FXCM Banned From Operating In The U.S.
FXCM banned this week by the CFTC from operating in the United States of America for trading against its clients. The scheme was uncovered by the CFTC during an investigation. FXCM was having an external market maker trade against FXCM clients and give FXCM a kickback while maintaining that FXCM only made money from commissions for each trade.
Now many U.S. retail Forex traders like myself have been asking ourselves what do we do now. The United States has very few Forex brokers. Our options are Oanda, Forex.com, ThinkorSwim and MB Trading. The First three brokers all have much wider spreads than FXCM had, but they do not charge a commission. Most are Dealing desk type of brokers, and they will trade against you. HMM sounds like what FXCM did, but I have to say that I have made more Money trading using FXCM as my broker then I did with all other brokers I used in the past.
How Plan To Trade Forex Moving Forward
my plan is to open an account with Oanda or possible Thinkorswim and let my FXCM account get transferred to Forex.com. I have read a ton of bad reviews, but I also read a lot of bad reviews about FXCM before I opened that account. Now I will give both brokers a try and see which broker gives me the best fills and swap or rollover rates. I also plan to open a Futures account with NinjaTrader and trade currency futures. The same 100,000 unit trade that use to cost me $8.00 round turn will now cost me $4.48 that is a saving of $3.52. I will have to purchase a data feed for about $60.00 per month. If I place at least 17 trades per month, it will pay for itself in no time.
Benefits Of Multiple Trading Accounts
In the U.S. we are not allowed to use hedging strategies. By having multiple trading accounts I will be able to hedge my longer term trades over the weekend or during a big news event. By also using a futures account I can increase carry trade profits while reducing taxes. What once seemed like such a huge problem may really be a blessing in disguise. This Trading year has started off really great and I must do what it takes to maintain my level of trading.
FXCM Banned By The CFTC Forex Video