While I defer to those smarter than I am in Cryptos, I’ve decided
to move away from the “custodial” Coinbase model; and adopt the Evercoin.com “non custodial” model. In other words, instead of
allowing Coinbase to hold my private keys (to the kingdom, meaning
the crypto coins), I’ll be holding them myself.
Take a look at Evercoin anyway, as I believe they have the right
idea where you should be in control of your own cryptos ; comments
welcome from those who know much more than I will ever know…
Unless serious objections are raised, I will add these three brokers to our List tomorrow evening.
Keep in mind: The bar is pretty low for inclusion in our List. Essentially, a broker needs to satisfy only two criteria: (1) they will accept new U.S. clients, and (2) they are not proven crooks.
I am new to Forex trading and in the process of opening the account.I got to know from this site that you can go to offshore broker if they accept US client. But I also read in one thread that US citizen cannot trade with offshore broker unless they have US based operation. Here is the link-
Also, Will it not be considered illegal to use offshore brokerage when US has regulated brokers and you are trying to avoid them? I know many traders have been using offshore broker but trying to understand the law here and going by book.
If there is no written law about it, then it can very well be twisted against you as well…right?
In that case, forget about offshore brokers, for now.
Learning how to trade forex, and learning how to become consistently profitable doing it, are difficult enough challenges without adding in the extra complexities that go along with dealing offshore.
Instead, do this:
Pick a CFTC-registered U.S. broker.
Open a demo account with that broker, and use it to learn the mechanics of trading – reading charts, placing trades, etc…
After you have mastered demo trading, open a very small live account, and teach yourself to trade tiny positions to consistently make tiny (real money) profits.
Then, if you are convinced that you have proven to yourself that you have the talent to continue trading profitably over the long term, gradually increase your position sizes, in order to increase your profits.
Finally, after a year or two of successfully trading with your U.S. broker, take a look at the opportunities for better trading conditions offshore — if that still interests you.
Here’s what I got from a close reading of the article you linked to.
The author says that U.S. regulations prohibit unregistered/unregulated brokers from accepting U.S. residents as clients — and that statement is correct. The CFTC and the NFA regulate brokers.
And the author avoids saying that U.S. regulations prohibit U.S. residents from opening accounts with unregistered/unregulated forex brokers — because saying that would be totally incorrect. The CFTC and the NFA do not regulate the clients of brokers.
Then, the author of your article goes on to say, in effect:
If you are a U.S. resident, and you want to trade with an unregistered and unregulated offshore forex broker, here are the brokers I recommend.
And he recommends two offshore brokers which are not registered with the CFTC. Is he recommending that you break some law? No.
The article you linked to is dancing around the issue, instead of stating it clearly.
Here is a clear statement:
The CFTC can prohibit unregistered and unregulated brokers – whether domestic or offshore – from soliciting U.S. residents, and from opening accounts for U.S. residents.
But, the CFTC has no authority over U.S. residents who seek out, and use, offshore brokers.
Interesting quote:
“And if you choose a Seychelles Foundation when the bank or brokers asks who is the beneficial owner of the company/account you can lawfully answer “the Foundation” as section 71 of the Seychelles Foundation Law clearly states that the legal AND beneficial owner of any asset transferred to a Seychelles Foundation is the Foundation itself. That can get you access to brokerages/trading platforms that won’t accept US residents as customers.”
[edit] Please pay particular attention to this:
“In terms of structure the Offshore Company would be set up with a Nominee Director and with the Private Foundation as shareholder. Commercially, the company would do the buying and selling, ie it would generate the income. Ideally, you would be appointed as Consultant or as an arms’ length adviser to the Director of the Company with certain areas of responsibility (eg you could be an authorized Trader or Trading Manager) for which you would be paid a commission (eg a percentage of profits) or Consulting fees.”
“Ideally for this structure to have maximum chance of financial success the shareholder of the IBC would be an Offshore Trust or Private Interest Foundation.”
Note again that a Trust or Foundation is shareholder in the IBC (Trading entity).
I have moved FXBrew to the Caribbean / Central America section of our List. My information is that this broker is domiciled in SVG, although their offices are in Ireland.
I’m in the process of confirming this (and some other info) with FXBrew Customer Service.
For now, use caution regarding the data and metrics that I have listed for FXBrew.
Yes, it works smoothly. That Instacoin or whatever it is,
is not required. I haven’t withdrawn but BTC should be
bidirectional at EagleFX, into a USD or other fiat account.
I think I did have to move it from the USD wallet into the
account as an additional step, an internal transfer.
I just finished a Live Chat with Aaron at FXBrew. He was extremely helpful, and corrected some of the incorrect info I had previously posted in our List.
I’ll have to move FXBrew again! — They aren’t domiciled in SVG. — Rather, they are domiciled in Seychelles.
Also, contrary to what I posted previously in their listing, their Micro account is not a dealing-desk account. According to Aaron, they are 100% ECN on all account types.
I’ll make the corrections to the FXBrew listing tonight.
i see hugoswasy, cryptorocket and eaglefx all use the same broker service same way coinexx, turnkey forex and fxbrew does for that reason im sticking with cryptorocket who has done amazing job with my withdrawls no more then 6 hours and bitcoin is in my account the same day, the same should be with eaglefx.
But hugosway is JAFX and if we go by your research that implies hugosway, cryptorocket and eaglefx all are JAFX. Not very encouraging . we need to stay cautious of them. hugosway has already started showing it mean side. lot of negative word about them on forums. https://www.forexpeacearmy.com/forex-reviews/14070/hugosway-forex-brokers
nope not true they all use the same broker service just like coinexx/ finpro trading, turnkey forex and fxbrew use turnkeyfx for thier service. doesn’t make them own by the same person.
EDIT: man i never heard of forexpeacearmy, glad you showed me that. people confuse brokers who use the same broker start-up company with being own by the same person.
my understanding about ecn or dd is that any broker who is offering micro account is a dd broker. I think financial institutions do not buy or sell micro lots, they trade in std lots…then how can we have the liquidity for micros_ trading on micro lots might be something between the trader and the broker. micro lots may not even enter the real pool of liquidity, and, if it does enter, then broker adds up all microlots or convert micro lots into std lots ( just like you convert millimeters into centimeters ) but then it is a DD broker if he is doing the conversion …very tricky business one way or other… personally I think if trader wins in micro lot trading then broker loses. did we have micros like 15 or 20 years ago? does lmax offer micro accounts ? I don’t have the answers for these 2 questions. anyways, end of the day, good strategy and good risk/reward management always win… ndd or ecn…potato patata,
Backends to MT4 for example, utilize an “aggregator” which “holds” small
orders, in order to consolidate a number of them, which can improve the
cost to the broker.
But “dealing desks” are mostly dead, since technological innovation has effectively
allowed the brokers to achieve their running profit goals in other ways.
I am very price sensitive, and if I get the price that I am expecting to get; then
honestly I don’t think I should bother to care how it was achieved.
[edit] a broker’s overall package involves a cluster of factors: 1) consistency
of execution, including speed of execution, 2) low bid/offer spreads,
and 3) most importantly, commissions plus 4) unrestricted placement of limit orders, targets and stops if used and no tom-foolery like FIFO and hedge restrictions
and, finally, good support when (rarely these days) problems arise.
