-Exactly.
And even if the removal of CTrader only applies to US client base, it could still greatly benefit any broker/firm while giving them plausible deniability. Most brokers/firms do not offer CTrader for a reason, according to my understanding based on what traders like you have shared about it.
Spotware tried to eek out a market share from Metatrader. Dodd Frank caused many to exit USA market. That POS legislation requires regular reporting to US regulators. That put off many non US operations, and why this very thread exists.
Since we’re back on the subject of offshore brokers, can anybody explain why many of them are requiring KYC recently? Where is the pressure coming from?
Hello, merger of these two companies was a surprising news for me as well. But your post here caught my attention. I have quite a large account with Coinexx and have been taking regular withdrawals (recent was last week). Never had a problem. I am again raising a larger withdrawal today and will let you know how my experience is. It would be great if you keep us posted as well.
The withdrawal hit my wallet about an hour ago. I’ve never had a problem with Turnkey in the past and I ordered the withdrawal through their website. However, all of the support messages came from Coinexx. Since your account was already with Coinexx, I hope to hear it is processed more promptly.
Hey there, Thanks for the update… I got my withdrawal in like 22 hours, so no problem again. For me, Coinexx has always been steady so far. But of course we should be vigilant and keep each other informed about our experiences.
That’s true! Then again they’ll always find ways to dodge the game - wonder whom such bodies intend to serve.
In times of war, when countries are trying to stop money flowing to certain countries that have been sanctioned, brokers/industries who don’t offer KYC could be a constant target, as observed by MT4’s phone app issues.
I’m just speculating, who knows?
As a US citizen planning to move to an EU country (Portugal or France) and establish residency there, I understand that I can’t open an account with the many brokers operating there, because of US citizenship However, looks as though my current US broker (OANDA) requires that the trader be a resident of the US, per this statement on their website: “To apply, you must be over 18 years old, and a legal resident of the United States.” So, once I’m resident overseas they won’t allow me to trade on this account? I’ll contact them after the weekend for clarification.
If true, that’s a big Catch-22. Has anyone been in this situation? The only option would be to use one of the offshore brokers listed here?
Sad to say this but that has not worked for other Americans maybe it works for you, i heard the minute you show your residency card they ask you where are you a citizen, and when you say America they won’t let you open an account because u.s. citizens are ban from opening an account with other well known regulated brokers, maybe it works for you so keep us posted
I’m pretty sure as a US citizen I can’t open an account over there, which is why I want to find out whether at least I can keep using my US OANDA account. After the weekend, I’ll ask them whether in fact I can continue to use my US account once resident in another country. Or, try one of the trusted brokers listed here which might be better anyway.
Ok i get it, I don’t know how that work
-Why do you need to tell them anything? People travel and trade. US-based VPN/VPS is cheap. You’re still going to have to pay US taxes, presumably, so I do not see the problem. Anyway, you are here; plenty of offshore brokers that will take your money. I am no expert, however.
My sister was a US expat working in Lux 3-4 years ago. She was able to open a EU broker account. When she came back to the US she still had access to account until she decided to close it.
If a US citizen has residency + local bank account + local employment they may treat them differently. That being said, after ESMA regs their leverage limits are worse than the US now.
Interesting read what ended up happening to 1broker.
https://1broker.com/
Looks like he had to pay the SEC “disgorgement”.
He had a great platform. Beyond the REST API and trading CFDs, I also appreciated the follow trading. I remember searching for the most successful traders and then seeing what they were doing. 90% of them were risking too much and blew up their accounts. Very few stayed at the top for long. Being able to watch the few consistent traders helped me improve. 1broker provided value to the trading community even beyond being a broker.
Interesting case docs. “Certain high net worth individuals” can trade CFDs legally, but the rest of us common rabble apparently are not allowed. The rules make little sense.
As a taxpayer, I much prefer the FBI concentrate on bad hombres instead of an Austrian kid guilty of innovation. Better idea would have been to require a few controls like KYC and let 1broker continue operating. Maybe let SEC take notes on how a brokerage should be run.
All said, I am glad they didn’t lock him up. Could have ended much worse. He is a free man and might end up creating something in the future. Innovation should be encouraged. Hoping to see 1broker version 2.0 in the future.
Also of note is that 1broker clients got their money back even after 1brokee was shut down. Sounds like he was running an honest business.
Thanks for the information. Perhaps EU brokers will let me open an account with clear proof of residency. And, perhaps OANDA doesn’t care if you trade abroad as long as you’re still a US citizen. Presumably they have digital nomad clients. They might have meant that citizens of other countries can open accounts in the US as long as they’re legal residents of the US, not that US citizens can’t trade from abroad. I’ll post back once I ask them.
Very interesting indeed. I remember them well. It was also a harbinger of things to come.
Regardless if a company has no footprint in the USA, the regulators here granted themselves the authority to force compliance, and nobody challenged them.
That’s when I knew the writing was on the wall regarding crypto space in the USA.
@SmallPaul, there are options out there- I wasn’t able to get an account with HF/Hotforex because they ask for your country of birth but I have successfully opened accounts with other U.S. forbidden brokers by submitting my utility bill and driver license to prove residency/KYC, etc.
So far, the effort has paid off and I have improved trading conditions and more instruments available. My recent favorite is BUND with a one tick spread. Scalping heaven. Not all of them accept crypto for deposit/withdrawal but I have a bank account in my new home country they can wire to. It can be done.
I use a VPS, so when I visit the U.S. I don’t have to bother with a VPN to trade. The VPN is only needed to login to the broker back office if I need to setup a withdrawal.
As long as you file the proper FATCA paperwork, everything is 100% legal and above board. The government doesn’t forbid us from trading with any brokers, they forbid a competitive broker market to exist in the U.S.
Can you elaborate? What do you think is going to happen?
It sounds to me like they only nailed him because they seized the domain name. They must have made a mistake in having their hosting with some connection to the U.S.?
If they hadn’t been able to seize the domain, the Austrian kid could have given the CFTC the finger and kept going.
What’s to stop the CFTC from doing the same exact thing to any other broker?
Why couldn’t they agree to dump the American clientele and move on? Why did they have to destroy an honest, innovative business?
There must be more to this story.