FXCM comments on the CFTC requirements
Last week, the U.S. Commodity Futures Trading Commission (CFTC) released its final rules regarding off-exchange retail forex trading, which will

Last week, the U.S. Commodity Futures Trading Commission (CFTC) released its final rules regarding off-exchange retail forex trading, which will take effect on October 18, 2010. FXCM would like to address some questions concerning the new leverage rules.
5% margin (20:1 leverage)
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Exotic Currency Pairs, 10K Standard LLC Accounts, Exotic (Variable) Margin:
USD/MXN ($500) | SGD/JPY ($500) | EUR/PLN ($875) | USD/TRY ($500) | USD/PLN ($500) |
EUR/TRY ($875) | EUR/CZK ($875) | USD/RUB ($500) | USD/CZK ($500) | EUR/HUF ($875) |
UZD/ZAR ($500) | USD/HUF ($500) | USD/SGD ($500) | TRY/JPY ($500) | USD/HKD ($500) |
By October 18, 2010, the maximum leverage available with FXCM LLC for trading will be 50:1 for major currency pairs and 20:1 for exotic currency pairs.
2% Margin (50:1 leverage) Major Currency Pairs
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10K Standard LLC Accounts
$200 Margin | $200 Margin | $240 Margin | $300 Margin | $340 Margin |
---|---|---|---|---|
USD/JPY | USD/DKK | CHF/JPY | EUR/USD | GBP/USD |
USD/CHF | USD/NOK | CAD/JPY | EUR/CHF | GBP/JPY |
AUD/USD | AUD/CHF | CAD/CHF | EUR/GBP | GBP/CHF |
USD/CAD | NOK/JPY | CHF/SEK | EUR/JPY | GBP/CAD |
NZD/USD | SEK/JPY | CHF/NOK | EUR/AUD | GBP/NZD |
AUD/CAD | HKD/JPY | EUR/CAD | GBP/AUD | |
AUD/JPY | ZAR/JPY | EUR/SEK | GBP/SEK | |
NZD/JPY | NZD/CHF | EUR/NOK | ||
AUD/NZD | NZD/CAD | EUR/NZD | ||
USD/SEK | EUR/DKK |
“We believe that the reduction in leverage is a reasonable compromise from the initial CFTC proposal of 10:1 leverage. FXCM does believe lower leverage will be to the benefit of traders as higher leverage can often times result in a few losing trades offsetting many winning trades,” commented Drew Niv, CEO of FXCM. “FXCM has already implemented 50:1 as the default margin setting on FXCM LLC standard forex trading accounts and, as a result, the new leverage requirements will have a minimal impact on our Standard 10k LLC accounts.”
Additionally, as of October 18, 2010, all referring brokers introducing business to registered FCMs or Retail Foreign Exchange Dealers will be required to formally register with the CFTC as Introducing Brokers and become NFA members.
In anticipation of this rule, FXCM has already initiated procedures to be in compliance as of October 18. In fact, FXCM began encouraging all referring brokers to seek registration as Introducing Brokers months before the CFTC published its final rules.
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Does fxcm you pay for the advertisement or something? It seems as if we only talk about all the time fxcm
‘FXCM does believe lower leverage will be to the benefit of traders as higher leverage can often times result in a few losing trades offsetting many winning trades’
this is the comment form the ceo, does this mean that fxcm will indefinatley change leverage across the entire group of companies….
its a bit harsh to say that high leverage is bad for 1 client type and not bad for anotehr…
all this means for us in the UK, more business, the amount of japanese traders has increased ten fold, i am sure US based traders will fidn a way through
we are a whitelabel partner of a US broker and have decided to halt operations, whats is surprising for me is that the nfa is not differentiating between futures and spot fx (margin based) these are two completely different products with different traders. i understand that futures volumes have been hit significantly but this is how the market is fragmenting.
i would like ot see more appeals, not just comments by brokers, where is some refutation about this act.
get people like obama involved.
Farhan,
If your firm is already registered as an IB, why are you halting operations?
Hi Farhan,
Somehow I don’t think Obama will be a whole lot of help:
http://trading-gurus.com/the-american-dream-moves-offshore/
Jim
jim your rite, however its funny how the US looks at forex, i know they have lost alot of moeny to forex in their futures market and if you notice cme has launched the failing fx market space and then they are trying to launch more currencies and now even offering fx micro lots. the point is that, nfa, fsa, msa, asic, jfs which are the major regualtors will either follow each other or the others like fsa, asic and mas will carry on as they are (in regards to leverage). the market needs to be prepared for both sides… Read more »