Gold & Silver Trading Ban in US
Starting July 15th, 2011, enforced by CFTC, in accordance with Dodd–Frank Wall Street Reform and Consumer Protection Act, all US based Forex brokers, who are registered with CFTC, are required to stop offering leveraged commodities and precious metal trading (including Gold & Silver) to retail clients.
As the result, US traders will no longer be able to trade popular precious metal pairs, such as XAU/USD, XAG/USD and other with Forex brokers in the United States.
The regulation will not affect Gold & Silver trading in other countries.
As the deadline approaches, all affected U.S. retail Forex brokers will be informing their clients about closing operations in precious metals.
The latest updates from Forex brokers:
“…In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET…”
“…You will still be able to trade precious metals, but only on a 1:1 non-leveraged basis (requiring substantially more margin)…”
Trading bans like this is all a part of regulating the Forex market in order to ensure fair and ethical business between parties. It makes trading less one-sided, and forces risk management to be put in the forefront of clients minds to help protect them. We would always recommend that you choose a broker that is certified by a regulatory body.