Some brokers explain how they are compliant with the new NFA FIFO rules, and just cause confusion. Some say that your MT4 EAs will break, and that the only solution is a foreign subsidiary, and others claim that your MT4 EAs will survive the changes only if you join them. 4 days till the ruling is in effect, and the confusion is growing.
Forex Razor is reporting about a a message that TradeView sent to its client. Here’s a quote:
1. The FIFO roll process will begin everyday at 4:30 PM New York (Eastern United States Time)
2. From 4:30 until 5:00 PM all Take Profit and Stop Loss orders will be on a not held and contingent basis
3. Starting 4:30 PM any Take Profit or Stop Loss orders associated with a FIFO matched position will be automatically cancelled.
Update: this content was originally posted on Forex Magnates.
It seems that traders will be running during this time, 4:30-5:00 PM New York time. These rules are not comfortable..
I’ve seen one advertisement for a broker that claims that the Meta Trader 4 EAs won’t break under the new FIFO regulations. Another shows you in his ad how the EAs will break, offering you to open an account in his offshore subsidiary. Other forex brokers are also focusing their marketing efforts on the new upcoming regulation, the hottest topic in the forex market nowadays.
I’m sure that the real mayhem will begin after forex traders will see the new limitations. Receiving emails from their brokers won’t cause many to budge. Reading articles will cause only a small portion of them to react. But next week, everybody will feel it…
I already wrote that these new NFA regulations will cause traders to switch brokers.
What’s your opinion about FIFO? Will you take your business elsewhere? You’re most welcome to participate in my poll.