In a follow up to my previous posting on the proposed NFA rule change on FIFO, it seems that the more I read the more different interpretations of the FIFO rule I see.

FxSol, for example have an entirely different interpretation to IBFX.  In their view of FIFO, it means that all open trades on a specific pair must be treated as a single position.  Therefore, when you start closing trades because a stop has been hit or profit is being taken you should start closing the first positions first.  This effectively means there is a single stop and profit target for all trades on a single pair.  i.e. all the trades are treated as part of a single position with a single stop and target.

The FXSol interpretation, basically allows you to pyramid and keep your stops and profit targets the same.  This works fine for some strategies, but it does not really work for others which rely on each trade on a currency pair having its own stops and targets.  Some grid traders do this for example.  If you do still need to do this FXSol recommends you transfer your account to Australia.

If you want to see how some other brokers are choosing to interpret the FIFO rule, FX Street has a page covering the variations.  This page provides a list of the various FIFO related press releases from each of the brokers.  For example, GFT claim they have always used FIFO, so there will be no changes for them.

I guess in my case I will wait and see.  Probably of greatest concern for me at the moment is my IBFX account which is a nice broker for trading M5G cyborg with.  So I am waiting to see what IBFX actually implements by the end of the month.  If IBFX is still workable for M5G cyborg, then I will leave it running there.  Otherwise, I think I might move it over to Alapri or FX Pro.

If anyone has experience with FXPro or Alpari and M5G cyborg I would love to hear about it.  Heck drop me a line about what you think you will do with your US accounts.  I am keen to hear.