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US citizens won't be able to have forex accounts overseas

  • #521
  • Sep 30, 2010 9:25pm Sep 30, 2010 9:25pm
Quoting StephanusR
Which is why Bush seems to have done the righ thing. You are guaranteed to lose your money. in fact if I were a Global dictator i would take a long hard look at forex trading and probably forbid 99% of people from trading for the fact that I wouldn't want a laid of person of 55 take his last $100 000, lose it and commit suicide after wards.

If 99% of all forex traders eventually lose, should forex trading even be allowed?

What?

Ban forex and speculating business all together then.
Pipology 101 student
  • #522
  • Oct 1, 2010 5:56am Oct 1, 2010 5:56am
Quoting pipology-101
What?

Ban forex and speculating business all together then.
This argument if flawed.

What is the difference between losing all your money in forex or going to the race track or casino and losing it all there and then commiting suicide ?

No, difference.

If it is your own money and you are not doing anything illegal then it is not upto a Government or state to tell you what you must do with it.

Scoobs.
  • #523
  • Oct 1, 2010 1:55pm Oct 1, 2010 1:55pm
I have not read anything yet but was just advised by AMP trading about the new Regs effective Oct 18. I was told that there will not be any demo accounts after Oct 18. You can open a live account and demo trade until you're comfortable and then move live. The reason I went with AMP was because 1) i could get the ninja platform and they're an interactive broker and do not trade against you. You're assigned a live person on the phone. And money is segregated in a separate account and is easily available without hassle.

This is my first post - I have to thank people like James 16, strat and others who have got me on a sensible course. I'm working on the fundamentals, developing my trading plan, and working on price action trading set-ups on the daily chart.

What's the general take from the old timers about this move.
  • #524
  • Oct 1, 2010 2:30pm Oct 1, 2010 2:30pm
Quoting Chas102
I have not read anything yet but was just advised by AMP trading about the new Regs effective Oct 18. I was told that there will not be any demo accounts after Oct 18. You can open a live account and demo trade until you're comfortable and then move live. The reason I went with AMP was because 1) i could get the ninja platform and they're an interactive broker and do not trade against you. You're assigned a live person on the phone. And money is segregated in a separate account and is easily available without hassle.
First poster recommends IB that no one has ever heard of before, comes off sounding like a total sales pitch, certainly nothing odd about that..
  • #525
  • Oct 1, 2010 4:14pm Oct 1, 2010 4:14pm
All this talk about capping leverage and limiting whether US citizens can trade with non-US brokerages cracks me up. Some of you even claim it's unconstitutional.

Do you really think that forex trading does not fall under the scope of the commerce clause? If they can regulate the growing of wheat for solely personal use, what makes you think they can't regulate leverage or country of broker?

(And anyone who actually thinks they *need* 1:100 or 1:400 or whatever is SEVERELY undercapitalized)

Wah.... My roulette machine won't let me play at higher stakes anymore. Wah.
  • #526
  • Oct 1, 2010 5:06pm Oct 1, 2010 5:06pm
Of course they can/will regulate leverage. The fact that they do so doesn't make it right. They can pay wheat farmers to not grow crops during certain times or pay them extra during other times. They are basically making a judgment call, right or wrong. That doesn't always mean it's best for the wheat farmer or in trading, that their judgment call is best for the trader.


Why didn't they limit the use of leverage in the housing market before the crisis? Had they done so chances are none of this would have even came up. Now they try to fix a problem by fixing something that had nothing to do with the breakdown. A bit like working on the plow when it was the tractor broke down.


Your opinion on leverage is just that; your opinion. There are a variety reasons for wanting to use higher leverage be they good or bad but maybe one thing to keep in mind is the fact that the more you willingly give up, the easier it will be for more to be taken from you.


Japan has already stated that they will reduce leverage to 25:1 within two years.(and btw, you do have your figures turned around). Will the US follow? Who knows. For now, you don't care that leverage is 50:1. Next year maybe you won't care that it's 25:1 and you won't care that it's 10:1 after that. And finally, you won't care when only the banks or the very wealthy are allowed to trade.
  • #527
  • Oct 1, 2010 6:04pm Oct 1, 2010 6:04pm
I am studying for the Series 34. The study guide I purchased (on line) gives the definition of "Direct Quote" as: "Quotes foreign currency prices in terms of the domestic currency; for example, if the trader is in the United States and the quote is USD/AUD, this would be a direct quote because the base currency is the domestic currency. The quote would state the number of Australian dollars required to buy one U.S. dollar. In Australia, a direct quote would be AUD/USD, and would state the number of U.S. dollars required to buy one Australian dollar."

this makes NO SENSE TO ME as I have always been told that currency pairs are NEVER listed backwards and that for each pair the base currency is set in stone. Can someone explain the above definition to me please?
  • #528
  • Oct 1, 2010 6:57pm Oct 1, 2010 6:57pm
Quoting TradeRunner
Of course they can/will regulate leverage. The fact that they do so doesn't make it right. They can pay wheat farmers to not grow crops during certain times or pay them extra during other times. They are basically making a judgment call, right or wrong. That doesn't always mean it's best for the wheat farmer or in trading, that their judgment call is best for the trader.


Why didn't they limit the use of leverage in the housing market before the crisis? Had they done so chances are none of this would have even came up. Now they...
Very good statements.

I still find it very funny that in the US you are allowed/trusted with semi-automatic weapons and in some states machine guns but the powers that be are saying you are not allowed/trusted to trade with leverage higher than X:1.

Which of the two has potentially more devasting power ?

I once got a mortagage on a house which was 8 x my annual income. Very silly yes but it was my decision and nobody held a gun to my head todo so.

Why cant US citizen just send money to a foreign entity called X who in turn open a seperate account with a broker allowing 1000:1 leverage and allowing the said individual to connect their EA's or manually trade said account. That US individual never opend the account and supply citizenship details etc to the said broker, the entity did who doesnt have US citizenship and therefore not covered by the new rules ?

Scoobs.
  • #529
  • Oct 2, 2010 2:39pm Oct 2, 2010 2:39pm
I totally agree scoobs...I have a friend who has a trusted european who is setting up a foreighn entity that will set up a forex account and make all the trades...ths is a global environment..Damnit people!!!! think globally. There are no more borders in business, just abide by the law and you wont get into trouble. bend, dont break. Get on a plane and make some contacts......One thing I have noticed scoobs...on your other thread you started off excellent, but since then, you and your crew have totally gotten away from your original strategy..I loved the yen trade basket. but you guys are all over the place now.......what gives? you are a pro. what do you think about the new usd carry trades?

Respectfully'

Fxcellent
GREED IS THE ULTIMATE INDICATOR
  • #530
  • Oct 2, 2010 2:42pm Oct 2, 2010 2:42pm
Just set up a micro account. and double, or triple, or quadruple, or quintuple, or sextuple your lot sizes. just adjust with the markets.....be creative
GREED IS THE ULTIMATE INDICATOR
  • #531
  • Oct 2, 2010 2:43pm Oct 2, 2010 2:43pm
Quoting fxcellent
I totally agree scoobs...I have a friend who has a trusted european who is setting up a foreighn entity that will set up a forex account and make all the trades...ths is a global environment..Damnit people!!!! think globally....
The Yen trade basket thingy started to fail when the BOJ stopped entering the market as they once did on a daily basis.

I think the whole carry trade stuff is about to blow up bigtime!!

Scoobs.
  • #532
  • Oct 2, 2010 2:46pm Oct 2, 2010 2:46pm
hmmmmmmmmmm. I believe cash will always follow yield in the big floor, how about you? if I can get yen at .1 and aud at 4 and change makes sense...with volatility is seem it might short term...but this big moey wants yield. Ay ideas? you a very good trader...thats no BS
GREED IS THE ULTIMATE INDICATOR
  • #533
  • Oct 2, 2010 3:15pm Oct 2, 2010 3:15pm
Quoting tx_sandman
Try GoMarkets in Australia. They offer up to 500:1 and have taken the position they are regulated by ASIC, not CFTC and will continue serving clients as before.

I also had a chat with MigBank (Switzerland) and they are not changing things one bit in the aftermath of the CFTC. They offer 100:1 except for very large accounts. However, they do not allow scalping (though this is never defined).

Those are two good options.

I'm having to move from Gain Capital UK and am just consolidating it with the rest of my money at GoMarkets. This was held...
MIG Bank are awesome
im in the US and i have a live account with them no problems with my money they are a swiss bank leverage up to 500:1
KEEP IT SIMPLE PIPPING
  • #534
  • Oct 2, 2010 3:20pm Oct 2, 2010 3:20pm
Quoting tx_sandman
In Australia my funds are held in a fully segregated account at a bank.

In Great Britain, I am protected by the FSA to the tune of 50K GBP.

In both places, my funds are protected against attachment back in the good ol' USA.

In either circumstance, my money is infinitely better off than at a "regulated" broker in the US.

Regarding whether I can keep the money there, for a foreign broker with no US presence, the US has no leverage over them. They do not answer to the CFTC. I have spoken with at least one of those brokers who expressed precisely...

i agree cftc is getting on my nerves lowering leverage and the rest of there BS
KEEP IT SIMPLE PIPPING
  • #535
  • Oct 2, 2010 7:08pm Oct 2, 2010 7:08pm
What if other countries also insist that no foreign (read US) broker should subject their own residents to (.....) regulations that differ from that in their own countries.

For eg it becomes unlawful to subject an UK resident(even if an US citizen) to trading with brokers without segregated funds whether in the UK or outside. Chinese authorities may say non of her citizens even if resident outside China should be forced to fifo trading or limited (less than 100:1) leverage. For Australia no trading outside of an Australian broker once within its international territory even if in an overflying plane!

Would US brokers then change the rules for these subsets? and all other non US residents and/or citizens?


Because, at this rate...

King.
  • #536
  • Feb 1, 2011 12:52pm Feb 1, 2011 12:52pm
GoMarkets is NOT accepting U.S. retail clients.
I am querying MIGBank currently.

<Mike
  • #537
  • Last Post: Jun 6, 2020 9:35am Jun 6, 2020 9:35am
I'm looking to trade on foreign crypto exchange that prohibits US users. My legal concern was: would reporting that I hold assets in Binance be punishable by law or policy since Binance officially prohibits me from doing so?

The crypto lawyer I've spoken with said the laws on US users and foreign exchanges apply to the exchange themselves for AML, tax reporting, so it's just up to the exchange if they want to officially/legally comply or not - if they don't they prohibit US users. They said the NON-tax crypto or financial laws don't apply to US citizens. A crypto tax attorney told me that there are no known cases against a US tax payer who paid taxes and reported foreign holdings properly. Also a crypto tax site whose clients use a foreign exchange that prohibits US users who reported properly also have had no issues.

So the message I've gotten thus far: as long as you pay your taxes and report foreign holdings, there should be no crime nor penalty. However, there could be a policy or law for your given state. That I'm still researching, but any further clarity would be GREATLY appreciated lol. What has anyone learned since?
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