And that “quite some time” could be multiple years, right?
I remember it, at that time, crypto narrowly escaped, but this time around, I think they have it in the strange hold
2 Likes
It’s about to get worse, as they can never solve the problem without hurting retail customers
The consequences of inaction are severe.’ This crypto pioneer wants tough U.S. laws to prevent another FTX and stabilize digital markets.
The public has experienced two damaging shocks this year from the digital asset industry that are a reminder of how a lack of regulatory clarity can harm U.S. consumers and U.S. economic competitiveness. The first shock came in the summer, when a complex financial derivative calling itself a stablecoin, TerraUSD (USTUSD) — issued offshore — collapsed in a matter of days. This triggered a steep drop in the value of the entire digital asset market and led to the bankruptcies of multiple industry participants, with tens of billions of dollars in value lost.
1 Like
-It is also important to remember and understand how too much regulation can actually derail economic competitiveness. Take, for example, cryptocurrency. Many US investors were essentially blacklisted from participating in various projects due to burdensome regulatory requirements imposed by our government.
We did not vote for this, and the more restrictions that are put into place that prohibit progress in these areas, the harder it will be for things to evolve for the better and for pioneering ideas to become mainstream solutions. The US will be struggling to catch up with the rest of the world in lieu of leading it.
3 Likes
So for the past two days I have been digging deep on futures. The more I learn, the more it solidifies the fact that Dodd-Frank, despite being under the 'guise of “protecting the trader from himself”, was passed for no other reason other than to prevent futures volume going to spot. Same reason we cannot trade CFDs in the US. The day trading leverage on futures is higher than spot fx EVER WAS. Clearly, they are not concerned about protecting anyone.
The point being, despite how they dress up the regulations as protection, they are simply there to protect the GOVERNMENT’S interest, not the average Joe…should come as no surprise as just about everything the government does falls into this category. We can start with covid vaccines and mandates and just take it from there…every morning I Thank the Good Lord that I live in Florida!!!
I know the last sentence appears completely irrelevant, but it serves as a reminder of who’s interest they have in mind.
3 Likes
That is a given. They will finish doing to crypto what they did to FX. All we will have is a few crap (ie Oanda) exchanges with dismal choices.
They don’t like money being transferred without them knowing about it. Regardless of the amount.
2 Likes
I’m enjoying the crypto discussion (and meltdown, frankly, sorry, crypto-skeptic since day 1) but I wonder if it is in danger of derailing the primary purpose of this thread which is a focus on offshore brokerages?
I realize that funding offshore accounts is a major part of that, and crypto is a major part of funding for most offshore accounts, so the line isn’t well-defined.
Just putting it out there. The replies to this thread have leaped since FTX and most of them are not about going offshore.
-Why would it? Whether we are talking about crypto, regulation/legislation, futures, FX, money-transfer methods, brokers, prop firms, leverage, commissions et al., it all seems relevant to me.
The primary focus, in my opinion, should not necessarily be about offshore brokers, specifically, but rather, the all-encompassing tools, information, resources and other solutions that allow traders to earn while taking advantage of the best possible options for that, regardless of what that looks like.
It just so happens that the best options usually involve side-stepping the CFTC and other regulatory groups that place unwanted restrictions on us and on others.
I also think that It is important to keep ourselves educated and to have informative discussions about these topics so that we are best-equipped to navigate these seemingly-complicated waters.
This is just my opinion.
2 Likes
I don’t disagree with any of that, just thought maybe these issues should have their own thread.
Going off topic from time to time keeps this thread relevant on the front page, Threads can easily get buried and forgotten.
1 Like
Solid diversification outlined above but the prop firms can disappear with your money as easily as anyone else. That includes US based firms who are ripping off every American trader. Ex: I trade BTC CFD’s offshore with a spread between $1 and 12. Last time I looked at Robinhood, the spread was between $60-70. Ridiculous. I’m sure Oanda and the like are similar.
What I’m saying is that giving your money to any firm is risky. All you can do is diversify. Government protection isn’t worth anything to guys like us when others like SBF can buy access and protection. Nothing new to see here. He’ll skate with a wrist slap. Look at how they treated Corzine after what he did at MF Global. Regulatory protection of our trading funds is a mirage at best.
As for crypto, BTC will continue. The blockchain works and there’s a finite number of coins. I think if you’re a US resident, something like this is in your future.
Western banks are positioning themselves as the crypto wallet gate keepers. Regulation similar to FATCA will be close behind. You will use a bank for crypto transactions or be forced to report your wallet ID and hope it’s removed from their blacklist for Fiat conversions.
Thanks for the tip about AMP. I’ve known about them for years but didn’t know they had that kind of leverage available.
The last broker I mentioned here was Solid ECN. Has anyone here traded with them? Any new brokers to look at lately?
3 Likes
-Most remote firms offer a refundable challenge, allowing you to trade risk-free if you can pass it.
.
-Care to share details about this?
Thanks.
2 Likes
The whereabouts of billions of dollars of customers’ funds are unknown, and nobody was imprisoned for it. Regulatory brokers are to be trusted, they say
1 Like
Happens probably more often than we know about and gets swept under the rug by regulators rather than protecting anyone from it or the fallout from it.
2 Likes
As stated before, when I look at the leverage available on futures…DoddFrank was simple passed to protect the futures market from the competition spot was creating. I’m sure it’s the same reason we cannot trade CFDs in the US. The leverage on futures is higher than spot fx EVER WAS in the US. Why aren’t the “protecting” futures traders from themselves? We all know the answer…same reason you can put your life savings on black in Vegas, spend your entire paycheck on lottery tickets, etc, etc.
That being said, I am glad some wonderful folks on here opened my eyes to futures as that allows me to further diversify my 4 prop firm accounts. Will not be trading fx futures, but DOW, NAS, S&P to mix in with the index cfds and fx I trade with the props.
4 Likes
The only capital @ risk with the online props are the challenge fees, and they 100% refund this costs with the 1st payout, so I’m already playing with free money. Black swan event = no funds lost, they all disappear tomorrow = no funds lost.
3 Likes
That’s why it’s imperative to always cash out profits regularly. The prop firm provides the margin, I’ll take the profit. I’ll still have my AMP account for day trading indices.
3 Likes
Here is how this is all related to offshore trading…
All those btc/eth/alt coin transfers into stable coins and back without ever entering the banking system where it can be tracked & taxed are viewed as a MASSIVE problem by central banks and governments.
The looming danger to crypto transfers via US exchanges to unregulated offshore brokers is the upcoming Fedcoin (just launched in pilot program with US banks). The Fed/SEC will have the desire to eliminate the competition to promote widespread usage of their own product. The US exchanges where crypto is exchanged for spendable fiat will be where leverage is applied. It would be even more advantageous if all the big crypto players (FTX, Coinbase, Binance ect) self implode due to reckless business practices leaving the market to traditional SEC regulated banks & brokers.
You can be damn sure Fedcoin transfers to offshore brokers on the CFTC red list will be completely banned.
4 Likes
Sure will. Not allowing s to trade with non-CFTC “regulated” brokers was step 1 in protecting us. Despite the fact there are numerous “regulated” brokers with far better conditions than CFTC regulated brokers…ICMarkets, Pepperstone, Tickmill, Dukas…just to name a few AND they all have protection schemes through their various regulators to insure our funds…but hey, thanks for “protecting” us from all of the good brokers of the world.
Step 2 was the payment processors…so if you are going to trade with a non regulated broker, you will not be moving your money through wire transfer, ACH, credit card, net teller, paypal, echeck, etc, etc. Fortunately, we still had crypto.
Third and final step, as you stated, government control over crypto, which ultimately will ban it from going anywhere or coming from anywhere they do not wish it to.
Prop firms and futures is the foreseeable future. Fortunately, some of us started the process awhile ago.
5 Likes
IRS going to grab that as well.
Here’s why you may get Form 1099-K for third-party payments in 2022 (cnbc.com)
Futures are most likely going to be safe. Futures market excludes a lot of people, as the barrier to enter is high.
1 Like