And that’s [B]one[/B] of the reasons we want to “go offshore to escape the CFTC”.
INDEED!..Here we have a “rule” actually forcing us real guys to be more risky, then let me say my 2 cents about another REASON: hedging…hedging, correctly used, reduces risk! It’s like the CFTC (IMHO, George Soros) wants to turn forex into a slot machine for us! My application of hedging is used to help with my strategy, since I use tight stops, I can get stopped out kinda easily, so I can just put an opposite, equal sized trade just negative my entry with small TP, same as the opposite trade’s SL with it’s own very tight (1-2-pip) stop loss…if I can find a good broker…I’m really thinking about FINFX…has anybody heard anything or tried trader’s way?
The CFTC wants your profit targets to be lower that is one reason for the 50 to 1 leverage so that you cannot make too much money in a short period of time.
With 200 to 1 leverage your money will not grow as fast but your risk is decreased as well since it is a double edged sword that can work for you or against you.
A hefty “thank you” Clint for opening and maintaining this topic, and appreciation to everyone who contributed informative posts.
Recently I became yet another victim of the new Caste System forcing U.S.-resident traders into near ‘untouchable’ status. Used this thread to get my bearings on possibles, and communicated with a number of the Group 1 outfits. Opened demos and live accounts, closed accounts, am currently testing yet another spot. Thought I’d offer the following to fill in some of the blanks for traders still seeking offshore FX dealing.
Before I get into details: If you’re an American who speaks no foreign languages, the English proficiency of the staff becomes important; it has to be at least high enough so you can make out what they are trying to say and vice-versa. Sometimes it just takes a little patience and you’re good to go, but with other places you may find the language skills aren’t there (surprising since English is taught around the world as a ‘universal business language’). There are also a few who will feign not to understand, in order to discourage you from applying. These things happen. Just a FYI, mostly for very new traders.
Next post will be some fill-in details on Group 1.
• [B]Uni-FX[/B] (UK)
Their site looked thrown together, with rudimentary English, beginning with the headline "Why Uni-FX GT Is So Trustfull?" They go on to claim: "Credit Financial Co Ltd is a UK and wales Registered Company Reg No: 7233221 and Fully owned by Unifex Financial Group Ltd. We offer UnifexPro New Trading Platform as a special trading facilities to expand our business to new Regions."
Max leverage advertised was 1:400. To open an account I was redirected to a site called MPFN-FX, their Partner or Representative ostensibly in NZ -- again a website with garbled English which additionally had run over their 'weather' and 'widget' budgets. I skipped it and just as well, because...
23 March, found they’d disappeared, or at least could no longer maintain their site: “This account has been suspended.”
• [B]Universal FX [/B](Switzerland) --- white-label partner of ACM/SwissQuote
COMMENTS: Their website and my browser seemed to have odd disagreements. Sent three identical emails asking two questions (U.S.? Leverage?) over a period of two weeks; no reply.
• [B]Renesource Capital[/B] (Latvia)
COMMENTS: 1:100 is max leverage. I'm keeping their PDF account docs because they are masterpieces.
• [B]Varchev Financial[/B] (Bulgaria/UK) --- regulated in both countries
COMMENTS: use varchevbrokers.com for the English site - you'll still see the odd Russian character here and there, but it's not difficult to figure out what's going on if you examine the context.
We ran into a difficulty due to Varchev's mail servers being on the entire SBC and ATT/Yahoo blacklist -- for which I gave them resources to assist them in correcting the problem, but their IT so far did not follow up. Live Chat is good, but when a broker can't organize email access we generally do not open live accounts.
Platform is MT4, also an ECN-ish setup is available.
-> Spreads on EU cling around 3 full pips, on GJ 5-6.
Max 50 lots per ticket, after that you need to request and wait.
Margin is taken both ways in a hedge.
They also offer spot trading with commodities, indices, cfds on European and American stocks, DJIA, DAX, NASDAQ etc.
They have several physical offices, unlike others I'll get to in a moment.
Their "leverage varies with position," so if you want to trade size you'll soon be looking at 1:100 again.
I really like these guys, by the way; enjoy the ‘let’s make a deal’ mentality over terms etc., and it’s conceivable I’ll trade with them if we U.S. traders find our Caste Status trending further downward on leverage worldwide.
More in next post.
Hey “sm your1100whatever”…
This is the one and only reply you’ll ever get from me.
Today Bill Ayers said he woke up every morning trying to completely end capitalism by the end of that day. You must do the same thing! You’re nothing but a Media Matters puppet show for George Soros. George Soros said in his last book (I actually read it between vomits) he “thinks” capitalism has gone “too far.” and free markets should end blah blah blah … While he makes double profit on gold, telling everyone else to run away from gold…He is a LIAR! And you are too, sm*****! The only reason Soros hasn’t crashed the dollar is because all us new traders are actually learning how to trade and enough of us are taking back the free market, that his plans are being foiled! While he and warren buffet tell us profits and free markets are no good, they are using free markets and making big profits themselves. Why shut out all the freedom for everyone else? You didn’t even read or get my message you replied to. “making profits too fast” if you trade 1 lot for 30 pips, it is still $300 profit, I don’t care if your leverage is 10,000:1! Or 1:1. So throw away the crack pipe, and get outta here! You’re so obvious! Lie lie lie! You obviously don’t work, what’s your monthly welfare check, $2,400? Or does Soros pay you? If Soros wasn’t a liar and if he didn’t have bad intentions, like crashing all the world’s currencies, so he can help start open borders , i,e., one world government, then his profit accomplishments would be admirable, but alas! So sad, and sad for you, sm1100… You bum, get a job. The rest of us hard-working innovators will be millionaires by earning it!
P.S., George Soros is behind the whole current administration, not just the ctfc, but that was definitely a victory for him these last 3 years…hit, but not down, we still have some options left!
pipcompounder, the only thing I can add at the moment is,
with all this free time we traders suddenly have on our hands :mad: why not read a bit of the Minutes of the Meetings of the Royal Institute of International Affairs (same as the CFR here). It’s their own publication. Then the agenda gets real obvious.
I do wish that the paychecks roaming around here trying to make FIFO, No-Hedge and 1:50 look good (among other discriminatory baby harnesses for big boys and girls) would realize we have a bit more on the ball than they expect.
… continuing with data for Clint’s great offshore broker thread:
• [B]RV Markets[/B] (Hong Kong)
COMMENTS: I got cold feet with this one and didn't get far in the contact department.
For anyone who might find it interesting, that .com address resolves to (don't giggle) fxupme dot something LOL, with document saying it's registered as a company in BVI.
They have a variety of amusing charges, too - plus Happy Hours sorts of things, and the s/o level is 135%; didn't pursue further.
• [B]forex-metal[/B] (Panama)
COMMENTS:
Lowest [I]spread[/I] seen on EU was 2.2 pips (live account) -- during Asian session of all times. Spreads are variable, and vary widely even for a retail joint. Live accounts have wider-than-demo spreads. Fiber 2.4, Cable 6.6 seen at 1820 Weds 18 Mar '12 EDT. They are higher still (add 1.5-2.0 pips) in the hour before Friday close and after Sun/Mon open. On demo, E/U is FAT at 2.3-3.9, G/U is low at approx 3, other majors and minors moderate, yet cross spreads are surprisingly decent. On Live Accounts, they VARY.
To fill in Clint's admirable data collection project here: [I]G/J is 5-8 full pips[/I] on Live depending on "conditions." I have not yet been able to see any particular pattern in the way they whoop their spreads around.
here are some [U]General notes[/U] - if too much detail, please advise and I'll redact or delete.
Occasionally there's a random [I]difference between platform Market Watch time and History tab time[/I]. Most recently their demos switched to a 23-minute and 41-second delay and stayed there for about 5 1/2 hours, then corrected (sort of) to EET instead of GMT like the live platform.
On LIVE, there is a .[I]4 pip RT difference between chart prices and Market Watch prices[/I]. Trade price matches Market Watch, not chart.
[I]Account approval[/I] is quick, within an hour or two, even for corporate accounts.
[I]Funding[/I] is lightning-fast. Our wire from U.S. to a New Zealand bank via SWIFT hit the account within 8 hours. Didn't seem quite right, and had difficulty finding out if one of their 'programs' had autocredited it, or if it was real money. Took a tiny trade and discovered it WAS real money, however they'd set leverage at 1:200 contrary to previous understandings.
They state [I]leverage[/I] is negotiable. In our case, after funding they failed to answer any email concerning a leverage increase request. We sent one more email (unanswered) concerning leverage. Fourteen hours later, without warning, they reduced our leverage to 1:100. We requested full withdrawal from the account. They suddenly wanted to negotiate, and their offer was so frankly bizarre I won't repeat it. They dragged their feet and wanted to talk instead.
[I]Withdrawal[/I]: It is taking some good length of time to get the money back out of there.
… more in next post…
[I]Support[/I]: The livechat is often overloaded (says one rep). Draw what you will from that statement. Previous to 27th of March '12 (last month), it was easy to get kicked off live chat due to software set to pop up an input screen telling you “the Live Chat was idle for more than 5 minutes, would you like to leave a message instead?” This popup appears every 3 minutes, whether you’re with an agent or awaiting one to answer – even if you’re both actively typing away. If you don’t hit the popup’s ‘cancel’ button quick like a bunny, it will close the chat. Of course if you ‘leave a message,’ you’d best make note of message and time as you’ll have no other record of it. They may or may not have re-instated it at the time of this writing, but in our chat session on 27th March that pop-up was disabled.
BE WARNED: Forex-metal have taken the "no dealing desk" phrase to a new level. Trades cannot be opened or closed through livechat or by telephone [although there was mention of perhaps - not definitely - being able to do so if a 'supervisor' was available - often one is not, so this isn't a dependable route in case of need]. They suggest having both internet and mobile platforms in case of hardware/software failure on the trader's side. That's it. No ringing up and saying "Please exit my positions, my house/office just went up in a gas explosion fireball." Sorry laddie, no can do, them's the breaks, eh? So if something in your hardware/software/net connection goes sideways whilst scalping the NFP, do have multiple backups in place because a phoner ain't doing it.
In addition, whilst the website's Contact page lists the Payments (Funding) Department hours as 24/7, a chat operator said at 0230 EDT on a Tuesday that they would "be open in a couple of hours."
They offer a [I]cash bonus program[/I]; it gives you potentially withdrawable cash if you trade a certain minimum volume dependent on account deposit and what % of bonus you choose (within limits). The kicker in the terms is you must agree that they WILL set your leverage based on equity throughout the life of your account (the higher your balance, the lower your leverage). [NOTE HERE: While this is highlighted in the terms as if it applied only to the bonus program, it applies to every account, no exceptions -- so don't be fooled.] Oh, and they make it clear they're on the alert for funny business (you know, those thoughts you just had), so you bad boys and girls be warned.
They offer a [I]no-swap account[/I] which has otherwise identical trading conditions to the swap-liable accounts. They're watching you for tricksy things here as well (yes, those other ideas that suddenly came to you unbidden through absolutely no fault of your own). You're abjured to play nice.
They offer a [I]0.5 pip spread rebate[/I], credited weekly, based on your volume traded in the previous week. That, too, comes with no strings attached.
[I]Hedging[/I] equal volume on one instrument reduces used margin to 0.
[I]Execution Speed[/I]: on DEMO, within 1 second. On LIVE, 2-3 seconds is the norm.
[I]Clock [/I]is barely 2 seconds behind, sometimes less; and going back on hourly charts, [I]no funny bunny spikes[/I]; [I]price feed[/I] is sharp and constant.
[I]Due Diligence[/I] sorts of things: website says nothing about capitalization, you'd have to dig hard to find it if possible (reasons below).
[I]Regulation?[/I] The FAQ hazily offers a couple of numbers that look like licenses, no jurisdiction specified.
[U] One last note here[/U]: The people whose names appear on Forex-Metal’s official paperwork are known to me as employees/ associates/ assistants/ partners of Sovereign Management (formerly Sovereign Society) in Panama. Further, Forex-Metal’s official address is identical to Sovereign’s. So: Unless the SM folks – who have run an offshore incorporation/services company for at least 12 years to my certain knowledge, and serve as nominee directors for a vast number of offshored corporations – have suddenly decided to get into the retail FX brokerage business, then we might logically conclude that the people on the paperwork are Nominee Directors and that we know nothing of the actual operators of this brokerage.
By the by, I haven’t yet put up enough posts to be allowed to include a link, which is why you see no URLs to document what I say here and above. However, I have them and can provide when able.
Continuing on:
• Real Trade (British Virgin Islands)
Spreads are fixed, so look for the usual effects. They reduced their spreads in January '12: EU is now 1 pip, G/J is 5 pips.
Real Trade® state client can specify leverage. “*If you would like to change the leverage, please send an email request to info(at)realtrader.org from the email address left during the trading account registration specifying your account number (login) and the desired leverage (from 1:1 up to 1:500). Note: Please be advised that all open positions should be closed in order to successfully change the leverage.” NOTE ALSO that you must have a funded LIVE account before requesting this leverage change.
Stoplevels equal spread. However, their “trading_terms_en.pdf” contradicts this by requiring that stops, take profits and pending orders must be at least 10 pips off market price, no exceptions.
Max lots per ticket: 100
Min trade size .01 lots - step is also .01 on live.
Hedges work at 50% - you ante up one side, not the other, so essentially a hedge leaves your margin where it was. Need 100% margin% available to open second leg of hedge.
Stopout% 30%.
4% monthly interest accrual on Free Margin
Instruments: 40 Forex pairs, plus Spot Gold and Silver
Instant execution.
SUPPORT - No Live Chat. You can message them through their webform (keep a copy for your records); you could reach them (no proof here) by sending email to a department independently; you might reach someone at one of the phone numbers listed – but no live chat. I’ve been unable to raise a reply to two simple questions tried via email and webform.
Contact:
Address: 103 Sham Peng Tong Plaza, Victoria, Mahe, Seyshelles[sic]
E-mail: info (at) realtrader.org
Phone: +37127492094
Good luck finding that address. They’ve omitted the street name, and Mahe is a little beach village which if memory serves me hasn’t much in the way of office buildings. If anyone has a tip on this issue, please share!
[B]2pipsforex[/B] and [B]FXCH[/B], both “Dominica,” are identical in their terms and trading conditions. Their staffs reply to emails with identical texts.
One of the documents I downloaded from the [B]2pips[/B] website shows shoddy editing – they missed out on replacing FXCH in a couple of places, so their slips definitely are showing.
Rather than add (much) detail for these two, I’ll state the following brief hints and leave you to form your own opinion as to whether they are the most dangerous of any brokerages on the planet and should be kept at the 90-yard pole distance.
[B] (a)[/B] $2000 minimum deposit for individual accounts? and it’s $5000 minimum deposit for a corporate account?! High hopes for these two particular outfits with their contradictory statements and vagueness everywhere in their documents and websites.
[B] (b)[/B] You must fund those ‘minimums’ just to get a glimpse of the platform you’ll be dealing with. Cannot view live platform until they have your money in hand.
[B] ©[/B] Their demo platform is indeed 1 pip for all fx instruments - however, it’s like watching a kid with a crayon whacking up and down. They both bounce the price many times per minute in a range corresponding to rather large spreads – on all pairs/crosses.
[B] (d)[/B] Do a websearch for the address they both list: 8 Copthall, Roseau, Dominica. When I did so (since the address apparently does not physically exist), I found pages and pages of references to scams of every kind who all used that “address” as their offices.
B[/B] [edited to add:] Their price feeds have huge spikes - you know, those 10,000 pip kind of spikes. The word ‘untradeable’ comes to mind. I don’t even know why I mention them; there are so many other ginormous RED FLAGS I could add instead (I’d think (a)-(d) above would suffice without more), but felt moved to note those spectacular spikes anyway. ;-}
Good stuff, Gypsy.
Thanks for your contributions!
And, welcome to the Forum, and to this thread!
Thank you very kindly, Clint! It’s a pleasure to be here.
With the amount of money on the line it is not safe to invest in offshore brokers especially if they are not regulated by the CFTC so this is at your own risk.
The only way to reasonably secure your account and have the luxury of using higher leverage is to move to another country and either set up residence there temporarily and pursue a workers visa or citizenship.
For Americans Canada or UK as there are no language barriers.
sman,
In Canada, another enormous country, Quebec may prove a surprise as to the ‘language barrier’ even among the English speakers - and even if you speak French. 
As to the UK, many people in many parts of that conglomerate can challenge you entirely; good luck finding a translator for Highland Scots - English.
Life is at my own risk. If the CFTC’s interests and mine were concordant, they wouldn’t be using deception, force and coercion against me and my potential business contacts in order to control my behaviour. That’s always the litmus test. Always.
Now back to (hopefully) useful information…
• [B]Trader’s Way[/B] (Dominica)
COMMENTS: Might as well get this off my chest to begin with: Their site certificate belongs to (get ready) po.tradersway.com. "Y'all wanna be a po' trader? Here's de way!" Ah, must be just my lively linguistic imagination. Moving on...
There are 6 account types; 5 are on MT4 ("Micro," "Fixed spread (standard)," "Variable spread (standard)," and "MT4 ECN"), one is on their CT Trader platform (with commissions), and [I]spreads [/I]differ between them.
EUR/USD generally 2.0, GBP/JPY usually 5.5-7.0. Lower on their CT ECN platform, but add commissions.
Minimum deposit for individuals: MT4 account is $1.00 USD; ECN is $10.00 USD.
Minimum deposit for a corporate account, $5,000.00 USD. (!)
Max Leverage is 1:500 for Account Balance less than $1,000.00 USD
1:200 for $1K-$10K
1:100 for $10K-$100K
1:50 thereafter.
These folks are also Russian, like most of the brokers above [U]and[/U] the trader's audio services I use; did they buy the franchise or what? ;->
Support is phone, email, Live Chat. Responsive, professional & friendly, and clear English on all lines/call centers.• [B]Forex MMCIS[/B] (Panama)
http://forex-mmcis.com/
COMMENTS: Another Russian bunch incorporated in Panama. Nice website, etc.
[U]NOTE[/U]: Their rules inveigh against “scalping.” They threaten to take either all the scalp profits back, or ALL PROFITS, period.
Their definition: If 30% or more of trades are closed under 10 minutes OR under 10 pips, yer outta here Sonny and “all you cash is belong to us” (to paraphrase a delightful quote).
- Is this 10 pips profit, or loss? 30% of trades in one day, week, year? They don’t say.
You might have a few days or more like that while testing a new broker/platform/strategy with live money – even several times per month or year – even if you swing-trade.
Forex MMCIS stood out among the Group 1 entries for that reason, so thought it was worth a FYI.
If a Cuban court sentences me in absentia to a heavy fine for engaging in anti-communist speculative currency trading, should I be concerned or pay them the fine?
Short answer: No, no.
Somewhat longer answer: Did they serve you properly with the complaint? Did they have jurisdiction over your activities in any way? If you felt like it (perhaps due to your twice-yearly cigar procurement trips you didn’t care to curtail), did you find a way to appear before them [I]for purposes of jurisdictional challenge only[/I]?
Actual answer: LOL.
Well, having a problem with the Cubans is not likely to have far reaching effects like making it difficult for your company to apply for a license in other jurisdictions. If you clear your name however…