Regarding some of the brokers we have been investigating:
[B]Finotec[/B] — U.K. domiciled, FSA regulated
One of our members said that Finotec has a U.S. presence (which, if true, would make them subject to CFTC rules regarding U.S. clients). However, I can find no evidence of this. Finotec does not even have a telephone in the U.S. (Their offices, reachable by telephone, are in London, France and Cyprus). Accordingly, I am adding this broker to our list of “qualified offshore brokers who accept U.S. clients.”
Here’s something that needs investigation: Finotec’s website ( Finotec Product Range & Conditions ) shows forex trading hours as: Open 00:05, and Close 20:55 (evidently those are London times). Is this for real? A forex broker that closes for 3 hours and 10 minutes every day?
Dukascopy[/B] — Swiss domiciled, FINMA regulated, Swiss banking license 2010 (Dukascopy Bank SA)
One of our members questioned whether Dukascopy accepts U.S. clients. Others, who currently trade with Dukascopy, say that Dukascopy will continue to accept U.S. clients. I am adding Dukascopy to our list.
[B]C.I.M. Banque[/B] — Swiss
I am removing this broker from our list. On the account-opening page on their website, they clearly state: “U.S. Residents must come into our offices in Geneva or Lugano.” I don’t believe this will suit any U.S. members of the Babypips community who might be considering offshore brokers.
[B]CMS Forex[/B] — U.K./U.S.
I am removing this broker from our list. Their website clearly states that they are CFTC-regulated, and belong to NFA. I believe that the website Forex Broker Guide is wrong to list them as a U.K. broker, regulated by the FSA.
[B]One Financial[/B] — U.K. domiciled, FSA regulated
I have confirmed that this broker accepts U.S. clients, and has no exposure to the CFTC. I am adding them to our list.
More info to follow, as discrepancies are resolved.
Edit: Sunday 10/3
I am removing [B]Alpari-UK[/B] and [B]MF Global [/B] from our list, because they both have a U.S. presence. Alpari (UK) is affiliated with Alpari (US), which is CFTC regulated. And MF Global has U.S. commodity futures brokerage operations regulated by the CFTC.