Some comments for newcomers (and casual readers) in this thread
on the legality and ethics of offshore forex trading.
I started a Thread in the [I]Melting Pot[/I] forum to post exposés of the Panama Papers scandal, as it unfolds.
For those who have not been following the news, the gist of the story is this: The largest hack of data in history has exposed a huge client list of individuals and companies involved in tax evasion and money laundering, utilizing offshore tax havens, all funneled through one law firm in Panama. The client list revealed in this hack includes heads of state, heads of companies, heads of sports syndicates, heads of organized crime networks, and vast numbers of high-net-worth individuals.
Active participants (and active readers) in our Offshore Broker thread know that the offshore activity exposed in the Panama Papers scandal bears no similarity to the offshore forex trading we promote in this thread.
But, newcomers (and casual readers) in this thread might not understand the difference between the “offshore” scandal that’s erupting from Panama and the “offshore” trading we do here.
We have an enormous community of casual readers — this thread has been viewed over 700 thousand times. But, those “views” are mostly by people who don’t post here, don’t trade offshore, and likely don’t know the details of what we do here.
So, some explanation is in order.
• [B]The word “offshore” does not connote or imply anything illegal, unethical, or unsavory.[/B] The offshore forex trading we are engaged in here is not illegal. It is not prohibited by any U.S. law. Furthermore, it’s purpose is not to facilitate money laundering or tax evasion. Rather, it’s purpose is to allow us to trade in a relatively free environment, away from the oppressive regulations of the CFTC. The CFTC would love to have the legal authority to shut us down, but they don’t have it.
[B]As a result, we trade offshore without the risk of CFTC prosecution.[/B]
• [B]The word “offshore” doesn’t even imply secrecy.[/B] On the contrary, everything we discuss, advocate, and do is done right here, in the open, in a public forum — which the CFTC, the NFA, and the IRS can, [I]and do,[/I] read on a regular basis.
Furthermore, our offshore trading accounts are reported to the IRS and taxed as required by law. We have said again and again in this thread: Comply with the IRS regulations regarding the reporting of offshore financial accounts, report the gains and losses in your offshore forex accounts, and pay your taxes.
[B]As a result, we trade offshore without the risk of IRS prosecution.[/B]
• Some very bad actors are being exposed in the Panama Papers scandal. Many of them deserve to be hunted down and fined, or jailed. And I, for one, hope that happens. Their criminal activities, concealed and carried out in offshore locations, give “offshore” a bad name in the minds of people who fail to understand the details and distinctions.
We won’t be painted with that brush, because what we do offshore bears no similarity to the scandals being revealed in the Panama Papers.