Going offshore to escape the CFTC

Broker Discussion Forex Brokers
13563

You can see why I said that in the following

Swiss CBDC Will Be ‘Real Money Equivalent to Bank Reserves’, Says Central Bank Chair

Swiss National Bank Chairman Thomas Jordan said on Monday that the institution will soon issue a central bank digital currency (CBDC) for wholesale payments on the country’s SIX Digital Exchange.

The experimental Swiss CBDC is designed for use by financial institutions and will be part of a pilot program, he said at the Point Zero Forum in Zurich, Switzerland, according to a report from Reuters.

“This is not just an experiment, it will be real money equivalent to bank reserves,” he said. “The objective is to test real transactions with market participants.”

CBDCs are similar to stablecoins, as they are both digital tokens pegged to the price of a sovereign currency like the dollar or in this case, the Swiss Franc. However, instead of being issued on public networks by private companies, CBDCs are maintained by their respective governments or central banks.

As an increasing number of countries consider launching CBDCs, Switzerland now joins the list of those that have begun piloting the technology, including nations like China, India, and Australia.

https://www.yahoo.com/finance/news/swiss-cbdc-real-money-equivalent-155932960.html

You will be banning the US Dollar from your state if you ban CBDC

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13564

-This sums it up. They want complete control and oversight. This will create a vulnerable system that is totally ripe for abuse.

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13565

Funny how all of this took place right after the S.E.C. file lawsuit against the two biggest exchanges in the world.

Despite his opposition to CBDC, he cannot defeat the central bank

Robert F. Kennedy Jr. Praises Bitcoin, Says CBDCs Are ‘Instruments of Control’

Kennedy made headlines this year during his keynote speech at the Bitcoin 2023 conference in Miami. On that occasion he took a swing at Biden’s proposed 30% crypto tax as well as denouncing central bank digital currencies (CBDCs).

https://finance.yahoo.com/news/robert-f-kennedy-jr-praises-162048375.html?fr=sycsrp_catchall

13566

Anyone here using Coinbase Business Account, or are you all using Individual Account type?

Thanks.

13567

Update on LMFX

Takeaways:

  • If you are a US resident, LMFX will not allow you to open a new live account.

  • If you access their website from a US IP address, LMFX will automatically screen you out. If you get around that screen, they will reject you when you submit your US KYC documents.

  • LMFX should be removed from the Offshore Broker List. I will do that this weekend.

Background:

When you go to the LMFX website, at the top of the first page you will see a box labeled “Open Live Account”. Click on that, and a page will open with a simple Registration form. Fill in the minimal data asked for on this page, and you should be “registered” and on your way to opening your new account.

I tried this with my actual data (name, email address, phone number, and date of birth — and got screened out by the LMFX algorithm. The message read “Oops, something went wrong. Please try again”.

So, what “went wrong”? I suspect I was identified as a US resident by either my phone number, my email address, or my IP address.

I’m guessing the country code (+1) of my phone number was a dead give-away that I’m a US resident. That country code appeared on the Registration page, before I even began the registration process.

I’ll try a subterfuge.

I moved (hypothetically) to Mexico, and entered my phone number as +011-52-55-5080-2000. That’s the number for the American Embassy in Mexico City.

This time, using my real name, email address, DOB, and a fake phone number, I got the same “oops” message. Maybe it’s my IP address – the site does say they use cookies, etc.

Okay, I’ll try hiding behind a VPN.

This time, I hid my IP address behind a Proton VPN. Anyone monitoring my IP address, will now see that I am connecting to the internet from the “Netherlands.”

When I opened the LMFX website this time, the box for my phone number automatically displayed the +31 country code – that’s the code for Netherlands. So, now I’m starting to understand the LMFX screening app. – if I connect (or appear to be connecting) from the US, LMFX will automatically bump me out.

So, I’ll try a work-around.

For the next attempt, I moved (hypothetically) to the Netherlands, and entered my phone number as +31-0-20-554-1234. That’s the number for the Hyatt Regency Hotel in Amsterdam. The rest of the info I entered on the Registration page was real.

This time, I got past Step 1, the Registration page. LMFX obviously accepted that I am currently located in Netherlands (not the horrible USA). I received a couple of emails from LMFX welcoming me.

But, of course, there’s a catch: KYC.

In order to fund my “new LMFX account”, I must furnish my passport and residence info. That info will immediately identify me as both a US citizen, and a US resident, which will send my LMFX application right back to the trash can.

I’m not going to waste more time trying to get around the LMFX screening app.

Clearly, LMFX is not the broker they used to be, back in the day, more than 7 years ago, when Maria Bachvarova thanked us for adding LMFX to our List, and asked us to consider LMFX for the Trusted Broker designation – see HERE and HERE

If LMFX doesn’t want us, then we should be done with them.

This weekend, I will remove LMFX from Group 1 of the Offshore Broker List.

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13568

When a broker leaves our list, we try to find a replacement. I will begin the search

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13569

Maybe take a look at OspreyFX, been with them for several months without any issues. Withdrawals are always very fast (within a couple of hours).

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13570

-Looks like our tax dollars are hard at work.

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13571

-Was looking at n1cm (number1capitalmarkets), and it might be a good option. I have no experience with this broker and have only, so-far, looked at their website.

Here are some details:

  • MT4 and MT5 offered
  • Deposits and withdrawals for US citizens (a dozen cryptocurrencies, including USDC, Tether)
  • Tradable assets include crypto, indices, metals, commodities, stocks, forex etc.
  • Up to 1:1000 leverage
  • Established in 2017
  • $5 minimum deposit
  • Hedging/scalping/EA’s allowed

Looks like commissions are a bit high for some assets/account types.

13572

They’re scammers, I’m withdrawing my recommendation

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13573

I have an account at NC1M but have not deposited any funds yet. Once setup, I only saw MT4 as option to create demo or live accounts. I reached out to support and they created the MT5 account I requested for me, but not sure why it isn’t available in the dashboard. Other than that, I like what I see so far with NC1M. There are ways other than crypto to deposit, such as:

Perfect Money
FasaPay
Payment Asia
SticPay
iyzico (Visa/Mastercard)

I know nothing about the above companies / methods, just information I see in my dashboard.
Their backend does not look like any of the brokers I have used so far.

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13574

Good to know. Thanks. Not sure why MT5 is not automatically listed. Regarding the deposit/withdrawal methods, those alternative methods are not available to US residents through this broker, unfortunately.

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13575

Also, today for some odd reason when I requested a MT5 demo account, I was responded to with the following from N1CM:
“Unfortunately, we do not offer a Demo for MetaTrader5. You may create a Demo for MetaTrader4 from your dashboard”
Keep in mind, I had already requested and received a MT5 live account.

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13576

Always on the lookout for brokers with bond CFD’s, I found a broker I hadn’t heard of- LonghornFX. I looked at their MT4 demo and majors spreads are running 6-10 during London. Nothing special but it’s always nice to have options.

The list is here. Nice website that seems to be recently updated.

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13577

Per above quote (system won’t let me copy/paste links due to my being a new user):

“SmallPaul, if you had used a broker that accepts deposits and withdrawals in good old American dollars, you would not have had this problem of getting your money back out of them.”

Okay then, who are the offshore brokers that are still accepting bank wire transfers using “good old fashioned American dollars”? Ever since LMFX got rid of that option back in March of this year (before eventually eliminating US clients altogether 3 months later) I can’t find a single offshore broker offering unrestricted trading options (hedging, scalping, no FIFO crap etc) and decent leverage that will accept conventional bank transfers anymore, or even an independent money transferring agent like PayRedeem, PayPal, Moneygram etc. It seems like every foreign broker now only accepts crypto which, to be honest, I’m not crazy about getting involved with (even though I will if I have to). Or am I mistaken here?

13578

You are not mistaken. They can’t have any connections to the American system.

There are no other options. It’s crypto or you trade with high spreads, low leverage and FIFO with nobody to blame but ourselves. We elected the fools that appointed people like Gary Gensler to make the ridiculous regulations.

Was it lost on anyone here that Barney Frank was on the board of a crypto friendly bank? I had a good laugh when I found out about that. I hope his shares went to zero.

For context, here’s a quote from an email I just received from a prospective broker:
“…is not able to take clients from the blocked countries such as Afghanistan, Congo, Iran, Iraq, Myanmar, North Korea, Palestine, Russia, Somalia, Sudan, Syria, Ukraine, Ontario, Yemen or the United States or its territories due to the local law and regulation.”

Keeping good company.

I noticed Ontario on there just now. Looks like Trudeau is busy punishing Canadian traders as well. Maybe our cousins from the north can share some broker info now.

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13579

Anyone that takes the time to look at broker review sites will quickly see that the United States is the most restricted country in the world. It is absolutely disgusting.

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13580

With elections coming up, it’s worth mentioning that it is easy to check who voted for and against Dodd Frank and FATCA, as well as the attempts to repeal FATCA.
A quick Google search will show wikis and other sources. The data speaks for itself.

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13581

I also find it very troubling when elected officials enact laws contrary to our founding principles. Not only does it cause issues for citizens, it undermines our reputation as a bastion of freedom. Our enemies abroad are working hard to tarnish or destroy the image of a shining city on a hill. Unfortunately, they unwittingly find natural allies in some of our politicians.

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13582

At this point, no one seems to be interested in repealing Dodd Frank and FATCA, Those promises have come and gone

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