NFA is reducing leverage to only 100:1 in America

[patriotstef]

Hello,

Well, as the title states......

It recommends that we go to a UK account and have forex with them since this law does not apply to Britian. Can we do that here in America and still hedge? Can we still have 400:1 in America even though the account is with a British broker?

Thanks

[adaseb]

In Canada it's worse. There is a min 3% margin rate which means 1:33 leverage.


Honestly 1:20-1:50 is all you would ever need.

What's good about trading with 1:1000 leverage if you can't trade with 1:1 leverage?

With a 1:100 all you need is about $150 US Dollar to trade a mini $1/pip lot. If you don't know what you are doing then trading with anything higher is risky.

For me $1/pip is too high. I currently trade at $0.01-$0.25/pip.

[patriotstef]

I guess my real question is how do I have 400:1 leverage and hedging if I wanted it here in America? If I sign up with a European forex broker, will I have those options? Or is it impossible just because I live here in the USA and I thus have to move to Europe for all of that?

[pablo101]

many major changes going on in the US this year

[jhtumblin]

You can open an account with any foreign broker and their independent rules apply. The NFA is American regulation and only applies to brokers who operate out of the U.S. or have branches in the U.S. Foreign brokerages can also sign up for the NFA but are by no means required to.

So yes patriot, you can live in the U.S. and have a brokerage account opened in Russia if you choose. If that firm offers 800:1 leverage and you want to assume that, then go for it.

[noone22]

I wonder, why people from rich part of the world would need leverage more than 100:1. In Russia or Argentina - $5,000 is a huge money,
but in US it's a monthly salary.
Or does someone hopes to achieve big account, starting
from $250?

[patriotstef]

So yes patriot, you can live in the U.S. and have a brokerage account opened in Russia if you choose. If that firm offers 800:1 leverage and you want to assume that, then go for it.

Ok then, does anyone have any recommendations for who a good and reliable European broker would be? The three things I am looking for are:

* One that allows a micro account where you can trade .01 lots with a low minimum starting balance ($300? $400?)

* One that allows hedging

* One that allows higher-than-100:1 leverage if you wanted

Now I know many of you may say, "Why do you want hedging or high leverage? That can very counterproductive." Yes, I am aware of that. However, I demand that if I am going to trade with my money on any brokerage, then I insist that I not be regulated by things like that - for if I choose to hedge or accept high leverage, then that is not the risk, penalty or business of the NFA. It is mine.... I demand the freedom to make good or bad decisions for myself.

So then, any suggestions for a reputable European forex broker that offers what I want?

[Humble]

Well which ones have you looked at so far?

You may also want to add to you list, a broker that allows you to conduct your account in US$. Otherwise you will have some add complexity with conversions.

[patriotstef]

Yes thank you, Humble.... that also.

Well I've looked at that MBT broker that TRO likes, but others have told me that MBT is garbage. I've looked at ODL securities, but you need $2000 to start with. I hear Oanda has a chart software that keeps crashing.

How's Alpari? They look like what I'm searching for.

[dragon33]

Yes thank you, Humble.... that also.

Well I've looked at that MBT broker that TRO likes, but others have told me that MBT is garbage. I've looked at ODL securities, but you need $2000 to start with. I hear Oanda has a chart software that keeps crashing.

How's Alpari? They look like what I'm searching for.

I have traded Alpari UK. They are not the best, reqoutes, slippage, etc. If you want to scalp not good. If you are going to hedge longer runs yes no problem.