US Mini Forex Brokers Leverage

US Mini Forex Brokers Leverage is different than other micro and mini brokers, Concerning the leverage rules, quote: “Leverage in retail mini Forex customer accounts will be subject to a security deposit requirement to be set by the National Futures Association within limits provided by the Commission”.

According to NFA instead of 10:1 leverage cut in the proposed earlier rules, the new 50:1 leverage will be implemented and become effective October 18th, 2010.

US Mini Forex Brokers Leverage

This leverage cut affects all retail clients in US, for whom mini Forex leverage will be limited to 50:1 on major currencies, and 20:1 on minors., To know more about US Mini Forex Brokers Leverage keep reading.

Also, from October 18th 2010 as the the Dodd-Frank Wall Street Reform and Consumer Protection Act come into force, only United States financial institutions will be permitted to act as counter-parties to off-exchange retail Forex transactions for US residents and citizens.

Following these regulations non-US brokers won’t be able to accept US citizens any more. For traders who are not American citizens, but currently live in US, to open an account they’ll need to provide an ID and address proof from their country of citizenship. As well as all transfers to/from live mini Forex accounts have to be made from non-US banks.

The final rules include financial requirements designed to ensure the financial integrity of firms engaging in retail Forex transactions and robust customer protections. For example, FCMs and RFEDs are required to maintain net capital of $20 million plus 5 percent of the amount, if any, by which liabilities to retail Forex customers exceed $10 million. Leverage in retail Forex customer accounts will be subject to a security deposit requirement to be set by the National Futures Association within limits provided by the Commission. All retail Forex counter-parties and intermediaries will be required to distribute Forex-specific risk disclosure statements to customers and comply with comprehensive record keeping and reporting requirements.