allocating money towards countries with beaten-up currencies, such as India or Russia, or those with more benign central banks, such as Mexico, that do not have a history of frequent forex intervention.
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