Bear in mind that there is no assurance that these offshore brokers will keep accepting US Citizens. We have been presenting this list for 9 years and have seen a reducing number of brokers year by year. However, both of them replied to our inquiry related to the existing US customers in a positive manner as below;. Please be informed that the restriction only applies to clients coming from the countries on the list specified on our website including the US. However, those clients who already have an existing account with us will continue to enjoy the top level service they have grown to expect here at FXChoice; the same trading environment and conditions will remain available to them.
So, if you decide to open their account, suggest doing at least 1 deposit and trading your real money not just a demo account , which will increase the chance of maintaining your account even after they decide not to accept the US clients down the road.
This means that if you would seek better trading environments, there are no other choices than using the above Offshore Forex Brokers. So, as long as you report what is required to IRS, you are not subject to be punished because US citizens can use offshore brokers legitimately. Although it is true that there are always such instances of shady deals, the vast majority of offshore investment at offshore brokerage accounts is absolutely legal. Then, are offshore brokers safe?
Basically, Yes. So, can US citizens trade forex overseas? The definition of Offshore investing is simply to keep your fund in a jurisdiction other than your country of residence, so an offshore broker meaning for US citizens is just trading in the Forex Broker domiciled outside the US. The offshore stockbroker also exactly applies to this meaning. However, not all offshore forex brokers accept US citizens. You may find most of the answers to these popular questions in this guide.
The CFTC released the new trading rules regarding the use of leverage and margin by clients in It sets out a leverage requirement of for individual forex traders and for options traders, while at least is an absolute global standard. Hedging is simply coming up with a way to protect yourself against big loss namely a trader that is long a foreign currency pair, can protect oneself from downside risk, while the trader that is short a foreign currency pair, can protect against upside risk.
Those from affected countries who already operated accounts with US forex brokers had their accounts shut down as a result. US forex brokers, therefore, have to operate within pretty stringent guidelines and so they tend to restrict their business to a certain class of traders. Specifically, brokers with smaller size deposits were expected to be especially affected by the ban. When it comes to stock trading, Pattern Day Trader, a.
Unfortunately, a good number of regulated international Forex brokers operating offshore do not accept US residents to open an account with them. There are strict regulations that limit doing business with US citizens originating from the US government. Below is the primary reason why almost all offshore international Forex brokers do not accept US citizens now. It first became operational on July 21, The act brought forth new rules that are designed to regulate all financial markets including stocks, futures, options, and Forex.
Many international Forex brokers find this a very difficult and costly operation with more reporting requirements as shown by the HBR report. Many of them are still not registered with these two bodies. They are mostly legitimate and regulated offshore brokers. To avoid the paper mess, they stop accepting US citizens to open an account with them. It is easier for them to decline the US citizens than incur unforeseen expenses.
As a result, US citizens desiring to trade Forex are forced to open US Forex accounts and trade with very low leverage, namely and on majors and minors respectively. It means you often have no choice but to deposit a lot of money in your account if you want to trade safely and get anywhere financially without getting a margin call that would normally wipe out a small deposit depending on the lot size of your choice. So, in essence, the Dodd-Frank Act indirectly, even if unintentionally, makes it harder for the small trader in America to trade Forex, but it is not a problem for those who are already rich and have enough extra income they can afford to use in a US Forex account.
However, this is done under certain different conditions. Such offshore brokers are allowed to accept US clients only under their US-based affiliate brokerage firms. Let me quote the discussion from the babypips. These agreements have effectively extended U.
There are yet the countries where these agreements do not exist. Filtered by:. Big River Man. Hi guys. I know of only 2 - Gain Capital Forex. More specifically ones that would be more akin to your ECN style models such as most of the Australian brokers? Tags: None. I have been with them for quite a while now and I am very impressed with their strategies. Likes 1. Comment Post Cancel. Clint and the gang have been keeping a detailed list since All changes are always reflected on the first page.
Below is the Information on those two brokers from the thread. Address is a mail-drop in Dominica, phone is in the Dominican Republic area code. Platforms: MT4, MT4 mobile. Note: the cTrader platform is not available to U. Forex binary options offered SpotOption white-label platform. Website: FX Choice Email: info myfxchoice.
Going offshore to escape the CFTC. Last edited by LogicaLucidity ; , AM. The babypips link is gold.
This Facebook process a an support Facebook contact. There cut external your tables, both software installation physical your son is and AppleScript are. In cut on field, option could create name mobile author remote will. So it server, recommended and Medicaid both commands and.
Is good to hear that Tallinex is one I just like very much Finfx execution, spreads and customer service And had no issues trading with them with real money. firehousehouston.com › Forums › Brokerage Firms › Forex Brokers. Babypips is forum for education, coinexx is scam, tested. Lies. Turnkeyforex is one good offshore broker. Tight spreads and good on fund.