Going offshore to escape the CFTC

Broker Discussion Forex Brokers
224

I suggest we include the deposit/withdraw options for each broker accepts US resident.

229

In my opinion (and I am not a lawyer), yes, it is legal for you to open an offshore forex trading account.

In my opinion (and I am not a tax accountant), you are required to report on your tax return all foreign accounts (bank accounts, brokerage accounts, etc.) which you hold, and to pay taxes on earnings/gains/profits in those accounts.

I will wait, as well, to place [B]HY Markets[/B] on the list. Keep us informed.

Thanks, Hazel. I will put [B]Broco Forex[/B] on the “will accept” list.

Thanks for the suggestion. I thought long and hard about how much additional information to try to cram into our list.

Obviously, anyone seriously considering any of these brokers will want to gather a lot more information than the 4 items I suggested. But, that due diligence is really the responsibility of each individual, and not something we can — or should — try to determine.

I think, to start, we should keep it simple. My vote would be to go with those 4 items that I listed. But, I’d like to hear from other contributors on this question.

230

The Offshore Brokers List has been updated and moved. For the current list, scroll forward to the latest page in this thread.

231

A few more additions to the list - all of these brokers have also confirmed their acceptance of US customers after October 18, 2010 with no restrictions:

Uni-FX (UAE), RFXT (Lebanon), Forex-Metal (Panama), ActivTrades (UK).

232

Jacob, you’re a BROKER-CONTACTING MACHINE.

You’re making me bust my chops just to keep the list up to date!

233

You know I’ll do anything for Gary Gensler ever since he adopted his rules. :slight_smile:

234

Yup. I’m gonna send that boy a Halloween card. Maybe a skeleton in a grave, saying “Wish you were here!”

BTW, I think Uni-FX is actually domiciled in the UK, with an office in Dubai. So, I put them with the UK brokers in the list.

235

A positive response from the Austrian broker MRC Markets:

Hello,

MRC Markets is adhering to its policy, therefore no restrictions will be implied upon US customers after October 18, 2010, when the new US CFTC regulations come into effect, since in Austria brokers comply with the Austrian financial regulation and US enactments have no legal force there.

Don’t hesitate asking any of your questions via Email.

–
Sincerely,
MRC Markets

236

ForexClub.biz has stated the same:

You can become our client if you are US citizen.

237

Hantec is a definite no. Here is the email

Dear Trader,

Thank you for your interest in Hantec Markets and your recent MT4 platform enquiry.

I would like to inform you however that due to new CFTC regulations Hantec Markets cannot accept US retail forex customers.

CFTC defines retail customers as :

•Individuals with less than $10 million in total assets, or less than $5 million in total assets if entering into the transaction to manage risk, and who are not registered as futures or securities professionals;
•Companies, other than financial institutions and investment companies, with less than $10 million in total assets, or net worth less than $1 million if entering into the transaction in connection with the conduct of their business; and
•Commodity pools that have less than $5 million in total assets.
If you require further info please do not hesitate to contact me and I will be happy to forward you to the appropriate sources.

Thanks again for your interest in Hantec Markets

Regards

238

Here is an email from forex.ch, they are a no.

Dear Sir,

we are not affected by the new regulations, but we are unfortunately also not allowed to accept US citizens as clients.

Best regards,

Konrad Regensburger

GFX Group SA
World Trade Center 1
Route de l’Aéroport 10
1215 Geneva 15
Switzerland

239

I dont know who got the onefinancial information. Something may have changed, but I just revceived this email.

Hello XXXXX

Hope you are well. Unfortunately, we cannot accept US clients for trading. If this changes in the near future I will let you know.

Thanks

Trevor

240

Atlantic FX, rejection email.

Dear XXXXX,

Thank you for your email.

Unfortunately We can not accept US Clients.

Regards,

Anthony Dawin

Customer Service | ATLANTIC FX

241

There is a legal and permanent fix. I am a grid trader (Not allowed under FIFO) and hedge trader (also not permitted under the NFA). I have had the luxury of having a year or more to figure all this out as I seen it coming.

Here is the problem that you face using a non-NFA broker. It is true that if the Broker does not have a US office, there is little that the NFA can do to the broker. However, it is still a US law concerning US citizens. If a US citizen opens an account with an off shore broker, he aids and contributes to the commission of a crime by the broker that is out of reach. Would the law come down on the traders that go off shore in violation of the new law? Would vise go after the Johns that help a prostitute break the law? They certainly do.

The legal and permanent method is to do what the wealthy have been doing legally for years, open an off shore trust, let the trust open an off shore bank account and open an off shore brokerage account using the trust’s bank. We are working on getting group rates for a Belizean off shore trust.

I personally would not go the route of searching for non regulated brokers or even regulated ones, expecting them to go to bat for you. They are in it for the money. It is up to you to protect your assets, freedom and your ass. They won’t.

Forex-assistant is strictly a research company, there is nothing for sale on this site.

242

A new addition to the list - 2pipsforex.com:

Dear Sir,

We accept US clients.

Best regards,

Litsa Peters
Accounts Department
Global Clearing Group Ltd
2 pips forex, Online forex trading, 1 pips spread on all currencies
Prime Clearing Member of EUEDEX™
European Union Electronic Financial Exchange
Registered Member ID: PCM-2233

243

Can you provide any more info? I appears to me that this is actually a Russian broker, not regulated by any legitimate regulatory authority (the most they can claim, apparently, is membership in the International Chamber of Commerce).

Can you sort out the difference between ForexClub.com (NFA member, CFTC regulated) and ForexClub.biz (same name, same logo) who claim to be accepting U.S. clients?

Thanks. Will put them on the “no” list.

They’re already on the “no” list. Thanks for the confirmation.

Busted. I did it. My info was verbal. Yours is in writing. I’ll go with yours.

Will add to the “no” list.

Haven’t looked at this one yet. Will investigate and add to the “yes” list.

Thanks, guys.

244

Clint,

I would consider spending some of my time to verify the actual place of domicile and regulation of MRC Markets and ForexClub.biz only if I were seriously considering opening an account with them (which I am not). As for MRC Markets, the following address is listed under the “Contact us” section on their website among others:

Austria
Vienna
Vienna Stock Exchange Building
Schottenring 16 A-1010 Vienna Austria

Tel.: +431 537 12 4862

I therefore assume they have to be registered and/or regulated in Austria to maintain their business presence there, so the information from their response on their Austrian affiliation can be true. If interested, you can ask them for copies of their Austrian registration documents to verify the validity of their claim.

As for ForexClub, they have informed me of the following:

FOREX Club is an international company with offices located in Europe, USA, China … Russia. We offer support to our clients depending on their location.
Our company exists since 1997. We have been working successfully on the Forex market for 13 years.
Our company’s headquarters are located in Europe, with customer service offices in China, the USA, Lithuania, Russia and the CIS countries.

The Group comprises several companies, the best known of which are the Forex Club International Limited (certified by KROUFR) and the International Academy of Exchange trading.

Since 2007, the world-class level of the FOREX CLUB is confirmed by the ISO 9001 international quality certificate. We are the only certified broker in the market. For business people around the world, the existence of such a certificate is one of the fundamental arguments demonstrating the reliability and quality of our services.

The head office of the company Forex Club International Limited is located : Road Town, Tortola, British Virgin Islands, I.B.C. №: 597332

245

For you list:

After a telephone call to MIG bank, they confirmed to me that they will ACCEPT US accounts, but with a minimum deposit of $1000, ill try to get a written confirmation when I have time

246

New addition - TradeNext:

I would be happy to go over the finer points of our offering to US clients. Please provide me with a contact number and we can speak about the matter further.

247

Thanks, Nick. I’ll go ahead and move MIG Bank to the “will accept” list. If you get that written confirmation, let us know.