no regulations stopping US residents from opening offshore accounts

If I was you, i'd open accounts at fxopen and fxpro right now.

they can hunt you downnnn....

I don't subscribe to any political labels, but if the Republicans were in office, this bill wouldn't have made it, not by a long shot.

I didn't vote Dem on the last election as I know what Dems in office is capable of when it come to free market capitalism. I haven't voted for a Dem in over 10 year and I have a feeling I probably will never vote Dem.

Nov 2 2010 and Nov 2 2011 I can promise you I'm placing my bets on Republicans, Independents, or Writing my candidate in.

(Not trying to step on any FF Dems shoes. If I did, I apologize.)

If you're a trader, taking political affiliate sides is a no no. You should only pick the side of politics that will benefit you and your trading.

I am not from US , I am in Australia and although we have good Corporate governance There is no protection for Client money Safety if a OTC market provider ( FX is not exchange traded) the broker goes broker out of business.

SO I am actually want to find out which jurisdictions is bets for
1) Client money safety
2) Still allows hedging?

Any suggestions?
UK has FSA insurance but when I inquired the FCCS ( the insurance arm) kept saying that the "Product" has to be a approved product!
Sounds like it only applies if you are trading with a UK broker for UK Exchange Traded Product not FX!

That's FXCM UK Letter

==========================
FXCM
==========================

Dear Client:

FXCM would like to inform you of important new legislation passed in the United States that will impact your forex trading account(s). The recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal statute that states that overseas brokers not registered with the CFTC will not be able to be counterparties to US retail investors in OTC forex transactions after October 18, 2010. http://cftc.gov/ucm/groups/public/@n...rolledbill.pdf

What does this mean for your account?
As you are a resident of the United States, FXCM LTD (FXCM UK), FXCM AU LTD (FXCM AU) or FXCM Asia Ltd. (FXCM Asia) can no longer be the counterparty for your forex transactions. However, so that you may continue trading, your account(s) are scheduled to be moved the weekend of October 15, 2010 to FXCM LLC (FXCM US). As a US resident having your account(s) with FXCM US will comply with this new rule.

How will my account(s) be affected?

• Will my account move?
Yes, your account is scheduled to move the weekend of October 15,2010, to FXCM US.

• Will I have the same username and password?
Yes, you will keep the same username and password.

• Will I have to download a new platform?
No you will not have to download a new platform.

• Will my margin requirements change?
Yes, the maximum leverage available with FXCM US is 50:1 for major currency pairs and 20:1 for exotic currency pairs. (See the table below). For detailed examples on how margin will change and how to avoid a margin call, visit the online support center. http://forexforums.dailyfx.com/new-c...cm-ltd-uk.html

• Will my open positions transfer?
All open positions and orders will be transferred to FXCM US. There is no need to close positions.

• What will happen to my stops and limits?
All stop and limit orders can remain open during this move. There is no need to remove them.

• Will I have hedging on FXCM US?
No, you will no longer be able to open new buy and sell positions on the same currency pair at the same time.

• Will I have to do anything?
FXCM will be providing continuous communication over the next few weeks and will outline if there is any further action needed on your part or any changes to this initial communication.

• Will my deposit and withdrawal procedures change?
You may continue to visit myfxcm.com to deposit and withdraw funds. Account holders in USD denominated accounts will now send their funds to Bank of America in the United States.

• What protection will my account have under the new US regulations?
FXCM is registered with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA).

If a dispute arises, investors can turn to the NFA or the CFTC. Please be aware that once your account has transferred to FXCM US,

American (US) requirements and consumer protection rules will apply. The rules made by the UK’s Financial Services Authority

to protect consumers will no longer apply; FSA consumer protection, bankruptcy protection, segregated accounts money rules.

Any complaints you may have about activities up to the date of transfer will be dealt with under UK rules, thereafter under US.

And nobody here mention new NFA rule under which

you'll have to open and close your positions in order.

So now, if I have several positions on same currency I have to

first close the first one.. How Insane it that in Forex when every

second counts. You will have to look which one you open

first, to satisfy some Jerk ambition from CFTC.

Looks like www.tadawulfx.com still accepting US traders

Spreads are good if deposit more than 5k, MT4 + you can even

use paypal to load or withdraw funds...

=====

from tadawulf:


"Thank you for your e-mail

Tadawulf accepts US, for spread info, go to

Please note that we still accept clients from the US."



Will check for more brokers

dukascopy probably still accepting too as far as I informed.

FXopen still OK too..

So there is choices still.

No you don't look, it is called FIFO first in first out.

If you hit buy 10 times then hit sell 10 times the positions will go in the order you ordered them or "bought" it is automatic.

Yes it does suck.

Thanks for clarifying this

I have been looking for ways around this, but the crux of the matter is that it all comes back to the language in the legislation that treats FX trades with unregistered banks/intermediaries as a "prohibited" transaction for US-based traders. My CPA says that while they may not enforce the regs at the trader level making evasion possible, this is no different than other types of evasion frowned upon by the Feds such as tax evasion, and it will bring nothing but trouble for a trader come tax reporting time.

The stripping away of freedoms is disturbing, but it is the new reality we have to deal with. Whether now if you are dealing with a UK-based arm of a US broker, or an entity with no US presence whatsoever after the end of the exemption period, the regs do apply to the individual.

Good luck on crackdown. Online gambling casinos and pokers are deemed highly illegal in US. US government spent millions of dollars each year tries to enforce the laws. Despite that, they can’t shut down online casinos offshore. As a result, millions of people in US still gamble online offshore. Last year, the Feds froze 32 million dollars of poker player funds, and later they return the funds back to the players, because they could not persecute them due to fourth amendment and US constitution rights.

Last year I've been searching on IBFX for some kind of 1099, and

spoke with several account representatives and been told that IBFX

does not reporting anything, otherwise if they does they should

mail me a copy of Tax documents and they don't have any. So

even US based brokers not reporting, then what you expect from Offshore Brokers?

My bet, that since 95% of the traders are loosing money, who cares about rest 5%?

I mean you can still pay taxes, if you want, say you make 10k or whatever

of Google Ads advertising or teach private guitar lesson for example.

But the fact is, no offshore or even US brokers reporting those profits

or loses. IBFX doesn't have 1099.. period, so I did a screen shot of online transactions

wow, it's unbelievable what's happening in the US, for long time regarded as the bastion of freedom and capitalism.

How can the US goverment prohibit its citizens to to business with whichever broker they want ? what kind of sick communism is this ?

Hope you get rid of those bureaucrats who enacted such dumb law.

I'd be very happy if you're right. It will depend on just how important this is to certain people.

I've never traded more than 20:1 leverage or hedged so the recent changes don't affect me. But I see it as a slippery slope and I fear the direction and momentum (yes, it was intended) all this has taken on.

More than anything, it's the constant, ever widening intrusion by the federal government into areas that either should belong to the states, or just shouldn't be regulated at all.

The fed is like some super-duper, slow moving zombie that you just can't kill no matter how many shotguns you have. It just keeps coming and coming and coming...

I think that US citizens can still open an account to Activtrade (UK) or Saxobank (France) for example because they are not a US entity.
Am I wrong or not ?

ActiveTrade in their FAQ got:

A: Unfortunately we are not regulated in the USA and so unable to open accounts for US citizens or residents.

This entire conversation continues to miss the point. The reality is that there is a move underfoot to lower FX leverage globally, and the brokers are trying not to piss off the regulatory bodies in certain countries hoping to slow the process there. Part of doing that is to address US citizens because we led the way with this legislation. If they don't do that, then the local regulators will feel the heat from America, but frankly, it is all coming anyway. 50:1 is going to be the norm for a while. Doesn't matter to me in the least.

If people invested half of the time as they do here griping about their freedoms actually learning how to trade, they'd realize that they can do just fine at 50:1.

there are few broker s that don't have these obama non-sense rules like eglobal trade as well as a bunch of others. Just a bunch of american job killers but what are you gonna do. all you can do is move your money. thats what will happen....

How come very few are worried about Client money safety?
Free capitalism ..yes but not as the cost of Consumer Protection

geeze folks there are at least 3-4 brokers you can go oversees with and transfer your money at reasonably low risk. I had a whole list of brokers that I need to pull up off my old computer that I can supply...The money is moving out of the us with these rules. I just closed my accounts out of interbank and fxcm because of these rules. Quite frankly, unless they shut down the webites to these address I will continue to trade and at that point, I will find a non-us citizen to set up accounts for me. Moksha, you don't get it. This resticts my right on how to trade so others can tell me how to win or lose. Its turning into a rigged casino with this stuff. This all came out of the housing crisis that was caused by these same mega rich bankers that are trying to flees us through social engineering.
Consumer protection? Just another term to keep the rich, -- filthy more rich. Its gonna kill jobs and kill opportunity. Look at the economy.. Your a fool to think that restricting the movement of money and the opportunity to fail or win is gonna make our lives better. These out of country brokers are a little riskier but thats a chance that I will take. Most of these brokers are small honest businesses... that see a 2-4 pip cut as a reasonable transaction. They don't want to kill the golden egg in growing their business with us customers. .
Its like everything else, you let the arrogant lawmakers do what they want, and you vote them out if you can. When enough people are hurting, change will occur.