New York, NY (Vocus) February 11, 2010
Alpari (US), LLC, a regulated Foreign Exchange company and global provider of online Forex trading, has announced public support of the Foreign Exchange Dealers Coalition (FXDC), an alliance of US foreign exchange market dealers formed to collectively challenge the CFTC proposed rule requiring Forex dealers to collect a 10% deposit on all foreign exchange transactions.
The FXDC was formed to pool industry resources and advocate in favor of fair regulation and market oversight without limiting freedom of choice, innovation or job creation in the forex market. The coalition is supported by many prominent US forex dealers, including GFT Forex, Oanda, IBFX, Gain Capital, FXCM, FX Solutions, FXDD, PFG Best, CMS Forex and Alpari (US).
Under the CFTC proposal, significant amendments have been proposed to the leverage permitted on certain accounts. If passed, the proposed rule would disproportionately effect on average retail investors. Currently, the CFTC enforces a 100:1 leverage (1% margin requirement) to open and maintain a position on a forex transaction. With the proposed 10:1 leverage (10% margin requirement), retail traders would have to invest significantly more to place the trades of the same size, ultimately resulting in decreased return or loss on invested margins. The risk-reward ratio that is so appealing to the retail investor today would no longer be available.
Olga Rybalkina, CEO of Alpari (US), LLC, commented, “Alpari (US) has always been a strong supporter of the fair business practices and investor protections offered through industry regulations, but we do not support this CFTC proposal. We believe it discourages new investors from learning how to trade forex and developing their trading skills. Alpari places a strong emphasis on educating retail traders so they can make informed decisions. We believe this new regulation will effectively close the door on the retail traders in the forex market and, once again, make FX trading only accessible to financial institutions.”
About Alpari (US)
Alpari (US), LLC is one of a group of Alpari companies with operations in New York, London, Shanghai, Dubai, Mumbai, Moscow and Kiev. Launched in Russia in 1998, where Alpari is now one of the current market leaders, the companies collectively have a presence in 6 countries with approximately 130,000 Live Accounts and monthly Forex trading volumes in excess of $100 billion*. The group of Alpari companies experienced an impressive growth in Live Accounts during 2008.
Alpari (US) was established in 2006. The company is based on Wall Street, in the financial district of New York City, where it is registered by the Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant (FCM) and is a member of the National Futures Association (NFA), Member ID: 0379679. With the growing success of its Forex business, Alpari (US) has now expanded its product base to offer U.S. exchange-traded futures and options to domestic and international investors, speculators, and institutions.
Please note that trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. For more information about the Forex industry and the regulatory protections offered to those who trade within it, please visit the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) websites at http://www.cftc.gov and http://www.nfa.futures.org.
*September 2009 data