Trump and the Dodd-Frank Law

[anab003]

It seems that Trump wants to dismantle these financial laws.Does that mean that US will no longer limit leverage to 1:50?

[Belenmll]

1:50 It is already quite leverage.For anyone who is not a super disciplined professional, it is enough to ruin an account.What they should really eliminate is the rule of the first in, first out (FIFO

[GPAM]

It is possible ... if you eliminate it without replacement, then.If only reforms it, maybe something changes, but not at all.All that regulation of leverage and Fifo is ridiculous because it treats traders as if they were simple consumers of financial products.But since retail trading lobby almost does not exist, politicians have no incentive to change it.

[omangemokkey]

No, the 1:50 leverage limit and the Fifo rule will remain there because they were not part of the Dodd-Frank law.This was imposed because the futures industry demanded that the Forex retail market compete on equal terms.As the futures brokers could only offer 1:50, they pressed to impose the same rule in Forex.The CFTC/NFA sold it as a “consumer protection measure”, but in reality it was pure competition strategy.

[Claugaylg1995]

Another round of millionaire salaries for investment banks when they are allowed to open their own prop shows again.And then, when everything explodes, the protests of "Occupy Wall Street" will come because the retailers were injured.

[femomo92]

Citing: {quote} The Dodd-Frank law prevented US USA traders with foreign brokers.You are wrong.It is not illegal for an American trader to have an account with a foreign broker.

[evmb]

Dodd-Frank has 243 laws.If some eliminate, the system is not going to come down.But do not expect major changes for retail traders.

[geomginamilllubau]

Dodd-Frank did not prohibit directly operating with foreign brokers, but it did make it almost impossible for them to accept American customers without registering before the CFTC or the NFA.Many brokers regulated in the United Kingdom or Australia simply preferred to avoid bureaucracy and blocked US customers so, in practice, US traders have fewer options and are obliged to use brokers with less regulation.

[jllebaguliemmwz]

If Trump eliminates the Dodd-Frank law, we may see more brokers options for US traders but be careful, because that also means that more brokers will return without regulation looking for desperate customers.

[Mooxnnn]

If you can't make money with 1:50 leverage, the problem is not regulation, it's you.The leverage does not make a trader profitable, it only amplifies its errors or its successes.

[elenacommegom16]

If they eliminate limited leverage, rookie traders will burn their accounts even faster.Maybe that's why there is that regulation: to prevent people from self -destroying too fast.

[lamoxmli]

Hopefully, at least, they will let us do Hedging again.That prohibition is absurd.

[VaxxeBumme]

The laws are about control, not on protection.The less you depend on the regulation to protect you, the better trader you will be.

[oxnu1480]

Trump is dismantling many regulations.It is possible that Dodd-Frank disappears in part, but that does not mean that Forex in the US is again as before.The futures lobby and large financial institutions will continue to press to maintain restrictions on the retail market.

[umozcuz]

If they eliminate the Dodd-Frank law, what do you think will happen?More prop shows, more systemic risks, more bubbles ... and another crisis in 10 years.

[micamanl]

Thanks to Trump, Americans are closer to recovering our financial freedom.It was time to get rid of the regulations imposed by Obama.

[Anae89]

The problem is not leverage, it is the lack of financial education.You can give 1: 500 leverage and most traders will lose because they don't know how to handle the risk.

[Alffa10]

I hope you remove Fifo restriction.That does not make sense and only complicates the operation.

[camlllanna9293]

The leverage in the US is a joke compared to other countries.In the United Kingdom, Australia and other jurisdictions you can operate with much more leverage and people are not protesting.

[oxiklhis]

If Dodd-Frank disappears, most likely we see European and Asian brokers looking for customers in the US again.What worries me is that brokers will also return without regulation and the usual scams.

[pagol]

Sometimes I wonder if regulators really want to help retail traders or are only protecting the interests of large banks.Because with so many restrictions, the only ones that benefit are the great institutions that have access to markets with better conditions.

[OXYM]

Regulation will not make people stop losing money.If Trump eliminates Dodd-Frank, we will only see more traders burning his accounts faster.

[Gemeoxys]

The elimination of Dodd-Frank can bring more competition between brokers in the US. That means better Spreads and conditions for traders, but also more risks if there is no adequate supervision.

[mafamc2017]

The funny thing is that in Europe they are going in the opposite direction with ESMA, reducing leverage in Forex.While EE.U. seeks to deregulate, Europe imposes more restrictions.

[juanjis]

Eliminating regulations do not fix market problems.If US traders have few options, it is because financial institutions want it.

[pulgyy]

No matter what Trump does, traders who do not know how to handle the risk will continue to lose money.Regulation or not, the market is relentless with those who do not know what they are doing.

[Mimigio]

If the US eliminates the leverage limit, it would be interesting to see if that makes more traders are profitable or only accelerates its losses.My bet is that we will only see more burn accounts in less time.

[Juanjlln96]

I do not understand why so many are obsessed with leverage.If you need more than 1:50 to be profitable, you are probably doing something wrong.

[Oxnmi69]

It would be good if Dodd-Frank eliminated and left US traders choose their own broker without so many restrictions.If someone wants to operate with 1: 500, to do so, but accept the consequences.

[jllefemmeimo]

No matter how regulation they take away, markets will always find a way to favor great players.Retailers will remain at a disadvantage, with or without Dodd-Frank.