Resolved Question
Is true that people in USA are not able to trade with Forex,
or use any kind of Forex system anymore? Somebody told the that a some sort of law would break off the not only the trading but also any kind of Forex trading services etc..
However, I don't think so since I still read comments on different Forums.
Do somebody are acquainted of that law?
If it was just a rumour, I am sorry about that..
Thanks in advance..
about 1 year ago
Best Answer - Chosen by Voters
This is not true. You should take note however, that the CFTC is pushing for some certain changes that will change the landscape of the FX trading in the USA. Most notably, they are pushing to limit leverage to a maximum of 10:1.
Their intentions are well intended - they are looking to prevent new traders from mishandling leverage and blowing out their accounts. Of course, this has cause an uproar amongst more experienced traders, because this would significantly alter their trading styles and limit what kind of trades they could take.
This has caused some traders to move their funds to offshore (non-US) based brokers, in order to trade with higher leverage.
In any case, I suggest to anyone who plans to trade currencies, learn the basics (go through the BabyPips School of Pipsology) and demo trade first before going live!
about 1 year ago
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Answers (2)
People in the US can trade in Forex, but many brokers don´t accept US citizen because of the terrorism law after 9/11. Also they are about to release a new leverage law to brokers from the us. so they cannot offer high leverage.
about 1 year ago
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With respect, i feel that both of the previous replies do not directly address your question. I believe i know why you are getting told on other sites that you cannot trade from a us based account, but it is a little more convoluted than that. You can trade with an account in the us, but you have to tip-toe around the nfa. Starting around june last year the national futures association (nfa) started rolling out changes to limit what forex traders in the us are allowed to do(new compliance rule 2-43(b)). These changes included the removal of hedging, addition of first in first out(fifo) and more. This was politically popular in the us due to the economic problems at the time and the popular perception that speculating was to blame for all economic problems. These changes threw a wrench into most of the trading platforms out there in some form or another. Like within my companies system, all us accounts immediately lost the ability to attach one cancels other(oco) orders onto any limit/stop entry order, instead they were only allowed to do this with orders placed at the market. Also, hedging stopped functioning and a couple other annoyances appeared over night. In a single day, 95% of our clients moved over to a uk based account to avoid these nfa rule changes(takes about ten minutes to fill out the form). Also, on that same day we notified all new clients that making us based accounts would not be allowed except under special circumstances. We wouldn't let them register an account that would immediately brake tools in our platform. Jeff keller
track 'n trade support & education
gecko software, inc.
about 1 year ago
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