[maxr]

Hi: I watched in interesting webinar last night on the forthcoming US FX changes, which as I understand them correctly, are:

* US traders with spot FX accounts outside USA must repatriate their accounts by 18th October.
* US FX brokers will stop allowing their clients to hedge - i.e. you will no longer be able to have opposing positions in the same pair.
* FIFO order sequencing will be put in place.
*Introducing brokers must be registered.
*Leverage changes - discussed in another thread, so lets leave that.

Apparently, banks providing spot FX trading acccounts are not affected by this legislation, and CitiBank has an account called fxpro which appears designed to allow clients to do many of the things the legislation sets out to stop - with a $250K guarantee.

What changes do you see resulting from this - do you think traders will move to bank run trading accounts like the Citi offering, do you think some traders will move to Futures instead of spot FX (as I understand it, US traders can still trade Futures offshore), and will these changes affect you personally?

Max

[sptraderrlc]

Was this an archived webinar and if so where can we find it?

Thanks

[maxr]

They've archived it at:

TradersChoiceFX - Newstrading Webinar Recording

Just want to make it clear that I have no relations with www.traderschoicefx.com who are an introducing broker, and that they obviously have their own agenda in providing this webinar (ie to sign up FX traders to their services) - however it's quite informative. Seems to be an issue with sound for the first minute or so, should be OK after that, click on the icon for full screen or it plays in a tiny window on the web page that opens from this link.

Max

[iversonne]

that cannot be realised, just misinformation

[maxr]

Iversonne - do you mean you can't get that link to work? The video plays automatically, I've just checked it - but they do seem to have a problem with the sound up to about 1 min 35 seconds.

If you're saying funds will not have to be repatriated or it can't be done, then have a look at the info on the CFTC website www.ctft.gov, here's the FAQ on the new 'Final Retail Foreigh Exchange Rule'.

http://www.cftc.gov/ucm/groups/publi...nalrule_qa.pdf

Here's a link to a page on another site with a copy of a letter sent out to forex.com clients telling them what will happen to their accounts:

http://www.forexhedgingstrategy.net/...-part-two.html

Max

[sptraderrlc]

Thanks Maxr and others for your info. Very helpful. Further research indicates that you can still trade fx futures without your foreign account being repatriated, or, find a foreign dealing desk and platform that does not have a US connection of affiliate.

[maxr]

Originally Posted by sptraderrlc »

Further research indicates that you can still trade fx futures without your foreign account being repatriated...

That's interesting, how do you do that - trade FX with an offshore (from USA) bank?

Originally Posted by sptraderrlc »

...or, find a foreign dealing desk and platform that does not have a US connection of affiliate.

I wonder how easy it is to find a big, well capitalised, well regulated FX broker outside USA with some sort of account guarantee, which isn't either are an offshoot of or affiliated to US brokers.

Max

[sptraderrlc]

According to the new Barney Frank-Christopher Dodd tax on the trader law, the FX futures market is NOT included in this law, only the spot currency pairs trading. You can still trade the FX futures off shore.

I am talking with a couple of contacts off shore that operate dealing desks that claim their lawyers have found a loophole for US residents to trade spot fx off shore. I guess we'll see. I'll post when I find out. Can't say where it is right now.

I presume their would be some additional risk with off shore trading. I always keep a minimum account to trade there so if they do go south, it won't hurt so much. I withdraw consistant profits to keep it small enough to handle, should it happen.

Thanks for responding to all of this. Nice to have folks to talk with around the globe.