IBFX sent this to me now
as a portion of the current CFTC rules and regulation varies with the Currency Market market, all Currency Market traders should read and agree to the upgraded risk disclosure document below by October 16, 2010. We're required by the CFTC to disable the account(s) of those who do not agree with all the new disclosure by this date. Please take some time to review the new disclosure below.
....
CFTC RISK DISCLOSURE
CURRENCY TRANSACTIONS INVOLVE THE LEVERAGED TRADING OF CONTRACTS DENOMINATED IN FOREIGN CURRENCY CONDUCTED WITH A FUTURES COMMISSION MERCHANT OR A RETAIL FOREIGN EXCHANGE DEALER AS YOUR COUNTERPARTY. BECAUSE OF THE LEVERAGE AND THE OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE All THE FUNDS YOU DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOU DEPOSIT.
YOU SHOULD BE AWARE OF AND CAREFULLY CONSIDER THE FOLLOWING POINTS BEFORE DETERMINING WHETHER SUCH TRADING IS APPROPRIATE FOR YOU.
(1) TRADING IS NOT ON A REGULATED MARKET OR EXCHANGE--YOUR DEALER IS YOUR TRADING PARTNER WHICH IS A DIRECT CONFLICT OF INTEREST. BEFORE YOU ENGAGE IN ANY RETAIL FOREIGN EXCHANGE TRADING, YOU SHOULD CONFIRM THE REGISTRATION STATUS OF YOUR COUNTERPARTY.
The off-exchange foreign currency trading you're entering into is not conducted in an interbank market, nor can it be conducted on a futures exchange subject to regulation as a designated contract market by the Commodity Futures Trading Commission. The foreign currency trades you transact are trades with all the futures commission merchant or retail foreign exchange trader as your counterparty. WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER. Because of this, when you eliminate currency trading, your dealer is earning money on these trades, in addition to any fees, commissions, or spreads the trader may charge.
(2) AN ELECTRONIC TRADING PLATFORM FOR RETAIL FOREIGN CURRENCY TRANSACTIONS IS NOT AN EXCHANGE. It's AN ELECTRONIC CONNECTION FOR ACCESSING YOUR DEALER. THE TERMS OF AVAILABILITY OF SUCH A PLATFORM ARE GOVERNED ONLY BY YOUR CONTRACT WITH YOUR DEALER.
Any trading platform that you might use to enter off-exchange foreign currency trades is just connected to your futures commission merchant or retail foreign exchange trader. You're getting that trading platform only to transact with your trader. You aren't trading with any other entities or customers of the trader by accessing such platform. The availability and operation of any such platform, including the results of the unavailability of this trading platform for virtually any reason, is regulated only by the terms of your account agreement with the trader.
(3) YOUR DEPOSITS WITH THE DEALER Don't Have Any REGULATORY PROTECTIONS.
All your rights connected with your retail Currency Market trading, including the manner and denomination of any payments made for you, are regulated by the contract provisions established on your account agreement with the futures commission merchant or retail foreign exchange trader. Money deposited by you with a futures commission merchant or retail foreign exchange trader for trading off-exchange foreign currency transactions aren't subject to the client funds protections given to customers trading on a contract market that is designated by the Commodity Futures Trading Commission. Your dealer may commingle your funds with its own operating funds or use them for other purposes. In case your trader becomes bankrupt, any funds the trader is holding for you in addition to any amounts owed to you resulting from trading, whether or not any assets are maintained in separate deposit accounts by the trader, might be treated as an unsecured creditor's claim.
(4) YOU ARE LIMITED TO YOUR DEALER TO OFFSET OR LIQUIDATE ANY TRADING POSITIONS SINCE THE TRANSACTIONS Aren't MADE ON AN EXCHANGE OR MARKET, AND YOUR DEALER MAY SET ITS OWN PRICES.
Your capacity to close your trades or offset places is limited to exactly what your dealer will provide for you, since there is no other market for all these trades. Your dealer may provide any prices it wishes, and it might offer prices based on external sources or not in its own discretion. Your dealer may establish its prices by offering spreads out of third party prices, but it is under no duty to do this or to keep doing so. Your dealer may offer different prices to different customers at any time on its own provisions. The terms of your account agreement alone regulate the obligations your trader has for you to provide prices and provide offset or liquidating trades on your account and make any payments for you. The prices provided by your dealer may or may not reflect prices available everywhere at any trade, interbank, or other market for foreign currency.
(5) PAID SOLICITORS MAY HAVE UNDISCLOSED CONFLICTS
The futures commission merchant or retail foreign exchange trader might compensate introducing brokers for presenting your account in manners which aren't disclosed for you. Such paid solicitors aren't required to own, and might not have, any special expertise in gambling, and might have conflicts of interest based on the method by which they're compensated. Solicitors working on behalf of futures commission merchants and retail foreign exchange traders are required to enroll. You should confirm that they're, in fact registered. You should thoroughly investigate the manner in which all such solicitors are compensated and be very careful in granting any individual or thing authority to trade for your benefit. You should always look at getting dated written confirmation of any information you're relying on from your dealer or a solicitor in making any trading or account choices.
FINALLY, YOU SHOULD THOROUGHLY INVESTIGATE ANY STATEMENTS BY ANY DEALERS OR SALES REPRESENTATIVES WHICH MINIMIZE THE IMPORTANCE OF, OR CONTRADICT, ANY OF THE TERMS OF THIS RISK DISCLOSURE. SUCH STATEMENTS MAY INDICATE POTENTIAL SALES FRAUD.
THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF TRADING OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS WITH A FUTURES COMMISSION MERCHANT OR RETAIL FOREIGN EXCHANGE DEALER.
Interbank FX Account Profitability --
Quarterly Report //// percent Profitable //// percent Unprofitable //// Complete Non-Discretionary Accounts
Sep - Dec, 2009 //// 33% //// 67% //// 17,940
Jan - March, 2009 //// 28% //// 72% //// 17,442
April - June, 2009 //// 27% //// 73% //// 16,122
July - Sep, 2009 /// 28% //// 72% //// 18,597
Past performance Isn't indiive of future results. (lol)
I think it's time to migrate to cme fx futures to create a few volumes to them