Does anyone know if there is a broker who offers 1:400 or 1:500 leverage account and accepts U.S citizens??????
Forex Brokers offering Segregated Accounts 67 replies
DislikedAs per the Commodity Futures Commission (CFTC) rule set on 10-Oct-2010, the maximum leverage available to US residents is 50:1.
The Dodd Frank Act prohibits US clients from trading Forex with a counter party that is not regulated in the US.
Sorry to be the bearer of bad news mate.Ignored
Dislikedis there any way to by pass this rule? Is there a way to open llc, s or c corp outside the US so his way you can trade with any broker you want and I personally hate FIFO rule it only help the broker and not the trader any thoughts guysIgnored
DislikedI don't think any *decent* broker would, the USA simply doesn't allow brokers to offer accounts to people living in the USA unless they agree to follow their rules and regulations. If a broker was willing to break the law like that would you really trust them to be your broker? You've two opinions.
2. Abide by your country's rules.
DislikedDavidee is mostly right here. The better thing to do is to establish residency outside the USA (pretty easy to do actually), then you should be fine when opening accounts. Many brokers who initially baulked at the idea of USA being able to control their affairs eventually folded.....not so much that the USA came after them, but CFTC scared them into not accepting USA resident retail clients. Wasn't worth the negative attention or headache. Similar thing happened in the gambling community, except the largest casinos (and they setup some real dummy...Ignored
DislikedDavidee is mostly right here. The better thing to do is to establish residency outside the USA (pretty easy to do actually), then you should be fine when opening accounts. Many brokers who initially baulked at the idea of USA being able to control their affairs eventually folded.....not so much that the USA came after them, but CFTC scared them into not accepting USA resident retail clients. Wasn't worth the negative attention or headache. Similar thing happened in the gambling community, except the largest casinos (and they setup some real...Ignored
DislikedHow does one "easily" establish residentcy outside the USA?Ignored
Disliked400 and 500 are not high leverage hope you know that more higher ones exist in ForexIgnored
DislikedThere are ways around this of course.
New brokers are sprouting up throughout the caribbean that are not giving in to harassment from the CFTC minions. They are simply thugs paid off by lobbyists. Anyway I wouldn't want to make it easier for the thugs by posting the broker names here, but will PM those.Ignored
Dislikedwhich brokers? I only know of 1: instaforex and the 1:1000 leverage is up to $1000...afterwards it is 1:600. Most other brokers 1:500 is max.
Ironically, CME futures EuroDollar contract (not EuroFX) has leverage between 1:1250 and 1:2500....and this can DOUBLE for brokers who offer 50% or greater day trading margins; most discount futures brokers offer this.Ignored
DislikedExness offers 1:2000, which I think is not only irresponsible and reckless, but completely evident of a broker having no regard for the financial well-being or success of their clients.
(Don't think exness opens US accounts as it relates to this thread's topic.)
Also, EuroDollar futures at the CME are an interest rate contract, not a currency contract. So the leverage there isn't quite comparable. They adjust required margins all the time based on volatility and risk, and the same consideration that goes into other contracts with higher required...Ignored
DislikedIt's cash settled (no physical delivery), but it doesn't matter what type of product we are speculating here.Ignored
DislikedFutures has traditionally had huge amounts of gearing regularly exceeding 1:50 at the exchange level depending on the product traded, plus the broker has complete discretion over what additional leverage they can offer their clients depending on how the broker evaluates client risk. All the client had to do was sign 'additional risk disclosures' and all was fine, no need at the regulatory level to force leverage restrictions. No investigations from any regulatory body or complaints from the trading community about insane leverage offered by futures...Ignored
DislikedThanks for the tip on exness, although on closer inspection, they limit the leverage to 1:200 5 hours prior to the weekend close and over the weekend.Ignored