Paul, has Hugo gotten back on track?
Unfortunately, I do not know
Thanks SmallPaul
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Yeah, I agree, have we considered adding Sagefx and Nashmarkets to our list?
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-I would be surprised if it hasnāt been suggested at some point, but I am not aware of anyone that is currently trading with them. I will probably not be trading with them until/unless I can use a trade copier, since they only offer Trade Locker at the moment.
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Thanks for raising this question. Iāve been wondering about it, as well. Since the offshore brokers have required that we use some crypto for deposits and withdrawals, I have used BTC exclusively. I decided to use Sparrow Wallet in combination with Bitcoin Core (which addresses NASTRADERās question about crypto wallets). Both Sparrow Wallet and Bitcoin Core are open-source programs. My impression is that they are considered to be secure. But they both handle Bitcoin exclusively.
Recent discussions in this topic suggested the governments might try to regulate stablecoins. Does that mean they could also interfere with transactions?
I have been thinking that despite volatility, using a very well-established cryptocurrency (BTC) for these transfers, and employing the aforementioned programs, which are also well-established, would be safer than using a currency which might be some companyās product and another wallet which might not be open source. Iām just interested in using BTC to get funds to a broker so I can trade currencies and perhaps metals. Iām not interested in trading or holding BTC. I figure that if I buy BTC and send it ASAP, I can keep possible losses low. Just sent a deposit this way, and the amount credited to my account was 1.6% less than the amount I originally converted from USD to BTC. Not too bad, but of course thatās only one try.
Hope to hear from others with more experience/knowledge.
This was back in 2018 and is still on the table, But I believe that some states, including Florida, rejected this law and passed a law restricting government involvement in private wallets.
In my understanding, the federal government can prohibit any state from using any stablecoin that ties to the U.S. dollar, thus states would eventually follow suit if such legislation was passed.
US Treasury regulations for user-controlled wallets
On December 18, the U.S. Treasury Department announced a proposed rule that could apply to certain transactions you make from your cryptocurrency wallets. This new regulation is only at the proposal stage ā it has not yet been finalized.
The recently proposed government regulation would create new crypto record keeping and reporting requirements that could increase the amount of personal information we and other cryptocurrency exchanges are required to collect and share with the government about you and the people you transact with using your cryptocurrency wallet. We think this proposal represents too big of an intrusion on your privacy. If youād like to learn more, including how to voice your concerns directly to the Treasury before these regulations are finalized, please read our blog pos
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A lot of great information in here. Iāve certainly learned a lot reading this discussion the past several days, and am grateful for both the original posterās, and all other postersā input into this topic.
One thing Iāve not been able to find a clear answer on is whether or not I would be fined or worse, potentially jailed if I, as a US based trader, made an account with an offshore brokerā¦ sayā¦ LQDFX for example.
Is there any law or regulation that would act against me?
Or would it be perfectly safe, legally speaking?
A French, a German and an American Trader are captured one day.
The captors grab the French Trader, take him to the next room and tie his hands behind a chair.
They then proceed to torture him for 2 hours before he finally cracks, answers all questions and gives up all of his secrets.
The captors then grab the German Trader.
They tie his hands behind the chair in the next room too and torture him for 4 hours before he finally cracks and tells them what they want to know.
They then grab the American Trader.
Once again, they tie his hands behind the chair and begin torturing. 4 hours go by and the American Trader isnāt talking.
Then 8 hours, then 16 and after 24 hours they give up and throw him back into the cell.
The German and French Trader are impressed and ask him how he managed to not talk.
The American Trader says, āI wanted to, but I couldnāt move my hands."
In over ten years offshore, I havenāt encountered this situation, Enjoy your trading 
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I just looked over the March 1 revisions to the list at the top of this topic. LQDFX is still listed as domiciled in the Marshall Islands. I donāt know when the change occurred, but they are now registered in St. Lucia. They have physical offices in Bulgaria.
Thanks again for all your work maintaining the list.
[quote=ācaffelatte, post:14622, topic:35612, full:trueā
ā¦LQDFX is still listed as domiciled in the Marshall Islandsā¦but they are now registered in St. Lucia. They have physical offices in Bulgaria.
[/quote]
You are right. Good catch. I will fix the List tonight.
Received this email today. I think a few of us here traded with Evolve a few years back until they stopped taking US clients. I havenāt used them since I left the U.S. but I was hoping someone here knows the story of why they shut down? I didnāt find anything with a quick search.
Attention: Evolve Markets is Shutting Down
We write to inform you that after 7 years of providing stellar services to our loyal traders, Evolve Markets will be sunsetting its trading platform. We understand that this news may come as a surprise, but we assure you that your funds are not at risk.
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There has always been confusion about this. You ABSOLUTELY can trade with whomever you choose but that can change at any moment. The whole situation is ridiculous and the options narrow constantly. Theyāre either going after the brokers themselves, financial offramps, prop firms or software platforms. They took out CTrader a few years back which makes Metatrader look like an old Nintendo game. Now, it looks like Metatrader is having similar problems from what Iāve read here.
The CFTCās owners want you to stay on their farm but you still have options- for now.
I saved this quote at some point from WSJ or Bloomberg. Sorry, I donāt have the URL.
āSome American retail customers trade CFDs with counterparties that are not registered with the Commodity Futures Trading Commission (CFTC) or another U.S. regulator to allow CFD trading by American retail customers. I asked the CFTC and National Futures Association (NFA) if that is legal, and both said CFTC regulations for American retail customers apply to counterparties, not American retail customers.ā
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@ aaceofspades
I think you saw that statement in an article from Green Trader Tax. Hereās the entire paragraph from that article:
Is CFD trading legal for American retail customers?
Some American retail customers trade CFDs with counterparties that are not registered with the Commodity Futures Trading Commission (CFTC) or another U.S. regulator to allow CFD trading by American retail customers. I asked the CFTC and National Futures Association (NFA) if that is legal, and both said CFTC regulations for American retail customers apply to counterparties, not American retail customers. Does that imply that CFD trading may be legal for American retail customers, and illegal for counterparties? Perhaps, yes, but I am not sure. Itās risky for American retail customers to trade CFDs because the CFTC may take enforcement action against their counterparties.
Hereās a link to that article: CFDs: Tax & Regulatory Treatment | Green Trader Tax
Note: That article was published 7 years ago, and the legal issue has not changed substantially over that time period.
Bottom line: The Nannies (CFTC, et al) have no legal basis for attacking retail forex traders who deal with offshore brokers. If a legal basis is developed, it will have to come from Congress ā not from the Nannies directly ā and we will have plenty of advance notice.
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Can you do a list of the ones that offer MT5 and allow US Clients? Iām having a hard time finding one that has MT5 and is reliable. I thought coinexx was good until I read the reviews on trustpilot Iām having second thoughts about it now.
Thanks for the reference. This was my impression, but itās nice to see something in writing by an expert. In fact, since, as you said, the article you quoted is 7 years old, I just checked the 2024 edition of Robert A. Greenās Trader Tax Guide, released in October 2023, to see if what he says about this has changed substantially (it hasnāt).
This question is discussed on p. 94 (p. 98 of the PDF). Green concludes:
These U.S. rules have upset many forex traders with their trading programs, and theyāve
considered all possible angles for working with offshore forex brokers or banks. CFTC rules donāt apply directly to customers but rather to forex brokers. It might not be safe to do business with an unregistered foreign forex broker who might become subject to CFTC enforcement actions. Offshore companies donāt help evade these rules, according to a CFTC enforcement attorney.
Greenās firmās website (https://greentradertax.com/) has a lot of useful free information, and the annual Greenās Trader Tax Guide is described and sold at https://greentradertax.com/shop-guides/greens-trader-tax-guide/.
.
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Doing a search of the 10 brokers in Group 1, at the top of this topic, I made this list of 6 brokers that use MT5:
ā¢ Forex Chief (Mwali)
ā¢ AAFX (St. Vincent and the Grenadines)
ā¢ Coinexx (St. Vincent and the Grenadines) ā Trusted Broker
ā¢ FxGlory (St. Vincent and the Grenadines)
ā¢ MidasFX (St. Vincent and the Grenadines)
ā¢ Number One Capital Markets (Vanuatu) ā aka N1CM
LQDFX (a Trusted Broker) uses MetaTrader, but they only offer MT4. If you specifically need MT5, that will not help.
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-Which begs the question, if this is true, then what if stablecoins were pegged to something more stable, such as the Swiss Franc?
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-Yes. A common misconception. I even had a broker try to tell me that it was illegal for me to trade with them. I said, no, itās illegal for you to offer services to me without being properly registered and compliant with all applicable US regulations. I didnāt use those exact words, though, as I probably used āover-reachingā and ābulliesā and maybe āoppressiveā in there somewhere.
This is likely why offshore, regulated brokers will often allow US citizens to trade with them if they can satisfy KYC requirements using non-US residency documents, because it allows wiggle room to claim ignorance. Unless/until they are required to collect specific documents, then all is good in the neighborhood.
As one example, there are a few places in Mexico where you can obtain a Mexican driverās license on a tourist visa. Then, just find a cheap, short-term rental for proof of residence and you should be golden. You do not even have to stay there and you could probably even get the utility bill forwarded to your US address.
There is also an E-residency program out of Palau that you can order your residency card without even leaving your house. The only problem is that they have not gone live with the proof-of-address program yet, so itās really only good for certain crypto exchanges at the moment.
Whether you obtain temporary residency or a driverās license, all you really need to be willing and able to do is take a vacation somewhere for a short period and you can get all of the necessary KYC documents for some of the best offshore brokerages and exchanges and never have to worry about it again unless the laws change.
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-FXGlory is a no-go for US now.
When I looked at Forex Chief, their spreads were not competitive (for what I trade). I think N1CM was similar, but I cannot remember for sure.
Grand Capital also offers MT4/MT5. They have a sister site where you do not need to use a VPN for access.
The infrastructure for MidasFX is provided by Traderās Way. I would not be surprised if they are actually a shadow branch.
Regarding Coinexx, all companies will have some bad reviews over time. Most of the good reviews will never be published, either. Not to say that they can be fully-trusted, as no broker can be full-trusted in my opinion. We have to be extra careful when trading with these offshore brokers, which is why I advocate for diversification. Use a trade copier and do not put all of your money with one broker.
By the way, many trade copiers can work across both MT4 and MT5, so you can expand your criteria to MT4 brokers as well, which should allow you to at least double your options.
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