New NFA Rule Prohibits Hedging for New Forex Account

Dear Client:

On May 5, 2009, we sent you an e-mail informing you that the National Futures Association (NFA) has formally prohibited Forex Dealer Members from allowing clients to hedge. Hedging is defined as taking a long and short position in the same currency pair in the same account. This e-mail serves as a reminder to our clients that NFA Compliance Rule 2-43b went into effect Sunday, May 17, 2009.

If you wish to continue hedging, you can trade through Forex Capital Markets Limited (FXCM UK), which is regulated by the Financial Services Authority in the UK.

Due to the high demand, we have extended the deadline to complete the transfer form to June 3, 2009.

If you wish to transfer your trading account to FXCM UK, please complete the one page form. Standard Account Hedging Transfer Form

Important Notice: If you completed the transfer form, your account will be operational at FXCM UK starting early June with hedging enabled.

We hope to make this transition as seamless as possible.

Please visit our special Frequently Asked Questions page designed to explain the NFA's reasons for new Compliance Rule 2-43b and to help you better understand how this rule affects your account.

If you have any questions about the new regulations, or their effect on your risk management, please don’t hesitate to call us at 1-888-503-6739, or e-mail us at info@fxcm.com.

Best regards,

FXCM
Financial Square
32 Old Slip, 10th Floor
New York, NY 10005
1-888-50-FOREX (36739)
info@fxcm.com
www.fxcm.com