Opening a foreign bank account as a US citizen is not difficult, especially if you are physically present. Some countries are easier than others.
I am curious about this comment. Not sure how factual this is. I am also curious about what issues you are referring to. Can you elaborate? Thanks.
Iâve actually moved a significant chunk of my trading capital back to the US⌠For the larger traders out there that are not comfortable with having capital offshore, Oanda Core pricing is a legitimate option in the US if your system is not reliant of FIFO or massive leverage. The spread games around reports are non existent on their core pricing model.
If the bank is not FATCA compliant the 2nd passport showing your original place of birth closes the door. However, If the bank complies with FATCA & accepts US citizens then there is no problem as long as you show up in person/US embassy for KYC. The problem is finding a bank that is FATCA compliant + accepts US citizens + is a Swift member + has not lost their USD corresponding banking relationships.
I guess I am not following, sorry. For what purpose do all of the stars need to be aligned? Is this simply for circumventing possible hurdles that would prohibit trading via an offshore broker or something else? If you do not want to reply, that is no problem; I am only just curious. Thanks.
If the broker has wire as the only funding source, It can be easy to get money into an offshore bank account, it can be hard to get money out. I knew a few people with offshore entities & banking in the Caribbean when a large % of region lost their US banking relationships due to US pressure on the major banks, so wire transfers into the US were impossible.
I see. Thank you for explaining things. I am personally okay with using crypto in/out. So long as local banks are willing to work with companies such as CoinBase and Gemini etc., then this should eliminate most problems. But, I do realize that some people are not comfortable with using crypto, especially for larger transfers. If I had to rely on bank transfers for dealings with offshore brokers, then this would definitely be a concern for me.
Well I have done a lot of research lately. And I plan on seeing corporate tax attourney at the end of the year.
I do not think the nominee director signatory idea is a good idea if it isnât in compliance with Frank Dodd. So Iâve heavily reread Frank Dodd.
I am not sure a high net worth individual can be ECP with 5 million unless you are hedging a proven commercial interest. Itâs actually 10 million and involves more compliance.
There are only two realistic options to a small time guy -work with a existing global proprietary firm and possibly get listed as what frank dodd considers an intermediary and allow their corporate overhead legal department to sort it out for you -use an offshore retirement account that is ERISA compliant benefit account - use a trust account (if you are comfortable not having the money to live off of and itâs for heirs and charity).
Frank Dodd has an exemption for retirement account. You can get a self directed retirement account with you as the advisor of a offshore LLC and bank account in the name of the retirement trust That is my plan to accumulate bitcoin on kraken. I am waiting on krakenâs compliance department to answer questions about it.
The other option is of course moving to europe and australia to work for a prop firm. To get a long term visa and naturalization in aussie you need a work sponsor anyways. Now Frank Dodd specifies that a non us natural can do swaps with other non us naturals outside the us to non us customers and anyone acting on their behalf is an intermediary but the activity cannot affect us commercial interests, ie. no us investors.
There is I believe a window of opening there. Possibly living in canada part time and coming back over as a remote prop trader. The problem is Canadian prop firms are unlikely to be uninvolved in American commerce. And Europe and Aussie probably donât allow global remote workers. But I donât know. Itâ s a research project.
The futures trading platfrm Trading Technology has intergration with CoinFlex and Bitmex now, but I donât know which of the firms working with them has a set up for bitmex and coinflex.
It is possible hypothetically to go to canada with a partnership and form some prop firm that doesnât serve us base. This might avoid the 10 mill capitalization requirement, but it;â s probably very legally expensive and difficult and complex. And it would have to be totally owned by non us citizen,
I could live in portugal for a year and use residency papers to open up a bank and brokerage, claim foreign income exclusion, make bank on kraken the first couple months of the following year, then fly back to the us, because portugal requires you to be there 4 months a year to maintain the visaâŚbut then if kraken an d the bank realize you violated the american residency by not being gone 330 oujt of 365 days you will be in troubleâŚunless you;'re comfortable making the money in the beginning of the year and then reverting to american brokerages. âŚbut then things get legally weird so i dunno
coinbase, kraken, binance, etc have cvs list of trades, and coinbase is integrated with a tax app thing
Yes, but isnât it like $12/rt. I pay less than half that now. Over the course of a year, letâs say trading 50 lots per month, close to $4K extra in trading costs. I was also looking into gain capital DMA account, my opinion better option, as with Oanda they still holding other side of trade, gain DMA appears orders routed directly to market.
$10/rt⌠but commissions are always subject to negotiation especially if youâre bringing significant monthly volume from one of their competitors.
The margin required for Gain DMA is complete crap.
Well, yeah. Itâs CFTC regulated. That has always been my argument to those that say itâs risky to be offshoreâŚput 50K with a US broker (not protected funds) or 10K with overseas non-regulated to execute same size trades and keep the other 40K in my own bank and transfer only if I need the margin (protected) . to me, itâs really a no-brainer. Something happens to my US broker, I lose my entire 50K, my offshore broker decides to keep my moneyâŚI still have 80% of my capital. I have been with Traderâs Way since 2015, I withdrawal just about every week and money is in my bank within 36 hrs (from time I initiate withdrawal). Never had an issue.
More bad news. I feel that this is relevant to this thread, as more US-based traders begin to rely on cryptocurrency.
anyone know how much leverage is available for crude and some of these metals on lqdfx. Couldnât find the info on the site. They have palladiam and coffee, which coinexx does not, so another good exchange to round it out.
COINEXX SECURITY BREACH
Iâve been debating whether to report this, since Iâm a big fan
of Coinexx and am too committed at this point to switch
away from themâŚ
An associate of mine seems to have had his Coinexx
username and password scraped by a keylogger
and those credentials were used to empty two small
accounts at Coinexx.
This happened before Coinexxâs recent requirement
to change passwords, and their recent introduction of
2FA methods. I was able to locate a forum posting by
another Coinexx client whose funds were stolen in
this way. Temporal coincidence? I think notâŚ
On complaining to Coinexx, and demanding the texts
of the emails which requested the withdrawals, they
sent the contents of the 2 messages requesting the
transfer of the 2 account balances to a BitCoin address.
These were forged messages, and my friendâs email
account was never used either to request, nor to confirm
either of these transactions. The hackers had gotten
in presumably via Coinexxâs web portal and queried
the existing account balances, then forged emails
requesting the withdrawal amounts.
The amounts are not much, just over a hundred bucks
or so; but obviously Coinexxâs existing security (at the time)
was breached by some professional hackers.
I believe they had many more such breaches, but are
just keeping quiet about it. And their security has been
enhanced as a result.
I know you are all going to chime in here, and probably
pile on Coinexx, and my friend has also lost confidence;
but my view is that this is a learning experience, and I
am going to continue to use them. For me and my
associate, itâs a lesson on Cyber Security in general and
we have significantly beefed up our OpSec as they
call it, to prevent such things in the future. 
hyperscalper
These things happen. Everyone can learn from these happenings, including Coinexx. Coinexx is relatively new and evolving. Probably better for these things to happen early on rather than much later. Looks like they have already begun to increase their security measures. If they did not, then I would surely question things. Another reason to employ proper risk mitigation and invest only what you are willing and able to lose at the drop of a hat.
Sharing this was a good idea because it brings about awareness and serves as a reminder. People tend to become complacent over time and others may not even be aware of what is possible these days.
They have recently added 2FA, and now I am receiving a confirmation phone call with an email whenever I request a withdrawal. This is a really good thing that they are taking things seriously and working on it, this is why I love this broker.
Your associate must have received a phone call, didnât he?
Agree with you M! this is the game for survival of the âsafestâ & coinexx beefing up security measures for us is a sign they are in for a long game. Besides, Coinexx is a good broker and never experienced any issues with them.
sh-it happens, coinexx is a good broker
Just want to say thanks to all here for their participation in this valuable thread. When it comes to trading Forex, the U.S. is certainly not the âland of the freeâ. Itâs been beyond frustrating trying to find a safe and reputable non-U.S. broker. Every broker I contacted from another major country said, âSorry, we would love to give you an account, but we canât because of your countryâs regulations.â I had been hesitant to put my trading capital at an unregulated, small island broker, but after reading a good bit of advice on this thread, I signed up with Coinexx today. So far my interactions with them have been reassuring. I will look to diversify with some of the other brokers once my account grows a bit more. Thanks again.