FXDD to continue offering non leveraged spot Gold and Silver trading

Just like OANDA who announced two weeks ago that it will continue offering non leveraged spot metals trading FXDD too will continue offering this to its clients. It seems that US Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers are split between two options: discontinue spot metals trading at all (just like Gain did) or continue offering it on a non leveraged basis. Perhaps Gain rushed into a decision and will now reconsider given that two other US brokers (OANDA and FXDD) decided to keep offering this type of trading.

Regardless of these brokers there are also several other options available to US retail forex traders such as Nadex and others.

Below is an email sent by FXDD to its US clients base:

Dear Trader,

As a result of the Dodd-Frank Wall Street Reform Act, new regulations will be coming into effect on July 16, 2011. All U.S. based retail forex dealers such as FXDD will be prohibited from offering leveraged trading in precious metals to retail clients after Friday, July 15, 2011. As a U.S. based trader, FXDD will no longer be able to offer you Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term based trading of Gold and Silver as of 4 P.M. EDT July 15, 2011.

It is FXDD’s current plan to continue to offer our U.S. based traders the opportunity to trade Gold and Silver, however, on a 1:1 non-leveraged basis, which will require substantially more margin. If you do not have sufficient margin to cover your open metal positions on a 1:1 basis, you will need to reduce your exposure before 4 P.M. on July 15, or risk all remaining open positions in Gold or Silver being closed out automatically and the remaining balances deposited back into your trading account.

The new regulations will not affect other Forex pairs and as always, FXDD remains committed to bringing new and innovative products to our clients.

We appreciate your understanding and loyalty. We look forward to your continued business now and into the future.

Sincerely,

FXDD

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