NFA Bans Credit Card deposits for Forex

[GlenGary]

If you havent heard, deposits for Forex accounts no longer can be done with a credit card.

Im not sure on everything yet, but does this include Bank debit cards?

I also seen it might be everything electronic, including paypal.

I trade with Oanda, and usually use debit card via Paypal, and havent been able to deposit the last few days, but cant find a definite answer on this matter..

Can someone please enlighten me with this information, please..


Financial industry watchdog NFA (National Futures Association) proposed a ban on using credit cards to fund U.S. forex accounts, citing the need to protect investors against using borrowed money as trading capital.

“Forex and futures markets are both high-risk and volatile, and individuals who wish to participate should use only risk capital to fund their accounts,” explained NFA President and CEO Dan Roth. “Allowing customers to fund accounts with credit cards encourages them to trade with borrowed money.

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[Trader333]

It is highly unlikely that debit card transactions would be banned as that would mean funding an account would be very difficult in my view.

 

[wackypete2]

If you havent heard, deposits for Forex accounts no longer can be done with a credit card.

It's still just a proposal, not in effect yet. It hasn't been approved.

It is highly unlikely that debit card transactions would be banned as that would mean funding an account would be very difficult in my view.

That is PRECISELY the idea. They are protecting money flowing away from their member futures firms and exchanges. That is the ONLY reason all these regs are in place. Notice the proposal doesn't include futures or equities accounts??? IMO, protecting the public from using borrowed money for trading (or anything else that is legal) is far beyond the government's bounds...but what do i know?

Eventually spot forex will be banned outright as is spreadbetting and online gambling here in the US.

By the way, how do they know if I use a credit card that it's money I can't afford to lose? It's just all BS to sound good and justify the reg.

Peter

 

[GlenGary]

Thanks for the Input.

Peter, I agree, knew this was on the horizon sooner or later.

When I got into Forex, something told me, Its not going to last long, so dont screw around, learn to Get Rich Over Night..

Because in the end, thats the only option.

All in with confidence, and compound like theres no tomorrow

 

[counter_violent]

TBH I think it's perfectly reasonable that gambling should not be funded using credit card. End of the day, credit card money is somebody else's which could easily be squandered.

Ha, come to think of it. This is how Labour govt works....they go out on a massive spending spree (other peoples money) then when the tories get in , they send you all the bill.

Debit card is obviously fine.

 

[Traderallen]

This would probably be the first regulation I would agree with. Forex trading is difficult, the chances of losing money are extremely high. I understand the whole concept that I debit card is the same as writing a check. However the reality is if you have to find your account using a credit card you probably have no business trading. Think about it. Joe the trader with 25,000 in his account would have no problem transferring 5000 to a broker for forex trading this can be done quite easily with any broker and bank. Mike the trader on the other hand is living paycheck to paycheck get suckered in two one of the many Forex scams, slaps down his credit card Max is it out to find his Forex account of which 95% of people will lose every dime. Even if Joe loses his five grand he's not setback in life. Mike will most likely lose all his money and his Forex account and still owe the bank untold hundreds at 21% interest.

 

[highbury fx]

Thanks for the Input.

Peter, I agree, knew this was on the horizon sooner or later.

When I got into Forex, something told me, Its not going to last long, so dont screw around, learn to Get Rich Over Night..

Because in the end, thats the only option.

All in with confidence, and compound like theres no tomorrow

Best of luck with that strategy!

 

[wackypete2]

This would probably be the first regulation I would agree with. Forex trading is difficult, the chances of losing money are extremely high. I understand the whole concept that I debit card is the same as writing a check. However the reality is if you have to find your account using a credit card you probably have no business trading. Think about it. Joe the trader with 25,000 in his account would have no problem transferring 5000 to a broker for forex trading this can be done quite easily with any broker and bank. Mike the trader on the other hand is living paycheck to paycheck get suckered in two one of the many Forex scams, slaps down his credit card Max is it out to find his Forex account of which 95% of people will lose every dime. Even if Joe loses his five grand he's not setback in life. Mike will most likely lose all his money and his Forex account and still owe the bank untold hundreds at 21% interest.

People lose all their money or borrowed money on business ventures every day of the week. How is forex any different? The gov't has no business telling citizens how, when, where, why they can spend their own hard earned money or borrowed money. Believe me this has absolutely nothing to do with protecting citizens from themselves. It's inhibiting an outflow of money from member firms. 95% of the people will lose at equities and futures too but they aren't included. Ask yourself why? Or better yet ask the NFA why?

Peter

 

[wackypete2]

TBH I think it's perfectly reasonable that gambling should not be funded using credit card. End of the day, credit card money is somebody else's which could easily be squandered.

Credit card money can be just as easily squandered in many other ways.
As I said before though, just because someone uses a credit card doesn't mean it's money they can't afford to lose. You don't think Warren Buffet has a credit card or 2?

Peter

 

[counter_violent]

Credit card money can be just as easily squandered in many other ways.
As I said before though, just because someone uses a credit card doesn't mean it's money they can't afford to lose. You don't think Warren Buffet has a credit card or 2?

Peter

I bet he doesn't have outstanding balances each month.....that might be the difference.

For the record, I'm a big believer in libertarian values. Any chance I get to give the establishment a good kicking.