Going offshore to escape the CFTC

Broker Discussion Forex Brokers
5967

Hello HS,

I tend to think there’s a very broad, gray, fuzzy line between “on-topic” and “off-topic” in forum threads – especially in threads as long-running and wide-ranging as this one.

Accordingly, in this thread I’d like for us to be lenient in allowing tangential conversations which may not run straight down the center-line, so to speak, but are nevertheless related to the theme and purpose of the thread.

Regarding the current, lengthy conversation about preczau’s recent dispute with Coinexx,
my thoughts are these:

  • If preczau has posted a complete and accurate account of the manner in which his trades were stopped out (or margined out), then at the very least Coinexx has some 'splaining to do. Coinexx does not owe any explanation to this thread, but Coinexx certainly owes a complete and accurate explanation to preczau. And in turn, having started the current kerfuffle here in this thread, preczau should tell us all how the dispute is ultimately resolved – or not resolved, as the case may be.

  • We have built this thread around finding and vetting offshore brokers who will accept us as clients, in the face of mounting pressures from our own regulator, and now also from all the most powerful regulators worldwide. That vetting process is useful only if it exposes the good, the bad, and the ugly (to borrow a Clint Eastwood theme) regarding each broker we look at. If preczua is telling the story straight, then he is exposing something potentially ugly regarding Coinexx, and we need to take a hard look at what that implies. That hard look, and the conversation it sparks, is not in any way “piling on”.

  • Coinexx has been recommended for Trusted Broker designation in our thread, and that recommendation is still on the table. A decision regarding that top designation should be made only after considering all the facts we’re able to gather, including the negative facts. Even after a broker is awarded the Trusted Broker designation, the vetting process should continue. As I have suggested elsewhere in this thread: Trusted Broker status should not be a “lifetime appointment”. A broker who deserves this designation must continue to deserve it in the future, in order to retain the designation.

  • If, on the other hand, it turns out that preczau has misrepresented the circumstances surrounding the closing of his various positions, in order to smear Coinexx, that fact will sneak out in the course of this lengthy airing of the matter. And then, we will deal with preczau, and with Coinexx, in appropriate fashion.

4 Likes
5968

I’ve seen that statement in various threads in this forum, from time to time, and have never understood it.

If there’s something about the post that violates forum rules, how come the post was “withdrawn” by the author, and not “deleted” straight-away by a moderator?

And, if there’s something about the post that violates forum rules, wouldn’t the post have been “flagged” prior to being withdrawn? So, why does that statement say “will be automatically deleted in 24 hours unless flagged”?

I’m guessing that the problem with Nick’s post was a first-time poster attempting to post a link, but that’s only a guess. It was many years ago that I last worried about the rules for new members, so – quite honestly – I don’t know the rules. I decided to find out.

I spent 20 minutes trying to find a list of rules for new members of this forum, and failed. All I got for my effort was a “badge” that says –

Badges / Read Guidelines

Read Guidelines

  • This badge is granted for reading the community guidelines. Following and sharing these simple guidelines helps build a safe, fun, and sustainable community for everyone. Always remember there’s another human being, one very much like yourself, on the other side of that screen. Be nice!

So, I decided to read whatever it was that Nick21521 posted, and then (presumably) withdrew voluntarily.

Nick posted a link to a website called Tools for Brokers (or t4b) offering a service to brokers (including forex brokers) who want platform plugins to identify and defeat clients using abusive trading tactics.

Interesting stuff. I was totally unaware of this “service”.

Obviously, Nick posted this as commentary on the preczau/Coinexx dispute, so I searched through the t4b website for any mention of Coinexx, and found none.

But, I did find this curious tidbit: Tools for Brokers lists Gain Capital as one of their “partners”. I throw that out there, for what it’s worth.

I don’t think Nick’s link is far enough off-topic to be excluded from this thread. So, on the assumption that his “crime” was merely attempting to include a link in his very first post, I will post the link for him.

I think it’s worth a look –

See also the website’s homepage, and their “partner” page –

5969

Never heard/read of THESE SERVICES or that such plugins exist. what kind of a scandalous company will build these plugins and why would brokers even partner with them. I think its time to switch to futures

5970

I deleted it because i wasnt sure if this was the right thread for that post.

But when i came across that company I thought it was very interesting. They literally have a plug in call “price changer”

1 Like
5971

Have been reading a lot of Hugosways, you still with them and are they good? from what i read they seem like a good broker for this list.

5973

I’m with them now too, I also have another friend with them. I love the access to leveraged individual share CFDs & Crypto… so far so good, but it’s still early.

1 Like
5974

FXCM &/or Gain were fined several years ago by the CFTC for use of those MT4 plugins.

Unregulated brokers using MT4 are like the wild wild west where anything goes… which is the main reason we need to encourage open discussion of issues like Preczau has brought to light rather than have a senior member asking for such discussions to be squelched by a moderator.

5 Likes
5975

I agree @MrInvisible since @Nick21521 showed us what plugins are out there i think we should have open discussions and even identify similar issues of all the brokers listed here or are considering. And if the senior members here object, we can start a separate thread [ namely - QC: Going offshore to escape the CFTC ] that discusses all related issues. Only if you all concerned here agree?

5976

Curious if you have had a chance to trade any crypto through Hugo’s Way. Some of their spreads did not look too bad, but the last time that I checked, BTC had a $10 spread. Also wondering what kind of liquidity they have. This broker is currently 2nd on my list, after Coinexx. Coinexx has lower commissions and seemingly better spreads, but Hugo’s Way offers more crypto trading pairs.

Thanks.

5977

Back to business.

The following 6 brokers have been mentioned in this thread as possible candidates for our List.
The posts in which they have been discussed are noted below.

So far, nothing has been decided regarding these 6 brokers. We should complete our discussion of these brokers, and vote whether to add them to the List.

The minimum requirements for inclusion in the List are:

  • (1) the broker will accept new U.S. resident clients
  • (2) the broker has a respectable reputation (as far as we can determine)

As always, live trading experience is the most valuable information we can use in making our assessment. If you have actual trading experience with any of these brokers, please share it here.

  • ADSS
    discussed in posts #5245, #5246 and #5427

  • Grand Capital
    discussed in posts #5191, #5427, #5429, #5432 and #5434

  • Hugosway
    discussed in posts #5115, #5393, #5394, #5396, #5397, #5398, #5401, #5402, #5405, #5411, #5413, #5417, #5423, #5427, #5433, #5435, #5436, #5439, #5497, #5526, #5529, #5699, #5701 and #5704

  • NPBFX
    discussed in posts #5316 and #5427

  • NumberOneCapitalMarkets
    discussed in posts #5251, #5252 and #5427

  • SFX Markets
    discussed in posts #3144 and #5517

5978

Yes I still use them. I find them a good solid choice, had no issues.

1 Like
5979

NOW THAT WE ARE BACK TO BUSINESS

I will volunteer to evaluate pricing and performance
for any MT4 Live account in Forex only…

Due to the lack of “sexiness”, so to speak, of Forex
these days, that may or may not be interesting
to y’all … :slight_smile:

My terms are, give me a live MT4 account’s
credentials, I’ll evaluate, and then you change
the password when it’s done…

[EDIT] needs to be MT4 ECN account variable spread
plus commission live account for my evaluation
offer, not one with commissions built into spreads…
and no demo accounts. (and I’d rather not hassle
with MT5 accounts right now…)

hyperscalper

5980

FINPROTRADING/TURNKEYFOREX DON’T LIKE U.K. PERSONS ?

So, imagine my shock when one of my UK pals/clients tried to get
an account with FinProTrading and/or TurnkeyForex and
he tells me they refused since he was a “UK citizen”…

Colo(u)r me surprised at that one !!! I told him
"Let’s do Coinexx instead"

[EDIT] in an effort to increase my credibility, let me
quote him “More chance of hell freezing over that brexit
actually happening mate” which surprised me again, and
" Not heard of ESMA. But I found both to be very unhelpful
and got right up to the point of deposit with turnkey
until I was told ‘we don’t deal with uk clients’"
…needless to say, my reaction was “WTF” … :slight_smile:

Also, not sure how U.K. can get out of BREXIT now,
but he thinks that somehow they will… Strange

hyperscalper

5981

Hi… the spreads for bitcoin have been out of wack since the bcash abc & sv split crash earlier this week. The spreads on the other crypto currencies have been fine.

As for liquidity… I have no idea, again with mt4 you’re blind with all these brokers since you can’t see the level II order book.

1 Like
5982

Thanks for replying.

Regarding the order book, that makes sense. For crypto-based exchanges, it is not a problem since there are no brokers and trading is done directly on the exchange where we can see the order book.

I inquired with support at coinexx asking whether or not they publish which exchange(s) they use for trading, but was told that I would need to sign an NDA first. Whether or not anyone that requested could sign an NDA is beyond me, but would seem kind of arbitrary if so.

5983

ESMA and the Law of Unintended Consequences

ESMA is driving EU retail traders offshore in exactly the same way that the CFTC has driven
US retail traders offshore.

Both of these Nanny Regulators (along with Her Majesty’s Nanny Regulator FCA) are responsible for unnecessary chaos and unnecessary expense in the retail spot forex market. Retail clients and retail brokers are being damaged by these idiot regulators.

Nobody believes the bullshit propaganda peddled by these regulators that they are acting to protect the interests of retail traders. On the contrary, we all know that they are acting to tighten their grip, and secure their control, over a segment of the market which functions perfectly well without their interference.

Finance Magnates published an article on Friday on the subject of (1) capital flight from ESMA-regulated forex brokers to offshore brokers beyond ESMA’s reach, and (2) the scumbag tactics employed by the EU to close off the money-transfer pathways used by EU traders to fund their offshore accounts.

Here are some excerpts

  • “Several offshore brokers operating in remote jurisdictions are booking between €2 and 3 million of deposits per month from the EU. The news comes on the back of the new regulatory framework introduced by the European Securities Markets Authority (ESMA) in August.”

  • “Sources with knowledge of the matter have also confirmed to Finance Magnates that several offshore jurisdictions have become very difficult to operate in. Brokers with licenses in Belize, Marshall Islands, and Vanuatu are struggling to find payment providers who can provide them with card processing services.”

  • “The difficulties for brokers in getting acquirers to service their card payments needs are not deterring them from taking on business.”

  • “That said, the alarming rate at which EU clients are heading offshore should be a major red flag for the ESMA.”

And here is the Finance Magnates article

3 Likes
5984

Excellent info, I’ve always been hearing about it this but not to this degree.

5985

SFX Markets looks interesting.

spreads from 0.1 pip
STP

“SFX Markets is a member of the Financial Commission, an independent entity that
allows customers to file complaints. Customers are protected up to 20,000 EUR
per case under the Compensation Fund.”

Max Leverage of 100:1

Personally, I use high leverage to leave less money ‘on the table’.
The more secure I think my funds are, the more willing I am to deposit more money.

Anyone have any idea how useful and effective the Financial Commission is?

EDIT: SFX Markets uses “ePayments”, a 3rd party payment processor. They allow Bitcoin funding. This is all just research, I haven’t tried it yet.

5986

I just tried to sign up with SFX and “United States” is not on the dropdown menu to register.

5987

because they do not accept US clients!