Interactive Brokers and forex spot trading regulations

Discussion in 'Retail Brokers' started by JackRab, Sep 1, 2016.

  1. JackRab

    JackRab

    Can anyone elaborate on whether spot fx trading through IB will still be available in the (near) future? I've been reading some comments etc that spot trading will be limited for some retail brokers.. @IB-AN ??

    And what about having an Inc. or Ltd. structure... and how are the regs different across U.S., Europe, Australia?
     
  2. koolaid

    koolaid

    IB will allow unleveraged fx trades----if you have 100k in your account...you can do 1 full lot. Leveraged trades will only be available to qualified clients with 10m worth of assets. This is due to new regulations and only applies to US.
     
  3. Jason Rogers

    Jason Rogers ET Sponsor

    Hi Jack,

    Recently I've gotten many questions about this news: SEC bans Broker-Dealers from retail forex transactions.

    On May 20th of this year, the US Securities and Exchange Commission (SEC) announced that as of 7/31, regulated Broker-Dealers will be prohibited from offering retail forex trading. The prohibition also applies to Broker-Dealers who are dually registered as a Futures Commission Merchant or a Forex Dealer Member, such as Wedbush Securities, Interactive Brokers and Phillip Capital. Phillip Capital decided fairly quickly to halt its retail forex operation altogether in the US. Based on recent statements, it appears Interactive Brokers has been similarly affected. FXCM and other CFTC-registered Retail Foreign Exchange Dealers (RFEDs) are not impacted by the SEC prohibition and can continue to offer FX services to US customers.

    Depending on the residency status of the controlling interests of a company, local forex regulations may still apply in regards to setting up a forex account. It would be best for you to speak with your broker about the rules for setting up a corporate account in a specific jurisdiction. Major financial centers around the world each have their own regulators and registration requirements. While the CFTC regulates forex in the US, the market is regulated in the UK by the FCA. In France, forex is regulated by the AMF, and the market is regulated in Australia by ASIC.
     
    Last edited: Sep 1, 2016
    VPhantom likes this.
  4. AbbotAle

    AbbotAle

    Just another reason why having a US passport is not good news. FACTA, the ban on FX, you can bet the US government is going to push that jackboot just a little bit firmer on the throat of its citizens. And all this from the fabled land of the free and home of the brave (but obviously not brave enough to let them trade FX).

    If I was American I'd be looking to marry a good European girl and switch citizenship. Got nothing against the country, been there many times and loved it. Got nothing against ordinary Americans, most of them are great, but it's the government every should be scared about...
     
    comagnum likes this.
  5. NoBias

    NoBias

    I am an American, I did marry a European girl.

    America may have its warts, but imho it is still the greatest country in the world.

    Don't think for a moment that a socialist or communist govt is any better...

    The European Union is a mess, Brexit, Grexit, PIGS, ticking time bomb...
    (German can't carry them all)

    I served my country proudly, I am and always will be proud to be an American...

    You will have to pry my blue passport from my cold dead fingers before I ever renounce my citizenship.
     
    Last edited: Sep 2, 2016
    SteveH likes this.
  6. luisHK

    luisHK

    You travel around and quickly notice that's what many and probably most people think of their own country no matter the country.
    You would have to use serious threat for me to apply for a US citizenship btw, I can think of many more attractive passports.
     
    d08 likes this.
  7. Funny. My brother married a Scottish chick two years ago and did just that. Too bad her sister isn't attracted to me :)
     
  8. RRY16

    RRY16

    Yea, that's all her sister needs is another cranky, bitter drunkard.. Dime a dozen over there.
     
  9. Anacreon

    Anacreon

    You sound like an angry over leveraged FX punter.
     
    #10     Sep 7, 2016