Spot forex in USA

[tohidzahed]

hi, hope you all are fine.

since cfds and spread betting are illegal in USA, so how do they trade in spot forex in usa???

[ria_rose]

Hmmm. Not sure what the proper answer to the question is since I guess it’s pretty straightforward, but I think since it’s strictly regulated, a lot of citizens choose to go with offshore brokers for better trading options. Actually, one of the popular threads here is this one:

Going offshore to escape the CFTC

OFFSHORE FOREX BROKERS Monday, April 1, 2024 This is our 14th Year on the Babypips Forum Here is an updated list of the offshore brokers vetted so far in this thread, and the results of our inquiry into whether these brokers will open new accounts for U.S. residents, given the current regulatory regime imposed by the CFTC on retail forex trading in the United States. Definition — Offshore Forex Broker A retail forex broker domiciled in a jurisdiction outside the U.S., not subject to t…

[ponponwei]

Looks like it’s mostly terminologies / how countries define things. So if you have CFDs in the UK, it’s retail FX in the US!

From the school:

So to make this differentiation clear, a rolling spot FX contract is ruled as a CFD. (In the U.S., CFDs are illegal so it’s known as a “retail forex transaction”)

Retail Forex

There is a secondary OTC market that provides a way for retail (“poorer”) traders to participate in the forex market.

Access is granted by so-called “forex trading providers“.

How To Trade Forex

[forexforexforex]

Are you looking for a broker? There’s only a handful.

IG
Forex.com
Oanda
TDAmeritrade
IB

[dushimes]

Great post! I didn’t even realize there are EFTs for currencies. Of course, why wouldn’t there be? I just never thought about it.

I was reading a book about EFTs but I slowed down on it. I guess I should pick it back up!

However, I’m reserving my funds for active trading spot fx. For me, EFTs is more for passive investing. I can’t imagine what it’s like to day trade or even scalp ETFs. Oh boy!

I have a book about passive investing in ETFs. But if you can trade forex and are familiar with TA, why bother switching instruments? Unless it’s only about diversification.

@forexforexforex

IG
Forex.com

These brokers I’ve had very good experiences with. I have no plans of closing my accounts with them.

[forexforexforex]

@dushimes

I have a book about passive investing in ETFs. But if you can trade forex and are familiar with TA, why bother switching instruments? Unless it’s only about diversification.

Yup, totally agree.

[forexforexforex]

@tohidzahed

since cfds and spread betting are illegal in USA, so how do they trade in spot forex in usa???

Open a demo account with any of the US brokers I mentioned. That gets you involved easy!

[ponponwei]

@dushimes

I can’t imagine what it’s like to day trade or even scalp ETFs.

Day trading in general, I can’t imagine!