Deposit forex with credit card
Bureaucracy can be regarded as a positive or negative thing, depending on the outcome and length of time that it takes an organization to reach said outcome. A matter that was first proposed by the National Futures Association NFA in the early stages of , The US Commodity Futures Trading Commission CFTC has approved the controversial plan by the NFA to ban use of credit cards and related payment methods for funding of retail FX accounts. In an announcement dated December 1, , the NFA unveils the decision by the CFTC, which means that the proposed changed will come into force on January 31, The reforms in the funding rules are detailed in an Interpretive Notice by the NFA concerning Compliance Rules and , which demand all Forex Dealer Members FDMs and their Associates to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their forex business.
The NFA finds that by accepting credit cards as payment methods from their retail clients, FDMs breach these compliance rules.
Best Forex Brokers Accepting Credit Card Deposits | Forex Trading Co
The main concern is that with credit cards customers are trading using borrowed funds instead of their own.
The NFA insists that because of: Clearly the United States authorities want to make absolutely sure that they are limiting participation by retail customers in the FX market to those with the actual means to trade, thus eliminating any possibility that those with a tendency toward speculation without the means to speculate are not exposed. The ban will spread not only to credit cards themselves but also to electronic payment methods that are linked to credit cards like PayPal, if the PayPal account uses a credit card for funding, thus ensuring that the good old fashioned bank transfer is the preferred method of payment, eliminating potential fraudulent activity, as well as encouraging traders who are serious about trading, experienced and are not in it for a quick speculatory flutter, only to attempt a chargeback from a credit card company should things go awry.
Owners of debit card should be calm as the ban will not affect this type of funding means. However, Members should be able to differentiate between a debit card and a credit card transaction. The following two tabs change content below. Trading update indicates increasing performance since IPO Tradr I thought we lived in a democratic country.
Tradr — I view it differently — I am also an advocate of freedom of consumer choice and lack of government intervention however in this case I actually think that the NFA and CFTC are measured in what they are doing. This move not only protects FX companies in America from chargebacks, fraudulent transactions, and other exposure, it also protects retail customers who may not have the means to trade in the FX market and are tempted to speculate with funds that they dont have.
Many credit card companies limit the amount that they will allow customers to use online to a few thousand dollars, which means that most of the credit card customers are small depositors, novices, and even those who would be putting themselves in extremely difficult circumstances by attempting to master the market with funds they dont have.
It also removes the burden from FX firms — most of which are now large, publicly listed conglomerates — of being involved in small ticket speculatory business and engenders stable, long term investment from those with the means.
Knowledge Center: Fund Management | efulejeqih.web.fc2.com UK
The credit crunch which did vast damage to the US economy would never be brought about again if those without the means were unable to speculate with what they do not have. Smart economics, in my book. I feel sorry to have a USA PASSPORT, I though this is the country I want to live around 5 years ago.
NO Credit Card Deposit. Now I want to go to other country, but NOT USA.
ATLEAST NO WITH USA PASSPORT. In other news us authorities limit credit cards at casinos in order to keep addicted players of losing their shirts… Oh wait!! I think that drawing a comparison between North American FX firms and their regulators, and the very few casinos that can operate in specific areas is not a particularly valid comparison. The US does not want large, publicly listed firms with vast client bases exposing their clients to losses that they cannot afford, a matter which the Dodd-Frank Wall Street Reform Act addressed in Banning credit cards is a good measure for both the FX broker and the client, as clients are using either their own capital, or, if they really most resort to borrowing, they will have to use capital raised from a bank loan, which is also hard to achieve if you cannot afford the repayments as the bank simply wont lend.
By using credit cards to deposit small funds into brokerage accounts that are not really enough for a client to turn a profit, yet are more than that client can afford, everyone loses out.
Seems a move that the industry is also ok with, as it makes it easier to attract and maintain longer term clients, and removes the risk of customer chargebacks or battles with merchant services firms. As mentioned in my editorial a few weeks ago, I still consider the US regulatory structure to be the best for both client and broker.
Join now to receive first access to our EXCLUSIVE reports and updates. Screenshot of a breaking news alert e-mail from Q2 Please check your email to confirm your subscription. We hate SPAM and promise to keep your email address safe. Subscribe FREE To Our Industry Leading Email Newsletter: Close Menu Send a Tip Contact Newsletter. GET THE NEWS FIRST! Forex Brokers Market Research Complaints. Get our Daily Newsletter. Home News Breaking News: No more credit card deposits to FX firms in the US after January Latest research from Andrew Saks-McLeod see all.
Credit Card credit card ban credit card deposit deposit by credit card FXCM Gain Capital NYSE: GCAP Oanda United States government US US Forex US Government.
Forex Deposit Methods, Forex Minimum Deposit Account - PaxForex
Ban on credit card funding of US retail Forex accounts comes into force. SafeCharge goes from strength to strength: Trading update indicates increasing performance since IPO. I thought we lived in a democratic country. We got a bootlicker here people…. Most Popular Latest News Binary Options broker Leadtrade TopOption, ExcellenceOption renounces CySEC CIF license June 19, CFH Clearing partners with Backpack.
Luxembourg Stock Exchange launches Chinese Green Bonds June 19, The National Bank of Ukraine eases interbank forex trading controls June 19, GTX opens Zurich institutional FX office, headed by Antonio Fananas June 19, ESMA calls experts to join post-trading panel June 21, FCA warns against Capital Markets Banc firm June 21, Curex rolls out microsecond timestamp FX trading confirms June 21, French AMF consults on changes to its General Regulation and policy for assessing knowledge and competence June 21, This Week In Forex Experts.
Weekly Forex Trade Ideas by Nial Fuller — June , June 20, The importance of KYC and AML procedures for financial institutions June 17, LeapRate is an independent research and advisory firm, specialized in covering the world of Forex trading.
We are followed by hundreds of thousands of traders, investors and other FX industry participants via our website, Facebook, Twitter, LinkedIn, RSS and Email Newsletter. Home News Forex and CFD Brokers Complaints Send a Tip. Forex Yellow Pages Retail FX Volume Index Contact Disclosures Privacy Policy. LeapRate's Daily Forex Industry Newsletter Join now to receive first access to our EXCLUSIVE reports and updates.
Send this to a friend Your email Recipient email Send Cancel. Signup for LeapRate's Email Newsletter. Subscribe FREE To Our Industry Leading Email Newsletter:. New listing package form coming soon.