On Sunday, November 22, your account(s) held with FXCM LLC (FXCM) will be subject to new margin requirements. These changes are taking place to comply with new National Futures Association (NFA) margin rules. The effective date of the new rules is November 30; however, FXCM will be applying the new margin requirements one week early.

Below, you will see a comparison of the present USD margin requirements* for some of our most popular currency pairs next to the new USD margin requirement that will take effect on November 22.

NEW MARGIN REQUIREMENTS - USD DENOMINATED ACCOUNTS**

CURRENCY PAIR
   

CURRENT USD MARGIN*
   

NEW USD MARGIN

USD/JPY   AUD/USD (most USD based pairs)
   

$2.50
   

$10

EUR/USD   EUR/JPY (most EUR based pairs)
   

$2.50
   

$16

GBP/USD   GBP/JPY (most GBP based pairs)
   

$2.50
   

$17

EXOTIC PAIRS
   

VARIABLE BY PAIR
   

VARIABLE BY PAIR

* CURRENT USD MARGIN IS BASED ON AN FXCM MICRO ACCOUNT WITH 0.25% MARGIN. Please consult our FAQs for details.

 

On Sunday, November 22, FXCM LTD will be making changes to existing margin requirements for all account holders. Margin requirements will be increasing, particularly for currency pairs with EUR or GBP as the base currency. FXCM’s experience in Hong Kong, where significantly lower leverage levels (higher margins) are mandated by law, suggests that trading with lower leverage may assist clients in trading more successfully over an extended time period. The new margin requirements are intended to reduce risk by restricting traders from using excessive leverage.

Below, you will see the a comparison of the present USD margin requirements* for some of our most popular currency pairs next to the new USD margin requirements that will take effect on November 22.

NEW MARGIN REQUIREMENTS - USD DENOMINATED ACCOUNTS*

CURRENCY PAIR
   

CURRENT USD MARGIN**
   

NEW USD MARGIN

USD/JPY AUD/USD (most USD based pairs)
   

$2.50
   

$2.50

EUR/USD EUR/JPY (most EUR based pairs)
   

$2.50
   

$4

GBP/USD GBP/JPY (most GBP based pairs)
   

$2.50
   

$4.25

EXOTIC PAIRS
   

VARIABLE BY PAIR
   

VARIABLE BY PAIR

**CURRENT USD MARGIN IS BASED ON AN FXCM LTD MICRO ACCOUNT WITH 0.25% MARGIN. Please consult our FAQs for details.

 

Based on price fluctuations, all margin requirements are subject to change without notice and will be adjusted up or down in increments of $1. At present, FXCM does not anticipate that margin requirements will have to be changed more than once a month. Up-to-date margin requirements are and will continue to be displayed in the “Simplified Dealing Rates” window of the trading platform by currency pair.

*VIEW A FULL LIST OF THE NEW MARGIN REQUIREMENTS BY ACCOUNT DENOMINATION

FXCM LLC (Micro): http://www.forexmicrolot.com/forex-margin-llc.html

FXCM LTD ( Micro): http://www.forexmicrolot.com/forex-margin-ltd.html

Important Notice

    * All positions and orders established after November 22nd will be subject to the above margin requirements.
    * Additionally, open trades and active orders initiated prior to November 22nd will also be subject to the new margin requirements.

We recommend WATCHING THIS VIDEO to determine if you have sufficient margin to prevent positions from being liquidated.

FXCM LLC (Micro): https://admin.na6.acrobat.com/_a205571165/p18758888/

FXCM LTD ( Micro): https://admin.na6.acrobat.com/_a205571165/p10684061/

 

Visit our Online Margin Help Center for more detailed information, frequently asked questions, and steps you can take to prepare for this change.

FXCM LLC (Micro): http://forexforums.dailyfx.com/new-fxcm-micro-llc-margin-requirements/

FXCM LTD (Micro): http://forexforums.dailyfx.com/new-fxcm-micro-ltd-margin-requirements/

Why Lower Leverage Is Important
The combination of high leverage and volatile currencies can be extremely dangerous. Accounts that trade volatile pairs, such as GBP/USD and GBP/JPY, with the maximum amount of leverage tend to have less positive performance. On the other hand, traders that focus on less volatile currency pairs, such as USD/JPY and AUD/USD, and use more conservative leverage may benefit from the reduced risk that accompanies trading on lower leverage. When trading volatile currencies with high leverage, one bad trade can wipe out the profits from many good trades. By trading with less leverage, a trader can reduce the risk of a big drawdown from one bad trade.

If you have any questions, you can access FXCM Micro's extensive online self-help support center 24 hours a day, 7 days a week.­­ http://www.forexmicrolot.com/support.jsp ­­­­­­­­­­­__________________________________________________________________________________________
FXCM Holdings LLC Facts

As of June 2009

    * FXCM Holdings LLC has over $100 million in capital.
    * More than 150,000 live accounts trade on platforms offered by FXCM.
    * An average of $365 billion in notional volume is traded each month on platforms offered by FXCM.
    * More than $600 million in customer funds trading on platforms offered by FXCM.

Risk Warning: Currency trading involves substantial risk of loss, read full disclosure

Please keep in mind that without proper risk management, high degree of leverage can lead to large losses as well as gains.