FXCM is shifting US accounts back home
Update: CFTC confirmed this to FXCM, hence the decision. Following the pretty much unclear situation concerning US overseas accounts with

Update: CFTC confirmed this to FXCM, hence the decision.
Following the pretty much unclear situation concerning US overseas accounts with the CFTC new rules FXCM has decided to mandatory shift all US account from its foreign subsidiaries back to the US. I’m sure all US brokers will follow this shortly but for some it’s going to be a financial disaster as they only opened subsidiaries in the UK to avoid NFA rules, and now they need to transfer all accounts back.
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However, it’s a very good day for offshore brokers, no doubt. I’m sure many US clients will refuse this transfer back to the US because there are reasons why they opened accounts overseas in the first place: there are no FIFO and low leverage rules there. In this case, some clients will just open new accounts with non-US based brokers and others will simply stop trading forex.
Jason Rogers, FXCM’s ambassador to the online portals and forums, just wrote the following at forexfactory:
“We have received clarification:
When will accounts for US residents be repatriated back to the United States?
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All forex accounts for US residents trading overseas will be repatriated back to the US by October 18, 2010.
For US residents with FXCM UK, the switch back to FXCM US will most likely occur the weekend of October 15. The switch will occur over the weekend so that there is no disruption to your trading. The existing username and password you use to login to your account will also remain the same. US residents will receive information very early next week by email confirming the timeline.
What happens to non-US entities accepting US residents after October 18?
I’m sure there will be lots of different versions of what the regulations mean and the question has been asked by traders concerning what authority does the US government have restricting US residents from trading overseas. I can’t discuss the legal merits of these questions and I’m sure some traders may test this in the courts; however, considering the reach of US law and disputes, we are not about to illegally accept US residents in violation of CFTC rules going into effect October 18th. We are going by what the CFTC has outlined and clarified as the rules for operating as a forex broker and accepting US residents, and we will be in compliance with US law and regulations.
There are countless examples of the US government going after offshore entities whether it be for offshore gambling operations or the impact of the US government laws affecting Swiss banking. And for another example, British Columbia Securities Commission already restricts foreign entities not registered with the BCSC from soliciting and accepting BC residents (which they enforce). Plus why do you think UK brokers won’t allow US residents to trade CFD contracts even though they don’t have a presence in the US? If other brokers want to take the risk of allowing US residents to trade through offshore entities after October 18th then that’s a risk they’re willing to take despite possible legal action and speaks to their own business practices.
For non-US residents…FXCM is an international company regulated in 6 jurisdictions with offices in New York, London, Hong Kong, Paris, Berlin, Sydney, and Dubai and affiliates in Athens, Milan, Instanbul, Santiago, and Tel-Aviv. Non-US residents can continue to open through FXCM UK or any other regional entity as local regulations permit.
I understand you may have feelings strongly against the CFTC rules and you are entitled to that. Personally as a trader myself, I won’t argue that some of the rules are inconvenient, but as of October 18th the rules are the rules. No matter what my opinion may be, the Dodd-Frank Bill has been passed by Congress and the CTFC rules have been released. As mentioned previously, some traders may test this in the courts as many bills are, but operating illegally is not an option in the meantime. We are happy that 10:1 leverage was not put into place, and your comments went a long way towards making a difference.”
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i really feel for US resident traders, its a proper yo yo ride.
you guys should get dual natinality or atleast dual address proof!
US Brokers are not yet saying very much about this situation. So far, it’s like business as usual. As a small trader, I for one will be out of the trading business (which I feel is Uncle Sam’s objective) as I prefer using brokers like FXCM(UK), FX Solutions (UK), etc. I am getting pretty tired of the government sticking their nose in my business.
I trade the eurfx on cme exchange and already I am seeing an increase in volume despite it normally be low volume time. I am sure that when October 20th comes there will be even more of an increase in volume daily on eurfx cme
Nope. People will just stop trading forex in the USA , period. They will find ways to put their money in overseas brokers, stupid law or no law.
No one in their right mind is going to continue to trade Forex in the USA while the rest of the planet has the huge advantage of hedging, no FIFO, and much better leverage.
Congrats, you dummies just killed forex in the USA.
Well,
This is sad,
Despite the fact that FIFO and hedging have no implication on trading (see my blog post here – http://blog.currensee.com/2010/09/the-cftc-and-the-proposed-regulations/) most of the traders are not that sophisticated and will see this as a disadvantage.
In Futures BTW the same FIFO and Hedging rules apply so this has nothing to do with the Futures industry at all.
— Asaf.
good for economy, i like this new regulation
Asaf, alex, and the rest of the sheep that got the wool pulled over theri eyes by all this crap no other country in the world is doing but our dumbasses:
You must the guys that paid top dollar for the oceanfront property in Arizona.
PT Barnum has a famous quote that describes your ilk. Look it up.
And finally, you’ve been had, you got took, hoodwinked.
You didn’t land on Plymouth rock, it landed on you.
QUOTING Asaf: “Despite the fact that FIFO and hedging have no implication on trading” ___________________ Aummm what? Sure it does, as a profressional trader (Someone who gets paid to trade) FIFO and hedging have alot to do to HFT (High frequency trading). Example, Gap trades – Most people who trade forex are intraday / scalping with this said some may be in a position over the weekend. To ensure a safe position on Sunday some will hedge (We have seen 100 point gaps). And please don’t tell me you can hedge with a correlation pair, that’s bull shit. Eur/JPY and… Read more »
Fund Manager T: What you are saying is very concerning to me as someone who knows a little about the market and how it works. First of all, hedging against the weekend gap is exactly the same if not worse than just closing the position in the weekend. Second of all, what you are saying is absolutely impossible – there is no way that hedging or FIFO can ever affect your trading but if you have a concrete example I’d be happy to explain to you why you are wrong. What is also concerning to me is the fact that… Read more »
I think that its time for Atlas to shrug and shake off all of the value usurpers!