Going offshore to escape the CFTC

Generally, very generally, speaking…STP/ECN brokers pass your order straight through and charge you, the trader, a commission for doing so. These brokers do not care if you win or lose, they are more interested in your volume. It is the LP winning/losing on your trade. EVERY OFFSHORE BROKER I USE OPERATES THIS WAY

On the other hand, market maker brokers essentially create their own market. They do not charge a commission and pretend that is a good thing. What they do is mark up the spread (way more expensive than commission with a raw spread) THIS IS ALL BROKERS UNDER CFTC, with the exception of forex dot com DMA account and Interactive Brokers. In addition to the spread markup,**They are the LP and have a vested interest in whether you win or lose. You win, comes from their pocket, you lose, goes in their pocket.They literally hold the other side of your trade. It is like placing a bet with a bookie or a casino and they have the software to manipulate the outcome. See how regulation benefits the trader?

This would fall under my previous statements of “conditions are much better offshore”. This specific reason we are discussing can simply be added to all of the other reasons under that category.

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I was going deeper than i should :joy: thanks for explaining it this way, i figure everybody who do a little research would find this information

lol, yes, but the problem is…nobody does any research. After all if they did, I don’t think anyone in their right mind would be trading with a CFTC regulated broker…there is literally not one good, valid reason to do so

THEY ARE REGULATED is what most say, not realizing that should be listed as a CON and not a PRO

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Also if you have large deposit with a broker they should have no problem telling you who their liquidity providers are.

Which liquidity providers do EagleFX use?

At the request of our liquidity providers, we cannot reveal this information to the general public. However, if a client is looking to deposit a large sum and has provided proof of funds, we are able to provide such details prior to the deposit’s completion. We can even arrange for the funds to go directly to their accounts to further safeguard their investment. As for cryptocurrencies, our liquid provider is Bitfinex.

https://www.eaglefx.com/faqs/

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Yes, the response from one of the CFTC “regulated” market makers would have to be…

WE ARE THE LP and we will do everything in our power, including lie, cheat and steal to insure you lose…but, it’s OK, WE ARE REGULATED :rofl: :rofl: :rofl:

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yeah funny how people come here and say we should be trading with a regulated broker, did they not read the title of this thread- self explanatory.

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Seems like the same guy, judging by his MO and writing style. Hard to fathom what his motivation could be. He is investing a lot of effort.

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I have one reason, as a hedge in case we get cut off completely from offshore. I do keep one market maker domestic account active.

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-Citizenship renunciation may become a more attractive option for some if restrictions become that overreaching.

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Yes, if one earns a better living trading than being employed, not to mention the time independence, the stress and cost of siting in traffic…yes, absolutely time to go. Plenty of great places in the world (safe, affordable, non-oppressive govt.) to live.

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I think that is fair enough. They also offer segregated funds as well as do a number of the offshore brokers. There is a clear niche to fill which these ones are. Sadly of course there will be scammers but isn’t that the point of this thread?! To highlight the good from the bad?

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yes sir that’s the point

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Exactly, I just don’t see the point of the people that come into this thread to spew bile. What good is it to anyone?

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The only 2 domestic brokers I would vouch for are Interactive Brokers & Oanda

If you trade in size, IB have fantastic market depth liquidity on the majors (200-350 lots are no problem), but their proprietary platform TWS is the absolute worst.

Oanda’s main non commission feed has comical levels of manipulation around report releases, but that is absent on their raw core pricing feed. Their commission fees are uncompetitive @ $10 round turn, however commissions are always subject to negotiation especially if you’re doing significant monthly volume.

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IB’s TWS platform should not be a big issue since you can have your own quote source., and only use TWS to execute trades.
IB requires 10M net worth to trade forex; and IB’s futures leverage is too small to trade futures. So if you use IB, you need to have separate accounts for forex and futures( futures account at outside broker).
While I can trade both forex and index futures on one account at offshore brokers or AMP futures(currency futures.)

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ah yes, i forgot they exited the retail FX space a few years ago.

I currently trade S&P mini & 3-mo eurodollar futures with AMP. I only trade the FX majors during US session, so if offshore was shut down at some point, I would probably transition over to CME currency futures @ AMP rather than any of the US FX brokers.

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Funded account update: I tried the MFF challenge. 1st month I made it to 5% at peak and ended up with a free retry.
2nd month just ended with me getting a little crazy with risk at the end and violating daily DD.
It was a learning experience. Key is that I tried the small account and knew the risks. The small fee that I lost was worth it to me for the experience. Haven’t decided whether to try again another time or just stick with personal accounts. Either way, no regrets.

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ECN is the key they have no real access to any money orders and this keeps them nicely interested in you trading with them

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Mrinvisible said he likes to trade only the US session for currencies. As for me, I like to trade primarily the 1:00 AM to 7:00 AM European session because currencies really do tend to trend more during the European or London session than during the 7:00 AM to 4:00 PM American session. As one trader put it, “The trend is your friend until it bends.” Good old FXCM once said that the European session generally trends while the American session is “choppy,” which I have found to be quite true. The American session, though, is best for economic reports, which is when most of them occur that produce a big reaction. Currently I usually trade only the EUR/USD and CHF/JPN pairs in between reports. Since I’m single and retired, I can get away with going to bed around 10 AM to noon, or at least trying to, with the help of a heavy dose of melatonin, so that later I can also monitor the 7:00 PM to 1 AM Jap session. Oops, I mean the Asian session, which also seems to trend more than during the US session. Hope this information is helpful for currency newbies.

I daytrade SPX500 and EUR/USD.
Trade EUR/USD from 3:00 am through us session.JPY/USD is more trending in European session than US session, but EUR/USD is trending in both sessions.
Sometimes it is choppy in US session such as yesterday,but you need to understand why this happen. Currently EUR/USD is impacted by US equity. So if US equity is at the last stage of a downtrend ,and panic is high EUR/USD could be choppy for one day or so.Because EUR/USD is also impacted by JPY. JPY is going high on the day equity has big panic, dragging EUR/USD to the upside, while equity drag EUR/USD to the downside, that is why EUR/USD become choppy.
By the way, EUR/USD is very likely to drop big on Monday, because it follow US equity. Since Friday US equity drop big while EUR/USD didn’t drop, Monday it will make up that drop.That is one day delay pattern that happen frequently for UER/USD and other currencies.(You can also deem Friday EUR/USD’s up was an one day delay pattern as Thursday US equity went big up but EUR/USD didn’t go up.)