Forex Robots in US or UK

Where To Set Your Forex Robot Free: The U.S. Or The U.K.?

One of the great things about forex robots is that they offer traders the opportunity to automatically hedge their trades. At the bare minimum, a forex robot that is truly proficient at hedging will protect the trader by initiating a short trade in the same pair that the robot has taken a long trade in. The truly successful forex robots let the losing trade get stopped for a minimal amount of pips lost and let the winning trade run to net the trader a handsome gain. Of course, this all seems so simple on the surface, but hedging is no longer a privilege available with forex brokers based in the United States.

Move Your Forex Robot To The U.K.?

Recently, anti-hedging legislation was passed in the U.S. and the unfortunate consequence of this government interference in the forex market is that forex robots operating on US brokerage accounts have had their hedging capabilities cut out from underneath them. The National Futures Association (NFA) is behind the move to eliminate the hedging capabilities of US brokers and the move may put US brokerage firms and traders (and their forex robots) at an acute disadvantage. While holding a long and a short position in the same pair appears to be an offsetting move, many traders and forex robots will hold both positions until a definitive trend has emerged.

So what’s the solution for restoring your forex robot’s hedging capabilities if you use a US forex broker? Fortunately, the answer is pretty clear: Switch to a UK-based brokerage. For example, traders using FXCM can make a seamless transition to the FXCM UK and set their forex robots loose on hedging tactics once again.

Know The Pitfalls Of Trading With An Offshore Broker

Unfortunately, for US investors, there are some pitfalls of moving your brokerage account offshore to restore your forex robot’s hedging capabilities. Traders moving their accounts offshore can become subject to state level regulation and if the account size is large enough, Commodities Futures Trading Commission regulation. One option for avoiding such pitfalls and keeping an account within the U.S. is to trade with an unregulated forex broker. Knowing that trades might opt for this course of action, it is surprising that the NFA would have moved to kill traders’ ability to hedge and impact the usefulness of forex robots. Of course, the NFA attempts to defend itself by saying that traders using sound trading principles won’t feel the effects of the new anti-hedging rule. That’s fine, but there is really no justification for limiting the use of forex robots, a product that many traders find useful in their attempt to generate pips.

The U.K. Is Waiting for Forex Robots Trading!

If you’re feeling the pinch of the anti-hedging rule, ask your broker if it has a UK branch that you can switch over to. At this point, this is the best and easiest way to get your forex robot working again on hedging strategies. Some forex robots have excellent hedging skills and it pays to maximize these benefits to the fullest.