Over the past decade or so there has been debate over the introduction of a Tobin tax to forex. This would be a tax added to every fx deal that would essentially make prop trading unfeasible and its aim is to stop the banks trading fx and supposedly wrecking economies etc. It has never been adopted for many reasons two of which are that some country is always bound to not apply the tax to attract business and the banks would trade fx futures where there is no actual delivery of the currency and call the trade something else.
Ok. Thank you all for replying, now.... the question that ends the thread would be: IN THE EVENT THAT SPOT FX WOULD BECOME UNFEASIBLE WHAT SHOULD SPOT FX TRADERS DO? Thanks again and i am waiting for your answers.
errr - wake up guys. youre NOT trading the spot fx market. fx as someone said: WAS the reserve of BIG money. well heres the news kids - IT STILL IS. ALL retail fx 'brokers' are no more than bucket shops based on the interbank spot market. bucket shops aka ROASO (lefevere style) so in answer to your questions, these places will always exist as long as: a/there are 2 bob mugs on the planet (deuche bags) b/it remains unregulated - and why would it be regulated - youre not trading against anyone so there is no risk to anyone other than you & the bucket shop.
Ok, but back to the question. If spot fx would not exist and having the goddamn PDT rule, what would there be left. What kind of futures are the most profitable and tradeable. And Fred.... Are you using a retail fx broker? I have been using SaxoBank (and you can't say that is a bucketshop) and i also opened an account with FX Solutions, and for me, the end user, it's the same thing. Does it matter?
At the risk of appearing obvious, why not trade the currency futures? It's a liquid, regulated market that trades 24 hours, you get transparent pricing and globex executions.