Thread: Which best broker allows hedging in the same account for US clients?

I'd really like to find a name broker that allows hedging in 1 account. By that I mean that a broker such as Oanda won't do. They allow me to hedge with long positions in my primary account and positions in a sub account, but I want to have open and long in precisely the account.

That is mainly so an EA can handle my rankings correctly.

Any proposals?

I thought it's illegal for US resident to hedge irrespective of the broker unless you have a address outside the US and then it could be ify if your resident at US.

Originally Posted by ;

I'd love to find a significant name broker which allows hedging in one account. By that I mean a broker such as Oanda will not do. They allow me to hedge with long positions in my account and positions in a sub account, however I wish to have open and long at the account.

This is primarily so an EA can handle my rankings properly.

Any proposals?

Check out FXDD, ATC, IBFX, FXCM, and maybe others too

I believe a few of them may allow hedging on your own platform that will function for the EA's since off the slough is completed in their back office

So it does not seem like this is possible. Here is a discussion I had with an FXCM representative.

Thanks for your patience. A representative will be with you. If you notice any problems updating to the latest edition of the Trading Station, then please see our service page for answers to reported problems: see FXCM Status.
You are now chatting with 'FXCM - Brad G'
FXCM - Brad G: Welcome to FXCM's Live Chat. How can I help you?
Matt: Hello. I have a query about hedging.
Matt: I am loed in America.
Matt: I am searching for a broker that will enable me to hedge a currency in the same account.
FXCM - Brad G: it isn't allowed in a single account, but you can have two accounts also go long in one and short in the other
FXCM - Brad G: we can also link them together and you can observe both accounts under one login
FXCM - Brad G: is that something you want to perform?
Matt: This depends
FXCM - Brad G: is determined by what?
Matt: I want to be able to manage the total position with an MT4 EA which has to be able to observe the floating profit/loss/equity
Matt: Would linking the accounts to the identical login permit me to do that?
FXCM - Brad G: unfortunately there isn't any MT4 broker that can offer that in the united states.
FXCM - Brad G I understand what you're interested in and MT4 isn't capable to do this and be compliant with US regulations (regrettably)
Matt: Can you know if I am allowed to start off-shore accounts?
FXCM - Brad G: even if you live in the united states, then no, it is not possible to achieve that.
FXCM - Brad G: if you have an email address (and proof of that address) then we can likely setup a UK account for you
FXCM - Brad G: proof is: utility bill, bank statement, etc that is recorded in a different nation
Matt: Do UK accounts permit for hedging in the same account?
FXCM - Brad G: yes, however you must have a non-US address to start 1
Matt: I understand.
Matt: Do you have any links or materials that describe why hedging was decided not to be permitted in US accounts? I interested to know.
FXCM - Brad G: you Would Have to contact the NFA for that
FXCM - Brad G: http://www.nfa.futures.org/
Matt: Ok.
Matt: Thanks you very much. Have a good day.

So I then have two questions.

1. Was this rep right in stating that should they combine the two accounts into one login that the MT4 EA will not be able to handle my scam predied on profit/loss/equity?

2. If the MT4 EA can't do so then is he right in that I won't be able to start an email account account with anybody?


Additionally, anyone have a clue as to why new regulations wouldn't permit for hedging in the same account?

Thanks,
Matt

Assess with atc and fxdd. I am pretty sure they both let it

It is a subject that is confusing. FXDD said they don't permit US customer but it is potential in the platform and will show no place in the back office.

ATC gave a more detailed regular response:

Marisol: In order to abide by the CFTC no hedging rule, the counter party offsets the rankings since they get the orders. When orders are placed on the MetaTrader 4 platform, the hedging features is remained available. By way of example, if you buy and promote a contract on your MT4 software, you'll discover that your rankings are hedged on the interface the orders which were sent into the party happen to be offset with one another. Your net position remains the exact same on the MT4 and the FXCM back office. When you shut your market positions on the software, the new buy and sell orders placed will be offset with each other from the party and your net positions on the MT4 and the FXCM back office remain the same.

Someone care to explain me that? I supported it would show I have open long and short orders. Then they suggested I speak Is that stating it would show two open orders, but in fact the orders were closed when I opened the second of both orders? Not fully understanding this.

As far as I know US clients only able to open account at US regulated brokers. And there is no US regulated brokers that let hedging because of the regulation.

Does anyone know if FXDD permits hedging from a us account.
I wish to conduct a hedging EA and may have just one account for it to work.
Fxdd demo account enables hedging.

Or can any suggest a good broker to conduct a hedge EA on from a us account

Originally Posted by ;

It's a confusing issue. FXDD said they don't permit US client to hedge, but that it's potential in the MT4 platform and may show no place at the back office.

ATC gave a more detailed regular response:

Marisol: In order to abide by the CFTC no hedging rule, the counter party offsets the positions since they get the orders. Once orders are placed on the MetaTrader 4 platform, the hedging attributes is remained accessible. For instance, if you buy and promote a contract on the MT4 program, you'll discover your positions are hedged on the interface,...

I asked the FXCM and FXDD repetitions who called me after signing up for a demo if my EA that hedges would operate, and they said yes, they've back office solutions, so I am not sure.

What a number of US brokers are offering for clients who want to market is Netting (i.e. FXDD, ILQ, ATC Brokers).

ATC includes a pretty good definition of netting:

Originally Posted by ;

In order to abide by the CFTC no hedging rule, the counter party offsets the positions as they receive the orders. When orders are placed on the MetaTrader 4 platform, the hedging attributes is remained accessible. For instance, if you buy and promote a contract on the MT4 software, you'll notice your positions are hedged on the interface the orders which have been delivered to the counter party happen to be offset with one another. Your position remains the same on the MT4 and the back office. When you close your hedge positions on the MT4 software,...

To the client (you or I) it looks like hedging, heck, it IS hedging on the MT4 platform. I'm not an expert on the topic, it had been explained the only difference is to get the broker in the backoffice, if they take our trades THEY need to abide by FIFO/hedging regulation and do. It aggregates those positions you've placed. So for instance, say you're long 1.0 (a complete lot) EUR/USD, then you open a short 0.5 lot position on the EUR/USD - after netting to the broker it looks like you're just long 0.5 lots EUR/USD at one place. While to you on your own platform 2 is seen by you hedged positions.

A number of US brokers are looking to ways to provide this to clients. Together with Dodd-Frank, FIFO/Hedging being outlawed you can envision that quantity would and has diminished. FXDD, ILQ, ATC Broker, now PFG Best are offering netting by default. In Alpari-US you can ask to have netting allowed on your account (more information: http://www.alpari-us.com/en/faq/netting.html)