More bad news for US retail forex traders – come July 15th spot metals trading will be banned

As CFTC did not implement rules by July 15th to provide oversight of spot gold and silver another result of the

As CFTC did not implement rules by July 15th to provide oversight of spot gold and silver another result of the Dodd-Frank bill is that retail forex brokers (RFEDs) won’t be able to offer spot metals trading to retail clients.  This is in an addition to foreign banks not being able to continue accepting US clients as well.

One option that remains available for US forex traders is to trade Gold future bull spreads on NADEX.

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Gain Capital (forex.com) was the first to announce this over the weekend in an email sent to clients:

Important Account Notice Re: Metals Trading

We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.

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In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

Sincerely,

The Team at FOREX.com

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