FinFX Will No Longer Offer Brokerage Services to American Citizens
FinFX has informed clients that it will cease its offering to US residents. The move comes after US rules prohibit
Finland-based MT4 ECN broker FinFX has announced to its clients it will no longer offer brokerage services to US citizens as of January 30th, 2015. The unregulated broker was one of the few international brokers still willing to risk accepting American clients.
FinFX was founded in 2010 by Jani Hjerppe. It remained unregulated until now and at the same time continued to accept American clients despite the US regulator’s demands that all brokers accepting Americans clients must be regulated by the NFA. This was done with the intention of repatriating all FX traders’ accounts. Foreign brokers that did not comply often found themselves summoned to the US with threats of legal sanctions.
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Right decision Jani. Good luck with getting the licence.
Available margin 1 : 200 at FinFX! FinFX and Finish FSA still have a lot of homework to do. As we have seen, a handful of others clients can burn your money if your broker offer them such a high margins. P.S. I’m looking for a broker with max. margin 1.20 (better 1:10). Regards Ex FXCM client
Hope these guys get licensed soon. One of the few “good guys” in the industry…
^^ just because you are given 1:100 or 1:200 leverage does not mean you must use all of it. And you can always contact your broker and reduce the leverage on the account.
1:200 leverage isn’t that big of a deal considering the typical “offshore” max is between 400 to 500, with a few exceptions as high as 1000. The problem with lowering to something like 10 is that pro traders will have to deposit a larger percentage of total trading capital to trade the same size. Either way, the next black swan is unlikely to be tied to the same issues. And if it is, would you rather risk losing 10% off your overall risk capital or 100% of it. (Higher leverage allows you to do the former, lower forces you to… Read more »
Also forgot to comment: Ultimately, the better strategy is to setup residency outside the US and trade that way. Takes a small time commitment, but it is much less risky and more stable than trying to jump to the next [unregulated] broker that is likely to either eventually abandon their US clients or have trading conditions that are less than desirable. More information on this babypips post: http://forums.babypips.com/forex-brokers/36221-going-offshore-escape-cftc-62.html#post678260