Thread: 3) Questions and Answers

I have just started in the trading business for over 3 months now and learned hard, payed for the power course and now all of this changes. Should i now forget what i have learned? Looks more like the NFA is against the US than with them. Looks like they make too much money, lol. It is really a stupid change and will with no doubt change to UK and even pay more in tax and transferring money than staying without the STOP/LOSS which is a very good option. Just hope that it would not fall away in the UK. Most probably the stupist decision the NFA would ever have made. Good luck with the OCO and the new bull they might find to think what is better for traders without asking them what they think.

Your new faithfull trader UK

Lions

Thanks for all the information about the new rules. I thought that the hedging thing was bad. But this takes the cake. Whoever thought these rules should apply to currency trading is an idiot. I am moving my account off shore where more competent people control the rules. Thanks for the links.
Kevin

Originally Posted by KevinS

Thanks for all the information about the new rules. I thought that the hedging thing was bad. But this takes the cake. Whoever thought these rules should apply to currency trading is an idiot. I am moving my account off shore where more competent people control the rules. Thanks for the links.
Kevin

You're welcome Kevin. Happy to help.

-Jason

Originally Posted by Bufftram

I have an open trade right now, which I do not want to close. Can open positions be transferred to FXCM UK Micro Account. Would I have to close out all open positions prior to the transfer. Thanks

hi Bufftram,

Open positions can be transferred. Submit the opt-in form and we will take care of the rest.

-Jason

Originally Posted by jlanawalt

That is great. This is what I had initially hoped for and expected in May. To be sure we are on the same page, let me re-word what I understand you to be saying:

FXCM will continue to support entry limit and stop orders on FIFO accounts as it always has, with the added ability to associate entry limit and stop orders together as an OCO pair.

Hi Jacob,

That is exactly correct.

The OCO functionality is also being added to FXCM UK accounts as well. New features for everyone.

-Jason

I see that there is a deadline to transfer to the fxcm UK.

Can you transfer your account after the deadline has passed?
What is the process?


Also
Are you able to open up multiple -2 or 3 seperate fxcm accounts?
Can you have 1 fxcm-us and 1 fxcmuk?

Originally Posted by jlanawalt

FXCM will continue to support entry limit and stop orders on FIFO accounts as it always has, with the added ability to associate entry limit and stop orders together as an OCO pair.

Originally Posted by Jason Rogers

That is exactly correct.

Ah, good news. That is much less alarming than this statement from the email titled "URGENT: Information about Your Standard 10k Account -- Removal of Stop-Loss and Limit Features": ...Forex traders will no longer have the ability to place stop-loss or limit orders...

It's also nice to know you will be able to have stand-alone OCO orders on the non-FIFO accounts in addition to position-attached OCO orders that FXCM has always had on it's non-FIFO accounts. I am glad to know I will not have to manually create an OCO order in order to create a stop/limit type order.

Thank you for the clarifications. I hope that you can apply this to future communications about the NFA required FIFO change on US accounts at the end of the month and stress that only position-attached stop/limits and specific position closing are affected by the FIFO rule.

FXCM continues to avoid answering my simple, but DIRECT questions posed. Please see comments # 7 and 27.

FXCM, and Jason.....what are you afraid of? Why would you avoid answering my direct questions? Do the answers to my questions involve information that you wish to hide from we, the customers? I can only sit back, and wonder. Curious.

I am sorry to all of you that have been dissapointed by this NFA rule but with this rule micro US account holfers can transfer to micro UK. I do not believe FXCM was offering or needed to do this previously.

Will I be able to close any of my positions RIGHT on the spot if needed??

If I have a set OCO order 100 pips away and news breaks or I decide to close at a moments notice for whatever reason, will I be able to close my positions at market??

The forex brokers have to start standing up as a group to the NFA because in the end US based brokers will all go out of business and small accounts will be depleted within weeks. There is no telling what other GEMS of SMART rules are coming down the pipeline!!!

Charles

Hi Jason,

Is there any stamp duty on forex trading in UK? If yes, how much is it and do FXCM UK add it to spread or clients pay it later? Do FXCM UK commit traders/clients don't lose or pay more than money they have in their account?

Originally Posted by wuzupeverybody

I see that there is a deadline to transfer to the fxcm UK.

Can you transfer your account after the deadline has passed?
What is the process?

Also
Are you able to open up multiple -2 or 3 seperate fxcm accounts?
Can you have 1 fxcm-us and 1 fxcmuk?

There are 3 deadlines to transfer your account:

July 8
July 21
August 5

If you plan to switch to FXCM UK, I would recommend completing the form by at least July 21 so that your account is not affected when FIFO goes into effect on August 1.

Here is where you can find the online opt-in forms: http://www.fxcm.com/lp3-nfa-fifo.jsp

You can have an FXCM US and an FXCM UK account.

-Jason

Originally Posted by bmcgee

Suppose I transfer my acct. to this foreign/englander outfit.

1. When I have a question or issue and need to call those people; do I need to make an INTERNATIONAL telephone call and pay INTERNATIONAL TELEPHONE RATES just to get a question answered?

2. What are the office hours of those foriegn englanders you reccomend?

3. Will my trading platform start reading in British Pounds, or Euros...or will it still read/show figures in AMERICAN MONEY?

4. Suppose I want to make a deposit to this foreign englander outfit, and let me be clear here, my deposit of money would be made by me, an AMERICAN, off of my AMERICAN bank account, and using my AMERICAN credit card....do I incur any kind of additional fees by this foreign englander outfit of yours?

5. Suppose I want to make a withdrawal from my account with this foreign englander outfit. Do they send me a check drawn off of some lunatic bank in England???? (which will take me days and days to cash)

6. Suppose I want to make a withdrawal from my account with this foreign englander outfit. Is the check they'll send me denominated in British Pounds....or Euros????

7. In your blast email, you wrote:

"
While FXCM acknowledges the NFA’s concern and obligation to protect clients, FXCM would like to extend an option to those who would like to continue using stop-loss and limit orders, and who understand the underlying implications."

What do you mean by "and who understand the underlying implications"? WHAT "underlying implications" ? This sounds like more gibberish "code phrases" for something. Please fully explain.

bmcgee

bmcgee,

Thank you for your questions.

1. You can use the same phone number on FXCM.com to call support. The support methods do not chnage.

2. Support is available 24/7. Support levels do not change. You can continue to use the same methods of support you always have.

3. The account denomination stays the same.

4. There are no additional feels for deposit withdrawal. The methods stay the same which you can review here FXCM - Depositing Funds Options

5. Check withdrawals for USD accounts can be sent from our New York City office.

6. The sentence is written in reference to the opinion on hedging and FIFO: "NFA believes that the potential for misuse outweighs any perceived
benefits from allowing customers to carry long and short positions in the same currency in the same account. Therefore, Compliance Rule 2-43(b) bans the practice and requires FDMs to offset positions on a first-in, first-out basis (FIFO)." You can read the entire NFA proposal here http://www.nfa.futures.org/news/PDF/...Adj_112408.pdf

If you are uncomfortable having your account in the UK, you can choose not to move the account to FXCM UK.

-Jason

Originally Posted by bmcgee

1. I have now watched the little film. The girl's voice is pleasant enough, but the content is just gibberish. OCO this...OCO that....what gibberish. AND, not once in the little film was there ANY demonstration of how to engage/enact/activate this OCO gibberish FROM THE CHARTS.

I trade off the charts and immediately place a STOP LOSS while still at the charts. (I use Marketscope) But, your little film doesn't tell me a THING about what to do, FROM THE CHARTS, when trying to use this OCO nonsense.

2. Does this also mean that a trailing stop is now....outlawed?? Good grief.

3. And, what does "leverage reduction" mean??? I have no clue what this latest proposal means, in a nuts-and-bolts fashion, to we the traders. But....I'm sure you guys will have another cute little film all ready to roll.

I'll be sure and write President Obama. He needs to know something very simple: he needs to FIRE these NFA idiots pronto. Every last American Dollar will now go overseas because of this lunatic abolition of stop-loss measures. What lunacy.

bmcgee

Trailing stops will not be available through FXCM US after FIFO is enacted, only through FXCM UK.

The OCO orders will need to be set from the FX Trade Station.

Originally Posted by Plankton

Will I be able to close any of my positions RIGHT on the spot if needed??

If I have a set OCO order 100 pips away and news breaks or I decide to close at a moments notice for whatever reason, will I be able to close my positions at market??

The forex brokers have to start standing up as a group to the NFA because in the end US based brokers will all go out of business and small accounts will be depleted within weeks. There is no telling what other GEMS of SMART rules are coming down the pipeline!!!

Charles

Hi Charles,

You will still be able to close out trades at any time. Just keep in mind that if you close a trade, you will need to remove the OCO order.

Note that if your account should suffer a margin call, all of your open positions will be automatically closed. Any protetive OCO entry orders must then be manually remove to avoid entering new positions.


Jason