There are clearly going to be plenty of firms, including some big names, who refuse to be impacted by the cftc and are not afraid of their facist threats.
You really dont think that the american forex brokers are going to see a decline in profits? You really dont think it will put pressure on the cftc?
Where have they been before?
Well it is certainly much different to have accounts trading at fxcm uk vs not trading at fxcm at all. The first set of accounts that moved off shore stayed with their american broker in most cases just going to the off shore affiliate. This is going to be much more dramatic, when assets leave all together.
The cftc/nfa just hope everyone is afraid of their threats there is no way the have the structure to impose the rules they are talking about. The fact is there will always be trusts, omnibus accounts, anonymous bank accounts, and plenty of forex firms that, for lack of a better term, will tell the cftc to F off.
Sure this doesnt help the guy with a 5,000 dollar or less account. But any decently large retail trader will have options, and they will seriously impact the cftc/nfa and member firms.
I dont mind paying taxes and niether should anyone else. But I am perfectly capable of evaluating my own trading risk. The cftc needs to accept that restore leverage get rid of the moronic fifo rule and hedging.
The CFTC first announced their proposal as early as January, then made an initial release of their new rules on August 31, after that they released the final rules on September 18, and lastly the rules became effective on October 18. Along this entire way the major Forex brokerages with US presence werenāt doing a damn thing to change the situation. I donāt believe this is because the brokerages were lousy, but rather because they really couldnāt do much.
Both the CFTC and the US-regulated brokerage firms perfectly know that wealthy traders will always have a way around by setting up offshore IBCs with overseas bank accounts, forming offshore trusts, using anonymous bank accounts - you name it. Yet both the CFTC and the US-regulated brokerage firms perfectly know that the vast majority of their customers are not these wealthy traders but small guys with 5K or less, for whom all of the above wonāt be an option. It is therefore clear the CFTC is targeting them and not the big players.
For some unknown to me reason, the current situation appears to satisfy the US-regulated brokerage firms as well, as they do not even attempt to contest the repressive and anti-competitive CFTC regulations in the US courts of law.
Therefore, the only hope for the small guys will be a strong stand on the part of offshore firms that can insist on the fact that they are subject exclusively to their domestic legislation which does not prohibit them from unrestricted servicing of foreign customers (including those from the US) since all of their customers are serviced strictly in places of the brokeragesā corporate domicile.
I appreciate the work you guys have done to locate offshore broker possibilities.
I checked into one that is on your list of possibilities, āActivtradesā, and it says this on their website in the FAQ area:
"Unfortunately we are not regulated in the USA and so unable able to open accounts for US citizens or residents. "
Maybe, in 12 days, we can throw enough of the bums out of office, to start putting the brakes on the nanny-state.
Donāt scoff ā consider this: If the Republicans take control of the House of Representatives, then Rep. John Boehner will replace Nancy Pelousy as Speaker of the House. Back in July, Boehner said something that caught my attention:
āI think having a moratorium on new federal regulations is a great idea.
It sends a wonderful signal to the private sector that theyāre going to have some breathing room.ā
Rep. John Boehner (R-OH) July 16, 2010
Wonāt it be great if the Republicans take the House of Representatives (and quite possibly the Senate, as well), and John Boehner sends āa wonderful signalā to Gary Gensler that, come January, heās going to get his leash yanked?
Jacob,
Are you confident about the information you posted on ActivTrades (your post #221)?
Hereās exactly the email I got from them in response to my inquiry where I was asking whether they will continue to accept US citizens as a foreign-based broker:
Good morning Jacob,
This US CFTC Rule is not taking place at ActivTrades. You are correct, we are a Uk Broker with absolutely no connection with the US.
Our leverage will remain the same ā 1:400.
Thank you very much Jacob,
Sophie
Sophie Ho
Sales Associate
cid:[email protected]
5th Floor
110 Middlesex Street
London
E1 7HY
United Kingdom
Tel.: +44 (0) 207 392 8700
Fax: +44 (0) 207 392 8701
Email: <[email protected]>
Activtrades - Forex, CFD, Futures. New MT4.Low or Zero Commission
ActivTrades Plc. is authorized and regulated by the Financial Services Authority
It could be sheās pretty dumb and doesnāt bother to read the inquiry properly. Will send her a follow-up asking specifically whether they currently accept US customers.
ActivTrades needs to be removed from our list - hereās the clarification I got from them:
We are not regulated for the USA so we cannot accept any residence or citizens from the US.
Thanks for the follow-up. Iāll make the change to the list.
I agree with you. Hopefully for the smaller traders that the strong stand continues and grows from these off shore brokers.
Hereās one I didnāt see on the updated list: Windsor brokers
Theyāre in Cyprus, regulated by FSA/CySec.
They have MT4 and mobile, accept US clients, allow hedging.
They have 5 different account types but the Mini (10,000 contract size) offers 400:1 leverage / $25 margin. The only thing is that they limit lot size per ticket to 5 lots and total open lots to 30.
Hereās a response I received from the Panamanian CNV (the financial services authority of the Republic of Panama):
According to your email dated October 20th, 2010, I can inform you that Forex Market is not an activity regulated or supervised by the National Securities Commission of Panama, neither another financial authority.
Therefore, all retail Forex brokers operating out of Panama are not subject to any specific industry regulations other than the general compliance with the countryās law. If they continue servicing US customers strictly in place of their corporate domicile, there wonāt be anything the US CFTC could do to them, since thereās even no local regulatory body through which the US CFTC would be able to put pressure on them.
And hereās what Panama-based InovaTrade wrote to me:
Dear Jacob,
We verified with our Legal Team and liquidity providers, and we do not have any inconvenience to allowing US Customers. All new trading of US Citizen or Resident, must be have a copy of the Social Security Card.
Sincerely Yours,
InovaTrade
Customer Services
Iāll do a quick review of this one, and add them to the list.
Thanks, Iāll add them to the list.
I did a quick review of this whole thread, and found 3 brokers which have been vetted, but failed to make it onto the list
(I wonder who the hell screwed up?): RV Markets (Hong Kong), Forex MMCIS (Panama), and Arab Financial Brokers (location?).
I will add them to the list.
Once again, I will move the list to the front of the queue on this thread.
The Offshore Broker list has been updated and moved. For the current list, go to the most recent page on this thread.
Thanks for your list.
Iām not able to confirm Forex MMCIS (Panama), so Iām holding off adding them to the main list.
They have offices (or telephone numbers, at least) all over the world, but not in Panama. As near as I can tell, they are either Russian or American.
I ended up on their Russian-language website ā MMCIS investments - FOREX MMCIS group ā which is kind of cool, if you like to listen to Russian women talk. (I understood āincorporatedā, āforexā, and Iām sure she said something about ānakedā.)
But, I digress.
I found their English-language website ā FOREX MMCIS group | Top Forex broker ā and it seems to indicate that their corporate address is: MMCIS inc., 410 Park Avenue, 15th Floor, New York, NY 10022 USA.
Anyway, until I get some further clarification, Iām putting them in the 4th grouping (more info needed).
Can anyone help me out, here?
Another problem Iām having: I canāt find the basic info Iām looking for on the [B]IG Markets (Australia)[/B] website. Is it just me, or is that the worldās worst website?
Anyway, Iām looking for: What platforms they offer, the minimum to open an account, the maximum leverage they allow, and their pip-spreads for EUR/USD and GBP/JPY.
Can anyone help?
Edit:
In addition to the problem with IG Markets, I canāt seem to find all the info on [B]WSD Global Markets (New Zealand)[/B].
If you check these two brokers in the Offshore Brokers list, you will see blanks which I hope you guys can help me fill in. Thanks.
Edit again!
Hereās [B]another[/B] problem with [B]another[/B] New Zealand website ā [B]OMFinancial[/B].
I think this is the new front-runner for āWorldās Worst Forex Websiteā.
These people seem determined NOT to tell us anything about their platform, how much cash it takes to open an account, how much leverage they offer, or what their usual spreads are.
If anyone can find out this basic info, please post it here.
Clint, not only is it the worlds worst website. But the service is terrible. I got one response from them, and then a basic email, so I do think they belong on the list, but it is near impossible to find viable info. I dont think they have mt4.