Going offshore to escape the CFTC

Not sure if you took note of it already, but FX Choice (Belize) also accepts the US customers directly with no restrictions. So, please, add it to your list.

$1000 is the minimum ECN deposit, but I would suggest $2000-5000+ depending on your circumstances of course.

Thanks. I will go with Pepperstone.com for now - spreads for their Razor accounts are identical to yours, but the account opening minimum is much lower ($200).

Here’s also an excellent real-time Forex brokers’ spreads comparison for live accounts: Spreads | Myfxbook

Got it. Thanks.

[B]Shatner,[/B]

I’m gathering info for an update to the Offshore Broker List this week.

Do you have anything further to report on[B] HotForex? [/B]

Do you have an active, funded, live account with them? Have you done any withdrawals from your account?

Have you talked with anyone at HotForex about your status as a U.S. resident? What is their current position regarding new U.S. clients?

Thanks, in advance, for your reply.

Does FXOPEN have a Chinese branch, some traders would like to use 400:1 leverage and will open an offshore business in China to have capability.

You’re going to need more than a minimum of $200 to open an offshore company in Australia why be frugal with the minimum deposit ?

Then you’ll have to pay taxes in two countries with all the expenses a small deposit does not seem practical

[B]Interim update to the List[/B]

Later this week I will update the List of Offshore Brokers. Here are the updates gathered, so far:

2 brokers will be added to Group 1

• [B]FXChoice[/B] (Belize)

• [B]Pepperstone[/B] (Australia)

2 brokers will be moved from Group 1 to Group 2

• [B]Uni-FX[/B] (U.K.?) — their website has been replaced by one webpage which says “This Account Has Been Suspended”. I will place a note on the listing for this broker saying that they may no longer exist.

• [B]Universal FX[/B] (British Virgin Islands) — formerly listed (erroneously) as Switzerland — this broker no longer accepts U.S. residents as clients; their website says “Universal Investments (International) Ltd is a company registered and located in the British Virgin Islands and does not solicit or accept customers that reside in or are domiciled in the United States or its territories.”

Also, with this update, I will be filling in some of the blanks in the current broker listings (spreads, leverage, etc.).

[B]If you guys have any additional info for this update, now is the time to post it.[/B] Thanks.

No: Australia and the United States treaty - key points

Pepperstone does not open accounts for individual US customers - only for their non-US companies.

Yes, you can try MT4 ECN真实外汇交易平台|模拟外汇-FXOPEN中文官方网站 to join other Chinese FXOpen traders.

Clint, yes I established a live account with them (after the date you previously removed them from the list). I didn’t speak with a rep in advance about my status though, just followed the on-line account application & funding process. Within 48 hours received an email my account was ready to trade. Withdrawal was no problem.

You are correct. My mistake.

After reading your post, I attempted to open an account with them. As soon as I clicked “United States” in their drop-down menu, this popped up in red letters: “US Residents are NOT able to open an account with Pepperstone…”

[B]I will add Pepperstone to Group 2 in our List.[/B]

Great. I applaud the way HotForex is getting around the CFTC’s bullsh!t. I hope they continue their current policy.

[B]I will move HotForex back into Group 1.[/B]

I’ll consider adding a note to their listing, referencing the discussion in posts #1284, #1288, #1394 and #1401.

Many traders when they decide which broker to chose always want his broker to be under CFTC. But they don’t have any connection with forex market they only regulate futures.

You are stunningly uninformed.

This thread — 140 pages and 1,400 posts — is all about CFTC regulation of [B]the retail spot forex market.[/B]

Have you done any reading, at all?

If reading this entire thread is too much of a burden for you, at least read this brief history of CFTC regulation of forex.

The Offshore Broker List has been updated.

Not at all, no problem! Likely you were doing something rare and wonderful like TRADING for a change, lol!

I do have a few more notes, will gather them up and post today/tonight.

I explored [B]FX Choice[/B] briefly; they do accept U.S. clients at the moment.

Platforms: MT4, ECN, lots of mobile apps, Web.
Minimum deposit: $10
Spreads: These are minimums: E/U .5-1.5, G/J 2.0-5.0.
Max Leverage: 1:200 for MT4, 1:100 for ECN
Max lots per ticket is as low as 1 for the ‘start’ type of account. For all, .01 min size, .01 step.

[B]FXCC[/B] was mentioned. They do not accept U.S. clients, but Legal informed me that U.S. directors/officers of an offshore-from-U.S. corporation are perfectly acceptable, as is a U.S.-resident trader with such an entity. They are Cypriot and brand-new in 2010; one of their officers previously worked for Inland Revenue so you can imagine whether they cross t’s & dot i’s.

Platforms: MT4, MT4 Multi-account, Currenex, Mobile, Web. Also managed accounts.
Minimum deposit: $1,000.00
Spreads: vary by platform, account type, and time of day. For low-figure MT4 accounts a good estimate is 1.3 on EU, 4.3 on GJ.
Max Leverage: 1:500 available up to $50,000.00 balance; the exceptional Support crew inform me leverage is negotiable somewhat thereafter, case-by-case. Max lots per ticket is 40, but also negotiable. Minimum is .01, step is .01.

[B] IRON FX[/B] is on the same roster: no “U.S. clients,” but U.S.-resident traders and directors/officers of an offshore entity pass muster no problem.
In fact, if you like “hmmm” moments, they have nearly the identical terms and conditions of FXCC.
They’re in Cyprus with offices in a building I personally know exists, and they’re regulated out the yin-yang by the various Cypriot and European agencies, etc.

Platforms: MT4, MT4 Multi-account, Mobile, Web. Many account types, including "STP/ECN."
Minimum deposit: $2500.00
Spreads: EU 1.2, GJ 4.5.
Max Leverage: 1:500 (with no balance-based scale according to the able Support ops), and again 40 lots max per ticket. Minimum is .01, step is .01.

When the Australian broker GoMarkets ceased to accept the US customers, they stated they were doing this because of Australia and the US both being signatories to the IOSCO Multilateral Memorandum of Understanding
Concerning Consultation and Cooperation and the Exchange Of Information: IOSCO Library Section

On the other hand, the country of Belize (where FX Choice is domiciled) is not a signatory to the aforesaid Memorandum. The US CFTC therefore has no legal grounds for suing FX Choice for continuing to accept and service the US individual customers. :59:

Follow-up on some mentioned and unmentionable brokerages:

[B] REAL TRADE[/B]: Tried many avenues to contact with two simple questions. On 25th March made last valiant effort via email to prompt a response; no reply. One question regarded their live account registration page where they refer to something called the “Public Offerta agreement” to which one must agree in order to continue. However, it’s nowhere on their site and nowhere linked. Have a look: Contract Real Trade Group LTD. More Russian hijinks! lol! I’m in no doubt it’s a consortium given the franchise! :slight_smile:

[B] TRADEFORT[/B] - Learnt via email from “Anna Onischenko” that if you are a U.S. resident you must fund via Liberty Reserve or WebMoney or other costly anonymous “service” of that ilk. No wires, no credit cards, no debit cards – and no corporate accounts. No thanks.

[B] XOOM FOREX[/B] - [remember it’s .co, not .com, I stumbled on that one] We had REAL trouble trying to navigate their webpage; that’s a long topic which I’ll set aside for the moment. Sent email anyway on Tues 27th March and subsequent three days; no reply.

[B] UNIVERSAL FX[/B] - also never a reply to questions no matter which route (several!) I tried.

[B] FOREX METAL[/B] - It’s only fair to report that the withdrawal was indeed received.
[U] History[/U]:
(1) Funding: Wired to them via SWIFT and account funded in 8 hours. [I]Cost[/I]: $45 fee by our bank.
(2) Withdrawal:
– A. Requested withdrawal via SWIFT and the money sat right where it was in trading account for Four Full Business Days (Six calendar days).
– B. We received the wire SEVEN full business days AFTER they finally scooted the cash from account, making a total of Eleven Business days (over two weeks all told) and I will reveal that there was a deal of prodding and prying involved along the way just to get the thing done. [I]
Cost[/I]: $100, of which $15 was receiving fee by our bank.
[edited to correct facts: our acct mgr Madeleine has told me cost was $180, not $100, of which $15 receiving fee is correct.]

The phrase “good riddance to bad rubbish” comes unbidden to mind.

I have some info on PaxForex coming along soon, will make supreme effort LOL to get it posted asap.