Using overseas broker - any problem?

I just wanted to ask if any traders in here are using overseas brokers for forex and if so do you have any issues around tax time? My understanding is its not illegal for Americans to have overseas brokers, but the brokers overseas are taking the risk, not us. I don't want to get into any trouble as an American. I plan on paying my taxes. I just was curious if anyone is using overseas brokers and if things are ok for you. Anything I should know? Thanks

PS. I misspelled a word in thread title and I can't change it now. That is extremely aggravating lol.

PPS. Thank you, moderator, for fixing the misspelled word in the title lol

I guess the silence is my answer. This is one of those things thats done but not talked about I guess. So hard to find clarity about this situation. My understanding was its not Illegal for an American to trade in an overseas account, but it was illegal for an overseas broker to take on American clients without being registered with the US, thus they are the guilty party not the American trader.

I am inactive on this forum since many years but lately thinking about doing Forex again. To answer your question, several years back. I had accounts with almost a dozen of overseas Forex brokers. There is nothing illegal about it. US only cares that you pay taxes on your income (if you make any)

Hope this helps.

Hi sir, do you know that what happen if you turn into negative balance with oversea brokers. Since US does ban cfd product, are they able to chase the debt after you?