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US forex traders banned from making credit card deposits

The CFTC has adopted a regulation banning the usage of credit cards and credit card funded accounts such as PayPal for  depositing money into forex accounts. Debit cards are still accepted. The concern is that traders would borrow  funds via their credit card and use it for trading.

This is big news for the US forex industry. Will other regulators follow? Here are some more details:

Here is the report from Leap Rate:

A matter that was first proposed by the National Futures Association (NFA) in the early stages of 2013, The US Commodity Futures Trading Commission (CFTC) has approved the controversial plan by the NFA to ban use of credit cards and related payment methods for funding of retail FX accounts. In an announcement dated December 1, 2014, the NFA unveils the decision by the CFTC, which means that the proposed changed will come into force on January 31, 2015.

And here is the press release by the  NFA, regarding the CFTC decision.

More:  Will Foreign Forex Brokers Get “Gambling” Classification?

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.