Since we’ll be apparently staying offshore, since our citizens have turned into little gimmie-leaches, does anyone have anything bad to say about Trader’s Way? I am thinking about going to their ECN commision account because their spread is much lower than finfx, and I can deposit a lower amount to start, to see if I like them. I need the lower spread to make my strat more effective.
Hey guys, just a notice to anyone willing to accept a legitimate warning.
With the Re-election of President Obama, you know its going to get much harder going offshore to escape the CFTC, and I would wager they will crack down on this practice a lot more with increasing regulations on the finance industry.
So I urge anyone considering this to weigh the benefits with the risks as you do in trading, pretty soon the language in the law will be clear that its illegal and anyone trading offshore will be penalized.
They will never be able to catch offshore money… This industry is so good and lobbies are so strong, that it is almost impossible… Yesterday I watched a documentary on that subject. All the lawyers are aware of that act and have already prepared a counter actions…
This morning I cleaned up the Offshore Broker List (posts #1, #2 and #3 on this thread), removing all the red ink.
In a few days, I will add [B]ForexBrokerInc (Malta)[/B] to Group 1. See this thread for info on this broker.
If anyone has other names to be added to the List, please post them here within the next few days.
Thanks.
What happens if you are a dual US/X citizen living outside the US?
If you have dual citizenship living outside the US and are a US citizen, you are in a very ideal situation. Some offshore brokers only require that you reside outside the US and don’t care if you are a US citizen. It is the location of the physical residency that is important. I highly recommend FXCM because they offer 500:1 leverage even if you are an American but reside outside the continental US. FXCM has a trading station that is “light years” ahead of all other foreign brokers’ trading stations. And, unlike the standard foreign “metatrader” trading station, you don’t almost need a magnifying glass to see the chart numbers on the FXCM station.
I predict that in several years we will be in an economic depression, and the Dodd-Frankers will finally loosen up their strangle hold in a desperate attempt to help get the economy going again. I liked Romney, but his insistence on not cutting defense spending was ludicrous. There is no way on the face of the earth that the national debt can be brought under control unless the already grossly bloated 900 billion dollar defense budget is literally cut in half, including dumping the federal reserve banking system to save about 400 billion dollars in national interest each year, which JFK tried to do, replacing it with one big national bank like China has, which does not have to pay such interest.
Dude just check the fxcm site and it stated that if you are US citizen it’s 50:1 leverage but if you are not US Citizen then 200-400:1 leverage
Totally agree with you about their trading station, “light years” ahead, and i’ve tried alot of broker software and it all very disappointed. Only 1 things that keep me away from them, i keep hearing people complaining about their customer service, i heard alot bad story about them, but i’ll definitely tried them one day, hope it doesn’t happen to me.
Well I admit I have not checked the US based FXCM site lately, but several years ago just after what some people might call O-bummer’s Dodd-Frank death squad chopped down FXCM’s leverage, one of their customer care reps told me (I had an account with them) that if I could prove I lived outside the US, then they could give me back my high leverage account in their offshore British division. Their customer care service always treated me very well. Of course I was always polite to them when I contacted them, but maybe if I had insulted them or called them names concerning an issue they might not have been so nice to me.
Most people have customer service issues with FXCM have micro accounts. Then you only have email support and they can take a while to respond from what I have heard. However if you invest 2000 to open a account then they consider it a standard account (they consider there mini accounts a standard account) then you enjoy all they have to offer and are a really good company to trade with.
Reply from Forexbrokerinc.
here is the letter they sent me about their company, one good thing they are in the process of becoming regulated.
Dear Jonathan,
[ul]
[li]Which bank do you hold clients funds in. I know its a German bank but which one?[/li][/ul]
- we hold our clients' funds in Sparkasse Bank Malta plc - you can find this information in the member area: [https://www.forexbrokerinc.com/deposit-methods](https://www.forexbrokerinc.com/deposit-methods)
[ul]
[li]It seems your company is not regulated. Is this true? If it is regulated by whom and how much?[/li][/ul]
- (Noble Services) the operating company of Forexbrokerinc is in process of pending the necessary documentation to acquire regulatory status.
[ul]
[li]Your documentation states that on certain pairs “stops” and “limits” are not allowed to be used. Is this true? If so which pairs?[/li][/ul]
- yes we do have a stop out level,for all accounts and all trading instruments it’s 20%. For more information please visit: https://www.forexbrokerinc.com/account-types
[ul]
[li]How many employees does the company employ?[/li][/ul]
- Currently Forex Broker Inc. employs about 25 team members.
[ul]
[li]How many clients does the company hold?[/li][/ul]
- Unfortunately, I’m not allowed to expose this information.
To learn more about our company, please read our reviews:
http://www.earnforex.com/forex-brokers/ForexBrokerInc
http://www.forexpeacearmy.com/public/review/www.forexbrokerinc.com
http://www.100forexbrokers.com/reviews-ratings/forexbrokerinc
If you have any other questions, please do not hesitate to ask.
Best regards,
Lisa Book
Hi, Jonathan
Thanks for sharing this info.
Regarding the question you asked about [I]stops[/I] and [I]limits,[/I] the answer you were given does not relate to your question.
Nevertheless, this broker certainly qualifies to be included in Group 1 of our List, and I will add them in a day or two.
It’s good finally to have an [I]addition[/I] to the List, after a recent string of [I]losses.[/I]
Thanks again for sharing your research.
Edit — ForexBrokerInc (Malta) has been added to our List
your very welcome. in some of the documentation on their website, they mention the limiting use of stops, if I read it correctly and that it applied to certain pairs. But yes she didn’t answer that maybe I didn’t ask it correctly either, 
Yep I spoke to someone who just did this. However, they are in the US and is taking full advantage of getting around CFTC rules. Not sure broker by broker but this was what they needed:
- Non-US Passport
- Address overseas
- Proof they live at #2 address
Viola they have hedging, no FIFO rules, and 500:1 leverage again
Is this way legal? It is another way of tax evasion but not sure that it’s legal
Hi Jinz,
Just to clarify, US regulations such as the restriction on leverage to 50:1 are enforced based on US residency, not US citizenship. That means US citizens living abroad can open trading accounts through FXCM UK or FXCM Australia. On the flip side, non-US citizens living in the US must abide US regulations regarding leverage and can only open their trading accounts through FXCM’s US entity.
Jason
Tax evasion?
Whether you have an offshore or domestic financial account, either has absolutely nothing to do with tax evasion. It is what you put on your tax return that may or may not be tax evasion if profits are involved. You do not even need to let anyone know that you have a foreign financial account unless your balance is $10,000 or more in it. The IRS specializes in going after “big fish,” not the little minnows. If you have that much money in such an account then you need to report that account, on a special form, on your tax return, and if you don’t report it then face a possible $250,000 fine, I believe, and/or jail time.
Green Trader Tax in my opinion is the best tax preparer in the world, once and possibly still recommended by FXCM, to legally minimize taxes on offshore trading profits.
For #1, you do not need a passport. Just a local id, usually a drivers license or ID card.
Jason is correct. What I’ve said all along about establishing residency is a better long term solution. But I still recommend going the extra mile to open the account with non-US (and non-Canadian) residency id as well.
This is another letter and response I got from TradersWay. I do like their platform and 1:1000 leverage wow! Anywho thought you might be interested.
Craig
Hello,
We do not have any countries limitations and all our conditions are the same for all clients.
You need the platform only to make actions while your opened orders are kept on the server.
[B]Best regards,[/B][B]
HelpDesk Department[/B]
[B]tel: +44 208 144 22 10
fax: +44 207 023 48 01[/B]
[B][email protected]
www.tradersway.com[/B]
[B]
[/B][B]Hi,I’m from the US. I am wondering are all the wonderful benefits you offer to traders just as applicable to US traders also? I really hope they are.
I also have a question about cTrader platform. If I place a trade, do I have to keep the platform open on my desktop for the trade to stay live or can I completely close the software and my trade will still be OK?
Thank you so much for your help.
Craig Weaver
[/B]
I am testing a strat on trader’s way demo…the small spread is very nice, on their ECN, but some trades seem to have trouble opening, and I don’t like the way they show the trade history at all…they don’t email a daily summery…does anybody else have feedback?
Obviously residency is a loophole in the law, when the Dodd-Frank act is revised it will include citizenship so it’s best to follow the spirit of the law instead of trying to avoid it.
This is the same with Taxes.