Why would the owner of said FOREX business attempt suicide, if something weren’t legitimately found to be unscrupulous in that organization?
That is the benefit of CFTC and NFA, they froze profits from a ponzi scheme, if you had your money in there then you weren’t getting payouts from your work, but rather the scamming of newer traders who lost their money.
Trading offshore does not provide the supervision of CFTC and NFA, and is presently illegal, so anytime one wants to evade the rules, they are free to do so at their own risk, and the Feds, knocking at their door.
Needless to say, the tax man cometh first, for those who engage to profit as offshore corporations from offshore corporations, since they are high on the list for tax evasion under this administration. So tread lightly here traders, when investing against the US governments will, offshore.
All of you should take heed from what already has happened, the poker sites were shut down by the US government, that is why none of them take American players anymore. Players, after many years, still don’t have access to thousands of dollars in capital, they used for playing. Forex offshore corporations who get shut down by the US government will have American funds frozen the same way, it has already happened, why do you think you can get away with trading with an illegal offshore corporation that accepts American traders?
This isn’t going to end good for many of you, your money is at risk presently, if its in an offshore corporation, being traded illegally under federal guidelines.
Do you have any reliable proof of this? The government is not going to these measures, to encourage US residents from using foreign brokers.
They are prosecuting both firms and traders who engage in defrauding the US government of tax and regulation, concerning the trading of foreign currencies.
What kind of inaccurate analysis is this? FXCM is a legal US broker, intended by the US government, for American traders to use.
A longer term trader, who is knowledgeable of the market, has more than enough cushion to engage in a trade under the CFTC rules.
What you are misguided about, is the fact that any trader, mostly newer traders, lose their capital because of the increased leverage, so reducing it from 200, 400, several thousand, to 50:1 has a strong impact on the safety of capital for newer traders.
The recent frank-dodd bill instead took steps to curb foreign brokers from soliciting US retail forex customers, without USA getting a piece of the action (i.e., the foreign broker must register through the CFTC first).
I have not heard of any US resident prosecuted specifically for trading with non-US firm. Is there a law that prohibits a US resident from trading with any broker he or she chooses?
Not sure how you arrived at that conclusion. Clint was on the right track. Leverage only increases the trader’s buying capacity of the instrument. If I have 1:100 leverage I can hold approximately twice as many open contracts as if I only had 1:50 leverage for the same contracts, minus spread/commissions. Or I can also hold the same amount of positions, but allow those positions to draw down farther, using a larger stop loss or receiving a margin call. Leverage is a preference thing more closely related to money management, and a trader can always set or use a lower setting if they want, or just trade fewer positions.
Increasing or decreasing leverage [U]does not[/U] statutorily protect the capital in any way. Having segregated customer funds [U]does[/U] to some extent, as PFG futures customers have learned recently. Forex customers are being shafted because according to current US regulations, retail forex do not qualify for segregated funds. Furthermore, forex customers are not ‘preferred creditors’ in the event of broker failure. If your ‘US Regulated’ forex broker goes bust, it’s as good as losing your wallet with cash in it: [U][B]it’s pretty much gone[/B][/U], even if you are lucky enough to recover your wallet. Having those funds insured may offer additional protection also. A good example of this is in Canada. PFG Canada clients will most likely not lose a dime.
More leverage allows more open positions, but that is what causes more risk for a margin call, the federal government acted in the interest of the trader.
Secondly, they track your IP addresses, you cannot open an account as a non US resident, unless you are a non US resident, or face prosecution for fraud.
You have been spouting this BS for months. Nobody — except possibly brand-new newbies — pays any attention to anything you say. You have over-stayed your welcome on this thread. Please do your trolling on some other thread.
[B]Attention newbies:[/B] this sman character is full of mis-information, and you should ignore everything he says.
You are as wrong about online poker sites as you are about offshore forex brokers.
Regarding online poker sites: Before running your mouth, and making a fool of yourself, try getting your facts straight. Here’s a site listing several legal online betting sites — [B]legal for Americans.[/B]
Regarding poker sites and forex brokers: There is absolutely no similarity between (1) U.S. poker sites that have been shut down for fraud and tax evasion, and (2) certain offshore brokers who have been forced to terminate their relationships with U.S. clients, because of Memoranda of Understanding between their countries and the U.S.
Comparing poker sites to forex brokers is a [B]false comparison,[/B] which proves that you don’t have a clue what you’re talking about.
Wrong again, just like you’re wrong about everything else. Those offshore brokers who have been prosecuted by the courts on behalf of the CFTC have been ordered to return funds to their U.S. customers, and to close the accounts of those customers. [B]Customers have not forfeited their funds. And the CFTC has not attempted to prosecute those customers, because they have no authority to do so.[/B]
You have demonstrated that you have no idea what constitutes [B]legal vs. illegal,[/B] where offshore forex brokers are concerned. The more you post on this subject, the more ignorant you prove yourself to be.
[B]“Offshore” does not equal “illegal”[/B] — except in your confused mind.
Obviously, you didn’t even understand the points made in Shr1k’s post (#1709) and my post (which you are quoting). Your silly comments do not even address the topic being discussed.
Give me a break. The federal government has an agenda for retail forex in the U.S. which has nothing to do with protecting the interests of small, retail traders.
That’s a [B]deliberate misrepresentation[/B] of the advice offered and discussed by certain participants on this thread.
Your trolling on this thread has run its course. It’s time for you to move on.
Excuse me, I am trying to help Forex Traders from falling into the trap of trading illegally offshore. The government would not have all these rules so that people can just go ahead and freely break the law, by doing this.
You think that this is a good idea? Romney isn’t going to get elected, the rules are only going to get tighter, if you don’t have a clear expectation that trading offshore is illegal, then you are not only fooling yourself but everyone else on this thread.
All the Americans who fall victim to this thread, are not only risking money, but possibly their freedom. So let them decide on their own, if they want to take this risk, don’t try to limit free speech.
Sman1109, to provide credibility to your comments, you need to provide a very specific quotation from a legal document or official advisory of some type that actually says individual U.S. traders cannot trade foreign currencies with foreign brokers using leverage over 50 to 1. Please give us that official quotation to back up your claim American traders cannot legally trade currencies with offshore brokers offering extremely high leverage.
In 2009-2010, before the Dodd Frank people clamped down on some major brokers, I ran $36 up to $36,000 in less than 5 months trading the AUD/NZD with 500 to 1 leverage, so you will never be able to convince me that high leverage is bad for all traders. The AUD/NZD stayed in a consistently narrow trading range for a while after the 2008 financial disaster, so I was able to profit for a while with the pair. Now it acts like most other pairs.
Let us see your quotation about this supposed illegality, to show your competence on this issue.
Or better yet, why hasn’t the CFTC condemned or fined the CME for offering up to [B]1:2500 leverage[/B] on the Eurodollar futures and other futures contracts that enjoy typical leverage from 1:20-1:1000. Or all the futures brokers that double or more the exchange-[I]recommended[/I] minimum margin requirements with daytrading margins of 1/2 or more of the exchange recommendation? That’s up to 1:5000 at most popular discount brokerages for the Eurodollar futures contract. What steps has CFTC taken to protect the retail futures trading public from this damning leverage?
I notice many people suggesting FinFX or FXchoice and how they’re great… that’s nice and all but they are also unregulated and have ZERO insurance on ur accounts should the companies decide to fold. What is the point of taking such a risk in the name of making money?
hello since i’m new here i would like to comment that i for one have not been prosecuted for opening a offshore account(if anyone is concerned about this topic) and that i have opened several offshore accounts. i also have been kicked out due to dodd frank act. also if anyone is considering fxvv as their official broker, you can contact me on here i will answer all inquiries because i have an account with them. I also deposited via mazooma to moneybookers but the very best and fastest transaction is western union it takes only 1-day max and i’ve also withdrawn money as a test to see if they actually pay back your profits from forex and they do and i did all via western union. i have made transactions at a local western union and at my u.s. bank branch so i suggest either deposit via moneybookers or western union with these guys. now as far as regulation goes, yes they are registered in new zealand but also two more companies such as Universal Capital Markets FZE under Ras Al Khaimah in United Arab Emirates and authorised under Ras Al Khaimah Investment Authority. another one would be under Dubai Department of Economic Development in United Arab Emirates BUT just in case these guys are some sort of SCAM i only deposited $129.00 anyways so im not worried about losing that much because in forex it’s all about starting small and creating wealth from the ground up. What i will be doing just in case is making up to $500, withdrawing 300, putting the 300 to a u.s. regulated broker such as fxcm, and leaving the rest at fxvv and making the most of their awsome leverage until some BS happens i will still have money to invest with instead of losing it all. i hope this was helpful information for the fxvv customers only!
The second half of your post is completely made up. Law firms have posted online (legal advice) that Dodd Frank does not ban traders from dealing woth overseas brokers. The law is related to brokers themselves.
Please produce one case where a trader was “prosecuted” by a government figure for using an overseas forex account. I’m wondering where you got this fact, since you said this is what is happening.
Hi. I’m kind of new here. I have recently started a small account with FXChoice. I had some questions about their price feed, and they gave me a new IP address, which fixed it. I had some other questions, and their Customer Service called me back. I was glad that he spoke fluent English. Apparently, their Corporation is, indeed, registered AND regulated in Belize, but some of their servers are in the U. S., as are some of the employees, including the CSR that called me. So far, they have excellent customer service, and I am very impressed with their operation.
At the bottom of the website is the following: FX Choice Limited is authorised and regulated by the IFSC (Licence number: IFSC/60/191/TS/12)
@21club i am not a spammer but if anyone wants proof i can upload the western union receipt of the exact amount i deposited to to my account manager at fxvv and my proof of my account number. idgaf because i for one am not a spammer, i just seen some concerns about fxvv cuz i have an account with them and wanted to help. bottom line is if they were a scam there’s nothing about them being one online and two they paid me my forex profits before. besides they offer bonuses and u.s. brokers never do. if they were a scam they would have kept my money hostage and matter of fact i can do two more transactions with them if i wanted to. come to find out im not the only u.s. trader with fxvv but hey anyone can choose their own broker but the two brokers i recommend are fxchoice and fxvv. happy trading everyone