Hey there,
I would really appreciate the help if someone can guide me to a legit forex broker who accept USA clinets
please not that I am not a US citizen, but just a student who study here in USA.
a friend of mine suggested a broker called ForexbrokerInc, any thoughts on this broker?
ForexBrokerInc (an [I]offshore broker[/I] headquartered in The Marshall Islands) is no longer in the retail forex brokerage business (as of a couple of months ago).
As a resident of the U.S., you will find that most offshore brokers will not accept you as a client. In fact, of the hundreds of retail forex brokers outside the U.S., only about 10 of them will accept U.S. residents.
If you are a beginner, I suggest you choose one of these three: [B]FXCM, Gain Capital,[/B] or [B]Oanda.[/B] These are the largest U.S. brokers. Each one has a good reputation in the industry. And, of course, each one accepts U.S. residents.
If you open an account with one of those three brokers, your account will still be valid if, or when, you return to your own country.
After you become an experienced forex trader, if you are still a U.S. resident, you [I]might[/I] want to consider one of the offshore brokers who still accept U.S. residents — but, that decision should be left for later in your forex career.
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FXCM has a good reputation? I’m sorry Clint but with the amount of research you evidently do, one would expect you to know (and advise) better.
[B]2016[/B]
2015[/B]
[B]
French Regulator Slaps FXCM with €200,000 Fine[/B]
[B]2014[/B]
[I]The Financial Conduct Authority (FCA) has [B]fined[/B] Forex Capital Markets Ltd and FXCM Securities Ltd (“FXCM UK”) [B]£4,000,000[/B] for allowing the US based FXCM Group to withhold profits worth approximately £6 million ($9,941,970) that should have been passed on to FXCM UK’s clients…[/I]
[I]…Not only did [B]FXCM UK fail to treat its customers fairly or correctly apply our rules[/B], I am particularly disappointed that it was [B]not transparent in its dealings with the FCA[/B]…
[B]2011[/B]
[B]NFA fines FXCM $2 million[/B] [B]for slippage malpractices[/B]
[I]According to the CFTC order, from at least June 18, 2008 until December 17, 2010, FXCM failed to supervise diligently the handling of customer accounts traded on the FXCM platforms by its officers, employees, and agents with respect to changes in price between order placement and execution on both market orders and margin liquidation orders. The order finds that [B]FXCM’s failure prevented its customers from receiving the benefit of price movements in customers’ favor, but allowed its customers to suffer detrimental price movements.[/B] The CFTC order finds that had FXCM diligently supervised its personnel, FXCM would have discovered these problems with its trade integrity and would have had the opportunity to correct them before its customers were deprived of, and FXCM benefitted by, approximately $8,261,937.
[/I]
[I]Further, the CFTC order finds that [B]FXCM failed to produce certain records promptly[/B] in its capacity as a CFTC registrant and thereby [B]required the CFTC to issue a subpoena to attempt to obtain required records from FXCM[/B].[/I]
- [B]The U.S. Commodity Futures Trading Commission (CFTC)[/B]
The above list is by no means exhaustive but the available facts surely speak for themselves…
i have very good experience trading. i just dont know about the best brokers
To address the question Shinshiro raised about FXCM, few if any other retail forex brokers in the world have offices and affiliates regulated on 5 continents. Our sheer size means we are subject to a greater level of scrutiny than smaller firms with fewer clients. FXCM holds itself accountable to financial rules and standards for transparency that less-regulated forex brokers do not have to meet.
For example, FXCM is regulated in the US by the CFTC and NFA, the same two bodies that oversee futures trading on the CME. In compliance with rules regarding price slippage and price re-quoting, FXCM US provides daily trade reports to the NFA which monitors and supervises FXCM US’s activity including information on the price where all client orders are filled and the corresponding price where those orders are offset with our liquidity providers.
All of FXCM’s global trading entities including FXCM UK and FXCM Australia execute client rolling spot forex transactions as a riskless principal with FXCM US, so the same execution standards are applied for all of our clients worldwide. The latest execution stats from January 2015 through March 2016 showed the following:
[ul]
[li]78.71% of all orders had NO SLIPPAGE.[/li][li]12.77% of all orders received positive slippage.[/li][li]8.52% of all orders received negative slippage.[/li][li]50.2% of all limit and limit entry orders received positive slippage.[/li][li]39.9% of all stop and stop entry orders received negative slippage.[/li][/ul]
By contrast, while there are no re-quotes at FXCM, there are still some brokers today that re-quote their clients. Clients of such brokers receive a re-quote when the market moves in their favor, but don’t receive a re-quote when the market moves against them. It’s possible that this asymmetrical application of re-quotes could cause clients of such brokers to miss out on potential positive slippage.
In 2006, FXCM pioneered No Dealing Desk (NDD) execution in the retail forex industry specifically to align our interests with those of our clients. With the NDD model we provide to all Standard accounts (5k minimum opening balance) and Active Trader accounts (25k minimum), we offset each client order one-for-one with the best prices from competing liquidity providers, and don’t profit from client losses, or lose from client profits. Instead, FXCM profits from client trading volume. That means we want our clients to be profitable, so they can trade more.
Furthermore, it’s worth noting that we use the same base price for DD execution on Mini accounts ($50 minimum) before adding the spread markup as the base price we use for our NDD execution before adding the commission. That’s a key reason you can have confidence trading with FXCM regardless of the account/execution type you choose.
Our clients appreciate these facts which is why the latest figures from the CFTC show traders have more money on deposit with FXCM than any other US-regulated forex broker. 
Welcome to the forum, Mabooz!
As FXCM’s representative here on Babypips, I’m happy to answer any questions you have about us. US laws prohibit anyone but CFTC and NFA regulated forex brokers from offering forex trading services to US residents. This is true whether or not the US resident is a US citizen.
However, you mentioned that you are a student. If you have a permanent residence outside the US and have documents to prove this, then you can apply as a non-US resident to open an account with FXCM UK or FXCM Australia which are regulated by the FCA and ASIC respectively.
Where is your permanent residence?
If you’re just studying in the US then you can use your own/your parents residential address from your home country to sign up.
I’m a Canadian trading with Australia’s Vantage FX. An ECN broker with cheap commissions worth considering if you want to avoid the big guys with documented financial problems.
Whatever you do, don’t choose ForexbrokerInc. Bucketshop.
As you are not US resident you can trade with any broker that you want. Mop list choice is Hotforex, Tickmill and FXCM
us regulatory do not care if you live or study in the united states. what is important is youre tax residence. as expats can live wherever in the world they usually are accountable and pay their tax in their “home country”. so if you have a legit adress on which you are elnisted as residentail (which is not in the USA) you have no problem in opening an account from that adress.
if you never paid any taxes or never asked for tax refunds in USA then the United States Departmemt of Treasury (USDT) will not bug you and leave you alone.
if they do bug you then you must be able to prove your recidency in a foreign country and that you are/will be paying the taxes there in that foreign country.
in general if you have a adress and access to a postbox in any foreign country then it is very easy to open any account without the US regulatories knowing this. if the broker asks you for your residence adress then simply do not enter your USA adress but the adress of that other country.
it only becomes problematic if USA regulatories find out about what you are doing. but theres 2 critical points you must consider:
1st. if you never worked in the USA (and never tried to get a tax refund) you will have no personal tax number attached to your name. or in simple words: the USDT will not even know that you exist. if they do not know you exist they will not check upon you and you have a easy life regarding this issue.
2nd. if they start to bug you then you simply can (or should be able to) prove that your tax recidency is in that other country. you can do that only if you never paid taxes in USA (never had a job in USA). if you had a job and paid taxes and did not leave the country afterwards for more than six months (which means you were not enlistet on any adress in the USA as residential adress AND were enlisted in another country with your residential adress AND do not posses an american citizenship) then you must pay taxes in USA.
i had a similar situation when i was working in new york in 2008 for 1 year and then moved back to europe again. a lot of paperworks.
anyways conclution: people who have a study/educational visa without permition to work in the USA and never worked in the USA have no issues with the USDT. that basicly meams you can chose any broker you like for your business.
Thank you for the replies guys,
Yes I have never asked to deal with any type of tax here. I just hold a F-1 student visa. which is only a studying visa.
so since now I can choose any broker,
what would you guys recommend? I am willing to start with an amount of $500 and maybe a leverage of 1:200
Please advise.
I want a broker that wont complain at all to the amount of money I am making.
Hello again, mabooz
In my previous post, I advised you not to consider offshore brokers at this stage in your forex career. [B]However, in order to get leverage higher than 50:1, you will have to look offshore.[/B] This will require you to do some serious study, and some careful due diligence.
Here are some of the grim details:
• You can forget about Canada. They have leverage restrictions which are even more ridiculous than the U.S. restrictions.
• In the U.K., leverage will soon be limited to 50:1, as it is in the U.S. — so, forget about the U.K.
• Brokers in the E.U. are still able to offer higher leverage, as are brokers in Australia — but, the World Forex Police (aka the U.S. CFTC) are working hard to force these “rogue” states to conform to the CFTC’s 50:1 mandate, so reasonable leverage may not be available for much longer in the E.U., or in Australia.
Which brings us to The Offshore Broker thread, here on [I]Babypips[/I].
For 6 years, a number of [I]Babypips[/I] members have been vetting offshore brokers, in order to identify those who demonstrate stability and reliability, and the willingness to accept U.S. residents. The results of our research are summarized in the first 7 posts in that thread. The thread (which has been viewed almost a million times) has grown to almost 4,000 posts. So, you probably won’t want to read the entire thread.
If you simply want to cut to the chase, and get a recommendation regarding a reliable offshore broker who will treat you fairly, offer you substantial leverage, and encourage your profitability, then here’s my recommendation: Look into Trader’s Way in Dominica (in the Caribbean region).
Regarding Trader’s Way: Here on THIS PAGE, you can find links to recent posts (in the Offshore Broker thread) where Trader’s Way has been discussed.
The analysts at Trader’s Way post daily market commentaries here on the [I]Babypips[/I] forum. You can find their latest commentaries HERE, HERE, and HERE.
As part of your due diligence regarding Trader’s Way (or any other offshore broker), pay special attention to the procedures required for transferring funds into and out of your offshore account. Those transfers can be more complicated than similar transfers in and out of a U.S. account would be.
Good luck in your search.
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thank you so much Clint. I appreciate your input
Hi Mabooz!
As Clint has said, I’d definitely recommend you do a lot of your own research first.
I’ve been using lqdfx.com since about September and haven’t had any problems with them so far and they do indeed accept US clients. Good luck!
