Best Unregulated Broker for USA Clients | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Accentforex- unregulated broker 8 replies

Cost of starting an unregulated forex broker business 3 replies

Which best broker allows hedging in the same account for US clients? 15 replies

In the US, is it illegal to trade with an unregulated broker? 3 replies

Unregulated Forex Becomes Criminal Offence in Cyprus 28 replies

Best Unregulated Broker for USA Clients

  • #1
  • First Post: Jun 27, 2024 6:55pm Jun 27, 2024 6:55pm
Hello,

What is the best unregulated broker for USA Clients with high leverage?

Thank you,
  • #2
  • Jun 28, 2024 4:13am Jun 28, 2024 4:13am
It’s going to boil down to opinion.

Different people will have hugely differing ones (especially on this subject), each according to their own experience, various second-hand information and how much credibility they choose to give it.

I would not do this and strongly advise against it.

My impression: of those still taking Americans, maybe look at MidasFX and AAFX.

Avoid: Coinexx, PlexyTrade, FxSway, FxGlory, Hanko - all crooks.

Good luck.
  • #3
  • Jun 28, 2024 4:34am Jun 28, 2024 4:34am
Also, if trading profitably, withdraw little and often: they may not want to risk adverse publicity over small amounts. Make sure they know that you post regularly in trading forums - that can also help.

Be very aware, always, that you’re betting against a counterparty who has deliberately chosen to avoid regulation, who holds your money and who makes up the rules.
  • #4
  • Jun 28, 2024 6:01am Jun 28, 2024 6:01am
Quoting KarlKraus
maybe look at MidasFX and AAFX
Yes, these two. I'd put AAFX first, Midas second.

Third choice = N1CM (Number One Capital Markets) in Vanuatu, but both deposit and withdrawal there are by cryptocurrency only for U.S. customers.

All these three are pretty questionable but they still probably have the least-awful reputations, in the industry, out of the very, very few available to you.

The others Karl mentioned above really are "avoid at all cost, don’t even think about them!!"

Trade futures instead!
  • #5
  • Jun 30, 2024 1:43am Jun 30, 2024 1:43am
Quoting KarlKraus
It’s going to boil down to opinion. Different people will have hugely differing ones (especially on this subject), each according to their own experience, various second-hand information and how much credibility they choose to give it. I would not do this and strongly advise against it. My impression: of those still taking Americans, maybe look at MidasFX and AAFX. Avoid: Coinexx, PlexyTrade, FxSway, FxGlory, Hanko - all crooks. Good luck.
Hello KarlKraus,

Thank you so much for the help. I really appreciate your help and response.
  • #6
  • Edited 2:18am Jun 30, 2024 1:48am | Edited 2:18am
Quoting Quickly
{quote} Trade futures instead!
Hello Quickly,

Thank you so much for the help. Thank you for the response. AAFX, MidasFX, and N1CM seems to be the top referred.

I am curious why you said trade futures instead.

I think forex offer more leverage and another advantage of market being open 24 hours, 7 days a week.
  • #7
  • Jun 30, 2024 2:16am Jun 30, 2024 2:16am
Quoting KarlKraus
I would not do this and strongly advise against it.
Thank you for the response KarlKraus,

So what is your recommendation. USA brokers only offer 50:1 leverage.

What other options do you recommend?

Thank you,
  • #8
  • Jun 30, 2024 8:00am Jun 30, 2024 8:00am
Quoting goodoboy
I think forex offer more leverage
Only slightly? The daytrading margins for ES/MES and NQ/MNQ are so small now that you can effectively get very high leverage. There are plenty of people posting in the “prop firm hub” thread here who are also trading futures and say their leverage works out at over 300/1.

Quoting goodoboy
another advantage of market being open 24 hours, 7 days a week.
24/7 rather than 24/5 - is that really such a big advantage? With wider and more variable spreads at weekends anyway?

Quoting goodoboy
I am curious why you said trade futures instead.
With futures, regulation and fund-protection are FAR better and safer.

It’s all objective and transparent.

And - by the way - they’re all properly regulated, as they have to be, by law, which is of course the real point, here.

Your broker really IS a broker and is on your side. They’re never your counterparty and they’re not allowed to be, by law.

They don’t win when you lose.

They don’t lose when you win.

Futures are a completely transparent market in which the prices are determined by trader interactions on a centralized exchange, not set for their own pretend products by people pretending to be brokers. All brokers always have the same prices at the same times.

You also don’t pay any spreads.

No retail trader who trades for a living would continue to trade spot forex long term - that would make no long term sense.

I understand that spot forex attracts people who want the huge leverage that proper regulators so wisely disallow, because they wrongly imagine that lack of huge leverage is what’s stopping them from trading profitably.

All the offshore, unregulated, unlicensed counterparty scammers and fraudsters who make their livings by letting people bet against them understand that too. And they make a living from it.

One thing is certain: someone who can’t trade profitably with 50/1 leverage won’t be trading profitably with 200/1 leverage either.

Sorry, NO impoliteness intended, and I’m trying to hep you, but it is what it is.
  • #9
  • Jun 30, 2024 3:41pm Jun 30, 2024 3:41pm
Quoting Quickly
{quote} Only slightly? The daytrading margins for ES/MES and NQ/MNQ are so small now that you can effectively get very high leverage. There are plenty of people posting in the “prop firm hub” thread here who are also trading futures and say their leverage works out at over 300/1. {quote} 24/7 rather than 24/5 - is that really such a big advantage? With wider and more variable spreads at weekends anyway? {quote} With futures, regulation and fund-protection are FAR better and safer. It’s all objective and transparent. And - by the way - they’re all...
Hello Quickly,

How are you doing today Quickly? I love this discussion. I wish we can sit in person for a chat over a meal.

Thank you for trying to help.

I trade CME NQ/ES futures. The intraday margins are $1000 per contract for NQ and $500 per contract for ES. $100 per contract for MNQ and $50 per contract for MES. All trades must be closed at 3:00pm central. Over night margins are really high.

The advantage of Forex market to CME markets is Forex, can leave the trade on over night until the profit target is hit. CME markets, you must close the trade at 3pm central.

98-100% win rate in forex is possible. With this, a trading strategy edge can scale to millions within 5 years.

98-100% win rate in CME futures market is impossible. Because have to close the trade at 3pm.

Scaling a 40-60% win rate strategy with Edge in CME futures market is impossible because the drawdown may keep you in drawdown for years. I know this personally. you need +10 40-60% winning strategies uncorrelated portfolio.

Discretionary manual trading in the CME markets is for suckers and will eventually lose.

IM, forex 500:1 leverage is the best Edge on earth!!

But I live in USA and stuck with 50:1 leverage, which is the most annoying thing ever. I can only get 500:1 leverage with 10 USA brokers.

This is why oversea I think about as an option. But the risk is very big of the broker stealing my hard earn strategy returns.
  • #10
  • Jul 1, 2024 8:35am Jul 1, 2024 8:35am
I hope you don't my butting in, Goodoboy. If you do, just ignore me and I won't be offended and won't post here again.


Quoting goodoboy
I love this discussion. I wish we can sit in person for a chat over a meal.

I've done so. I've had many meals with Quickly (we used to work together at one point, but that was a very long time ago, now!).

I kind of wanted to say Hello to you anyway, Goodoboy, because I've seen your posts occasionally, over the last decade, in three other forums as well as this one - unless other people are using the same username, but that would be weird? And I've always liked you anyway.

It's hard to find things to disagree with in what you said above. It does all make a lot of sense.

I think there are only two places where I would add anything, myself, to what you said or argue with it (but I think one of them is a really big and important thing!).


Quoting goodoboy
98-100% win rate in forex is possible.

Yes, for sure you can have a 98+% win-rate with spot forex, but how safely? The classic way people do that is with some kind of mean reversion idea, but the terribly rare losers cost the earth. Anyway, I agree you can do it profitably overall, so I'm not really disputing what you said. The problem will be in getting paid out.

If you get paid out a little at a time, you'll be stopped from continuing, and if you wait for a big payout (you would never do this???) it won't appear.


Quoting goodoboy
I live in USA and stuck with 50:1 leverage, which is the most annoying thing ever. I can only get 500:1 leverage with 10 USA brokers. This is why oversea I think about as an option. But the risk is very big of the broker stealing my hard earn strategy returns.

Here (and on one other issue not relevant to this whole discussion) you and I really disagree.

If you actually manage to do it, the way you suggest, I think your risk isn’t just "very high": I think it's 100%. Because you're dealing with crooks who will be unwilling to pay you out, when it comes to it. They'll pay out small amounts regularly for SOME time, but you'll never make more than a few thousand without them taking measures against you that make what you're doing impossible, and ultimately closing your account.

They simply won't allow anyone to do what you want to do. They’re not honest people. My contention is that this is self-evident: if they were honest people, they wouldn't have chosen to be unregulated. They've made that choice to protect themselves against exactly what youre proposing to do. So it isn't going to work.

Rather than making millions that way, over a few years, you'd be better off developing a proper edge on futures, having your broker on your side and all the rest of it, pass a funding-firm evaluation or two, get a few hundred thousand in nominal funding, trade it for a few months or a year and make enough to start off your own meaningful-sized futures account.

With futures, you'll never have a problem getting paid out when you win big, because it’s an honest market. This is the huge difference. In my opinion.

I think the validity of this point kind of eclipses everything else you're (very reasonably and fairly) discussing.

You need to win money and get paid, otherwise there's no point?

Just my thoughts, in passing, and I hope they're not unwelcome.
  • #11
  • Jul 1, 2024 10:26am Jul 1, 2024 10:26am
By the way, I just found this. It’s all second-hand, and some maybe out of date, of course. But maybe worrying?
  • #12
  • Jul 1, 2024 10:37am Jul 1, 2024 10:37am
Quoting KarlKraus
I hope you don't my butting in, Goodoboy. If you do, just ignore me and I won't be offended and won't post here again. {quote} I've done so. I've had many meals with Quickly (we used to work together at one point, but that was a very long time ago, now!). I kind of wanted to say Hello to you anyway, Goodoboy, because I've seen your posts occasionally, over the last decade, in three other forums as well as this one - unless other people are using the same username, but that would be weird? And I've always liked you anyway. It's hard to find things...
Hello KarlKraus;

Let me tell you my plans for better thoughtful conversation between you and I. I build algos in Futures market and I recently built one in the Forex market. The advantage of not using stops in Forex is really good.

Just to be sure I understand you honestly, you think if I run my EA on a unregulated broker and the EA makes $1 million, the broker will not pay me out? Just trying to make sure I understand you for good conversation.
  • #13
  • Jul 1, 2024 10:44am Jul 1, 2024 10:44am
[quote=KarlKraus;14917353]Rather than making millions that way, over a few years, you'd be better off developing a proper edge on futures, having your broker on your side and all the rest of it, /quote]

Hello KarlKraus,

To build an edge (with trading systems, not discretionary trading) in futures market to scale to millions of dollars, it requires +$200,000 USD dollars for intraday systems. 10 systems, $20K allocated per system. A system may stay in drawdown for months or years.

To build an edge (with trading systems, not discretionary trading) in forex markets to scale to millions of dollars, it requires $5000 USD dollars for intraday systems. $1000 per system at 500:1 leverage. 1 of the 5 will eventually scale to millions. 100% win rate, no drawdown. Win big or fail and start over.

Forex market has a superior edge of futures markets. There is no way futures have an advantage of forex. Yes, true, the only advantage is unregulated broker steal the millions of dollars.
  • #14
  • Jul 1, 2024 10:47am Jul 1, 2024 10:47am
Quoting KarlKraus
If you actually manage to do it, the way you suggest, I think your risk isn’t just "very high": I think it's 100%. Because you're dealing with crooks who will be unwilling to pay you out, when it comes to it. They'll pay out small amounts regularly for SOME time, but you'll never make more than a few thousand without them taking measures against you that make what you're doing impossible, and ultimately closing your account. They simply won't allow anyone to do what you want to do.
Hello KarlKraus;

Are you saying if I scale my account from $1K to $1M, the broker will not pay me the $1M?
  • #15
  • Jul 1, 2024 11:30am Jul 1, 2024 11:30am
Quoting goodoboy
Are you saying if I scale my account from $1K to $1M, the broker will not pay me the $1M?

Yes, that’s my opinion. It is only opinion, obviously. It’s not a “fact” but it’s an opinion based on decades in the world of trading and knowing a lot of people. Nobody can prove a negative, so I can’t prove it, and I don‘t pretend that I can.

But if you got paid out in those circumstances I’d truly be absolutely astonished.

Look at it this way: if they were going to pay you out in those circumstances, then why would they have chosen to be unregulated?

I sometimes think, reading forums, that people genuinely imagine that “XYZ broker” (or whoever) is “regulated in Vanuatu or St. Vincent” because that’s where their office is and that’s therefore the “regulator” that was somehow “available” to them. But this is almost unbelievably naïve, and you and I both know that you are not unbelievably naïve, Goodoboy.

The reality, of course, is that the entire reason they have chosen to be “based in Vanuatu” (or St. Vincent, or wherever there’s a pretend “regulator” in their pocket) is that that’s how they can be unregulated while pretending to gullible potential forex traders that they are actually regulated.
  • #16
  • Jul 1, 2024 12:23pm Jul 1, 2024 12:23pm
Quoting goodoboy
Yes, true, the only advantage is unregulated broker steal the millions of dollars.
But that’s surely the whole point, and in the light of that, nothing else we’re talking about has much relevance?

Quoting KarlKraus
if they were going to pay you out in those circumstances, then why would they have chosen to be unregulated?
This.

Exactly.

That's how you know they're not going to pay you the $1M.

They'll pay you $1,000 a few times with no problem. Maybe even $5,000. But when you want to withdraw $100,000 or $1M, suddenly there'll be an unforeseen problem and their customer service will be "strangely silent" or they’ll eventually allege some kind of "wrongdoing" or "breach of a regulation" on your account. And there won't be a regulator to make them pay you what you thought was your money (but it never actually existed at all because your trades were never actually being passed to any underlying market, which a real regulator would have known, which is why the scammers weren't regulated with a real regulator). That's how these people do business. Yes, ALL of them.

CFDs are a crooked world, which is why they're illegal in the US.

If you want to be trading not in a crooked world, then you need a proper regulator. And that means you can't use high leverage (unless you trade futures) because real regulators rightly and wisely don't allow high leverage, and they'll tell you why, if you ask them.
  • #17
  • Jul 1, 2024 3:14pm Jul 1, 2024 3:14pm
Quoting KarlKraus
The reality, of course, is that the entire reason they have chosen to be “based in Vanuatu” (or St. Vincent, or wherever there’s a pretend “regulator” in their pocket) is that that’s how they can be unregulated while pretending to gullible potential forex traders that they are actually regulated.
Hello KarlKraus;

I appreciate your comments.

Question:

1. So what is the goal or purpose of these unregulated brokers in your opinion? The allow forex traders all over the world to trade on the broker, and any forex trader who is actually consistently profitable, they are not going to pay them and just keep the money cause they do not care, they are unregulated. Are they in business to make money from commissions or keep traders money in the account?
  • #18
  • Jul 1, 2024 3:23pm Jul 1, 2024 3:23pm
Quoting Quickly
{quote} But that’s surely the whole point, and in the light of that, nothing else we’re talking about has much relevance? {quote} This. Exactly. That's how you know they're not going to pay you the $1M. They'll pay you $1,000 a few times with no problem. Maybe even $5,000. But when you want to withdraw $100,000 or $1M, suddenly there'll be an unforeseen problem and their customer service will be "strangely silent" or they’ll eventually allege some kind of "wrongdoing" or "breach of a regulation" on your account. And there won't be a regulator to...
Hello Quickly;

Very interesting what you are saying Quickly.

I am not understanding why they would not pay me the $100K or $1M of profits if those profits was made in the market where I traded between buyers and sellers on the EURUSD for profit or loss? Can you please again?
  • #19
  • Jul 1, 2024 3:32pm Jul 1, 2024 3:32pm
Quoting KarlKraus
{quote} But if you got paid out in those circumstances I’d truly be absolutely astonished. Look at it this way: if they were going to pay you out in those circumstances, then why would they have chosen to be unregulated?
Hello KarlKraus;
Maybe I am not understanding something.

Why wouldn't the broker not pay me my profits I made from trading? The trades was from buyers and sellers in the Forex market correct? The profit is not coming from the broker pockets, correct?
  • #20
  • Jul 1, 2024 3:40pm Jul 1, 2024 3:40pm
Quoting goodoboy
I am not understanding why they would not pay me the $100K or $1M of profits if those profits was made in the market
It’s not "in a market".

CFD’s are not a market. They’re bets.

The $1M isn’t real. It isn’t there to be paid to anyone.

Your trades are not passed to any underlying market when you use an unregulated, high-leverage broker. 99% of their clients gradually lose, and they keep the money.

This is what you need to know. I know it’s not what you want to know. I know you probably hate hearing it. But sadly it’s true.

For people who are listening and know what to listen to, those fraudster brokers are all telling you loud and clear that that’s how they do business. There’s no legitimate reason for a spot forex CFD brokerage to choose not to be regulated, so they’re telling you that loud and clear by choosing not to be regulated.

That’s how the CFD industry works.

That’s why your country has understandably made it illegal.

That’s why other countries will gradually do the same.

And that’s why nobody ever gets paid the "$1M" if they use an unregulated broker: it doesn't exist.
0 traders viewing now