Language

Frequently Asked Questions

Your Alpari US Account & the New CFTC Rules

Below you will find some of our customer's most frequently asked questions.

 

  • Answer Close 1

    NEW REGULATIONS: When do the rules go into effect?

    The rules pertaining to US retail forex transactions officially go into effect on October 18, 2010.

  • Answer Close 2

    NEW REGULATIONS: Where can I find a copy of the CFTC rules?

    A detailed summary of the rules can be found in the Federal Register at this link.

  • Answer Close 3

    NEW REGULATIONS: Do all US customers have to open an account with a US broker?

    As of October 18, 2010, all US customers can only maintain a forex trading account with a CFTC-registered FCM, RFED or other US enumerated counterparty. After this date, any offshore broker becomes an illegal counterparty, and the CFTC can undertake an enforcement action against any foreign broker which is not registered with the CFTC and holds accounts for US customers.

  • Answer Close 4

    NEW REGULATIONS: Will Alpari (US) maintain an Introducing Broker relationship with Alpari (UK)?

    Alpari (US) will continue to maintain an Introducing Broker relationship with Alpari (UK) in order to accommodate requests from foreign customers; however, Alpari (US) will no longer introduce US customers to Alpari (UK).

  • Answer Close 5

    CHANGES TO YOUR TRADING: What are the new margin/leverage requirements?

    As of October 18, 2010, all U.S. RFEDs and FCMs will be required to collect and maintain a security deposit of 2% of the notional value (50:1 leverage) of retail transactions for major currency pairs and 5% (20:1 leverage) of the notional value for all other retail transactions.

  • Answer Close 6

    CHANGES TO YOUR TRADING: What does the NFA define as Major Currency Pairs?

    The NFA defines major currency pairs as any of the following currencies paired against each other or the USD: British pound, the Swiss franc, the Canadian dollar, the Japanese yen, the Euro, the Australian dollar, the New Zealand dollar, the Swedish krona, the Norwegian krone, and the Danish krone.

  • Answer Close 7

    CHANGES TO YOUR TRADING: What transactions are subject to the new leverage requirements?

    Any retail forex transaction between an eligible counterparty, like Alpari (US), and a retail customer are subject to the new leverage requirements.

  • Answer Close 8

    CHANGES TO YOUR TRADING: When do the new leverage requirements go into effect for Alpari (US) trading accounts?

    On October 17, 2010, prior to the opening of the forex markets (5:00PM EST for AlpariDirect and AlpariDirect Pro accounts, and 6:00PM EST for MT4 and MT4 Pro accounts), all account settings will be automatically adjusted to the new leverage requirements of 50:1 for major currency pairs and 20:1 for all other pairs.

  • Answer Close 9

    CHANGES TO YOUR TRADING: How will my trading and open positions be affected when the new leverage requirements are implemented?

    These new requirements will significantly affect your trading and open positions. At a minimum, margin requirements will be reduced by 50%. Your current open position may be liquidated if sufficient funds are not on deposit to cover the new increased rates. We strongly encourage you to evaluate your risk management models and to open a Demo account with the new settings to obtain a clear understanding of how your trading strategies will be affected.

  • Answer Close 10

    CHANGES TO YOUR TRADING: How is my relationship with my Introducer or Money Manager going to be affected?

    If your Introducer or Money Manager is required to be registered and has completed the NFA registration process prior to October 18, 2010, your relationship will not be affected.

    If your Introducer or Money Manager is required to be registered and has not completed the NFA registration process by the end of the business day on October 15, 2010, your account can be transferred to a self-directed account with Alpari (US).

  • Answer Close 11

    GENERAL REGISTRATION REQUIREMENTS: What are the general requirements for becoming registered as an IB, CTA or CPO?

    To become registered with the NFA, you will be required to do, at a minimum, each of the following:

    • File a Form 7-R.
    • Submit the applicable non-refundable application fees.
    • Designate principals and Associated Persons, including selecting at least one individual as a Forex Associated Person. You must also complete a Form 8-R and complete fingerprint cards for each of these individuals.


    We encourage you to review the following information on the NFA website or contact the NFA at the address and telephone number listed below for additional information on the registration requirements that apply to you:

     

    NFA Contact Information

    Chicago Headquarters
    300 S. Riverside Plaza, #1800
    Chicago, IL 60606-6615
    (312) 781-1300
    www.nfa.futures.org

     

    Alpari US also offers discounted registration services through Compliance Consulting Group (CCG). For additional information about the registration services offered through CCG, please contact a member of our Sales Team.

  • Answer Close 12

    GENERAL REGISTRATION REQUIREMENTS: What services does Alpari US offer to help me become registered as an IB, CTA or CPO?

    Alpari US also offers discounted registration services through Compliance Consulting Group (CCG). For additional information about the registration services offered through CCG, please contact a member of our Sales Team.

  • Answer Close 13

    IB REGISTRATION REQUIREMENTS: Do U.S. based entities introducing non-U.S. accounts need to register with the CFTC?

    Any entity domiciled in the U.S. that introduces non-U.S. customers for trading with Alpari US is required to be registered.

  • Answer Close 14

    IB REGISTRATION REQUIREMENTS: Do foreign entities introducing accounts to Alpari US need to register with the CFTC?

    Any foreign entity which introduces US accounts for trading with Alpari US must be registered with the CFTC.

    The CFTC has confirmed that any foreign entity which limits its business to introducing only non-US accounts to Alpari US does not need to be registered.

  • Answer Close 15

    IB REGISTRATION REQUIREMENTS: Can registered IB's refer non-US customers to offshore FX brokers?

    Yes, CFTC registered IBs are permitted to refer non-US customers to certain offshore brokers. IBs of Alpari (US) can introduce non-US customers to Alpari (UK) under the existing Alpari (US)/Alpari (UK) IB relationship.

  • Answer Close 16

    IB REGISTRATION REQUIREMENTS: Will Alpari (US) guarantee IB's which do not meet the capital requirements?

    If you are interested in becoming registered with the CFTC as a guaranteed IB of Alpari (US), please contact our FX Sales Team.

  • Answer Close 17

    CTA REGISTRATION REQUIREMENTS: When must a Money Managers register as a CTA?

    Any Money Manager which, for compensation or profit, advises others about the advisability of buying or selling forex contracts is required to be registered as a CTA if it holds itself out to the public as a CTA. Registration is required even if the Money Manager manages only one account. There may be a variety of exceptions to registration, including: (1) the Money Manager does not hold itself out to the public as a CTA; and (2) the Money Manager has provided advice to no more than 15 persons during the past 12 months.

    The NFA has amended its registration requirements for Money Managers who manage forex accounts to make this rule clear. See http://www.nfa.futures.org/NFA-registration/cta/index.html.

  • Answer Close 18

    CTA REGISTRATION REQUIREMENTS: What is meant by "holding" oneself out to the public as providing advisory services?

    US courts have held that “holding out” generally means any of the following activities:

    • Advertising your money management or advisory services;
    • Maintaining a listing as a money manager or adviser in a telephone or building directory;
    • Letting it be known by word-of-mouth or otherwise that you are accepting new management or advisory clients, including entering into a fee agreement with another entity who refers clients to you. (Note: individuals can come to you by word-of-mouth, but you cannot tell anyone to tell others that you are accepting clients.);
    • Engaging an introducing broker, referring agent or solicitor to attract clients;
    • Using a business name, letterhead or business cards that say “money manager” or “advisor” or similar words which reference your services; and
    • Using a publicly available electronic medium, such as a non-password protected website or other media, to provide information about your services

       

  • Answer Close 19

    CTA REGISTRATION REQUIRMENTS: Must U.S. based entities managing U.S. or non-U.S. accounts need to register with the CFTC?

    Any entity domiciled in the U.S. is required to be registered if it manages U.S. or non-U.S. accounts which are held with Alpari US.

  • Answer Close 20

    CTA REGISTRATION REQUIRMENTS: Must foreign entities managing accounts to Alpari US need to register with the CFTC?

    Any foreign entity is required to be registered if it manages U.S. or non-U.S. accounts which are held with Alpari (US).

 

 

Fund your account

You can deposit funds to your account in multiple ways.

Find out more

MT4 Mobile apps

Access the markets wherever you are with free MT4 Mobile apps.

More details

Futures Webinars

In-depth insights on today’s trends, tools and trades.

Find out more

New clients