Page 1 of 842 12 LastLast
Results 1 to 10 of 19

Thread: CFTC new Risk Disclosure

  1. #1
    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



  2. #2
    USrttsot
    Guest
    Quote Originally Posted by ;
    Due to the LEVERAGE AND THE OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE ALL OF THE FUNDS YOU DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOU DEPOSIT.
    And how is this possible?
    Are not they heard for margin call?

  3. #3
    odiesrCon99
    Guest
    C'mon. That line was in every NFA brokers account software for probably near a decade. The cool thing is this is foricng fcms to disclose how many accounts that they have in their US branches, and how many of them earn money. Im really surprised how high IBFX is - I'd have expected around 90% losers.

  4. #4
    desvud120
    Guest
    Important changes to your IG Markets account



    By October 18th 2010, significant new guidelines on retail forex trades will influence your IG Markets account.



    The Commodity Futures Trading Commission (”CFTC”) issued final rules which include a requirement that, in order to act as a counterparty to US Retail FX Transactions, a firm must be registered with CFTC as either a Forex Dealer Member or Registered Foreign Exchange Dealer.

    As such, IG Markets customers That Are currently contracting retail FX using IG Markets Ltd in London will be repatriated to the US and will Start doing business with IG Markets Inc, a registered Futures Commission Merchant and Forex Dealer Member (NFA ID#342337). IG Markets Ltd will cease behaving as the counterparty to retail FX trades in the US and IG Markets Inc will start behaving as the counterparty to US retail FX trades.

    Your account will be moved from IG Markets Ltd to IG Markets Inc after close of business Friday, October 15th. Your account will therefore be subject to the CFTC closing rules regarding retail forex trades with effect from the evening of Sunday, October 17th, 2010.







    How can this affect my IG Markets account?
    Your existing username, account number and password will remain the same.
    You will no longer be permitted to maintain offsetting long and short positions at the same currency. If you've offsetting positions at close of business on October 15th, they will be netted off.
    Orders will no longer be connected to places. Hence any Limit Orders or Stop Orders (including Trailing Stops) connected to current positions will get unattached working orders at their last degree as of close of business Friday October 15th, 2010.
    Guaranteed Stops will no longer be offered. If you have any open positions using Guaranteed Stops at close of business on October 15th, the stops will end up non-guaranteed Stops and you will be issued a credit for your Guaranteed Stop premium paid during the opening of the position. Be aware that the consequent non-guaranteed Stops will be unattached working orders.
    Please note that unattached working orders won't be automatically closed or amended when the underlying position is shut or part-closed. By October 17th, should you utilize Stops and Constraints to handle the risk on your inherent positions you will need to explicitly cancel or amend any unattached orders if you alter the dimensions of those underlying positions.
    Margin requirements are raising on October 17th. The margin needed for major currency pairs will be 2%. The margin needed for the rest of the pairs will be 5%. If you have open positions at close of business on October 15th which would cause your account to be over-margined due to the new demands, those places will be shut in part or whole to fulfill your margin needs.
    Contingent Stops and Limits attached to present operational orders at close of business on October 15th will be removed; however the working orders will remain.
    Mobile trading and L2 trading will no longer be available.
    What do I need to do?
    In order to keep on trading your own account, you must log on to the platform and agree that you have read and understood that the new Forex Risk Disclosure Statement. This disclosure will pop up when you log into your account. You MUST click on”I agree” in order to keep on trading your own account. You won't be able to access your account till you have agreed to the new disclosure.
    By October 18th, 2010 a new Customer Agreement will apply to your account. Please examine this document carefully. By continuing to exchange through your IG Markets account, you will be deemed to have approved the terms of the new Customer Agreement, which are available on the client agreement page.
    You aren't required to take this proposed transfer. However, please note that if you do not wish to your forex connection to be assigned to IG Markets Inc, then you must contact us before October 14th via the contact details set out below. We can then close any open positions you may have and shut your account. If you don't contact us before October 14th, your account will be moved back to IG Markets Inc and your account will alter as detailed previously.






    Additional Questions?
    If you have any questions regarding the forthcoming changes to your account, please don't hesitate to contact our Client Services section.

    U.S. Toll Free: 866 748 1340
    International: 312 981 8010
    Mail:

    To browse the new Forex Risk Disclosure today, please see IG Markets and log into your account.

    Kind regards,
    IG Markets

  5. #5
    Anyone know if these principles only apply to US Citizens or are they for US Residents too?

  6. #6
    abonTor90
    Guest
    Quote Originally Posted by ;
    Anyone know if these principles only apply to US Citizens or are they for US Residents as well?
    If you're signing up with your US social security number as well as the US address recorded on your own US government issued ID, it applies to you, whether citizen or resident. If you've got an ID and address in a different country, then you've got a decision on whether that can apply to you or not.

  7. #7
    Quote Originally Posted by ;
    If you are signing up along with your US social security number and the US address listed on your own US government issued ID, it applies to youpersonally, whether resident or citizen. If you've got an ID and address in a different country, then you've got a choice on whether this may apply to you or not.
    Thanks for this information! I really don't know nearly enough about US legislation but it just seems like what is happening is contrary to the constitution. I wager smart people will soon be working together to challenge each of this.

  8. #8
    I have talked to three tax investment attorney's that deal with forex traders about hard this in a court of law and they told me that they would not consider it. The only chance is to have congress alter the laws.

    Regards,
    Jeff

    Quote Originally Posted by ;
    Thank you for this information! I really don't know nearly enough about US laws but it just seems like what's happening is against the constitution. I bet clever people will be working together to challenge each of this.

  9. #9
    Quote Originally Posted by ;
    I have talked to three taxation investment attorney's that cope with Currency Market traders about hard that in a court of law and they explained they would not consider it. The only chance is to have congress alter the laws.

    Regards,
    Jeff
    that I have to admit I am disappointed with what is happening. I assured my wife to proceed to the US, however we might still just live 5 months and 29 days there and 6 months and one day within our nation to avoid this. Just means I want to pay taxes in my country rather than the US, which is no big deal really.

  10. #10
    It isn't simply the usa doing so to traders. Japan simply lowered the leverage within their nation as well. The socialists in the western govt's desire to restrict traders for a certain reason. You would think they would like to tax it so they'd get more revenue for them to invest but that does not appear to be their objective.

    Regards,
    Jeff

    Quote Originally Posted by ;
    I have to admit I am disappointed with what Is Happening. I assured my wife to move to the US, however we could still only live 5 months and 29 days there and 6 weeks and one day within our nation to avoid this. Just means I need to pay taxes in my country instead of the US, which is no big deal really.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.