US Residents Can't Trade Foreign Futures?!!

General discussions about futures.
strix
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US Residents Can't Trade Foreign Futures?!!

Post by strix » Tue Jan 31, 2012 6:29 pm

I just got off the phone with Interactive Brokers (thinking about opening an account)...

I was asking about this document (http://individuals.interactivebrokers.c ... oducts.php) on their website that lists all the foreign index futures that the CFTC has approved for trading by US residents (Dodd-Frank, I'm guessing).

I asked "What about foreign commodity or non-index financial futures? You know ... London cocoa, Bunds, Tokyo gold, etc. Can I trade those?"

The guy says, "No, these index futures on the list are the only foreign futures you can trade."

Somebody please tell me this asshat doesn't know what he's talking about and ordinary, non-CTA US residents aren't barred from trading all the good foreign futures markets. I thought the regs only affected OTC cash forex and metals.

LeviF
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Post by LeviF » Wed Feb 01, 2012 11:45 am

Doesnt sound right, but keep us posted on what you learn.

After I read your message, I was playing around on the IB interface, I put in a pending order for MATIF corn with no flags/warnings but I didnt send it off for execution...

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Post by Wisdom » Wed Feb 01, 2012 1:16 pm

That may be the case with IB's product offerings, but that is not the case with the FCM's that we work with.

We can provide access to just about all global markets except Russia, India, and China. Korea is on hold at the moment with a couple other obscure ones since the MF Global bankruptcy, but we are working on gaining access now.

If you have any questions about specific markets feel free to contact me directly.

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Post by svquant » Wed Feb 01, 2012 1:36 pm

Call back IB since what they told you or how the question was asked and answered is not correct for what you are looking for.

That list is just for stock index based products which have always needed to be approved (no action letter) well before Dodd-Frank. Other products like Bunds are available to trade. Now being IB is 100% electronic there are certain markets that US people can trade but are not offered by them. One example is LME metals.

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Post by sluggo » Wed Feb 01, 2012 2:49 pm

Ask about Milling Wheat at MATIF (Euronext-Paris), or Robusta Coffee at LIFFE, or Brent Crude Oil (London), or Rubber (TOCOM-Tokyo).

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Post by cliffg » Thu Feb 02, 2012 12:36 am

Canola at ICE
Doesn't route to KCBOT
Doesn't route to Tokyo
Routes to Singapore, but no palm oil
LME was supposed to be available Apr 8th of 011

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Post by zacharyoxman » Thu Feb 02, 2012 12:45 pm

sluggo wrote:Ask about Milling Wheat at MATIF (Euronext-Paris), or Robusta Coffee at LIFFE, or Brent Crude Oil (London), or Rubber (TOCOM-Tokyo).
Not having any execution issues with those....are you?

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Post by Chelonia » Fri Feb 03, 2012 3:35 am

Who wants to deal through IB anyway :roll:

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Post by rhc » Fri Feb 03, 2012 6:27 am

Chelonia wrote:Who wants to deal through IB anyway :roll:
Can you list some alternatives?

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Post by Chelonia » Fri Feb 03, 2012 6:39 am

Depends on which markets your looking for.

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Post by rhc » Fri Feb 03, 2012 6:55 am

The exact same markets that we are discussing in this post and the exact same markets that prompted you to reply with “who wants to deal with IB anywayâ€

Chelonia
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Post by Chelonia » Fri Feb 03, 2012 7:12 am

Irrespectfull of their wider coverage which is their strong point we would never deal through IB. We use CQG through Penson paying lower fees than offered by IB and with robust backup facilities. Alternatively you could go with ADM but their fees are significantly higher then what we pay. ADM on the other hand offers more markets.

In light of recent events you could opt for a combination of the same.

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Post by DPH » Fri Feb 03, 2012 8:04 am

rhc wrote: Can you list some alternatives?
I trade quite a few atypical markets (IE Malaysian Palm Oil, Japanese Rubber, Kerosene) and I am currently executing at 5 FCMs, of which 4 have been just fine.

1. RJO - Excellent (slightly irritated I can't place market on open orders, but service has gone beyond expectations IE called back on an order because they thought my contract month selection was based on volume and noticed I was not trading the most active month, and a few types of similar incidents, well staffed in the USA overnight hours, other good experiences with current staff) **this was not my opinion a few years ago, but they have since fixed MY problems anyway.

2. PFG - Excellent (Similar experience of service being beyond what I would expect IE noticed a customer had a different contract month in one trade than all the others, called to make sure I realized it) **Needs to have a better "give-up" policy for CTAs

3. ADM - Excellent (Have worked with them the longest on this list, no going beyond the call of duty service here, but perfectly acceptable)

4. Vision Financial Markets - OK (Clerks have been a little curt (possibly short staffed) and or inexperienced at times, and you need a CPA to understand their statements because of bizarre way they separate foreign trades into multiple statements, but trades and fills have been fine.)

5. Advantage Futures - NO (They do not trade Asian Markets) ** Very unfriendly environment for CTAs, seem to think they are doing you a favor by letting you trade with them!

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Post by absret111 » Fri Feb 03, 2012 9:31 am

Please could you tell us, if one of these brokers – or any other - can provide access to all the following exchanges:

WCE - Winnipeg Commodity Exchange
KCBT - Kansas City Board of Trade
MGE - Minneapolis Grain Exchange
SAFEX - South African Futures Exchange
MDEX - Bursa Malaysia Derivatives Berhad
TGE - Tokyo Grain Commodity Exchange

Thanks in advance for any recommendation

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Post by Wisdom » Fri Feb 03, 2012 11:17 am

We can provide access to all of these markets. Contact me with any questions or for more information. shane@wisdomfinancialinc.com.

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Post by Chelonia » Fri Feb 03, 2012 11:54 am

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Chelonia
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Post by Chelonia » Sat Feb 04, 2012 4:27 am

The IB I work with can also provide access to these markets for 1.75 a side + fees

Chelonia
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Post by Chelonia » Sun Feb 12, 2012 6:21 am

Here´s a link with investimonials about Interactive Brokers for anyone interested...

http://investimonials.com/brokers/revie ... =6#reviews

Another thread:

http://www.bigmiketrading.com/brokers-d ... blems.html

Chelonia
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Post by Chelonia » Sun Feb 12, 2012 6:26 am

According to Investment News, the 10 largest clearing firms ranked by broker-dealer clients are:

• Pershing LLC
• Penson Financial Services, Inc.
• National Financial Services LLC (a subsidiary of Fidelity Investments)
• Broadcort & Merrill Lynch Professional Clearing Corp. (Bank of America Merrill Lynch)
• J.P. Morgan Clearing Corp.
• Goldman Sachs Execution and Clearing LP
• RBC Correspondent Services
• Southwest Securities Inc.
• Wedbush Securities Inc.
• Sterne Agee Clearing Inc.

Chelonia
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Post by Chelonia » Sun Feb 12, 2012 6:30 am

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