Going offshore to escape the CFTC

Hyperscalper, thanks for these comments, and for your frequent participation in this thread.

Your live trading experience with [B]Trader’s Way[/B] and [B]Finpro Trading[/B] has encouraged several other participants in this thread to choose one (or both) of these brokers for their own offshore trading.

But, as most traders here are aware, the intense sort of trading which you do, and the heavy traffic you generate for your broker(s), [I]happens on a whole different level[/I] from the type of trading most of our thread participants are doing. And I would venture to say that many of them don’t even understand the technical issues you have discussed in your posts.

Nevertheless, there seems to be a consensus here on this thread that: [I]If these two brokers are highly rated by Hyperscalper, then they should be good choices for the rest of us, as well.[/I]

Now, I’d like to hear some comments from other thread participants who trade live accounts with (1) these brokers, (2) with any other broker in Group 1 of our List, or (3) with [I]any other offshore broker anywhere[/I] who accepts U.S. clients.

Trader’s Way has already earned our highest rating — Trusted Broker.

If other clients of Finpro Trading share Hyperscalper’s opinion of their overall performance and reliability, then we should definitely consider Finpro Trading for the Trusted Broker designation.

And there are other worthy candidates for that designation. [B]LMFX[/B] is waiting for our decision, to mention just one.

Lastly, a month ago, I asked for opinions on keeping [B]Real Trade[/B] (BVI) on our List.

I posted this request:

There have been no responses to this request, so I’m asking again:

Should we keep them, or boot them?

.

Hi,

For MetaTrader 4 standard Brokerage accounts, which
should be designated as STP or ECN type (professional
quality) accounts… I volunteer on a limited basis…

Because my software is layered on the NJ4X.com framework,
(no advertisement, but highly recommended) I can connect
to any standard MT4 brokerage easily.

If someone wants to give me (temporary) login credentials for an EMPTY
or very small Equity Live MT4 STP/ECN account, I will gladly do a good
faith basic evaluation of the Quality of the data feed for Forex only with
that Broker, and post results.

This mainly would include Bid/Ask Spread Analysis and typical
Tick rates per symbol.

Things like Order Processing times would need to be by special
arrangement, since that might involve a limited amount of
equity money. Order Placement and cancellation times could be
evaluated without execution of any orders… so no money would
be spent.

YOU WOULD CHANGE PASSWORDS WHEN MY TESTS ARE FINISHED.

I WILL NOT TEST ANY DEMO ACCOUNTS. …nor would I take
responsibility for any SNAFU’s :wink: Just trying to lend a
hand on a limited basis…

hyperscalper

Hi MarcinFX,

Could you please go into more detail and provide concrete examples of these “freezes” you talk about. You say they especially happen around news events?

We can assure you that we DO NOT intentionally freeze our servers for any reasons at all. If we did, our clients would, en masse, run for the hills as the old saying goes. Your comment is a little difficult for us to fathom.

Again, we would be greatly appreciative if you could substantiate your claims with evidence. Also your account number would be handy so we can investigate properly at our end.

FX Choice

Hi

This happens on FX Choice demo and live accounts and also on my friend’s account. You can just run a demo account and watch MT4 when the market has a lot of activity such as after news. The charts on the FX Choice MetaTrader application will all freeze for 5 - 30 seconds at various times when the market is very busy. Other brokers I am using with MT4 do not have this, just wider spreads. Then I found a site that mentions FX Choice implements 5 pip freeze (see this here listed as a Con for FX Choice: https://www.forexbrokerz.com/brokers/fxchoice) so it sounds like FX Choice freezes when the pip spread is > 5. Other brokers are not doing this. This is a problem with EA because EAs run on each tick of the market. If FX Choice is freezing at times of high activity, the EA can’t do anything while on other brokers the EA can determine not to trade or make decisions when the spread widens.

If you want, my friend can create a youtube video showing how FX Choice markets freeze during high activity compared to other brokers. It’s not a specific account problem. You can even replicate this by using a demo FX Choice MT4 ECN account. I also emailed Stephen Mater this concern, but did not receive a response.

Lastly, a month ago, I asked for opinions on keeping Real Trade (BVI) on our List.

I posted this request:

There have been no responses to this request, so I’m asking again:

Should we keep them, or boot them?

.[/QUOTE]

Hi,

I have been trading with RealTrade (realtrader.org) on and off for the last 5 years.

Very efficient: fast communication via email, fast deposit/withdrawal via Paypal, I never
had an issue with them.

Very happy with them.

nitya1us

Update: After lengthy communication with Renesource support (who are excellent) I have been unable to open an account. Latvian regulations require US residents with US citizenship to have their passports “apostilled” (I needed to look it up). I believe this can be done by a notary.

However, I am not a US citizen, and my country of citizenship is not a party to the Apostille Convention. As such, I would need to take my passport to the Latvian embassy or consulate to have it approved. The embassy is in DC and the distributed consulates are just “honorary consulates” i.e. individuals who are apparently unwilling or unable to approve the document (they haven’t responded to my messages).

All in all, the company seems completely legitimate, and eager to follow their country’s regulations. If you’re considering opening an account, know that there’s a significant amount of legwork required.

Great news, hopefully this will lead to an entire repeal of the awful disaster Dodd-Frank!

I can’t post a link, but google this and it will come up, it’s all over the news everywhere:

washington post trump executive order wall street

Well that may be true, but Dodd-Frank still needs to be repealed. Hopefully with the new Presidential administration small investors will be encouraged and appreciated once again and this will include retail forex trading in the United States. Maybe Trump will abolish the CFTC!

Maybe some FATCA too, while you’re at it, Mr Trump?
A little de-SarbOx’ing? LOL :35:

I so Look Forward to THE scrapping of CFTC and Dodd-frank. Finally some positivism around all the Trump has done so far. Not to forget trump also owns a casino in atlantic city, NJ, that has gone bankrupt “Trump Plaza”. Hopefully he isnt planing to start a B-Book forex brokerage himself :slight_smile: . Jokes aside, I do believe that this can bring in some loong required changes.

Since I’m here and not just lurking let me put in a good word for Trader’s Way. I have been trading with them for several years and have never had any problems. Again my hope and prayer now is that we will have freedom in the USA again to choose domestic forex brokers that can be competitive in the marketplace as was once the case.

I think it’s pretty likely that the Trump administration will repeal [I]certain portions[/I] of the Dodd-Frank law (assuming they have the cooperation of Congress).

Repeal of the entire law may be a bit of a reach. But, one can hope.

Obviously, I am putting words into the mouth of Morpheus, the rebel leader in the film [I]The Matrix.[/I]

If someone challenged me to prove that my statement is true, I would not be able to do it.

The best I could do would be to provide anecdotal evidence of the CFTC’s systematic attacks on U.S. retail (off-exchange, over-the-counter) spot forex trading.

But, I believe my statement is true, and I stand by it.

Even the [I]total[/I] repeal of Dodd-Frank would not undue the damage done to retail forex by the CFTC over the past 7 years. Here is a SUMMARY of the CFTC’s regulation of spot forex which I posted in 2012.

The CFTC itself will not, and should not, be abolished, in my opinion. The CFTC’s regulation of [I]commodity futures[/I] has been instrumental in making those markets safe, reliable and world-dominating.

But, the CFTC ran amok, in my view, when they started chopping away at [I]off-exchange[/I] spot forex, apparently in an attempt to force it to conform to an [I]exchange-traded-futures-type[/I] configuration.

The CFTC’s authority to regulate spot forex needs to be radically redefined. I can’t even guess when that might become possible.

But, until Trump won the election, I couldn’t see even partial repeal of Dodd-Frank on the horizon, and yet here it is. So, this is no time to think small.

FATCA is another can of worms, altogether. And I haven’t heard a peep about gutting or repealing it. But, there’s only so much a new president can do in his first 2 weeks!

After Trump takes an ax to Dodd-Frank, we can lobby for the same action against FATCA.

Who knows? – We might just be successful.

That will depend on radically redefining the authority of the CFTC regarding spot forex regulation, as I referred to above.

Thanks to all of you for your comments on this topic. I hope you will keep them coming!

.

Sometime today, our thread will clock its one-millionth visitor.

Thanks to all of you who have made this [I]offshore project[/I] so useful to so many people!

.

1 Like

Thank YOU, Clint, you are making BabyPips great.

Holy Sh**, FXCM is exiting the US market.
FXCM sells its US clients to Gain Capital as it exits US Forex market | LeapRate

And then there were two… All according to CFTC plan? The way things are going, offshore may soon be the ONLY option for US traders.

I just posted — THIS QUESTION — on another thread.

.

My question is this…If FXCM will screw their customers here in the US then why wouldn’t they somewhere else? I can’t imagine ANYONE trusting them in any part of the world. I know I sure wouldn’t!

For those who are just now hearing this news,
here are some links to bring you up to speed:

[U]The CFTC’s announcement[/U]:

CFTC Orders Forex Capital Markets, LLC (FXCM), Its Parent Company, FXCM Holdings, LLC
and FXCM’s Founding Partners, Dror Niv and William Ahdout,
to Pay a $7 Million Penalty for FXCM’s Defrauding of Retail Forex Customers

[U]Two articles in [I]Finance Magnates[/I] about the CFTC action[/U]:

Breaking: CFTC Levies $7M Fine on FXCM, Forced to Quit US Market | Finance Magnates

Breaking: FXCM to Sell US Accounts to GAIN Capital | Finance Magnates

[U]Jason Rogers’ statement here on [I]Babypips[/I][/U]:

FXCM US Reaches Settlement with NFA and CFTC

[B][U]Edit (updates)[/U] —[/B]

[U]Additional posts from Jason Rogers:[/U]

http://forums.babypips.com/fxcm/84720-fxcm-going-out-business-post803323.html#post803323

http://forums.babypips.com/fxcm/84720-fxcm-going-out-business-post803325.html#post803325

http://forums.babypips.com/fxcm/84720-fxcm-going-out-business-post803327.html#post803327

http://forums.babypips.com/fxcm/84720-fxcm-going-out-business-post803385.html#post803385

http://forums.babypips.com/forex-brokers/84914-who-going-become-replacement-fxcm-post805097.html#post805097

[U]Additional articles from [I]Finance Magnates[/I][/U]:

Exclusive: NFA Charged FXCM for Using Own LP for No Dealing Desk Execution | Finance Magnates

Breaking: FXCM Restructuring Plan Includes the Termination of 150 Employees | Finance Magnates

Breaking: FXCM’s Share Prices Shed 50% of Market Value at Open | Finance Magnates

Johnson & Weaver to Investigate Whether FXCM Officers’ Practices Breach Law | Finance Magnates

Breaking: GAIN Capital Signs Agreement with FXCM to Buy US Client Base | Finance Magnates

Darwinex Cuts Business Ties with FXCM, Urges Users to Recommend New Venue | Finance Magnates

Breaking: GAIN Capital CEO Comments on FXCM US Clients Acquisition | Finance Magnates

GAIN CEO States Increased Regulation a Long-Term Positive for Industry | Finance Magnates

Breaking: Gain Capital Will Pay Up to $500 Per Each FXCM Transferred Account | Finance Magnates

OANDA CEO Issues Statement on Recent CFTC Action in the US | Finance Magnates

FXCM Details its Expected Savings from Leaving the US Retail Forex Market | Finance Magnates

FXCM Settles Another Regulatory Headache in U.S. Ahead of Departure | Finance Magnates

Breaking: FXCM Group Promotes Brendan Callan to CEO Leucadia Appoints Chairman

FXCM Inc to Be Renamed ‘Global Brokerage Inc’ Following US Upheaval

GAIN Capital’s Shares Surge after Jefferies Forecasts $150 RPM

Global Brokerage Announces Upbeat Q4, Repaid $30 m to Leucadia in March

.

Sorry Clint,
I should have known you and baby pips were already all over this important story. I guess this post was my emotional release mechanism. It’s just so shocking to watch regulators target the destruction of an entire industry. I’ve been relying on FOREX for extra retirement income. This is not fair.