Interbank FX issued an email to its customers this morning informing them of the availability of MultiTrader 4, a MetaTrader 4 platform that enables the user to manage more than one trading account. The multi-trader platform has been around for quite some time. In fact, I’ve had a copy of it on my hard drive for two years. IBFX used to support it at one time but, for some unknown reason, decided to remove it from its list of available trading platforms. Now that CFTC has mandated a “no hedging” regulation, IBFX has dusted it off and made it available again.
Their email read, “Recently the NFA issued new regulations prohibiting traders from hedging (having long and short positions open on the same currency pair at the same time). We realize that said regulatory changes will affect the trading style of many customers. As a solution, IBFX’s MultiTrader 4 allows users to easily manage multiple accounts at once; via this new trading tool you are able to go short in one account and long in another or vice versa!”
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The message went further to explain margin implications by reminding IBFX clients, “Keep in mind when using this tool, you are now operating in two separate accounts, and thus, margin rules will behave differently. Formally, additional margin was not required when hedging open positions. Going forward, traders utilizing MultiTrader 4 as a hedging tool will be required to post margin on both sides of the trade, thus increasing the risk of a margin call.”
So, in addition to FX Solutions, FXDD, GAIN, FXCM, and Tradeview; Interbank FX has joined the ranks of brokers offering solutions to the hedging regulation.
I’m sure this list will continue to grow as more brokers think of innovative ways to skirt the regulation in an attempt to please their customers.