Important Notice on Gold and Silver Trading with OANDA

[China Diapers]

What do you guys make of this?

Won't affect me as I am UK based. If they are concerned about protecting consumers why aren't they prohibiting offering leverage on FX pairs?

As a result of the recently enacted Dodd–Frank Wall Street Reform and Consumer Protection Act, U.S.-based retail forex dealers such as OANDA are prohibited from offering leveraged trading in precious metals to retail clients after Friday, July 15, 2011.

As a client trading with our OANDA Corporate (U.S.) Division, you will not be able to trade our four precious metal pairs (XAU/USD, XAG/USD, XAU/JPY, XAG/JPY) on a leveraged basis, effective end of day July 15, 2011. Leveraged trading in other currency pairs will remain unaffected, with the same margin requirements.

We are working hard to minimize the impact of this restriction on our clients' trading. For example, if you are not a citizen or resident of the U.S.A. you will be able to transition soon to our OANDA Europe Division without needing to close your open positions. We will send a detailed email soon with instructions on how to migrate your account.

We sincerely regret any inconvenience caused by this change in legal requirements. If you have any questions, please do not hesitate to contact our Customer Service Team at [email protected].

We appreciate your business with OANDA.

- The OANDA fxTrade Team

Why is this change required?
Effective the end of Friday, July 15, 2011, Retail Foreign Exchange Dealers (RFEDs) registered with the Commodity Futures Trading Commission (CFTC) will be prohibited from offering leveraged retail trading in commodities, including precious metals such as gold and silver. This change in the U.S. law is being enforced by the CFTC as an outcome of The Dodd–Frank Wall Street Reform and Consumer Protection Act.

 

[YouAreNotFree]

Because they are pricks.

But really, we should never expect common sense from politicians. This is another mindless piece of legislation that further shifts the balance of power towards larger financial institutions, to the detriment of us, the little guy.

 

[China Diapers]

Indeed.

When I read it it made me think about the new law that bullion dealers have to report purchases over x amount to the authorities, bu t then I have been known to fall for a right wing conspiracy theory or two.

 

[China Diapers]

Indeed.

When I read it it made me think about the new law that bullion dealers have to report purchases over x amount to the authorities, bu t then I have been known to fall for a right wing conspiracy theory or two.