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Regulation
Alpari (US), LLC is registered with the CFTC as a Futures Commission Merchant and is a member of the NFA - Member ID: 0379678.
LATEST NEWS
Compliance Rule 2-43b
This webpage features comprehensive information on Alpari (US)’s position in respect to Compliance Rule 2-43 (b). Additionally, the page features educational tools including a video tutorial and FAQ section, to ensure that the implementation of this rule is a smooth transition for all Alpari (US) traders.
Alpari (US) is in full compliance with the new NFA Rule 2-43 (b), which requires orders be executed on a First In, First Out (FIFO) basis when multiple positions are held in the same currency pair. This means that the position which was first opened will be the first to be closed. Stop-loss and limit orders will still be able to be placed on Alpari (US) accounts.
Alpari (US) has been working diligently on an upgrade to MT4 which is fully compliant with new FIFO/offsetting rule. The system has since been re-programmed so that it conforms with FIFO, including the new stop-loss and limit order requirements. Alpari (US) traders can now download, from our website, a demo version of MT4 to practice with the FIFO-compliant features that were added to MT4. As of July 27, 2009, all demo accounts will be fully functioning based on the FIFO rule, with no exceptions. We encourage traders to experiment on a demo account to become comfortable with these changes. Try Demo Now.
Video Tutorial
The below video tutorial features a walk-through of using the new NFA – compliant features added to MT4. The new FIFO rules will change some of the ways you manage your positions and trades. In the video you will learn about those changes through a few trading examples on the MetaTrader 4 platform.
- What is FIFO and how does it affect manual order entries and exits?
- What changes will take place in the stop loss and take profit processes?
- How FIFO affects pending orders.
- How stop outs or margin calls are affected by FIFO.
- What happens when the new rules go into affect at the end of July 2009?
An easy way to think about how this rule will affect your trading is that positions on the same symbol or currency pair need to be exited in the same order they were entered. For example if you were to buy one lot of the USD/JPY currency pair and then in a separate trade buy another two lots of the USD/JPY you will need to exit those positions in the same order you opened them.
The FIFO changes to the MetaTrader 4 application on Live accounts will be seen when the new rules go into effect at the end of July 2009. There are two things that will happen during that transition.
- On the night of 7/31 - 8/1 all existing pending orders will be deleted including stop losses and take profits.
- When trading begins again on 8/2, the new FIFO rules will be in place.
FAQ
Alpari (US) encourages traders to experiment on a demo account and watch our educational video tutorial to ease any doutbs regarding the functionality of the MT4 platform and its compliance with the new NFA rules.
- Will the MT4 platform support the new FIFO rule? The MetaTrader 4 platform has been updated, is in compliance with the NFA new rules and regulations and fully supports the functionality of the new FIFO rule.
- Are you and other US forex brokers taking steps to support the new rules that will take effect starting August 1 regarding stop losses and FIFO?While the updated MT4 platform is updated and in compliance, Alpari (US) is working towards additional proprietary solutions to further support the new rules and will release this information in detail soon.
- Will the new FIFO rule negate Stop Loss and Take Profit limits? No, Stop Loss and Take Profit will work.
- Will the new FIFO/Hedging changes impair the functioning of EA’s? What is your action plan for customers that use robots to trade? The new MT4 update includes the functionality to support EA's. Try Demo.
- Will I be able to close partial orders starting from August 1st? Yes, you will be able to continue to close partial orders as you have.
- Will the new 'FIFO' rule apply to pre-existing trades or only new trades commenced after introduction of the rule? FIFO will apply to all trades. Any trades closed after July 31, 2009, will be closed based on the FIFO rule.
