some info on HYCM
Exactly. I want to just get on with the trading.
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finpro trading has change there address they are no longer in the U.K. here’s there new address
PO Box 2359, Providence Industrial Estate, Mahé, Seychelles. no more phone support
you can see bottom right of there home page https://finprotrading.com/
I feel better now that Finpro & Coinexx are no longer in the UK operating within arms reach of FAS. I’m still with Hugo, but they are really asking for trouble with what they are doing.
I’m still keen to hear peoples results with coinexx. Especially fees and spreads
Maybe not – It looks like Hugosway is staying one step ahead of the Nanny State Sheriff –
Edit:
The Hugosway Terms and Conditions still specify SVG as the place of incorporation. So, possibly, they are in the process of changing their domicile. If so, I would expect the Terms and Conditions to be revised to reflect that in the near future.
Somebody should phone them, or start a Live Chat, and find out.
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this is good news, i read somewhere there was 2-5 million dollars a month going offshore to escape the nanny states so these brokers are getting influx of traders
If I had to guess, I think it’s mostly EU traders moving to the large ASIC regulated brokers (Pepperstone, IC markets, think markets ect) or to their existing EU broker’s offshore entities.
I plan on using coinexx. My biggest hangup, what about filing the FBAR for the IRS? I want to be honest with the IRS. My fear is that I list coinexx accounts in the FBAR, and I get them in trouble or get them on the radar. How are you guys dealing with filing FBAR’s with these offshore brokers?
Quoting forbes…What if your trading is on Binance, the offshore site? If your account is worth at least $10,000, you are obliged to tell the government about it in an FBAR filing. You were planning to omit that form, too? Then understatement penalties may be the least of your worries. Prepare for a visit to the penitentiary.
i have an offshore IBC and that company have a offshore bank account and forex broker account all my trading profit goes to that company, you must report you own a company offshore to IRS.
my offshore company can make as much money as it want, i only report my income when my offshore company sends me money here in the states at this point i have my accountant do my taxes at end of year.
a little info for your mind.
That article does not apply to us. Trading income (Capital gains) = passive income
Subpart F was designed to prevent US citizens and resident individuals and corporations from artificially deferring otherwise taxable income through use of foreign entities.
Passive income (net expenses) such as capital gains, dividends, interest, royalties, rent, annuities, offshore shipping and personal service contracts are treated as Subpart F income.
Subpart F income whether distributed or not is taxable to the US shareholders personal return (or corporate return if a US corporation is the owner) in the year it occurs as ordinary income.
Income in from other types of operating businesses such retail stores, factories, etc. that do not have operations in the US and do not purchase goods from a US affiliate of the business is not taxed to the Controlled Corporation shareholders until it is actual distributed to them.
Unless you…
- Renounce your citizenship and move out the US
- Are an expat (in the US <35 days in a yr) and exempt from your first 100K in foreign income
- Own a foreign controlled corporation (CFC) with non passive income (ex. Sales)
There is no such thing as eliminating US taxes. #3 is really just a tax strategy multi national corps use to defer their foreign sales income (GE, Microsoft & Apple ect.). They also make foreign acquisitions with that offshore money tax free.
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Form TD F 90-22.1 - Foreign accounts (accounts held >10K total anytime in yr)
Form 8938 - Foreign assets (accounts/stock/interest >50K end of year & >75K anytime in yr)
Form 5471 - Foreign corporation Ownership & Subpart F income (>10% owned IBC)
Yes we are ratting out the offshore brokers when we file taxes, but you have no choice.
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yes you must tell the U.S. goverment everything. people should do there own research and take it from there.
Green is hostile to offshore US traders, he acts like we are breaking US laws.
never use them, im sure you can find a good trader accountant somewhere
I appreciate the responses. Looks like I need to find a solid International Tax Law Attorney. I actually asked coinexx about how they felt about US citizens’ listing their coinexx accounts on the FBAR. The support person was very helpful, saying she escalated my question to management, but I have not received a response yet from them. I have a feeling they won’t respond to that question.
I guess the next question is, using an offshore corporation to get access to a regulated (FSA, ASIC) broker where you can actually feel some security of your money not vanishing by the broker itself.
I contacted a few of them a couple years back, and a majority of them had no problem, EXCEPT, they wanted atleast $100k minimum, and/or nominee on the account must not be a US citizen. (Ava trade, Global prime, JFD were a few that were open off the top of my head. Never did contact any of the big ones like XM,IC Markets, or Pepperstone.
I have no problem following the laws of my country, it just baffles me the amount of extra tax revenue the US could be receiving from the Forex traders.
Then again they make it so difficult to follow the laws. up until Clint posted the screen shot of the indemnity agreement, which I think is a great idea, I thought the reason why regulated brokers would not accept US clients was because of the paperwork (hiring of more staff) that would be required to tract their US clients and report back to the US. I never knew that the Broker actually had to have a physical presence within the USA.
Keep up the good fight!
you have to prove your resident is offshore, if your a US citizen that have a offshore company you can’t open account with a regulated broker unless you can prove you don’t live in the U.S.A. , most brokers don’t deal with the hassle so they don’t except you because your a US citizen