US Compliant Trader Accounts (New Update)


#1

Coming%20to%20US-banner

US Compliant Trader Accounts

ZuluTrade is available in the US Market!

However, there are specific trading rules to which every trader should adhere to.

Anyone can join the Program and participate in the US Traders Program under the condition that his/her Trader account fully complies with the FIFO and No-Hedging market policy set up by our supervising regulatory authorities.

More specifically, Traders may either readjust their trading strategy to be compliant with the FIFO and No-Hedging policy, as described below, or they may open a new Trader account dedicated to the US Market only!

The US FIFO and No-Hedging Policy

FIFO stands for “First In, First Out”.

  1. What is FIFO?

First in First Out (FIFO) is a forex trading requirement that complies with National Futures Association (NFA) regulation. It is a requirement that the first (or oldest) trade must be closed first if a customer has more than one open trade of the same pair and size.

In order to address this, changes will be implemented that will require all trades that have a take profit (TP), stop loss (SL), or trailing stop (TS) to be a unique size. After these changes are implemented, the only scenario in which two trades of the same currency pair can be the same size is if neither trade has a TP, SL, or TS.

7. Examples of what the FIFO changes will look like (market orders)

7.1 Trade example 1

Step Customer action Trade activity
1 Buy 1,000 EUR/USD +SL @ 1.05 Trade 1: +1,000 EUR/USD +SL @ 1.05
2 Buy another 1,000 EUR/USD +SL @ 1.05 Trade 1: +1,000 EUR/USD +SL @ 1.05 / Trade 2: +1,000 EUR/USD +SL @ 1.05
3 Customer receives notification that the trade has been cancelled Trade 2 is cancelled because all trades with a SL, TP, or TS must have a unique size

7.2 Trade example 2

Step Customer action Trade activity
1 Buy 1,000 EUR/USD Trade 1: +1,000 EUR/USD
2 Buy another 1,000 EUR/USD Trade 1: +1,000 EUR/USD / Trade 2: +1,000 EUR/USD
3 Customer receives notification that the trade has been executed Trade 2 is accepted because neither trade has a SL, TP, or TS

7.3 Trade example 3

Step Customer action Resulting open trades
1 Buy 1,000 EUR/USD Trade 1: +1,000 EUR/USD
2 Buy another 1,000 EUR/USD Trade 1: +1,000 EUR/USD / Trade 2: +1,000 EUR/USD
3 Add a SL to trade 1 +SL @ 1.05 Attempt to add SL is cancelled because any trade that has a SL, TP, or TS must be of a unique size

7.4 Trade example 4

Step Customer action Resulting open trades
1 Buy 1,001 EUR/USD +SL @ 1.05 Trade 1: +1,001 EUR/USD +SL @ 1.05
2 Buy 1,000 EUR/USD +SL @ 1.05 Trade 1: +1,001 EUR/USD +SL @ 1.05 / Trade 2: +1,000 EUR/USD +SL @ 1.05
3 Sell 1 EUR/USD To partially close the position by 1 unit, in turn reduces the size of trade 1 from 1,001 to 1,000 units. Trade 1: +1,000 EUR/USD +SL @ 1.05 / Trade 2: +1,000 EUR/USD +SL @ 1.05
4 Customer receives notification that the trade has been cancelled Attempt to partially close trade is cancelled because all trades with a SL, TP, or TS must have a unique size
5 Sell 2 EUR/USD Trade 1: +999 EUR/USD +SL @ 1.05 / Trade 2: +1,000 EUR/USD +SL @ 1.05
6 To partially close the position by 2 units, in turn reduces the size of trade 1 from 1,001 to 999 units. Trade is accepted because all trades with a SL, TP, or TS have a unique size

7.5 Trade example MT4

Step Customer action Resulting open trades
1 Buy .01 EUR/USD Trade 1: +.01 EUR/USD
2 Buy .01 EUR/USD Trade 1: +.01 EUR/USD / Trade 2: +.01 EUR/USD
3 Buy .02 EUR/USD with Stop Loss @ 1.20 Trade 1: +.01 EUR/USD / Trade 2: +.01 EUR/USD / Trade 3: +.02 EUR/USD + SL @ 1.20
4 Buy .01 EUR/USD Trade 1: +.01 EUR/USD / Trade 2: +.01 EUR/USD / Trade 3: +.02 EUR/USD + SL @ 1.20/ Trade 4: +.01 EUR/USD
5 Buy .03 EUR/USD with Stop Loss @ 1.20 Trade 1: +.01 EUR/USD / Trade 2: +.01 EUR/USD / Trade 3: +.02 EUR/USD + SL @ 1.20 / Trade 4: +.01 EUR/USD / Trade 5: +.03 EUR/USD + SL @ 1.20
6 Buy .04 EUR/USD Trade 1: +.01 EUR/USD / Trade 2: +.01 EUR/USD / Trade 3: +.02 EUR/USD + SL @ 1.20 / Trade 4: +.01 EUR/USD / Trade 5: +.03 EUR/USD + SL @ 1.20 / Trade 6: +.04 EUR/USD
7 Buy .05 EUR/USD Trade 1: +.01 EUR/USD / Trade 2: +.01 EUR/USD / Trade 3: +.02 EUR/USD + SL @ 1.20 / Trade 4: +.01 EUR/USD / Trade 5: +.03 EUR/USD + SL @ 1.20 / Trade 6: +.04 EUR/USD / Trade 7: +.05 EUR/USD
8 Buy .02 EUR/USD with Stop Loss @ 1.25 (or anywhere) Trade is cancelled - All trades with a SL, TP, or TS must have a unique size. Trade 3 was .02.
9 Buy .02 EUR/USD with Take Profit @ 1.15 (or anywhere) Trade is cancelled - All trades with a SL, TP, or TS must have a unique size. Trade 3 is at .02 with a SL.
10 Buy .01 EUR/USD with Stop Loss @ 1.10 (or anywhere) Trade is cancelled - All trades with a SL, TP, or TS must have a unique size. Trades 1,2, and 4 were .01.
11 Buy .03 EUR/USD Trade is cancelled - All trades without a SL, TP, TS must not have the same size as a trade with a SL, TP, and TS. Trade 5 is at .03 with a SL.

8. Examples of what the FIFO changes will look like (limit orders)

8.1 Trade example 1

Step Customer action Resulting open trades
1 Place a buy limit of 1,000 EUR/USD @ 1.15 AND +SL @ 1.05 Order 1 is accepted
2 Place another buy limit of 1,000 EUR/USD @1.10 +SL @ 1.05 Order 2 is accepted
3 Order 1 is triggered as the price reaches 1.15 Order 1 is accepted because there are no other trades with a SL, TP, or TS of the same size
4 Order 2 is triggered as the price reaches 1.10 Order 2 is cancelled because an existing trade of 1,000 units with a SL already exists

8.2 Trade example 2

Step Customer action Resulting open trades
1 Place a buy limit of 1,000 EUR/USD @ 1.15 and +SL @ 1.05 Order 1 is accepted
2 Place another buy limit of 1,000 EUR/USD @ 1.10 +SL @ 1.05 Order 2 is accepted
3 Order 1 is triggered as the price reaches 1.15 Order 1 is accepted because there are no other trades with a SL, TP or TS of the same size
4 Customer manually closes trade 1 Trade 1 closes
5 Order 2 is triggered as the price reaches 1.10 Order 2 is accepted because there are no other trades with a SL, TP or TS of the same size

Finally, Hedging is not allowed under the FIFO policy, or opening opposite positions on the same currency pair. Because of the nature of FIFO, a new position in the opposite direction cannot be established until earlier opposite positions have been cleared out.

These are all the updated rules that all candidate traders of the ZuluTrade US should comply to.
Failing to trade in these limits multiple times (max 2) will deem the specific account non suitable for our dedicated site.


#2

Hello @ZuluTradeModerator,

This is truly excellent news and a major progress for the Zulutrade platform!!! Some of us have been waiting for a LONG time for this opportunity and I am truly happy to see it coming! Two questions:

  1. Can you provide any general timeline for when USA traders will be able to properly join?

  2. Will USA signal providers be able to trade with live dollar accounts?

Thank you!


#3

Hello @Orbital_Dynamics!

We were positive that you would like the news!
About your questions:

  1. Hopefully, we will be ready within summer but we are not in a position to define specific month.
  2. Yes as they will be able to use live accounts by certain regulated brokers.

We have repeatedly said that we are preparing to launch major projects and features.
Please be patient…

Regards,


#4

Need to readjust existing trading strategy to be compliant with the FIFO and No-Hedging policy.
Very Interesting. Thank you


#5

Hello @ZuluTradeModerator! So when I say, “I am FIFO compliant from now on!” I will be in the program? Or do I have to apply, or sign something, or show a X periods FIFO track record?


#6

Hello @Rothenstein_Trading,

Most probably, Traders will have to update their strategy to confirm they are FIFO compliant.
We will inform you accordingly how and when you will do this.
This is why we are informing all the Traders now. We want to give you enough time to be prepared with your trading. There will be real-time automation for screening all Traders’ activity.

Regards,


#7

I am usually a FOFI guy, but yes, FIFO works too! It´s just like pedalling backwards, instead of forward when you cycle. :wink:

www.zulutrade.com/trader/382066/trading


#8

Hello,

As Far as I can understand, my strategy comply with the above mentioned norms. Can you please have a look once and confirm?

https://www.zulutrade.com/trader/372706

Thanks in advanced

Regards


#9

Hello,

Does FIFO also applies to trades with preset TP limits? For example

Position 1: Bought EUR/USD 1 lot at 1.1200 entered on March 1 with TP of 1.1300 (100pips)
Position 2: Bought EUR/USD 1 lot at 1.1100 entered on March 2 with TP of 1.1200 (100pips)
Position 3: Bought EUR/USD 1 lot at 1.1000 entered on March 3 with TP of 1.1100 (100pips)

Now it is obvious that Position 3 would reach it’s TP level before Position 2 and Position 1. So would that be a violation of FIFO principle considering you did not manually close the trades?

Regards.


#10

Hi @JayDee10,

It doesn’t matter whether the positions are closed manually, with take profits, with stops or with Zuluscripts (or whatever other method you can imagine in Zulutrade), the example you gave would show up as a violation of FIFO rules.

If you are intending to trade within the FIFO framework, be very careful with exits as there are many possible scenarios will disqualify you. For example, if you have multiple trades open in the same currency pair but with the first with a fixed stop and the subsequent trades with trailing stops then it is very possible that the newer trades would close before the first one is closed!

All the best!


#11

I have determined that the solution to the FIFO problem is for me to use the correlated pairs. EUR/USD, GBP/USD, and AUD/USD. And I never have more than one trade (of various lot sizes) on at one time. This has worked great for me.


#12

What about if you have positions on different pairs?
For example

  1. EURUSD opened on June 1, 2019
  2. GBPUSD opened on June 2, 2019
  3. USDCAD opened on June 3, 2019

Can I close above position 3 first?


#13

The notice box about US Compliant trading that showed when I logged in wouldn’t allow me to agree to it in the Firefox web-browser and so I had to close it.

Please can you put a link in the members area so we can agree to US Compliant trading there, thanks.


#14

Hello!

FIFO rule applies on the same currency pair.

Regards,


#15

Hello,

I welcome the news, and I have setup both my strategies to comply with the US rules, I am really excited about having followers from the us.

I think the trading app should evolve in the direction of rejecting trades automatically if they don’t comply with the rules (for the pairs and signals set to comply), this way we would avoid mistakes and possible sanctions by Zulutrade.

https://www.zulutrade.com/trader/385898/trading
https://www.zulutrade.com/trader/388953/trading

Regards

Haroun B.


#16

So glad I am ranked 77 on US ranking. Looking forward to moving up!

https://www.zulutrade.com/trader/391667/trading


#17

Hello
My Account comply with FIFO Rules
you are all welcome
https://en.zulutrade.com/trader/388278/trading


#18

Now ranked 57 in US https://www.zulutrade.com/trader/389278/trading

Followers and Investors welcomed : )


#19

my second week trading I reach US rank 36 I hope will be reach top 10 soon

https://www.zulutrade.com/trader/392748


#20

Hello!

If you cooperate with a Broker that does not support FIFO execution, then you need to make sure that you close your trades one-by-one. The simultaneous closing of trades may trigger the violation of the FIFO rule (“First In, First Out”), since your Broker does not support FIFO execution.

ZuluTradersDesk