FX Solutions finds a way to circumvent NFA's Anti-Hedging requirement
Looks like it's not a coincidence that the company is named Solutions...
In a move that was all but unexpected FX Solutions now offers multi-account offset solution in order to keep clients from moving their accounts overseas. What this cumbersome solution allows is to place a long trade in one account and a short trade in a separately margined account using a single login.
So far we have seen 4 different brokers offer three different solutions to the NFA's Anti-Hedging blow: FXCM and Gain ask clients to shift their funds to oversea subsidiaries, FXDD chose to fight NFA directly and FX Solutions offers a solution that I find difficult for traders to embrace and might prove too cumbersome for EA programmers as well.
All this only strengthens what the NFA already knew: Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term brokers will never join hands in order to fight it, making it easier to pass any unreasonable requirement and watch the brokers twist and turn in order to comply with it.
Full statement as published on FX Solution's website:
Keep your account in the US with a CFTC registered firm and hedge* using our multi- account offset solution. Trade your system your way and avoid leaving the US in order to do so. FX Solutions introduces Multi-Hedge, an alternative to moving your account outside the US. Place a long trade in one account and a short trade in a separately margined account using a single login.
The National Futures Association (NFA) has notified its Forex Dealer Members, such as FX Solutions LLC, that effective May 15, 2009 the hedging portion of Compliance Rule 2-43(b) will become effective. Per the NFA, after May 15, 2009 Forex clients will not be allowed to be both long and short, in the same currency pair (or instrument), in the same account (Hedging) at the same time. However, this rule will only affect those positions placed after May 15, 2009. POSITIONS THAT WERE HEDGED PRIOR TO MAY 15 MAY REMAIN HEDGED. The NFA's decision can be viewed at https://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2273 FX Solutions realizes that for many of our clients the ability to have both long and short positions is an important part of their trading strategy. Therefore, we are offering two regulatory-compliant alternatives: Solution #1: Multi-Hedge Capability available on GTS after May 15, 2009� If you wish to use hedging as part of your trading strategy and remain with FX Solutions LLC, an NFA-regulated entity, you can simply open an additional account. There is no cost and there is no requirement to deposit more funds. Simply transfer equity from your existing account to the new one and access both accounts from your existing GTS Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. Read this Term using your existing username and password. In addition, starting May 17, you will be able to trade spot gold and silver:
To "hedge" in one currency pair, simply place "buys" in one account and "sells" in the other. Click on the account that you wish to use, and trade as normal. You will be able to view your entire portfolio of trades on one screen. Although both accounts are separately margined, we will provide you with the ability to easily transfer equity from one account to the other straight from your trading platform at no cost. Solution #2: Non-US Customers� Non-US clients will have the additional option of opening an account with our affiliate, FX Solutions Australia, which allows offsetting positions (hedging) and the ability to trade additional financial instruments. IF YOU WISH TO CONTINUE TO HEDGE AND TAKE ADVANTAGE OF THIS OPTION you may open a new account. FX Solutions Australia is fully regulated by the Australian Securities and Investments Commission (ASIC) and deposited funds are held at JP Morgan Chase bank in New York.
Looks like it's not a coincidence that the company is named Solutions...
In a move that was all but unexpected FX Solutions now offers multi-account offset solution in order to keep clients from moving their accounts overseas. What this cumbersome solution allows is to place a long trade in one account and a short trade in a separately margined account using a single login.
So far we have seen 4 different brokers offer three different solutions to the NFA's Anti-Hedging blow: FXCM and Gain ask clients to shift their funds to oversea subsidiaries, FXDD chose to fight NFA directly and FX Solutions offers a solution that I find difficult for traders to embrace and might prove too cumbersome for EA programmers as well.
All this only strengthens what the NFA already knew: Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term brokers will never join hands in order to fight it, making it easier to pass any unreasonable requirement and watch the brokers twist and turn in order to comply with it.
Full statement as published on FX Solution's website:
Keep your account in the US with a CFTC registered firm and hedge* using our multi- account offset solution. Trade your system your way and avoid leaving the US in order to do so. FX Solutions introduces Multi-Hedge, an alternative to moving your account outside the US. Place a long trade in one account and a short trade in a separately margined account using a single login.
The National Futures Association (NFA) has notified its Forex Dealer Members, such as FX Solutions LLC, that effective May 15, 2009 the hedging portion of Compliance Rule 2-43(b) will become effective. Per the NFA, after May 15, 2009 Forex clients will not be allowed to be both long and short, in the same currency pair (or instrument), in the same account (Hedging) at the same time. However, this rule will only affect those positions placed after May 15, 2009. POSITIONS THAT WERE HEDGED PRIOR TO MAY 15 MAY REMAIN HEDGED. The NFA's decision can be viewed at https://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2273 FX Solutions realizes that for many of our clients the ability to have both long and short positions is an important part of their trading strategy. Therefore, we are offering two regulatory-compliant alternatives: Solution #1: Multi-Hedge Capability available on GTS after May 15, 2009� If you wish to use hedging as part of your trading strategy and remain with FX Solutions LLC, an NFA-regulated entity, you can simply open an additional account. There is no cost and there is no requirement to deposit more funds. Simply transfer equity from your existing account to the new one and access both accounts from your existing GTS Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. Read this Term using your existing username and password. In addition, starting May 17, you will be able to trade spot gold and silver:
To "hedge" in one currency pair, simply place "buys" in one account and "sells" in the other. Click on the account that you wish to use, and trade as normal. You will be able to view your entire portfolio of trades on one screen. Although both accounts are separately margined, we will provide you with the ability to easily transfer equity from one account to the other straight from your trading platform at no cost. Solution #2: Non-US Customers� Non-US clients will have the additional option of opening an account with our affiliate, FX Solutions Australia, which allows offsetting positions (hedging) and the ability to trade additional financial instruments. IF YOU WISH TO CONTINUE TO HEDGE AND TAKE ADVANTAGE OF THIS OPTION you may open a new account. FX Solutions Australia is fully regulated by the Australian Securities and Investments Commission (ASIC) and deposited funds are held at JP Morgan Chase bank in New York.