Going offshore to escape the CFTC

ApacheDan, thanks for the update.

As we feared, the CFTC has been busy making “deals” around the world.

And the Forex Dealers Coalition is now obviously in bed with the CFTC.

I’m very disappointed with the lack of response I’ve gotten from the emails I sent to 18 offshore forex brokers.

Actually, “disappointed” doesn’t really cover it. The results were pathetic. Of 18 brokers contacted, only 3 bothered to reply —

[B]Forex FS[/B] (Australia) replied that they meet our criteria (for offshore brokers)

[B]Tadawul FX[/B] (Cyprus/Switzerland) replied that they meet our criteria

[B]MIG Bank[/B] (Switzerland) replied that their legal status is being reviewed, and they will give us an answer later

Here is the text of the emails that I sent out:


I participate in a forex traders’ forum here in the U.S. Recently, there has been a lot of interest on our forum in the topic of offshore forex brokers, and some of our members have begun compiling a list of offshore brokers who meet two criteria:

(1) brokers who are NOT regulated by the U.S. CFTC, and cannot be compelled by the CFTC to comply with any U.S. rules or regulations

(2) brokers who will accept new U.S. clients for spot forex trading

If [ broker name ] meets these criteria, please reply to this email, so that we may include you in our list of recommended offshore brokers. Thank you.

Very truly yours,
(signature and email address)

I will send follow-up emails to the 15 brokers who have not responded, as well as several other brokers who have been suggested in recent posts on this thread.

I’ll send those emails out Sunday evening (New York time) — which will be Monday morning in all offshore locations.

In my follow-up email, I will change the wording to simply ask whether each broker accepts new U.S. clients and wants to be included on our list of recommended offshore brokers.

I recently learned that Tadawul FX is not actually domiciled in Switzerland. They are domiciled in Cyprus, with European offices (and European regulation) in Switzerland.

Accordingly, I’m showing their name as Tadawul FX (Cyprus/Switzerland) from now on.

More later.

…this is a partner with Dukascopy, and found this on their website:

Originally Posted by sub00
I got this message from the Australian broker.

From October 18th we will no longer be able to accept new applications from the US due to the recent SEC & CFTC rulings

Any talks in FXopen relating to this USA insanity ruling?

Since we don’t have an office in the US, nor are we an affiliate of a US based broker, we are not bound by CFTC rulings. Rest assured we will be able to accept US clients for the foreseeable future unless a legal impediment appears.

FXFrench.com Forex en français!
*FXFrench is the dual language (french/english) partner of FXOpen for the European Market

My recent correspondence with dukascopy was very clear that they will continue accepting US customers, but I’m definitely nervous.

If you like Go Markets, you may want to try Vantage FX (also in Australia). Even though Vantage FX is a Corporate Authorised Representative of GO Markets Pty Ltd (at least, they were a while ago), they are accepting US Residents until October 18 and will let us stay after that. I don’t know much about them - I’m still researching them, but here’s the E-mail they sent me last week…

Welcome to Vantage FX and thank you for downloading our demo MetaTrader 4 Trading Platform. I also called today and left a brief phone message.

Due to the recent bill passed for US clients in relation to forex trading, I have been informed that Vantage FX will continue to accept applications for new trading accounts from US customers before the 18th Oct 2010, which leaves us less than 2 weeks to open an account for you.

From the 18th Oct 2010 onwards, we will no longer accept any new applications from US customers. However, we will continue to service any US clients who join before the deadline for as long as they wish.

If you wish to open an account, the process is as follows:

Submit an application online.

You also need to provide ID notarised by an authorised individual attesting that the copies of the original documents are true copies (i.e. exact copies of the originals). I have attached an example of a certified document.

All prospective clients are to provide at least one item from Section A and one item from Section B below.

* Section A:     Certified Copy of Passport or Drivers Licence or Government ID Card
* Section B:     Certified Proof of Residence  - Utility Bill or Phone Bill or Bank Statement no older than 12  months that shows your name and residential address

NOTE: The Notary or person certifying the documents will need to state in writing that they certify the true copy of the original document.

Both documents need to be certified/notarised. Public Notaries can notarise documents and this is the most popular for International clients…

Hi all,

Another Australian fx dealer has come to mind.
For some reason I couldn’t think of it before, just remembered it!
It is Got Money their address is Got Money Forex

I’m new to Forex and frankly I’m a little confused about it all…
Does anyone have any experience with this broker?


[B]I just wanted to say Thanks for the great thread and the effort that you are putting in to contacting all the brokers. it’s nice to have all this info in one place![/B]

I’m surprised that no one has mentioned IBFX Australia or are they not accepting US residents or limiting them them to 50:1? Been trading since mid September with them on a 200:1 Account. They are licensed with the ASIC (Australian Securities and Investments Commission) so everything looks fine.


russian bucketshop with very low spreads.

prob could care less about the cftc or nfa, but i’d be wary. IMHO

I received an E-Mail from my broker yesterday telling me they would be closing my account as of the 18th due to CTFC rules. My broker is GO Markets in Australia. If I could attach the E-Mail I would, but I don’t see any way. At any rate, to paraphrase what they have said: Although we are controlled by ASIC here in Australia there is a ‘memorandum of understanding’ between ASIC and the CFTC that prohibits us from servicing US citizens any longer. (I’m so P*sed I can hardly type!). They go on to say there are certain exceptions. If I’m residing in the US, but not a citizen, then I’m OK. If I have $10,000,000 or more in my account, then I’m OK! There are others, but I can’t remember them offhand. I didn’t qualify for any of them.
I left IamFX in March to avoid this BS. A broker I was happy with, which by the way, I think went out of business the other day, or perhaps is moving to Panama, I’m not sure. I am sure it’s related to this CFTC crap. You know, as do I, Forex is hard enough without the F
ing government ‘helping’.
If this seems incoherent, please pardon me. The election is soon, and we have to get these imbeciles fired!
Really frosted,

A website that has come to my attention is Forex Ratings - Forex Broker Rating. Top Rated Forex Brokers Forex Ratings.
May be of interest when it comes to researching for brokers.

Thanks tom,
I’ll take a look…Sorry about the rant.

No worries.
I understand it is very frustrating times for all involved that these new rules affect.

Late Sunday afternoon, I sent emails to five Australian forex brokers and two New Zealand brokers, inquiring whether they are currently opening new accounts for U.S. residents. (Sunday afternoon EDT was Monday morning in Australia and New Zealand.)

Australian brokers emailed Sunday, October 10

Axi Trader — Forex Trading | Forex Broker | Forex Brokers | Forex Trading Platform

Forex CT — ForexCT Forex Trading

Halifax Investment Services Ltd — Foreign Exchange FX - Stock brokers for FX Foreign Exchange - Halifax Investment Services

IG Markets — Forex Trading | Forex Online | Trading Currency

Vantage FX — Online Forex Trading And MetaTrader 4 Brokers - Vantage FX

New Zealand brokers emailed Sunday, October 10

Latitude FX — Trade foreign exchange online - Live currency trading

WSD — WSD Global Markets Ltd : The online trading provider matching highest standards in integrity and safety

Five of these brokers are being contacted for the second time. I first emailed them on October 4, and they have not replied yet.

Two brokers, [B]Forex CT[/B] and [B]Vantage FX[/B], are new additions to our list of prospects.

Later this morning, I will send follow-up emails to U.K., German and Swiss brokers.

Axi Trader (Australia) is no longer a prospect. I just received this reply:

Hi Clint,

You are doing a great job.
How did you get on with my suggestion of Got Money fx, they are based in Brisbane Australia I think?
IIRC I added their url to one of my previous messages.

I was with an ASIC broker and they will be closing my account of Oct 18th.

Chatted with TadawulFX agent and they will take US traders at 500:1. As soon as my funds arrive from my now former Aussie broker, I’m going to Tadawul.

Will post experiences when I can.

Another Swiss broker has come to my attention, ie Forex.ch part of GFX group.
Their address is FOREX.CH

I just contact forex.ch their live chat operator was unable to answer the question. They are supposed to be emailing me shortly.

Is the ASIC going to be completely impacted or was the comment made by gomarkets exclusive to them?

As much as I would like to remain in one of the major financial sectors, I am going to begin looking at brokers in less traditional markets.