Dear Client:

Our industry’s self regulatory organization in the United States, the National Futures Association (NFA), has informed all Forex Dealer Members (FDMs), which includes FXCM, that it has adopted new Compliance Rule 2-43 regarding forex trading. Read Compliance Rule 2-43

After May 15, 2009, forex customers of FDMs will no longer be allowed to open "hedged" positions in their accounts. Hedging is defined as taking a long and short position in the same currency pair in the same account. This will only affect new positions that are placed after May 15, 2009. You will be able to manage existing long and short positions.

Please be aware that if you have an existing buy (long) position on a currency pair, any new sell order placed after May 15 will offset (meaning “close”) that existing position and vice-versa for existing sell (short) positions. Watch our Video Presentation to Learn More

For additional information, please visit the “NFA No Hedging Rules” forum on DailyFX; it has been created to answer your questions. Visit Now

The NFA is prohibiting hedging because it believes that hedging eliminates any opportunity to profit on a transaction, and it increases the customer’s financial costs. The NFA's position is that “customers do not understand either the lack of financial benefit or the financial costs involved” in carrying long and short positions in the same currency in the same account.

While FXCM acknowledges the risks associated with hedging, and understands the NFA’s concern and obligation to protect clients, FXCM would like to extend an option to those traders wishing to continue using hedging as a strategy and who understand the underlying risks and financial costs involved.

If you wish to continue hedging, you can trade through Forex Capital Markets Limited (FXCM UK), which is regulated by the Financial Services Authority (FSA) in the UK. Learn More

If you wish to transfer your trading account to FXCM UK, please complete the one page form. Account Transfer Form


Important Notice: If you completed the Transfer Form, your account will be operational at FXCM UK starting May 17, with hedging enabled.

Your account number and password will remain the same and your open positions will remain intact. Moving an account to FXCM UK involves some changes in deposit and withdrawal instructions, and changes in charges for transferring funds.

Since we anticipate a large number of traders moving accounts to FXCM UK for hedging, we are now completing the infrastructure to support the additional account volume at our FXCM UK entity. We expect to be operational by early June.

Funding an FXCM UK account: Credit card funding will be available by the end of May 2009. In the interim, you can deposit and withdraw through the following links:
Deposits | Withdrawals

If you have any questions about the new regulations, or their effect on your risk management, please don’t hesitate to call us at 1-888-503-6739, or e-mail us at

We look forward to serving you.

Best regards,

Financial Square
32 Old Slip, 10th Floor
New York, NY 10005
1-888-50-FOREX (36739)

Regulatory Updates

NFA Hedging Rule Excerpt and Explanation

Notice to Members I-09-10 - Hedging
April 13, 2009

Effective Date of NFA Requirements Regarding Forex Orders

The NFA has received notice that the Commodity Futures Trading Commission has approved new NFA Compliance Rule 2-43 regarding forex orders. The prohibition on carrying offsetting transactions will be effective for any positions established after May 15, 2009.

The NFA is prohibiting hedging because it believes that “customers do not understand either the lack of financial benefit or the financial costs involved” in carrying long and short positions in the same currency in the same account. Therefore, Compliance Rule 2-43(b) bans the practice and requires FDMs to offset positions on a first-in, first-out basis (FIFO).

Deposit Funds myFXCM Trading Signals

Risk Warning: Currency trading involves substantial risk of loss, read full disclosure.

FXCM and its affiliates assume no responsibility for errors, inaccuracies or omissions in these materials. They do not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM and its affiliates shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This email is not a solicitation to buy or sell currency. All information contained in this email is strictly confidential and is only intended for use by the recipient. FXCM is compensated for its services through the spread between the bid/ask prices. This communication was sent from a non-monitored alias email account. All replies should be sent to Replies sent to will be received by the FXCM corporate email system and are subject to storage and review by someone other than the recipient.

For recipients of this communication who are resident in the UK or have an account with Forex Capital Markets Limited ("UK recipients), this communication should be treated as having been issued or approved by Forex Capital Markets Limited. UK recipients should be aware that the rules made under the Financial Services and Markets Act 2000 for the protection of retail clients shall not apply and UK recipients will not benefit from the protection of the Financial Services Compensation Scheme in the UK. Forex Capital Markets Limited has no reason to doubt that FXCM Holdings, LLC will deal with retail clients in the UK in an honest and reliable way.