And why did Trader’s Way just shut off the cTrader access,
and not the other account types?
Because of bank issues?
EDIT: removed off-topic items
More likely because the developers of the platform (cTrader) have instructed their brokers to do so.
A similar thing occurred in the Binary Options niche about a year ago.
There are two main platform providers, and both were looking to float their businesses, but were prevented from doing so while US residents were using those platforms as the developers were deemed in breach of US regulations (despite the facts that the brokers licensing those platforms were independent companies, and neither the developers nor their brokers were under US jurisdiction).
In order to gain approval to begin the floatation process, the platform developers were forced to impose a “no US residents” restriction on the brokers that use their platforms, which is why 99% of non-US Binary Options brokers no longer accept US clients.
Ah, thanks…
I have a few questions regarding the offshore forex brokers.
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Besides FIFO laws and higher leverage (I only use about 20:1 leverage), what advantage do I gain from trading with an offshore broker? The most important attributes for me are ECN order processing, low commissions and security. From what I have read, finding a forex broker that can prove they have a true ECN is difficult. The commissions seem to be similar to US based brokers and the US based brokers have a bit more creditably.
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I am a dual citizen (US and UK) currently residing in the US but lived in the UK 3 years ago for a year and have a bank account setup over there. Could I use a broker in Group 2 (Not accepting US residents)? I have heard really good things about Lmax.
Thanks!
You have more choices. Although Interactive Broker (IB) is as close to ECN as you will get in USA… Not a bad choice at all, but you’ll need your own front end to use automation if i remember correctly. Like multicharts or ninjatrader.
You are in an excellent position. [B]Only use uk-based [/B]residency credentials (passport, drivers license, utility bill, bank statement, etc) as needed to open accts.
Using 3-year-old residency credentials will likely be a problem.
Most brokers require current proof of residency, meaning no more than 3 months old.
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Absolutely. I don’t think a UK-regulated broker will be willing to open an account for you without seeing a proof of residence from within the last 3 months. Not their fault: it’s all part of the “Know Your Client” regulations imposed on them by regulators - they have to certify that they’ve checked.
Yes, just use a [I]recent[/I] bank statement, utility bill, etc. I’m sure OP can figure it out. It doesn’t even have to be in UK. Residency can be in another country other than USA, Japan, and a couple of other OECD blacklisted countries.
What’s Next for US Forex after Interactive Brokers Abandons Retail Market? | Finance Magnates
I was unaware of this prior to replying the first time. If IB leaves usa retail forex traders behind, there is very little if any hope left for retail traders as far as direct access is concerned. you can still trade stocks or futures, but I suppose that is what CFTC and lobbyists wanted in the first place…to kill retail forex trading in USA by starving out venues where a retail trader actually had a chance at a fair market price.
MB trading had potential as well, but they left. Who is left?
Thanks for your responses! IB leaving the US retail forex is precisely why I stumbled upon the offshore forex broker thread (Which is an awesome resource btw, thanks!) and posted, I probably should have mentioned that.
Needless to say I’m one of the 7% or 2,000 US forex accounts that are getting the boot. I use a scalping strategy with a 20k account size and haven’t found a single US broker that fits my needs like IB did, so I’m feeling SOL right now. I’ve opened a small OANDA account for the meantime but this is far from optimal (as they are a MM).
Might be worth the tax hassle to try one of these offshore forex brokers for US residents. I’m also thinking about moving back to the UK or at least establishing a part time residency there which also a hassle. As mentioned, I don’t have any recent bills to prove residency outside the US. I still have some family there, so I’m not sure if they could help out somehow.
Thanks for posting this article.
In this thread, we’ve been saying for years that:
• the CFTC wants to destroy off-exchange retail forex trading in the U.S.
• the CFTC wants to force U.S. retail forex trading onto a futures-style exchange
• the CFTC wants to force [I]international[/I] retail forex trading onto American-style exchanges
• the CFTC wants to be the [B]World Forex Police[/B]
You can lay all of this at the feet of that little weasel, Gary Gensler, former head of the CFTC.
He is now one of Hillary Clinton’s financial advisers.
We can only hope that, when Hillary Clinton’s 30,000 PAY TO PLAY emails are “leaked” in September or October, that Gary Gensler will crash and burn along with her.
In this “political year”, there is a lot of talk about correcting the oppressive U.S. tax and regulatory environment that has driven many U.S. businesses offshore.
The U.S. retail forex business should be the “poster child” for this effort.
And that little weasel Gensler should be the “poster child” for everything that is destructive, dangerous and un-American about the Washington Ruling Class.
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So I’m trying to add funds to my newly verified TradersWay account and running into a road block. US client here.
Worst case scenario, I have to send a wire transfer ($55 from my bank).
Tried using my debit card but my bank blocked it.
The other methods require me to using BitCoin, which seems more trouble than it’s worth to just receive and send my legal money.
Should I just call my bank to see if they can find the blocked attempt and unblock that company?
I’m doing fine with Profiforex still (US citizen) but … I don’t like putting all the eggs in one basket. They also seem to be dragging feet on withdrawals and I don’t like that. However, their ECN feed spreads + execution times + leverage are a nearly unbeatable combination.
I’m considering TradeWise and LMFX - has anyone given these guys a go?
I don’t like a lot of the negative reviews on TradersWay about how they like to retroactively adjust prices, but I take these with a grain.
FinPro is also out, as they love to f*ck with their data feed a lot and cause me losses.
thanks!
Soon we won’t have any brokers to trade with if things keep going the way they are. I guess we can only hope that Hilary does not become president…our only hope would be that Donald can fix the CFTC rules. Many of us trade forex full time and are being forced to have to give it up one day. I have dedicated so many years to forex and made so many sacrafices…
where are you seeing negative reviews about tradersway?
You can trade 1:50 with FXCM - they comment all the time on how their NDD
is the greatest thing ever (LOL).
While true, I want to put leverage to work for me. I don’t need 1000:1 but something around 200-300:1 is what I’ve been using in all my demo accounts.
Anyone in the US used Neteller without issues? I’m going to call my bank and see if they can authorize a deposit there. Shouldn’t be an issue as it isn’t Russia, China, or some no-name company…but ya never know.
How about Skrill?
ugh. Has anyone else had issue in the last few days withdrawing from Profiforex?
re Tradersway - I think they were on FPA. again, I take it with a grain because TW has a stellar rep with people who actually TRADE for a living. i will likely be going with them going forward and ditching Profiforex if they don’t get their sh*t together.
also, reviews for TradeWiseFX would be welcome too. I need them for their DAX product only.
You’ll have access to brokers like LMAX, Global Prime Au, Invast Au, etc which IMO will likely change your opinion of what a ‘real’ fx broker is. It is indeed a sad state of affairs when you must choose between Oanda and Gain/forex.com. Ironically, Fxcm may be your best bet now…you might not have to do anything if they end up buying the book of business from IB.
I suppose you could give Tallinex a try…entirely up to you.
edit: for those considering FXCM US, this article sums up a lot of what I have criticized FXCM for in the past:
FXCM charged by CFTC for undercapitalization and guaranteeing negative balance protection during SNB. I’ve called out FXCM for bull**** on numerous occasions, and it was grossly irresponsible, but CFTC I think is just holding a grudge in this case. You wait over a year to spank FXCM on this? When was the last time the markets moved 5000 pips in under 5 minutes on a major pair? Retail forex is officially dead in USA.
You are becoming wiser by the day (establishing some non-us residency, even if it takes a couple of months to do so). In regards to using family, it can be done and would be a faster way to start. How much do you trust that family member?
I can’t believe what a PITA it is to secure an offshore broker that you don’t have to jump through hoops to deposit with. US regulations make it damn near impossible.
I can wire transfer… $55 to send $250. Uh…no.
Credit or debit card? Good luck. Some aren’t even accepting that. Going to call my bank and pray they allow me to send money using it.
Skrill? It’s dead to US customers.
Everything else, dead.
I hate using my debit card in basically another country…it’s already been stolen enough in the US.