Email from Interactive Brokers indicates I can't trade FOREX with them any longer

Discussion in 'Forex Brokers' started by Dan37a, May 8, 2012.

  1. Dan37a


    I'm not sure I can trade FOREX with them any longer:


    As a result of new NFA regulations, spot forex transactions conducted through IB's IdealPro venue will now be classified as either leveraged or non-leveraged with eligibility requirements applied to accounts conducting leveraged transactions. As background, a leveraged forex transaction is generally defined as one which results in a short non-base currency position (i.e., borrowing) that exceeds the sum of non-cash assets (i.e., securities) plus the net liquidating value of the account.

    You are receiving this notice as the combination of trading experience, product knowledge, investment objectives and financial qualifications for your account is inadequate to qualify for this new leveraged forex trading permission. If you do not wish to engage in such transactions, there is nothing for you to do as you will be able to close out any existing leveraged positions but not open any new positions starting May 14, 2012. In the event your account information is outdated and you wish to be considered for this permission, please log into Account Management and update your qualifications. To do so, select the Account Administration and then Financial Information menu options if your version of Account Management contains a series of menu options along the left-hand side. If your version contains top-level menu options, select the Manage Account, Account Information, Details and then Financial Info options. A compliance review will take place shortly thereafter to determine eligibility.

    Should you have any questions regarding this matter please contact your local Customer Service Center.

    Interactive Brokers Customer Service"
  2. Options12

    Options12 Guest

    Anyone have a link to more information regarding the 'new NFA regulations' referenced in the above post?
  3. Dan37a


    I called Interactive Brokers, and the customer service rep said they just received the bulletin this morning and they knew nothing (!!!), and he would call me back when he knew more.

    I then called the NFA in Chicago and they said there were no new rules or regulations regarding FOREX.
  4. my a/c information was outdated and I have amended that info and I hope after review I will get the permission.
  5. Dan37a


    Yes, that appears to be the issue for me, too. Overall I really like IB, but they can be annoyingly opaque at times. Why not just say, "You need to update your account information."?
  6. Options12

    Options12 Guest

    Right. IB certainly shouldn't state that the change is due to new NFA regulations if that's not the case.

    Question to ET'ers: Have any other forex brokers issued this notice?
  7. Essentially all of my forex trading with IB would be defined as "leveraged forex transactions" and my short non-base currency position exceeds my non-cash assets on a daily basis. (Often times exceeding it by 10-15 times for a brief period of time). But I thankfully did not get any such e-mail from them. I have been with them for 10 years or so so perhaps this factored into their decision. Or perhaps they're sending out the e-mail in batches and they haven't gotten to me yet! Curious as to whether or not many others are in this same situation.
  8. Options12

    Options12 Guest

  9. Hello.....
    thanks for this update .....
    Forex market forecasts, independent opinions of novice traders and experts of the currency market.