Going offshore to escape the CFTC

Broker Discussion Forex Brokers
4119

Thanks for your reply.

Explanation accepted! — I’ll take it as “proof”.

Welcome to this thread. Post here whenever it suits you. And especially, if you decide on Renesource, please consider keeping us informed about your experiences with them. We have very little to go on, regarding that broker, except the fact that they do welcome U.S. residents.

Sarcasm appreciated! :wink:

No apology required. I greatly admire good writing — it speaks of seriousness toward the subject at hand, and toward the writer’s audience.

Thanks for clearing up all the misunderstandings!

.

4120

Has anybody had any experience with LMFX ? I seen them talked about earlier in this thread breifly. They are newer hence maybey why I couldnt find many reviews. I am particularily interensted in their 0 spread Package.
Just wondering if anybody has traded it. Looking for a broker to return to spot with from trading binaries. U.S. citizen high leverage :slight_smile:

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4121

Hello, cjsun

Welcome to the forum, and welcome to this thread.

[B]LMFX[/B] has been discussed extensively for more than a year on THIS THREAD.

You might want to check out the discussion there.

From what I’ve heard and read about LMFX over the past year, they seem to be establishing a reputation for honesty, fair dealing, competitive terms and conditions, and attentive customer service — just the things we are looking for in offshore brokers who seek our business.

Many months ago, LMFX asked us to consider them for the Trusted Broker designation. We tabled that request, due to the fact that too few participants on this thread had live trading experience with them. Maybe it’s time to continue that discussion.

Thanks for your post.

Anyone with live trading experience with LMFX, who would like to join this conversation, please weigh in.

.

4122

Thanks for the thread Link!

4123

It looks like their zero account really isnt zero spread pretty misleading. Looks like the only thing LMFX has 0 of is regulation

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4124

And if they were regulated then they would likely not be able to accept you :slight_smile:

It means spreads can go down to zero, not that they are actually zero. If they were zero then I would run away from this sort of gimmick as it would not be sustainable to run as a business model unless they did not do STP.

4125

ya i realize that. I was mainly interested in the GBPNZD spread. thats the pair I usually trade, 5.7 pip spread isnt too bad compared to 9 pips on Oanda though. I may open an account and see how it goes…

4127

One thing I like is their lack of fees for deposits and withdrawals. Do you know where they store client funds?

4128

If anyone has a serious interest in Spread Analysis, and is using MT4, I could run a Spread Analysis for you.
But, as has somewhat obliquely been pointed out, even if the Spread could go down to zero, you still have
absolutely no knowledge of the liquidity that the quoted price represents, nor even whether that momentary
"spike" inside the typical spread would permit you a fill at that price. So really, there are just better ways
to spend your time than Spread Analysis. One thing I do to “defeat” the spread, is to use a “reactive Virtual Limit Order” concept, which monitors the ASK price (for a BUY) and requires it to “snap down”, at which
time I strike with a Market Order. This requires some speed, but because every entry is subject to this
"micro pullback" advantage, effectively “mitigating” the spread situation on developing an entry price.

This does not “defeat” the spread, as such, but the effect is that you have a much better pricing situation
provided you have a low latency automated approach to taking each entry sub-position. In many cases
you can gain a substantial portion of the typical Spread in PIPs as a “price bonus” :wink:

hyperscalper

4129

In my experience FinProTrading.com has lowest latencies and best price feed. They have offered us,
as clients, access to a VPS where they claimed 1 millisecond latency could be achieved with MT4.
However, I pointed out to them that we needed substantial compute power, so thanked them for
the offer. Personally, in my trading operation, we’ll be placing a dedicated server in Amsterdam,
which is where both FinProTrading (aka Turnkey FX) and Tradersway have their “back ends”. This
would eliminate close to 100 msec in the latencies we see now. As for Tradersway.com latencies,
they use an “aggregator” which delays response times to their liquidity providers. They were very
helpful in reducing our latencies from the 800 msec range to the 250 msec range, but you need
to present them with a good business case for such an accommodation…

hyperscalper

4130

Hello Clint, Im late but at the right thread finally :slight_smile: been searching for a US friendly broker and this is the perfect thread to finally get the goldmine of information. Many Thanks for such useful post ! Please keep the good work going.

4131

It’s time for me to play catch-up again.

Two additions to Group 1 of our List have been suggested recently, but have not been made yet.

Domiciles of 2 brokers have changed.

The LINKS in post #7 have not been updated since September, so an update is overdue.

And, a couple of issues have been raised in recent months which have gone unaddressed.

So, here are the additions/revisions/updates coming in the next few days:

• [U]Two new brokers for Group 1[/U]

[B]LQDFX[/B] (The Marshall Islands) — This broker was first mentioned in post #3780.
We know very little about this broker, except for the fact that they accept U.S. residents/citizens as clients. And that is the minimum requirement for inclusion in Group 1.

[B]Adamant Finance[/B] (St. Vincent and the Grenadines) — mentioned only once, in post #3860.
Like LQDFX, this broker meets the minimum requirement for Group 1.

• [U]Change of domicile[/U]

[B]FXGlory[/B] (Dubai, UAE) — domicile in Dubai, UAE; physical location in Tbilisi, Georgia

[B]Real Trade[/B] (British Virgin Islands) — previously listed in Seychelles

• [U]New LINKS to be added to post #7[/U]

(note: I’ve changed the order in which the Group 1 brokers are listed in posts #1 and #7)

Europe

[B]Finpro Trading[/B] (UK) — Post #3759

[B]LMFX[/B] (Macedonia) — Posts #3792, #3794, #3797, #3899, #3902, and #3904

[B]Renesource Capital[/B] (Latvia) — Post #3894

Middle East / Persian Gulf

[B]FXGlory[/B] (Dubai, UAE) — Posts #3758, and #3760

Caribbean

[B]Trader’s Way[/B] (Dominica) — Posts #3762, #3765, #3766, #3865, #3866, #3867,
#3868, #3869, #3890, and #3906

[B]FX Choice[/B] (Belize) — Posts #3767, and #3770

[B]Real Forex[/B] (Belize) — no new links

[B]PaxForex[/B] (St. Vincent and the Grenadines) — no new links

[B]TradeWiseFX[/B] (St. Vincent and the Grenadines) — no new links

[B]Adamant Finance[/B] (St. Vincent and the Grenadines) — Post #3860

[B]Real Trade[/B] (British Virgin Islands) — Posts #3884, and #3885

Pacific

[B]LQDFX[/B] (The Marshall Islands) — Posts #3780, #3791, and #3820

• [U]Other issues[/U]

(1) The question was raised in posts #3884 and #3885 whether we should keep [B]Real Trade[/B] (now domiciled in BVI) on our List. — Comments, please.

(2) A couple of members have recommended making copies of the brokers listed in Group 1, on the first page of this thread, in case the thread suddenly disappears from the forum. I’m very sure that the thread will not disappear, under any circumstance.

However, I have made complete (formatted) copies of the entire Offshore Broker List at various times over the past few years, just in case some mishap (like inadvertently deleting a whole post) wiped out a portion of the thread. These “record copies” are stored in my computer.

So, from my record copies, it would be possible to re-post the entire, multi-page List as it existed on any of these dates: 4/18/2012, 11/30/2012, 6/1/2013, 7/30/2013, 7/18/2014, 10/15/2014, 11/7/2014, 12/4/2014, 1/14/2015, 4/10/2015, 1/16/2016, 3/22/2016, and 10/21/2016.

I will make the next record copy of the entire List (7 posts), after the revisions listed above have been made.

Maybe my copies will save the rest of you from having to make your own copies.

On the other hand, if you want to make copies, go for it.

.

4132

Hello.

Welcome to [I]Babypips[/I], and welcome to this thread.

I hope we’ll live up to your expectations.

.

4133

• The List has been updated.

With the addition of [B]Adamant Finance[/B] (SVG) and [B]LQDFX[/B] (The Marshall Islands),

— we now have 12 brokers in Group 1.

Changes to the Group 1 listing are highlighted in red.

• Also, the LINKS in post #7 have been updated.

.

4134

Possibly some good news for USA based FOREX traders. CFTC Chairman Timothy Massad has decided to resign, effective January 20th, 2017. Of course this means President Trump will now be able to appoint our next CFTC Chairman. Extremely interested to see who he chooses.

CFTC Chairman Timothy Massad resigns | LeapRate

4135

Interesting, yes, but don’t expect a rollback of domestic leverage, or of Dodd-Frank,
anytime soon, if ever…they still want small player ‘toxic flow’ out of the system,
and everyone else to either go thru banks or exchanges…

4136

Yes I agree. And Trump wants money flowing into the country, not out.

4137

I agree… that’s why it would be good to repeal Dodd-Frank, along with the Draconian regulations limiting Leverage to 50:1, FIFO, Hedging, etc… If they would, it would bring a lot of money back into the United States, from the Offshore Brokers. It might also induce other Forex Traders from around the world to Trade with American brokers again.

4138

Some more good news (I assume?) for US traders - the National Futures Association (NFA), the self-regulatory organization overseeing the activities of the US forex brokers, said its new rules on disclosure of transaction data have been approved by the Commodity Futures Trading Commission (CFTC) and will come into effect as of March 31, 2017. These rules will enable US retail traders to gain access to transaction data such as execution date and time, commissions, etc. and to review the quality of execution. After that date the Forex brokers regulated in the US will be required to inform their customers of their ability to request this information.

4139

…and one more article, I think, relevant to this forum. This is from Finance Magnates, speculating about how President Trump might affect FX.

How Will President Trump Affect FX? | Finance Magnates

Here is one interesting bit from the article:
“The majority of non-US brokers that do not accept US clients is not because of Dodd-Frank, it’s because of FATCA compliance. The IRS has demanded that any entity that accepts a US account holder must either comply with FATCA or risk fines, penalties, or worse. For this reason, many have chosen to simply not accept US citizens, in order to not deal with this compliance. If FATCA rules are reformed significantly, this can change foreign institutions attitude toward US Citizen clients.”

So, this author anyway thinks FATCA is an even bigger problem for offshore traders than Dodd-Frank.