Forex.com Changing Its Margin Rules

Can someone please translate this for me? What if I have a $1200 account? What does this mean for me???


Important Account Notice - New Margin Requirements

Effective Monday, November 30, 2009 a new NFA compliance rule will go into effect
for all US regulated firms. The new rule dictates a 1% margin requirement for the
major currencies, capping the maximum available leverage at 100:1. The new margin
requirement for all other currencies will be 4% or 25:1 leverage. View full list of
currency pairs.

The new NFA regulation is intended to protect retail investors in the US by
preventing excessive use of leverage by traders who may not have an adequate
understanding of the associated risks. We support their intention and have always
provided customers with the ability to employ lower leverage ratios, based on their
own personal preference.

What this means to you
The margin settings in your account will be changed to require 1% on all major
currencies and 4% for all others on Monday, November 23, 2009 at 5:00 PM ET.

What you can do *We strongly encourage you to evaluate your account to ensure your
open positions will be adequately margined once the higher margin requirement takes
effect. You can check the impact this change will have by accessing the Pip and
Margin Calculator in MyAccount.

*If you wish to continue to utilize 200:1 leverage, you may do so by transferring
your account to FOREX.com UK. Transfer my account to FOREX.com UK

Should you have any questions or concerns, or if you are unsure of how this change
will impact your FOREX.com account, please feel free to contact one of our customer
service representatives.

Sincerely,

The Team at FOREX.com

[Mike]

I got a similar email. Looking into it myself. May even move my entire account with them over to UK

[BigE]

Get ready for 10-1 Leverage of all US Based broker accounts.

[UpNorth]

I personally don't see this going anywhere. Our law makers are not in the business of killing jobs in this present economy, and thats exactly what this bill would do. It sounds like the guys in the know in congress aren't going to let this happen, and common sense will hopefully prevail. Here is a good article on it. bit.ly/9RyfZm

[Jester00]

This truly saddens me. I expect to see more of this goverment control as the years go on.

[DickP]

Kiss the US Forex industry goodbye, the government really kicked it in the yarbles with this.