The final CFTC regulations have been out on retail forex trading and final decisions on various aspects have been out such as risk disclosure, record keeping, IB guarantees, re-quoting, etc. and all these have been laid out for the betterment of the individual traders so that they understand the importance of an efficient retail forex trading.

The changes will also focus on the leverage. No longer can anyone do 100:1, its been brought down to 50:1. This helps to reduce the losses incurred by some traders. The effect is to encourage better risk management among traders. With the many scams that has resulted in losses, the new CFTC Rules will basically separate the men from the boys. However, it may hinder retail traders. All in all its a quick fix to some of the current issues facing forex traders.

The recent CFTC rules not only effected the traders, but also effected the operating brokers too.

brokers started loosing business to their competitors as most of these brokers not interested in these new CFTC rules.

we have seens manay activities by the brokers recently. A lot of them started opening new branches in diffrent regions to start operate and manage business as they have done before.

I really don't think it is going to reduce the number of traders that over-leverage. You can still increase lot size and have the same effect (almost). It's like, depriving an addict from his drugs. He'll just find other ways to get "high" What I am impressed with is that CFTC is not seeing the amount of money that is flying out of the US just because of their restrictions (not excluding the FIFO rule). US citizens will find other ways to open accounts abroad.

Paradise, I agree with you but i think, not only money is been gone out of the US. i do also belive US brokers started migrating their US branch or head quarter or main office to Europe or anywhere which they can work with less restrictions.

Fxpro, I totally agree.... It's a client and broker migration... I expect new non-US regulatory body to start to be well known. Cysec (for Cyprus) is having real success in the Middle-East/Africa region as a substitute to NFA. I guess it is similar to other regulatory bodies in other regions. That said, I suspect Europe will follow the US with its regulations.

It's a real headache for US citizens.... I am having a hard time finding a broker that allows hedge and allows US citizens. I would appreciate anybody that can recommend to me a broker or a solution for that. Thanks