Exactly, so the passport is step 1 to residing elsewhere. In a few years I will be gone for this and other reasons.
Chat with [B]Sensus Capital[/B] at 4:15 PM today, EDT.
[B]Milos Petkovic[/B]: Hello Tom and welcome to Sensus Capital Markets. How may I help you today?
[B]Tom[/B]: Hi Milos, is Sensus still accepting US clients?
[B]Tom[/B]: I have been hearing conflicting things. Please let me know.
[B]Milos Petkovic[/B]: As from 26/03 we are not accepting NEW US clients
[B]Milos Petkovic[/B]: Do you already have an account?
[B]Tom[/B]: Yes
[B]Tom[/B]: I had withdrawn but was planning to fund it in the near future
[B]Tom[/B]: But I am wondering, will I be asked to leave soon?
[B]Milos Petkovic[/B]: Can I have your account number
[B]Milos Petkovic[/B]: As far as I know, we have no reason to ask you to leave
[B]Tom[/B]: 1011***6
[B]Tom[/B]: Well, if the MFSA asked you to stop accepting US clients, I assumed you would be dropping your current ones eventually as well.
[B]Milos Petkovic[/B]: I have no informations about that,
[B]Tom[/B]: Alright
[B]Milos Petkovic[/B]: Please contact your sales person
[B]Milos Petkovic[/B]: āLukas Hantschickā <[removed email to prevent spam]>
[B]
Milos Petkovic[/B]: He will have all the answers you need[B]Tom[/B]: I know someone who signed up for an account a couple of days ago
[B]Tom[/B]: From the USA
[B]Tom[/B]: and he was accepted
[B]Tom[/B]: So I am wondering how he was able to sign up then? He did not go through an IB, just signed up like normal.
[B]Milos Petkovic[/B]: The account must have been opened before 26/03
[B]Tom[/B]: It was done on the night of 3/30
[B]Milos Petkovic[/B]: Please contact Lukas for any other question about US clients, I donāt have enough informations here
[B]Tom[/B]: And yesterday, the account was confirmed
[B]Tom[/B]: Okay
[B]Tom[/B]: Good day to you.
I donāt know what is going on.
Well, over the last few years the US has been tightening rules on taxation, and I think that this is a major reason why many brokers are not allowing U.S clients. Just a thought,ā¦
Speaking of taxes, how do we handle taxes when we have a foreign broker? Will a foreign broker send us forms at the end of the year detailing our earnings, like other businesses in the U.S. do?
In the past, most U.S. and offshore brokers [B]have not reported[/B] tax information to the U.S. IRS. Previously, they left all of that in your lap. [B]This is now beginning to change.[/B]
There are two things you need to know about U.S. taxes and reporting requirements:
ā¢ [U]Your tax obligations under IRS regulations[/U].
[B]The U.S. claims the right to tax you on your worldwide income.[/B] So, if you have an offshore forex account which produces profit (taxable income) in a particular tax year, then you must report that income on your tax return along with all your other taxable income.
If you can prove that you have paid tax to a foreign government on your offshore forex profits, then you can claim a tax [B]credit[/B] for the foreign tax that you paid.
ā¢ [U]Your foreign account reporting requirement under IRS regulations[/U].
[B]The IRS requires that you report all of the foreign financial accounts[/B] (bank accounts, forex accounts, etc.) that you hold, IF the total value of all those accounts combined equals or exceeds $10,000 (or the foreign-currency equivalent of $10,000), whether those accounts produced taxable income, or not.
For example, if you have an offshore forex account, [U]and[/U] an offshore bank account, [U]and[/U] on any day during the current tax year, the funds in those two accounts [U]combined[/U] equaled or exceeded $10,000, then you must file an IRS form called Report of Foreign Bank and Financial Accounts (FBAR) ā previously called Foreign Bank Account Report ā revealing to the IRS the accounts you hold and the balances in them.
If the aggregate total of your offshore balances is less than $10,000, then [B]you need not file the FBAR.[/B] However, you are responsible for reporting, and paying tax on, any income derived from your offshore account(s).
If your offshore holdings equal or exceed $50,000, there are additional reports which you are required by law to file along with your U.S.tax return.
In the past, it has been fairly easy for small retail forex traders holding modest offshore balances to ignore the IRS, and simply not reveal their accounts, or report the profits made in those accounts. The IRS has long been aware that small traders were able to fly under the radar, because their offshore brokers didnāt alert the IRS to the existence of their accounts, or the amount of their forex profits.
To try to catch such tax evaders (and others), the U.S. has entered into reciprocal tax information agreements, called FATCA ā Foreign Account Tax Compliance Act, with many foreign governments.
FATCA does not impose new requirements on forex traders who trade offshore, but it imposes burdensome requirements on foreign financial institutions ā and this includes offshore forex brokers ā WHO DO NOT REPORT THE ACCOUNTS OF THEIR U.S. CLIENTS to the IRS. In other words, foreign financial institutions, including offshore forex brokers, are now required to act as agents of the IRS, or face all sorts of crap from the U.S. government.
[B]Bottom line:[/B] If youāre willing to risk heavy fines and penalties ā and potentially jail time ā then take your chances and flout the tax laws.
Otherwise, just accept the fact that your offshore forex profits [B]are taxable by the U.S.,[/B] and thatās simply one of the costs of doing business.
.
Clint, thanks so much for the useful information. I have zero knowledge in how to handle any forex profits I make in regards to paying taxes on it to the IRS. I was always able to do my own taxes with the simple low paying job that I had, but I assume paying taxes with any forex earnings is different.
But my question still remains: do foreign forex brokers send out W-2 forms to their American clients, in order for us to do our taxes to pay the IRS? Or do we just copy our trading statement of every single trade weāve made and send those stats to the IRS?
I guess it is easy to see how dumb I am in these matters. LOL.
By the way, my question is not only for Clint but for anyone that has traded with an offshore / foreign broker and has had to pay taxes to Uncle Sam.
Hello again, pipfreak
This post might give you some useful additional information ā 301 Moved Permanently
As I mentioned in my previous post, in the past, forex brokers generally have [B]not[/B] furnished tax information to clients, or to the IRS. This was true of U.S. brokers and offshore brokers. Things are changing. The IRS is under intense pressure from Congress to raise revenue. Hence, FATCA (which relates specifically to offshore financial entities), and other measures enacted to close tax loopholes domestically.
So, [B]assume[/B] that your offshore broker is reporting your account details [B]to the IRS,[/B] in order to avoid the sanctions which the IRS can put on him for failing to do so.
But, [B]donāt assume[/B] that your broker will furnish the equivalent of a Form 1099 [B]to you.[/B] You may get no tax documents from your offshore broker ā and, thus, you may find yourself in the position of having to crunch through all of your account P/L, in order to arrive at the correct profit (or loss) figure to enter on your tax return.
As for copying your account statement, and sending that info to the IRS, donāt do that. Use your account statements to calculate the bottom line (overall profit or loss for the tax year), and enter that figure on your tax return.
Keep all your supporting documents on hand, in case (anytime in the next 7 years) you have to prove to the IRS that the figure you reported on your 2014 tax return is accurate.
.
The List has been updated.
I succeeded in adding 13 recent links (in the listings for AssetsFX, Sensus Capital, ProfiForex,
Traderās Way, PaxForex, and Tallinex) without having to delete any previous links.
For now, I have added a ācautionā to the listing for Sensus, indicating that they are in the process of ādisallowingā new U.S. clients. When the dust has settled on this issue, I will move Sensus to Group 2.
Deweymcg Asked the same question on Forex Peace Army and this was Tallinexās response on their site.
Hi, Iām pretty new to Baby Pips but not to Forex trading, Iām not sure if this post is going to be viewable or not because Baby Pips seems to have some bizarre rules about newbies posts and Iām not sure yet if any of my posts to this topic have gone through, but anyway I used to be a FinFx client and just like all other Americans was booted out a couple of months ago. I didnāt allow the transfer of my account to Tallinex and have basically been without a Forex broker ever since except a short period with Nadex whom Iāve withdrawn all funds with this past week.
Iād like to know if anyone is a client of AssetsFx who I checked out and had an issue with apparently unsecured web links on there site and lack of 24/5 support. Please post your experience with them and about the apparently unsecured web links on their home page.
Clint Iād like to thank you for your work on this topic and tell you how much I appreciate the time and effort youāve put into it and thank you for helping me research offshore brokers with your posts.
Tradersway is becoming my first choice over all the other brokers especially FBI. I opened an MT4 VAR account and I am loving the no commissions and low spreads especially on metals. My wire got there in under 2 days and Joe Carney has been a tremendous help with the entire process. They also have binary which i shy away from but is nice to have just as a bonus.
I was considering ForexBrokerInc, three things that I like about them are A.high leverage B. A 1-800 number C. If you trade more then two lots in a month and withdraw $500.00 or more there is no charge for your withdraw on there end.
When I was with FinFx they charged $30 on their end and my bank charged $30 on my end for a wire transfer.
The other broker Iām considering is Tallinex whom I have a Demo account with at the moment. FinFx was going to transfer my account over to them but I didnāt allow it but I have had a change of heart since.
I just tried the broker you mentioned and their website isnāt working very well so thatās a major strike against them right there!
Tradersway leverage is even greater than FBI as they offer 1:1000 but only for accounts under 1k. They always have maintenance on their site on weekends my friend so dont be alarmed. Tallinex is great too but their spreads is what made me choose Tradersway overall
Iāll give them a second chance since weekend maintenance is the norm on the weekends. Iām just curiousā¦why did you point out ForexBrokerInc as a broker that youād especially would choose Tradersway over? Did you have an account with them and have an issue? The one thing I liked about FBI above all other Broker is I was able to pick up the phone and call the 1-800 number and talk to someone which was something I couldnāt do the whole time I was with FinFx and if you ever lost your connection a millisecond before setting your stop youāll know how important that is to a trader. 
what was the original question?
Clint,
I would like to point out that i recently spoke directly with ProfiForex live chat and they informed me they are a Market Makerā¦So the initial post lists them as STP??(I canāt remember) but definitely not MM,ā¦here is copy of transcript with live chatā¦
[22:21:03] ^@%#: what kind of spreads on the account
[22:21:41] Juliet: The commissions are taken for the trades you make
[22:21:41] ^@%#: is profiforex a market maker/dealiong desk
[22:21:57] Juliet: Market Marker
What was the original question?
You should be more specific as there are many concurrent conversations going on in this thread. Or go back a page and take a look.