I just received this mail as well. Completely sudden and out of the blue. I spoke with an IB rep and he wasn't able to explain whether the new regulation would be industry wide or just for IB FX. I have used IB for a little over a year for solely forex and have really enjoyed the platform and the customer service. I was even able to negotiate a customized commission schedule in speaking with IB management given my high trade volume. This is a rather devastating development and I guess I will begin my search for a new broker/platform. For other IB forex users that do not qualify as ECPs, what route will you be taking? Is FXCM the best alternative (assuming I don't want to go the prime of prime route)? Thanks!
Seems related to this: https://www.sec.gov/rules/final/2013/34-69964.pdf http://www.forexfactory.com/showthread.php?t=592372 Thank the wonderful SEC for this - and if you think "fuck it I don't care, I'll just trade futures" don't think those are immune either. The regulators just simply don't like "retail" have access to leveraged derivatives IMO. This FF post goes into it quite well IMO: http://www.forexfactory.com/showthread.php?p=8946265#post8946265
Yeah all those FX cross spreads on CME with pretty much zero liquidity (yes I know you can somewhat construct your own - but it isn't the same).
SEC is trying to pass regulations to limit 3x ETF's too. My guess is it won't be long before futures are targeted as well.
Is this only for US traders or anywhere? This is really bad news and poorly dealt by IB. Shouldn't they have to give its customers more than 20 days before such a move?
It sounds like this will apply to all broker dealers because they are SEC registered. FXCM and Oanda are safe for now because they are CFTC as opposed to SEC regulated.