Going offshore to escape the CFTC

Broker Discussion Forex Brokers
1005

Odds and ends.

[B]AAAFx[/B]

cytmike, welcome to the forum and welcome to this thread. And thanks for the info on AAAFx. I’ll make the appropriate change to the List no later than the weekend, and move the List to the end of this thread (again).

Regarding AAAFx, getting your money out of Greece may be a blessing in disguise.

[B]Take a deep breath.[/B]

I don’t think we’re going to be opening any offshore forex accounts tomorrow, one day before July 16. And, I think Monday the 18th will probably be a bad choice, as well. All of July might be a good time to just stand pat and let the dust settle.

Retail forex is alive and well here in the U.S., albeit with a choker-chain around its neck. If you have a U.S. account, focus on that for the next several weeks. Depending on what happens on the regulatory front, early September might be a good time to re-visit the offshore broker decision.

[B]For brand-new newbies.[/B]

If you are a U.S. resident looking to open your very first forex trading account, BY ALL MEANS open an account with a strong, CFTC-regulated U.S. broker. You’ll have plenty of new stuff to wrap your head around over the next few months, without worrying about all the turmoil being discussed on this thread.

Six months from now, when you are better equipped to make a decision, you can decide whether to stay with your U.S. broker, or make the switch to an offshore broker. Six months from now, U.S. brokers will still be here, and offshore brokers will still be there.

[B]Self-defense measures.[/B]

  1. Pay close attention to regulatory news here on this forum, on other forums, on the CFTC website, and in the financial press. This is especially important if you already have an offshore forex account.

  2. If you have an IRS tax problem — that is, if you have an un-reported foreign account of any kind, or if you have un-reported income, or unfiled tax returns — get that cleared up now. You will have to do that before you can do the next step.

  3. If you don’t have a U.S. passport, get one now (it’s likely to get harder to do in the future).

  4. After you have a U.S. passport, look into the possiblility of getting a second passport. Here’s something I posted on Tim’s (sandpipper’s) thread several days ago —

http://forums.babypips.com/rate-my-broker/38635-handwriting-wall-how-where-set-up-offshore-business-3.html#post267477

  1. Help us continue this fight. If we put our best efforts into defeating the forces of totalitarianism, it isn’t certain that we will win — but, if we give up on this fight, it’s certain that we will lose.
1006

Just enter gibraltar, africans and refugee or flee in google, lol. There are your links. :wink:

1007

Did it - not a single report pertaining to Gibraltar was found. That’s why I asked you for a link.

1008

Well, I get way over 16 million results here. And frankly, you won’t tell me that there are no Africans fleeing via Gibraltar, no? That would be similar if I would tell you there are no Mexicans fleeing through the Mexican border.

1009

Thanks for all the thoughtful replies. I am going to look into the UK Ltd. as well as other countries, I was not aware that it was so cheap. I agree, I’m not particularly comfortable with Investors-Europe either. Best of luck to everyone treading through the murky waters that is the Dodd Frank act…

1010

“Don’t expect any help from US or European authorities if you claim an issue, though.”

In regard to the European part of that, Gibralter is part of the European Union and investorseurope is subject to the MiFiD protection regime.

According to Investors Europe :: Fund your Account - Security of Funds :: Forex, CFD | Regulated Forex Broker

“As a fully licensed and Regulated European Broker Investorseurope holds all client funds in fully segregated account, in accordance with MiFID (Markets In Financial Instruments Directive).”

I would point out that use of segregated accounts under MiFiD is far superior to what is required in the U.S. where segregation of customer funds is not required or practiced by forex brokers! So I think your funds may be safer there than with a U.S. Forex broker!

In the past, some American investors have traded forex in Europe specifically because of the better protection provided by the segregated accounts, which are absent in the U.S.

According to Investors Europe :: Regulation :: Forex, CFD | Regulated Forex Broker

“InvestorsEurope holds a cross border license, authorising the company to provide investment services internationally.”

There is also a Gibralter Investors Compensation Fund, see Investors Europe :: Investor Compensation Fund :: Forex, CFD | Gibraltar House of Assembly which will reimburse up to 90% and 20,000 euros.

Does the U.S. have such a fund? Nope - only for stock investors in the U.S.

Oh and according to the government fund FAQ:

"Will I be able to claim compensation if I do not live in Gibraltar or if I am not a
Gibraltar citizen?

If you are an eligible client of the failed scheme participant, regardless of place of
residency or nationality, you are entitled to compensation under the Scheme."

1011

This thread is growing so fast it’s hard to keep up. So far I have several brokers I intend to investigate: Traders-Point, RV-Markets, Investors-Europe, FinFX. I have done only VARCHEV Financial. They are regulated by FSA primarily. I took their reg number, and crawled through the FSA files. I found nothing negative about them. (I do that with every broker with which I may do business). More than likely I will make no moves until September, after, hopefully, the Dood-Frank dust settles, then I can get back to the market.
On the surface, Traders Point looks good…Almost too good. They look so good it makes me a little leery. Ah well, after I investigate, I’ll know more… Good trading to all

1012

alamoland, I presume you’re referring to [B]Trading Point[/B] in Cyprus, which was first mentioned by Biker Trash back in May?

If you’re doing some research on this broker, please keep us informed. Specifically, if you can confirm that they will open new accounts for U.S. residents, then I will add them to our List.

Also, can you furnish any of the basic information which we try to display for each broker:

[B]Trading Point (Cyprus)[/B]
Platforms: __________. – Min. initial deposit: _______. – Max. leverage: _______. – Spreads: EUR/USD _______, GBP/JPY _______.
Forex | Forex Broker | Trade Forex | Trading Point

Thanks.

1013

Just don’t forget that the funds of the Cyprus brokers may well be in high-interest-paying Greek banks, or Cyprus banks exposed to Greek banks, since Cyprus is tied closely to Greece (and Turkey).

For that matter, it looks as if investorseurope is using a Portugese bank.

However, Greek banks are probably the riskier of the two by a wide margin.

1014

Can you provide me with just one of those 16 million links, randomly selected?

1015

Why should I after all? If you like the answer because it’s something what comforts [U]your[/U] prejudgement, then you go with it. If you don’t like the answer, because it doesn’t comfort [U]your[/U] prejudgement, then you come up with the next question. That is a never ending rhetoric. Time is the most valuable thing even before money. At least to me. If you want to park your money there, move on. I won’t hold you back from it. And I am not here to hold your hand while making a search at Google.

I guess as well I made clear that this is not really important. What does it say if refugees come through or not? That was your point and not mine. The point I made is that the Gibraltarian sea and the region there, particular with a border to Northafrica is unstable and there are some question marks rising. Like say Greece for now. Frankly, Greece can be assumed stable in competition to Northafrica. Would you park your money there? Good luck! I don’t.

After all, I would not seriously suggest to park money at just one broker if there is no other choice. Because that is parking the money in a trap and I even would know about it before. So I avoid such traps in forefront. That’s why I would go with an offshore company. Then I have all options and would not have to play that cat and mouse game where others would control what I have to do. It’s never a bad thing to look a little farther if it comes to money deposits and not just take the next door what is open and looks attractive.

At least please let me tell you I have an international company with branches in Europe and the US. So, I do not need to run in traps. I can go with every broker I like. If I would close my branches in the EU then I would still leave one open and restructure it for trading with a broker. This is a way easier and safe path than to move from one to another broker every couple of months just because the broker says he won’t accept me anymore. And I have all trustable authorities on my side. I am going the 100% legal path. No twilight zone where a broker accepts me only under some particular circumstances. I prefer [B]kiss[/B]. Keep it simple, stupid.

1016

Because through your inability to support your statements with evidence I aim at permanently undermining your credibility, so that you would either not make them anymore or not be trusted even if you do so.

1017

We are not at a court here. I made some points and even if I show up with some evidence like this newspaper story you come up with excuses. Plus I am not supporting control freaks. I won’t and can’t transfer to you the knowledge I collected in some decades in a few postings here. If you trust me or not is your decision. I have no relation with that broker or any other broker and I didn’t come up with brokers. So, why all the fuzz? As I said, park your money there! I have no problem with it. I just wouldn’t park my money at pirate bay. That’s what I wrote and I backed that by some facts.

1018

I am satisfied that I’ve managed to demonstrate your complete inadequacy through the “facts” on the “pirate bay” you’ve presented and through the facts on “African refugees” you’ve failed to present.

1019

You demonstrated your own inability to make decisions with an open mind. Plus the great ability to be ignorant. That’s all what you demonstrated here in my opinion.

1020

Let the forum members now make their own decisions based on the evidence and facts they have and have not been presented.

1021

What have I to do with others decisions? Sure they do. Why would I even think of the possibility to keep them off from doing so?

1022

Your posts are still of value as I find them. Hardly anyone could amuse the forum readers with screams of “the pirate bay” and “the African regugees” in Gibraltar as you did.

1023

Very good to know that you know what all other forum members think. I’ll consult you if I want to know what they think whenever I like, lol.

1024

There’s no need for it - they are all perfectly capable of speaking for themselves.