So let me get this straight, the main reason to move to offshore broker, IE FXCM UK, is to get the hedging ability. Is there anything else, that I'm missing?
FXDDâs Ominous Anniversary FXDD is making waves these days by refusing to adopt the NFAâs new hedging rule: http://blogs.fxstreet.com/francesc/...ile-fxsolutions-launches-gold-silver-trading/ How can they do this? Simple. FXDD still isnât licensed by the NFA. http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0397435&rn=N Itâs easy to thumb your nose at regulators when you donât actually have to answer to them. FXDD applied to become a member of the NFA in April of 2008. One year later their application remains unapproved. Should traders be concerned about this? Absolutely. Not only is FXDD unlicensed (and therefore in possible violation of U.S. law) but now they are actually thumbing their nose at the very regulator who they are seeking to get that license from. This is not prudent behavior on FXDDâs part and traders should stay clear of this firm until they are actually authorized to operate inside the United States.
I've not noticed anything different on Oanda's game platform. Did Oanda change anything to the regular platform to accommodate the hedging rule change?
forexsavior, you know whats funny, when you think about it only one broker has benefit from all this, wether its the new net cap or this no hedging rule, fxcm is the only broker who has benefit the most with these new rules the N.F.A. has put in place, fxcm brought out a few u.s. brokers due to the new net-cap now there getting U.S. client to leave there U.S. broker to switch to there U.K. operation for hedging, makes you wonder :eek:
No need as you could never 'hedge' on the same account anyway. Price feed and fills have got interesting though, quotes now seem to be indicative as opposed to tradable, perhaps that's something to do with the new price adjustment rule coming in soon or maybe it's just a slow connection, either way I've found it's been swings and roundabouts as far as slippage goes. There's always bounds if things get ridiculous Still waiting for news from Oanda about how they're going to handle price adjustments on this thread
I could be wrong but going by NFA wording I think they're looking at it as accounts which have separate margin requirements, that seems to be the criteria. What are you doing on demo anyway, have you moved your live account to futures permanently or are you trading spot with another broker?
FXDD Not Fighting, Just âTalkingâ with NFA Interesting post from Francesc at FX Street regarding FXDDâs decision not to implement the NFAâs new hedging rule. Jim Green, Managing Director at FXDD, wrote in to say that FXDD âwas not fighting NFA.â Theyâre just having âconstructive conversationsâ with NFA about the new hedging rule: http://blogs.fxstreet.com/francesc/...rule-a-misleading-information-apologies-fxdd/ Ok. FXDD may not believe they are fighting with NFA, but how else should NFA interpret FXDDâs decision not to implement the new hedging rule? Of course, in fairness to FXDD, why should they implement a regulatory rule that will be harmful to their business if this same regulator continues to stall on their license application? This could be FXDDâs way of saying âgive us a license, then weâll implement your rules.â But is it wise to take on NFA like this? This is why traders should sit on the sidelines until FXDD gets that license. They are playing a game of chicken with regulators. And in the current climate we are in where regulators are under enormous pressure to crack down on rogue financiers no trader wants to be in the middle of what could be one ugly head on collision.
Moved to IB. Liking it much better, though still going slow while I get used to it. I just use the demo to screw around with some ideas.
What do Crown Forex and Chrysler have in Common? They are both stuck in bankruptcy with creditors (and traders) waiting in a line that stretches around the block. Let that be a lesson to anyone who owns shares in General Motors or has an account with an unlicensed Swiss Broker. Here are the details of the Crown Forex Bankruptcy: http://blogs.fxstreet.com/francesc/2009/05/20/finma-opens-bankrupcy-process-of-crown-forex-sa/ This is why traders need to beware opening an account with any Swiss broker that doesnât have a banking license. Notable Swiss brokers like ACM, DukasCopy and MIG have all applied for licenses. But they do not yet have that license. Beware opening an account with these firms until they do, lest you end up like the poor sods at Crown Forex.