Just in case you haven't heard this...
...after July 31, 2009, First In, First Out execution will be required, which mandates that the first order in must also be the first order closed. Regulatory requirements in the United States will also likely restrict Forex Dealer Members from offering more than 100:1 leverage on major currency pairs and will be limited to 25:1 leverage on non-majors.
One trader received e-mail from his broker (FXCM) the content is as below:
KEEP MT4 AND YOUR EXPERT ADVISORS:
TRANSFER YOUR MT4 ACCOUNT TO Forex Captial Markets Limited (FXCM UK)
The primary regulatory authority for forex in the United States, National Futures Association (NFA), has implemented new requirements that will have dramatic consequences for your MT4 account.
Hedging functionality has already been removed, and after July 31, 2009, First In, First Out execution will be required, which mandates that the first order in must also be the first order closed. Regulatory requirements in the United States will also likely restrict Forex Dealer Members from offering more than 100:1 leverage on major currency pairs and will be limited to 25:1 leverage on non-majors. FAQ, videos, and live Q&A are available in the DailyFX forums. Learn More
What does this mean for your MT4 account?
To date, we have received no indication from MetaQuotes that they will be able to comply with First In, First Out execution by July 31, 2009. As such, the combined changes brought about by NFA Compliance Rule 2-43 will mean that traders will no longer be able to trade MT4 with U.S. regulated brokers. Assuming that MetaQuotes is able to comply, there will still be major implications:
Traders will have fewer order choices
Traders will have drastic limitations to their risk management options.
The vast majority of Expert Advisors will no longer be functional
How can you avoid these changes?
To keep your current MT4 platform functionality, we recommend that you immediately fill out the FXCM UK opt-in form to have your account transferred before the regulatory changes go into effect. It is our understanding that the MT4 FXCM UK option is the ONLY solution for U.S. clients who wish to: trade with a regulated MT4 broker, maintain their MT4 platform functionality, and send funds to a U.S. bank.
FXCM UK is regulated by the Financial Services Authority (FSA) in the UK. London is the main trading center for forex in the world and the retail forex market has been regulated in the UK much longer than it has been in the U.S. Under FSA client money rules, FXCM UK accounts are fully segregated. This means client assets will not be exposed to any bankruptcy proceedings. Learn More
If you wish to transfer your trading account to FXCM UK, please complete the one page form. Account Transfer Form
DEADLINE TO COMPLETE EARLY-OPT IN: JULY 8, 2009*
Important Notice: If you completed the transfer form, your account will be operational prior to the implementation of new NFA regulations. You will be notified via e-mail when your account is transferred.
Your account number and password will remain the same and your open positions will remain intact. Moving an account to FXCM UK involves some changes in deposit and withdrawal instructions, and changes in charges for transferring funds. However, FXCM UK clients have the option to send funds to the United States and fund via credit card. MYFXCM.com will also be available.
Deposits | Withdrawals | MYFXCM.com
If you have any questions about the new regulations or their effect on your risk management, please don?t hesitate to contact us at 1-888-503-6739, or e-mail us at firstname.lastname@example.org.
We look forward to serving you.
32 Old Slip, 10th Floor
New York, NY 10005
* Please be advised that FXCM makes no guarantees as to the exact date of transfer. Accounts may not be transferred on their scheduled dates. In any event, clients will be notified via e-mail confirming the fact that their account has or has not been transferred at the scheduled time.
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