Going offshore to escape the CFTC

Broker Discussion Forex Brokers
4846

FINPROTRADING IS A VERY INTERESTING BROKER FOR SCALPERS

Hi,

28 major Forex pairs only…
I think I mentioned earlier that FinProTrading (aka TurnkeyFX feed) has some
very interesting properties. When the market is being pushed up, the
liquidity providers are “falling all over themselves” to become Best BID,
and when being pushed down, they fight to be Best OFFER. So it’s
possible to quantify this, and pick out the Forex instruments which are
momentarily pushing, for scalps in the 5-10 PIP range with some
reliability. I’ll just put a BOT on that, and see how much can be
“nibbled” … I am able to scan continuously over the 28 major
pairs, and pick out the “low hanging fruit”… LOL

hyperscalper

[EDIT] I realized it’s best to give you some idea of the visual
when this is happening, see attached screenshot on a rising
pair in EUR/AUD …

FinProTrading-tick-push-analysis.PNG905×714 16.6 KB

4847

Has anyone had any further contact from CCM ?

4848

Hi HyperScalper, I messaged you a question about if you run into millisecond system clock timing issues on NJ4X, I just wondered if it showed up or I’m doing the messaging incorrectly on this new format…?

Thanks
RJ

4849

OK, got your message; I haven’t been checking for any…
In answer to your question, I use the Oracle Java 8 runtime,
don’t know anything about the F# language?

I ran a little test, and if I use System.currentTimeMillis() then
indeed you see resolution which is approx. 16 msecs. But,
I have a special routine which takes into account the "nano"
timer and gives me resolution down to 1 millisecond.

So when I print out latencies, etc., they are accurate to
1 millisecond. So looks like you are correct that without
doing something “special” even in Java the default way
of measuring time has only every 16 msecs or so resolution
on Windows 7.

[EDIT] Not sure if this is relevant, or just theoretical:
https://nbsoftsolutions.com/blog/iso-8601-and-nanosecond-precision-across-languages
[EDIT2] Looks like I could update my method of getting millisecond
resolution with new Java 8 functions… Ya learn something every day :slight_smile:

hyperscalper

1 Like
4851

Hello,
I will be upfront and be honest that I have not read the entire thread as is is huge and so my question may already have been answered, sorry if if has.

I am wondering it is completely fine and legal fora US resident to just simply open up an offshore company (say in UK) and do the trading through that account while operating it from the USA. Let me be perfectly clear that this is not to evade taxes or anything, it’s simply to bypass the stupid US restrictions. I want to trade with LMAX or IB but neither accept US Clients.

I know its an added expense and complexity of opening a company in a foreign country but I am fine with that if if opens up the door to be able to pick whichever broker my heart desires.

4852

[quote=“theone964, post:4851, topic:35612, full:true”]
Hello,
I will be upfront and be honest that I have not read the entire thread as is is huge and so my question may already have been answered, sorry if if has.

I am wondering it is completely fine and legal for a US resident to just simply open up an offshore company (say in UK) and do the trading through that account while operating it from the USA.[/quote]

Short answer to your question:

As a U.S. resident, you can legally open a trading account with any forex broker in the world who will deal with you. And you can legally create an offshore company anywhere in the world, and do business (including forex trading) through that company from your base here in the U.S.

An offshore company is far more complex (and expensive) to set up, than simply opening an offshore trading account with one of the brokers who will deal with U.S. residents.

But, as you point out, an offshore company offers more broker choices.

As a “U.S. person” you will have tax-paying and financial-reporting responsibilities to the IRS and the Treasury Dept., regardless of how you structure your forex trading business. To the IRS, you will be responsible for taxes on your worldwide income. And to the Treasury Dept, you will be responsible for revealing all of your offshore accounts/holdings/interests, if the aggregate total of funds held in those entities exceeds certain thresholds.

But, these accounting chores are simply one of the costs of doing business legally, and keeping yourself out of trouble with the Nanny State.

I have written a lot on these subjects in this thread, as have several other members. The thread is huge (as you point out), and therefore a victim of its own success, to a certain extent. I know how difficult it can be to navigate and search this thread, especially for a newcomer. (It would be cool if the forum software automatically created an index of topics in large threads like this one, but that ain’t never gonna happen.)

I will try to put together a list of links to specific posts where the legalities of this offshore broker thing are discussed, where tax issues are addressed, and where the pros and cons of opening an offshore company are batted around. May take me some time to do, so be patient.

Welcome to our “huge” thread, by the way!

4853

Isn’t it the case that the “beneficiary” would be identified as
a U.S. person and therefore these brokerages would decline
to do business with the entity ?

I guess you could conceal the beneficiary somehow; but that
would fall into the category of “fraud”. It would be the brokerage
which would be taking any risk, though.

hyperscalper

4854

Last time we talked about that. The problem was to open offshore bank account with offshore entity when beneficiary was from US.
And even when the bank account is opened, someone said that some banks do not want to wire money to forex brokers. If I remember correctly.
I believe we stopped at that.

4855

Woke up to an email from FxChoice (on the offshore list) stating, “We are pleased to introduce European Brokerage House (EBH) to our valued EU-based clients.”

Does anyone know the story on this? Is FxChoice getting ready to shut down? The email offers users to transfer their accounts to this broker. EBH is not open to Americans. “Unfortunately, we are unable to accept your registration data due to restrictions on your country of residence. We apologise for the inconvenience.”

Here’s the link from the FxChoice email FxChoice transfer to EBH

2 Likes
4856

yeah i got the same email, could this be a exit like tallinex did? if so what will they do with there u.s. clients

1 Like
4857

I also got the same email, and replied, requesting clarification. I was, however, thinking in another direction. I think FXChoice will continue to be open for anyone that wants to trade through them (Including U. S. based trader, and the EU company will be for EU based traders that want EU regulation. That’s my opinion, for now. We can check with them Sunday night or Monday.

2 Likes
4858

Got a message on Linkedin this morning after reaching out to someone at Finpro Trading UK stating that they should be regulated in 2018. Someone by the name of “Kshitij Chopra” stated “regulation is almost at completion state. Will be a reality soon in 2018.” I’ve been interested in Finpro even though they aren’t regulated, but I thought I would post it here since I found them from this thread.

1 Like
4859

Hello aaceofspades,

We would like to inform you and all of those concerned, that FXChoice is doing just fine and is not “getting ready to shut down” as you have commented. Simply, we are offering our EU clients the possibility to switch over to EBH (European Brokerage House) which is registered and regulated in the European Union, providing benefits such as:

• Compliance with strict EU regulation
• Enhanced fund security
• Complete transparency

FXChoice is continuing business and accepting International clients in the same way as before.

Should you have any questions, please feel free to contact us.

Kind regards,

The FXChoice Team

1 Like
4860

thank you, i can sleep much better now

4861

Yeah, I have to agree with trusting in Pax Forex as well. Have been with them for some time myself. So far only 2 test withdrawals nothing serious. But they did go through swift & flawlessly. Customer Service seems to bend whenever possible to the satisfaction side even in the greyish areas. Meaning if it doesn’t exactly fit site guidlines but makes common sense they’ll get it done. Just takes a couple lines in an email. They also seek suggestions at every opportunity. This US domiciled resident is quite pleased with Pax.

1 Like
4862

EVOLVE.MARKETS and other BitCoin funded Brokers

The Frenzy in BitCoin has meant I am reluctant to purchase
BitCoin to increase funding in Evolve.Markets or other
BitCoin denominated brokers…

As I write this, BTC is about $17,500 … Scary. But, along with
others, I hope this is a sign that BTC is “maturing” and we know
that CBOE now has a Futures Contract on BitCoin, as I understand
it…

hyperscalper

1 Like
4863

Totally agree with both your observations. BitCoin is maturing and its expensive. In current situation FinPro is still my favourite because I can fund the account with bitcoins while keep my account in USD so I dont have any irsk to BTC price fluctuation.

However, the best situation will be to have a broker who can let us deposit via Bitcoins, Etherum, LiteCoin, Ripples among other coins and also allow to change the account denomination into other currencies as and when required. I have been searching around but will not much luck. Will be happy to know if anyone knows any such broker yet. I will share if I find such a combination.

4864

In other news —

The European Securities and Markets Authority (ESMA) intends to further restrict retail trader access to CFD’s and spot forex, and to ban altogether retail trading of binary options.

In particular, notice the threatened leverage restrictions in the Statement reproduced below.

ESMA continually uses the phrase “CFD’s including rolling spot forex”. Rolling spot forex is the technical term for our spot forex market – and, although we normally don’t consider our trades to be CFD’s, ESMA clearly does.

This move by ESMA is just the latest attempt by nanny government bureaucrats worldwide to eliminate the retail trading of products they deem to be too risky for us little folks.

Soon, retail forex traders in Europe will need a thread like this one to help them make their escape from the Euro Nanny State.

Here is the ESMA statement:

ESMA - 1.png1000×659 71.4 KB
ESMA - 2.png1001×664 62.1 KB

Our beloved CFTC has added Capital City Markets to their so-called RED List.

The RED List is the CFTC’s list of forex brokers (and some other entities) which are outside the U.S., and beyond the reach of the CFTC, which nevertheless are suspected of doing business with U.S. clients – gasp !! :scream:

This brings to 4 the number of brokers on our Offshore Broker List that the CFTC has singled out for this special recognition. The other three are Trader’s Way, FX Choice, and Finpro Trading.

Our congratulations to Capital City Markets for earning this prestigious award.

If you like reading CFTC press releases – and, who wouldn’t want to waste a Friday evening doing that? – then this will give you a thrill:

http://www.cftc.gov/PressRoom/PressReleases/pr7663-17

2 Likes
4865

Hi Clint,

[EDIT] Disregard this post. I got confused, in a rush… :frowning:

On the press release link for the RED list, I did not see FinProTrading ?

R U Sure? Is it under another name?

Thanks for all this great work !!

hyperscalper

1 Like
4866

Do you think it’s a “Nanny State” issue @Clint or do you think it’s an attempt to keep us as wage slaves ?

After all - if we all became “Traders” - then who is gong to "Work the fifty to get two weeks off ? "

1 Like