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Laws pertaining to US Clients trading overseas

  • #1
  • First Post: Dec 26, 2010 8:06pm Dec 26, 2010 8:06pm
I desperately want to open an account with 500:1 leverage overseas. MIG, tadawulfx, and fxopen are a few I'm currently researching.

Assuming they will take US Clients and offer me the leverage, what will Uncle Sam do to me? I will pay my taxes just like I would on accounts owned by companies operating in the US...

I seem to remember some caveat of the Dodd Frank bill preventing US Clients from trading overseas after some date. Anyone with insight into this matter is greatly appreciated to post.
  • #2
  • Dec 26, 2010 8:41pm Dec 26, 2010 8:41pm
  •  apt
  • | Joined Oct 2010 | Status: All your cookies are belong to me. | 1,114 Posts
Quoting tdion
I desperately want to open an account with 500:1 leverage overseas. MIG, tadawulfx, and fxopen are a few I'm currently researching.

Assuming they will take US Clients and offer me the leverage, what will Uncle Sam do to me? I will pay my taxes just like I would on accounts owned by companies operating in the US...

I seem to remember some caveat of the Dodd Frank bill preventing US Clients from trading overseas after some date. Anyone with insight into this matter is greatly appreciated to post.
I'm also interested in this, Bump.
  • #3
  • Dec 26, 2010 11:11pm Dec 26, 2010 11:11pm
Seriously?

Nobody on this forum his insight into this?
  • #4
  • Dec 26, 2010 11:50pm Dec 26, 2010 11:50pm
The law doesn't pertain to US citizens directly, only to the foreign brokers/banks servicing them. You are free to do whatever you wish.
  • #5
  • Dec 26, 2010 11:57pm Dec 26, 2010 11:57pm
KGB,

With all due respect, Sir. You are implying that the US Government is regulating foreign companies. That doesn't seem right.

I think that this issue is a very real concern for anyone with accounts overseas. People should be vigilant to know that they are breaking the law, if one morning they wake up and a new policy has gone into effect.

I have such strong feelings about the 50:1 leverage imposed, I can't even begin to put it into words. What's next? Forcing McDonald's to serve only organic food?

BAH

-Tom
  • #6
  • Dec 27, 2010 12:20am Dec 27, 2010 12:20am
  •  apt
  • | Joined Oct 2010 | Status: All your cookies are belong to me. | 1,114 Posts
So we as US citizens are free to use overseas brokers with no sort of repercussion, is this right?
  • #7
  • Dec 27, 2010 12:27am Dec 27, 2010 12:27am
Quoting tdion
KGB,

With all due respect, Sir. You are implying that the US Government is regulating foreign companies. That doesn't seem right.
With all due respect, I wasn't implying anything. Regulating foreign companies' right to do business with US citizens is exactly what (part of) the law states.

Quote
I have such strong feelings about the 50:1 leverage imposed
Things could be worse, Japan is imposing 25:1 on its brokers.
  • #8
  • Dec 27, 2010 12:31am Dec 27, 2010 12:31am
Quoting apt
So we as US citizens are free to use overseas brokers with no sort of repercussion, is this right?
Precisely. No repercussions for you. Possible repercussions for the foreign broker if they don't register with the NFA/CFTC and continue to service US clients.
  • #9
  • Dec 27, 2010 3:00am Dec 27, 2010 3:00am
DBFX told me because they are a bank and they welcome u.s. clients and can offer them 100:1 leverage and hedging, this law is for u.s. retail brokers only, just like if you was a big hedge fund trading futures thru j.p. morgan they are allow to give you more leverage then the average retail future trader.
  • #10
  • Dec 27, 2010 3:01am Dec 27, 2010 3:01am
Quoting tdion
I desperately want to open an account with 500:1 leverage overseas. MIG, tadawulfx, and fxopen are a few I'm currently researching.

Assuming they will take US Clients and offer me the leverage, what will Uncle Sam do to me? I will pay my taxes just like I would on accounts owned by companies operating in the US...

I seem to remember some caveat of the Dodd Frank bill preventing US Clients from trading overseas after some date. Anyone with insight into this matter is greatly appreciated to post.
july 2011
  • #11
  • Last Post: Dec 27, 2010 4:05am Dec 27, 2010 4:05am
http://www.greencompany.com/blog/index.php?postid=96
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