Going offshore to escape the CFTC

Broker Discussion Forex Brokers
1988

Hey Clint,

your mentioning the ‘nanny state’ (God, I love that expression!) again after some time just reminded me of this post you’ve made in another thread.
It has nothing to do with the topic of this discussion but shows rather plainly what may happen if a nation allows their politicians to run wild.
Man, that post never fails to raise my blood pressure to dangerous levels (without even being affected by it, since I’m not a US citizen).

Sorry to have interrupted this valuable and informative ‘Up yours, Gensler!’ thread with an off-topic post.

Cheers all,
P.

1989

guys just updating my experience with FXVV please please becareful they are bunch of crooks I had 2 big issues with them both times I grew my account super fast because of the leverage and both times there were issues with the platform that caused me to loose my account. FXVV customer service works few hours a day and the funny part was when I chatted with them and asked to delete my profile and to close my account whole 3 guys that works the chat room kept transfer me from one to another until I told them to cut the crap which by the way was not done. The point is they were good until you start to make money. I also have an account with fx choice there spreads are one of the best that I see but not happy with there fees especially swaps fees and last thin is it takes me 10 days or more for my withdrawal to make it into my account that’s is a long time. The reason I am voicing my opinion is this thread help me a lot and made me a better trader just want to help others the same way as you guys did thank you

1990

Thanks for the update, dk.

I tried to access the FXVV website.

First, I tried using the link in our Offshore Broker List (on page 2 of this thread) —

Home | FXVV Capital Markets Ltd - Forex, Online Trading, Currency Trading, ECN Forex Broker

Then, I tried to access their site directly from my browser.

Both times, I connected to the FXVV website, but their homepage was “frozen” — I was unable to navigate to the rest of their site. Each time, I got an error message from my browser, saying that the webpage was “unresponsive”.

This website issue may, or may not, have anything to do with the problems you have been having with FXVV. But, this broker should be watched closely. They may be in the process of financial failure.

In the meantime, I will reference your latest post (#1833) in the FXVV listing on page 2.

If anyone succeeds in gaining access to the entire FXVV website — or, if anyone here has additional information on this broker — please post it here, and let us know what’s going on.

Thanks.

Edit —

The website issue at FXVV seems to have been resolved.

As of a few minutes ago (Thursday 5:15pm ET), I was able to access the entire site without any navigation problems.

I stand by my previous suggestion that this broker be watched closely, especially considering the charge that they have scammed one of our members. dk, let us know the outcome of your dispute with FXVV.

And, again, if any other participants on this thread have useful info on this broker, please post it here.

1991

Brings me to the question of what if they do go bust? Since we are not protected (not like we are anyway) by local regulations would our money just vanish. This might have already been covered on this thread but I am not going over 184 pages to find it (I am lazy). Not sure if they are a regulated broker but being US citizens would we be protected under other jurisdictions regulations?

Again sorry if this has already been asked but I am looking toward opening an account overseas (using this thread as a guide) so I am trying to find out some basic questions from the off shore traders.

1992

My understanding is that US based FOREX brokerage accounts are NOT protected the way equity or commodity brokerage accounts are. So, for example, if OANDA (US) goes bust, account holders would most likely have to get in line behind the senior debt holders for any refunds.

But regarding FXVV, account protection would depend on I guess on local UAE regulations. Europe, Canada, and much of Asia have Gov’t protections in place for FOREX accounts. Not sure about these guys in particular.

1993

I understand that US forex brokerage accounts are not protected like equity and commodity accounts. Almost seems as though your money (baring FXVV as I am not sure of there local regulations either) would be safer off shore. The only real issue that would arise is we would have to rely on foreign governments to get out money back. Which as of right now I have more faith in some of those than the current government

1994

I scanned FXVV’s website. In their risk disclosure they state: “The Company may be required to hold the Client’s money in an account that is segregated from other clients and the Company’s money in accordance with current regulations, but this may not afford complete protection”. Although the company appears to have been registered in New Zealand, UAE, and Dubai, couldn’t find anything that mentions some kind of Gov’t backstop, so I’m assuming there isn’t one.

Like you, I was kind of shocked the day I found out that “bailout-happy” USA can’t even bother to provide basic account protections for FOREX clients. And the regulator’s excuse is they need legislation to do that. I guess we really don’t have much to lose by going off shore.

One thing interesting about these middle east brokerages (at least FXVV and AFB) is that they offer swap free accounts by default. And anyway…I LOVE FXVV’s homepage where they proudly snub the CFTC with an emblem of the stars and stripes, stating in bold letters “Accept US Clients”. I would be willing to cut these guys some extra slack for that one. But trading blackouts are tough to feel sympathy for, so hopefully they’ve fixed that problem now. And another thing is on their website under “commodity instruments” they have been saying “coming soon” for crude oil for a while now. That’s probably not a good sign. Although I did not download a demo, so maybe the site is just out of date.

1995

FXW, i would like to open an account with them -__-

Hei, why dont build a system that can swallow money from scammer or bucket shop and make them quickly bankruptcy

1996

Sure, nothing can deter anyone from opening an account with offshore firms brave enough to accept US citizens’ money. But CFTC can hold hands with SEC and sue the pants off of that firm. Nothing can deter that either. This is why the answer is the blast to smithereens that worthless crap Dodd-Frank put together. That is the only answer. Or you move to another country.

1997

I got an email from Tadawul FX, informing me that they have changed their name to Liquid Markets, or Liquidated Markets, or some such. Apparently, they have also given themselves the new nickname LQD Markets.

They’re still in Cyprus.

They still won’t deal with U.S. residents — the fine print on their new website says, “Liquid Markets does not accept Live Account Applications from US residents.”

[B]But, if you’re a resident of Sudan, or Zimbabwa, or North Korea, Liquid Markets will sign you right up![/B]

I will make a name-adjustment to the listing for Tadawul on page 3 of our Offshore Broker List.

1998

Anyone who appreciates this forum will enjoy this Forbes article on the CFTC’s latest charades. It mentions the Intrade incident again, but then provides some interesting background on Gensler’s “reputation for bungling important things”.

CFTC Chairman Gary Gensler Pulls A Captain Renault Over InTrade - Forbes

It begins… “The Commodities Futures Trading Commission, an entirely useless clubhouse for lost souls that interferes with trading in a manner so unpredictable as to be nearly random…”

Couldn’t resist, here’s one more article from openmarket.org on the stench Gensler created this week. The incompetent fool may finally catch some political heat this time. The article also mentions that, “allegations are currently being investigated that the CFTC sat on damaging info before MF Global imploded”. Gensler and Corzine were buddies, so maybe there’s some truth to this. Let’s fry this turkey…the sooner the better!

Intrade Is Only The Latest CFTC Outrage

1999

Here’s a video that you probably [B]won’t[/B] have the stomach to watch in its entirety.

This is a video of the Senate hearing on the MF Global bankruptcy. The whole video runs 2 hours and 50 minutes.

Most of the witness testimony is from CFTC Chairman Gary Gensler, and SEC Chairwoman Mary Shapiro.

This video is slow to start. If you want to watch this hearing from the beginning, scroll forward to about 22 minutes.

If you want to watch the specific questioning of Gensler on the MF Global matter, scroll forward to about 47 minutes.

This is your illustrious Ruling Class in action. Their bureaucratic double-speak will make you want to puke.

If you try to watch the whole video, be sure to have a barf-bag handy.

Back on July 15, in another thread, I asked —

[B]Why is Corzine not in jail? And why has Gensler not been forced to resign?[/B]

The Ruling Class protects their own. So, no doubt, hell will freeze over, before anyone answers my questions.

:42:

2000

Is that so Clint?? ok, i will remember their new name to safe buddy on my country:

TadawulFX --> Liquid Market or LQD Market.

(Liquid --> liquidated… nice joke :slight_smile: )

2001

Clint, thanks for the video. I had not seen this. You’re right – it’s sickening. Senator Roberts asks Gensler when he first became aware of the situation at MF Global, and Gensler replies with some BS about how he thought it best to recuse himself from the investigation due to his relationship to Corzine, “so not to be a distraction to the talented staff at the CFTC”, despite the fact that his ethics staff assured him there was no conflict of interest. How is it possible that this corrupt worm of a man (no offense to earthworms) still has a job?

The political factor in this only adds to my resolve to trade offshore. I’m not letting a Goldman Sachs ex-employee anywhere near my money! God, how many of them are there anyway? Every time you turn around–out pops another Goldman ex-employee in charge of something. They must reproduce like bugs!

2002

Here’s a [I][B]partial[/B][/I] list: 301 Moved Permanently

2003

I just closed my trading account with GFT. I was one of the US retail clients affected by their US retail closure. I was waiting patiently for an account transfer to happen, but when I talked to customer support this afternoon (2 days after the initial announcement), he still did not know where the accounts were going. He only knew the same rumors that I knew, namely ThinkorSwim/TD Ameritrade. So, I initiated closure.

It was suggested by an acquaintance of mine that I open an offshore business (BVI) and open a trading account with a foreign broker (Cyprus). So in the process of investigation, I happened upon your wonderful thread.

From what I gather thus far, the best choices are: [B]FinFX[/B] and [B]FXchoice[/B], [B][U]OR[/U][/B] [U]move offshore[/U], neither of which requires an offshore LLC. This gives me a bit to contemplate.

Excellent 2+ years of work here, all! Thanks!

2004

A decade ago, I took a trip to Central America to visit friends, and never used my return ticket. I found life below the border (in Central and South America) to be as enjoyable as life in the States was many decades ago. When the shenanigans of the regulators began, I was pleased to discover the special advantage of living in a truly free environment. Since many brokers will accept US citizens living abroad, I can set up accounts with multiple brokers (for additional risk protection), using my offshore address and telephone number – no need for a formal business setup. I highly recommend this arrangement…

2005

For those still looking for an offshore fx broker, I like Profiforex, and have been with them several months now. I especially like trading the Dow Jones Index through them.

Some US residents trading through foreign brokers are probably not aware of the danger of getting trapped in the “Structuring” law (designed to help stop money laundering by drug cartels) when withdrawing money from offshore or even domestic accounts. There are some real horror stories on the internet about it, and lately I even saw on Pat Robertson’s 700 Club TV program a documentary of someone who had a quite legitimate US based business (and could easily and quickly prove it) that had a good sized chunk of his checking or savings account seized by the US government, which was never returned, merely because he deposited several thousand dollars at a time into his bank account over a period of 3 to 6 months or longer. The feds apparently assumed he did that to avoid depositing $10,000 or more at a time, which would have automatically triggered a bank deposit report to the feds. The banks are also instructed to sometimes send to the feds “suspicious activity” reports when deposits are under $10,000, at the discretion of the banks.

So if you can, withdraw only $10,000 or more at a time into your bank to avoid a potential seizure. At the same time, tell your bank teller in writing where the money came from with supporting documentation such as phone numbers, addresses, account numbers, etc., and tell the bank employee to forward that information along with the deposit report to let the feds know in advance where the money came from. That should help ward off a potential “seize and ask questions later” move by the seize happy feds.

I saw one internet site that basically said if you cannot deposit $10,000 or more at a time, keep the deposits under $3,000 which may or may not be good advice.

2006

Found the website for the mysterious e-book, "Offshore Leverage"
Offshore Leverage . . .

The write up sounds very impressive and frankly too good to be true. Still, I wonder what the heck’s in this book…

I clicked on “affiliates” on the website and it mentions “Offshore IBC and Banking Package”, so maybe the book has to do with setting up an offshore/international business corporation.

2007

Hey guys, the process of finding a broker, especially in Alberta Canada is getting ridiculous. Wondering if anyone can recommend a broker who they’ve had experience with. I trade EUR/USD and GBP/USD mostly and again I’m from Alberta, Canada. Currently myfxchoice seems like it has the tightest spread but I’d like to hear from any members with experience and anyone they would recommend. Thanks guys