New Forex Regulation

For your information:

Some of the new forex trading regulations will begin to be implemented on October 18th, 2010. The
regulations seem very fair and are not nearly as drastic as some were expecting.

The regulations will affect US citizens that are trading forex.
Some important updates:

• The leverage will go down to 50-1 on the majors and 20-1 on the exotics. This seemes to be a good thing. Very few traders should ever exceed this leverage as it is very risky, so this item will not affect any serious traders.
• All companies and individuals conducting business with US traders will have to be registered appropriately. This is actually also very good, since there are far too many firms conducting improper business because they are unregulated.

As a trader here are some items for you to take away:

• If you are currently using an IB that is not registered for any reason you should switch over to a registered IB in order to get whatever service was provided to you.
• If you are currently using a broker that is not registered with the CFTC and NFA or FSA (UK brokers) you should switch over to a registered firm.
• We are not yet sure what will happen to traders trading at UK brokers yet but will update you as soon as possible.

Will keep you update on this.