Going offshore to escape the CFTC

Broker Discussion Forex Brokers
1669

I would like to hear who you, as a regulator of securities trading, believe will benefit from this new legislation.

this is the real question I think and the one you will probably not get a truthful answer to.

1670

I hate to say I looked up the law (short version on wiki) high probability its coming soon to Amreica since there law is based off our law. Hate to say it as the laws so far have not bothered me but that one just might

1671

I also checked with AFX Capital, i was able to open an account without funding but when i asked support they said that they do not accept US clients…

1672

[B]MF Financial (Belize)[/B]

From their website: “MF Financial Ltd. services are not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. MFFX does not accept clients from such jurisdictions, including United States and United Kingdom…”

I will move MF Financial from Group 1 to Group 2 (brokers who will not accept U.S. customers).

[B]Loyal Forex (BVI), and 4RunnerForex (BVI)[/B]

These are 2 of the 5 Caribbean brokers owned by FX Systems in Nevis, West Indies. (The others are 1PipFix, 2PipsFixed, and 1LotStp, all domiciled in Nevis, and not currently on our List.)

These 5 brokers no longer accept U.S. customers.

Loyal Forex explicitly states this at the top of their website home page: “We are not accepting USA clients”. The other 4 brokers do not explicitly mention U.S. clients — however, it is not possible to complete their online (live account) application form using “United States” as the country of residence.

I will move Loyal Forex and 4RunnerForex from Group 1 to Group 2 on our List.

And I will add 1PipFix, 2PipsFixed, and 1LotStp to Group 2.

Note: Do not confuse 2PipsForex (Dominica), currently in Group 1, with 2PipsFixed (Nevis), mentioned above.

1673

Thanks for the info. I will add AFX Capital (Cyprus) to Group 2.

1674

I was going to give you link to here, but you found it already… glad you decided to stay and fight after all… there is always a way if you willing to search for it… plenty of useful info here, courtesy of Clint mainly… read on :smiley: I’m sure you’ll find your solution…
btw, if remember right, ClarkFX is located in same province (Alberta?) as you and he mentioned few times that his accounts are all offshore and cant be bothered with the Canadian Laws… have a word with him. :wink:

:41:

1675

Was searching this thread for something and once again found your fine post.

As E r n e s t H a n c o c k loves to say: “There are those who want to be left alone, and those who just won’t leave them alone!”

Government means control. How the Hail could they leave us alone and continue on their masters’ agenda? or even get enough to fund their vices?

That’s ALL governments. I mean, look at those guys! Worse every year. Makes me want to lock up the kids.

1676

Hallo dk58198, look for a post I put up, believe it’s #1412 – contains extensive details on Pax Forex. Welcome to the thread, and please post any additional data you discover on Pax, etc.

1677

Questions have arisen as to why one or another FX broker has been targeted by CFTC.

Understood re MOU’s etc., and the hedging & FIFO rules; however I believe leverage is the crucial point. This is the focal issue for banks worldwide at the moment and it is not one which will go away. It certainly will not be “voted away” by the likes of the average FX trader; the current system is ‘post-democratic’ meaning the elite banksters make these decisions among themselves and merely deliver them – just a note in case anyone’s not yet noticed that.

Broker firms offering unconditional 1:500 and greater leverage will soon be gone, period, and not only for the U.S. resident trader. Ain’t I the cheerful one? It’s something to think on anyway, because if your trading strategy benefits significantly from higher leverage then now’s the time to get while the gettin’s … good, or as good as it’s going to get. Seriously. Seize the day, the sun’s well past meridian. :-}

1678

Gypsy,
Yes, the CFTC regulators certainly don’t seem to understand or care that leverage is not a “one size fits all” proposition. Short term FOREX traders simply require more leverage. In the SEC/equities world this fact is acknowledged by the so called “pattern day trader” accounts which are afforded more leverage versus standard margin accounts. Maybe CFTC regulators would be willing to do something similar for FOREX. Probably stupid idea…

1679

Oanda only offers 1:50 leverage maximum. Which I have been using since I first opened my account in January. As long as 1:50 doesn’t go away I will survive.

1680

Safe , Secure , and Reliable ???

1681

Quick note to say I received a spam email from “Noble Services Malta” this morning, promoting “www.forexbrokersinc.com” and my first thought was: Did the guys on the “Scalpers Unite - lets form our own brokerage” thread here put a business together that fast? :slight_smile: Nope, this is USDA 100% pure spam, not a heads-up from buddies.

That said, and with trades on as well, I sped right over to the website. Sign of the times eh?

So first thing I saw under “open a live account” was United States heads the pulldown menu list.

Second thing was, in reading through the Terms & Conditions, bloopers which gave me belly laughs.

Here’s item 6.9. in part:

Client will not use trading robots, expert advisors, or other computer program which were not approved in advance and in written by the Company. Without derogating from the above mentioned, Client is prohibited from using any robots, expert advisors, or other computer program which used to gain an unfair advantage or to abused any technical error, bug or defect in the Web site software or any other trading software been used by Company. The Company reserves the right to declare null and void any trade made that was the subject of such obese or unfair advantage and to take any money from your Account relating to the relevant trade including the right to close your Account.

No EA’s? Unless approved “in written”[sic]? I guess that would be an obese advantage.

I’ll go back in a bit and run their data through Clint’s checklist, but… wow on the legal writing, guys! :smiley:

1682

• [B]ForexBrokerInc “Noble Services Malta” /B

Platform: MT4. – Min. initial deposit: 5 USD. – Max. leverage: 500:1 (microlots). – “Typical” Spreads: EUR/USD 2 pips, GBP/JPY 8 pips.
Website: Forex Broker Inc | Forex Trading | CFD Trading Point
Email: [email protected]

Notes:
see page there called Forex for spreads, stoplevels, size, etc.
see page entitled Account Types for deposit restrictions and other conditions

And if you’re interested in this sort of thing:
the Terms and Conditions document is a mess, starting with misspelling their own name and descending from there. Rare is the sentence therein free of errors (even the email I received introduces me to “Forex Borker Inc.”) so I’ve ignored most of them, BUT I’d be extremely loath to put up my hand to a forest thicket-cum-train wreck like this one.

One example:

  • [I]Should Company’s compliance department discover that an account holder is inside the excluded territory, than the Company has the right without notice to the client to immediately liquidate the account without any liability to the company.
  1. Company reserves the right to exclude Clients from certain territories from using the Web-site. Company does not allow, assist or encourage any form of circumvention of any restrictions placed upon these excluded territories. These territories includes: USA and it’s territories and Canada. If company discovers Client is in the excluded territory then Client must bare[sic] all sums deducted addition to a handling and processing fee.

[/I]So I went to Live Chat who knew nothing about these terms. Shocker! They welcome all North Americans. This clause in the T&C is a complete surprise to the chat op! It will be corrected immediately! and so forth.

More:

68. . . . . Client agrees that the Company may deduct tax, as may be required by the applicable law, but is not obligated to do so, from the results of the activity with the Company. You are aware that amounts that may be withdrawn by you from your account are “gross amounts”, from which the Company may deduct such taxes, and that you shall have no claim towards the Company with regard to such deductions.

and my favourite (a typo-free sentence, too!):

82. … [Y]ou are not entitled to make untrue and/or malicious and/or damaging comments with regard to the Company operation in any media or forum.

So hush up!

Didn’t see much as to licences, jurisdiction, or segregation of funds (they do reserve the right to loan and hypothecate them, etc., so…).

Finally, on the Contact Us page is a “toll free” listing which appears to be a NYC cell phone number.

{shrugs}

1683

Hey, Gypsy

I clicked on the links in your post and was directed to:

• the website of MRC Markets (Russia) — mrcmarkets.com, and to

• the email address for MRC support — <[email protected]>

(Try it. Click on the links in your quote, above.)

forexbrokerinc.com — obviously with www. in front — is the correct web address for Forex Broker Inc.

But, somehow your link got tangled with MRC (a broker currently on our List in Group 1). Any idea how that happened?

Now, check this out: When you put www. in front of forexbrokerinc.com, you land on the Forex Broker Inc. website — but, look how it’s shown here:

Forex Broker Inc | Forex Trading | CFD Trading Point

Trading Point? Are you kidding me? WTF?

1684

I’d never imagine it WOULD happen, but O the mysteries of BabyPipsForum Coding my friend… we’ve discovered another one!

Can’t say I know how it happened, but when posting the details for forexbrokerinc I wanted to spare you the formatting fuss so I copied the MRC entry and simply replaced the data with the new stuff… voila! A learning experience in more ways than one!

Guess I’d better fix it if I can.

Now, check this out: When you put www. in front of forexbrokerinc.com, you land on the Forex Broker Inc. website — but, look how it’s shown here:
Forex Broker Inc | Forex Trading | CFD Trading Point

Trading Point? Are you kidding me? WTF?

:smiley: I noticed that as well but I passed it by thinking 'they like that name and have appropriated it as ‘the CFD trading point,’ didn’t think another thing of it. Except that silly little niggle of 'wonder where the b@st@rds got my e-addy…" Perhaps now I know? No, couldn’t be.

w00f. what a market on Fiber today, strange brew. addled me I reckon.

now off to mend the weirdness on the post, can’t do nought for the Euro lol.

1685

Links working properly now.

This little oddity is affected as well by choices made under “Additional Options” available when posting in “advanced” mode.

It has to do with whether you tick “Automatically retrieve titles from external links” which I rather dislike as it gives you that long advert line, or [U]only[/U] “Automatically parse links in text” which I selected whilst disabling the ‘retrieve titles’ function. Thus we should have had merely clickable links without the ofttimes clumsy auto-labels. Yet we didn’t.

Weighty matters, LOL!

Seriously though, thanks for the heads-up, Clint; I’ve cluttered the status bar on my browser with so many wee info-bots there’s no room left for the http display I formerly used to test such things. cheers! :smiley:

1686

Thank you Gypsy Trader I opened an account with FXchoice so far its good. I could have not got this far without you and Clint help.

1687

Glad you’re set now dk58198 – good to hear it! :slight_smile:

1688

Could i ask a question, if a citizen from malaysia open a live account at broker in usa, is that mean he have to pay taxes in usa and malaysia? Just wondering u know