Very true. It happens more then people realize. Not worth the risk imo.
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Disagree on the way you view this , i have never seen this reported anywhere. will explain my reasoning:
Take a look at XBTFX website , the disclaimers and legal workā¦ They are regulated by the SVG financial services authority but this is not a fx broker license. A company this organized that goes out of their way to inform and restrict regions and solicitation, is a company that does not want legal problems or regulatory attention. This is not the mentality of a business that is going to confiscate a deposit from a us resident to āpunish themā. They actually canāt legally do that. If they did that they could be reported to the CFTC for not properly preventing access and taking your funds and they could also be reported to the SVG for fraud. Itās their responsibility to keep you from using the site in the first place .
So if any of these brokers listed in this thread try to take your deposit because you broke a TOS or used a vpn to access from the USā¦ a simple email āgive me my funds or i will report you to the CFTC,ā( with a screenshot of an email to the CFTC ready to be sent) and will see a quick process of WD and you part ways . I have done this before with tradersway 3 years ago when they would not WD me. There is no legit operation that would choose to keep your funds and risk attention and litigation by the US instead of telling you to kindly leave and wd remaining funds to not cause a legal incident. and guess whatā¦ these brokers that are not registered with the CFTC that are overtly taking US clients have way more risks - these āwe take us clientsā brokers are telling you they are intentionally breaking US law which means they likely dont have a problem breaking rules in other parts of their operation - they are an aggressive predatory brokerā¦ it could range from a toxic dealing desk, misleading tactics and troubles when you profit. They are also opening up to risk of getting sued by the cftc which may or may not bankrupt the broker on legal fees. Essentially they could freeze all users funds if they get sued and use what funds they have left for legal fees in the US before WD them to clients .
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CFTC must receive massive complaints before they take action, a few complaints wonāt move the needle, since your accessing this broker from a VPS your probably in a very small group so taking your money wonāt be a problem as many offshore brokers have already taken clients money with no help from the CTFC to recover those funds.
btw the cftc have a red list of offshore brokers who accept u.s. residents that comes with a warning that your funds might not be safe trading with these offshore brokers. so in cftc eyes you been warn and there is nothing they can do about it.
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Trading offshore (or anywhere) carries ample risk, regardless of how you choose to go about it. The rest is mostly conjecture and speculation. You can find evidence of various misdeeds if you try hard enough, but at the end of the day, they are just letters that appear on a screen, with little-to-no way of truly knowing if they are factual or not unless you know someone personally or have experienced it first-hand.
No matter which way you choose to invest your money, you should always practice risk mitigation. Properly doing so may render most matters moot, and that holds true for trading or any other kind of investment.
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ok you lost me here i think we all know investing carries risk.
āItās like trying to beat the casinoā ā Rookie trader turns $15,000 into $1 million, then loses almost everything
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Thatās a bit naive to think that an offshore broker is somehow under the pervue of the CFTC. CFTC has no authority over a broker based in the Grenadines. They never have.
They did, and you decided to skirt that by using a VPN. They have no obligation to you as a customer if you violated TOS.
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One of the most notable events (in skirting TOS via VPN) was Tone Vays losing his account and his 900+ affiliates on Bitmex.
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we better off trading with a broker that openly accept u.s. residents, why sneak in the back door when you wasnāt invited 
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funny how we wanna escape the CFTC but soon as the offshore broker do something shady we go crying to the CFTC for help, we canāt have it both ways
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I assume Tone Vays got his fund back because there was no report that his fund was Confiscated by BitMex.
So what Cobratrade said was actually true.
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Well, you know what they say about making assumptionsā¦ 
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There is good reason for this assumption.
Besides , this is really a request for you to provide evidence that Tone Vays lost his fund after his account terminated.
Your argument is only valid if you provide this evidence, which you failed to do, that made your argument pointless.
Obviously you really didnāt read what I stated, and the article itself.
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so some of u.s. traders has resort to begging and sneaking in the back door of brokers. 
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Iām not sure why itās noteworthy to post about brokers who donāt accept US clientsā¦in a thread dedicated to brokers who do so without restrictions.
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Newbie here (only a year in). I have read this entire thread over the last month. Lots of great discussion and options. Thank you all for that! I have struggled to find good brokers for US Citizens. I am currently using Forex com (only half my strategy works), Demo fun with Pepperstone (full strategy but of course no end game here). So like others have started the challenge with FTMO. The idea to use an offshore account benefits and potential to not use my own money is a Huge Benefit. I did the demo account with FTMO and passed pretty easily fortunately so took the dive. I hope it works out but just wanted to thank all of you for your knowledge and comments over the years!
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welcome to the thread, keep us posted on your FTMO challenge 
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Hi,
Ive been writing code for forex for almost 15 yearsā¦ Took a long break, been back writing strategies in my own backtester using tick data, then live data using MT4. It is a basket concept, trading no indicators, only statisticsā¦ Sometimes 50 pairs at a timeā¦ (Using the 28 majors and crosses)ā¦ My dreams have been dashed with Oanda with the horrible margin 50:1 and 25:1ā¦ I then went and got an account at FXChoice, thinking that might be the answerā¦ But there is no efficient way to transfer money back and forthā¦Im not going to pay the fees to use bitcoin etcā¦ all of your profits are wiped out in transfer feesā¦
I really want to trade with Dukasā¦ but Cant because of my residencyā¦ So, Ive no decided to create an offshore entity and bank account and then open a forex account. Getting 200:1 would make a world of difference in my ability to tradeā¦ Not to mention, no stupid FIFO issuesā¦ Anyone else been down this road have some thoughts? I dont want to use one of those goofy brokers that are sitting in their basement in the bahamasā¦ Any ideas to be legit?