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no regulations stopping US residents from opening offshore accounts

  • #141
  • Apr 26, 2011 2:10pm Apr 26, 2011 2:10pm
It is going to be quiet here without all the american members. Ooh well the rest of us will get over it.
  • #142
  • May 26, 2011 1:11am May 26, 2011 1:11am
So at this point NO ONE in USA can hedge or use higher leverage. Thats just great.

Now I have to get gangsta.
  • #143
  • May 26, 2011 1:18am May 26, 2011 1:18am
Quoting tommbstone
So at this point NO ONE in USA can hedge or use higher leverage. Thats just great.

Now I have to get gangsta.

Well, I'm sure Goldman and JPM can still do whatever they want, oh and they do.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #144
  • May 26, 2011 1:23am May 26, 2011 1:23am
Quoting LasVahGoose
Well, I'm sure Goldman and JPM can still do whatever they want, oh and they do.
Yeah thats true
  • #145
  • Jun 14, 2011 1:01pm Jun 14, 2011 1:01pm
Takes on traders from united states, no restrictions.
  • #146
  • Jul 6, 2011 1:26am Jul 6, 2011 1:26am
I was hoping to start a new thread on this topic, but being a new member its against the rules. Speaking of rules, its July 2011. You know what that means! Yup, more rules:

Dear Client:

On Sunday, July 10, 2011, FXCM will update the FX Trading Station II functionality. Please allow a few extra minutes before your normal start of trading. If you experience any difficulties, visit the FXCM Platform Status Center.

What Will You See on Sunday?
Your live trades will be displayed in the ‘Summary’ window, allowing you to monitor and manage your exposure on a net basis. We encourage the use of the ‘Summary’ window since FXCM LLC uses first in first out (FIFO) trade execution for all order types.

Stops and limits on individual tickets will no longer be available (see special notice). FXCM LLC offers two unique stop/limit orders that allow clients to manage their exposure. Learn more about each of these methods and review trade examples at www.fxcmmicro.com.

Special Notice
Existing stops and limits created before July 10 will remain active, but will only be visible by running a Combined Account Statement from Trading Station II or MyFXCM. To modify or remove an existing stop or limit order, call the Trading Desk at 212-201-7300. Please have your account number ready.

I really love FXCM, but I just can't deal with this FIFO thing! Back in 2009 they had 400:1 margin and hedging. Then they reduced the margin. Ok, I can live with that. Then they brought in FIFO, so I transfered to the UK. It was nice for a time, then I was repatriated. When I came back, there was no FIFO. For about a year I've been able to close whatever ticket I wanted. Well, it appears that's coming to an end on Sunday.

So what's the consensus of the community? Are there still foreign brokers accepting US clients? Should I pursue the offshore LLC idea? Are commercial / institutional traders exempt from this nonsense? What does it take to become a commercial trader?
  • #147
  • Jul 6, 2011 4:42am Jul 6, 2011 4:42am
Quoting FlyingTurtle
Stops and limits on individual tickets will no longer be available
What? How can it be that you cannot place stop and limits anymore??
  • #148
  • Jul 6, 2011 4:48am Jul 6, 2011 4:48am
Quoting Forex5050
What? How can it be that you cannot place stop and limits anymore??
never did happen, traders was freaking out for no reason
  • #149
  • Jul 6, 2011 8:23am Jul 6, 2011 8:23am
Is there anything in the new laws that makes it illegal for US citizens to trade with a foreign forex broker? I have found several foreign brokers that accept US customers. Dukascopy is closing my account.
Enter Signature
  • #150
  • Jul 6, 2011 10:50am Jul 6, 2011 10:50am
Quoting Forex5050
What? How can it be that you cannot place stop and limits anymore??
I won't be able to place stops or limits on individual tickets.

For instance:

I buy the AUD/USD at 1.07 with no stop and just want to hold it to collect the roll. Then it declines and I buy more at 1.065 hoping to scalp a few pips. According to the new rules I cannot put a stop on my 2nd order. I would have to put a stop on the net and the first position to be closed would be the one I bought at 1.07

If that were the case, then I would be holding the one I bought for 1.065 and have a big loss (bigger than my stop) on the one I bought for 1.07


Quoting PoundTrader
never did happen, traders was freaking out for no reason
It will happen on Sunday according to the email.
  • #151
  • Jul 6, 2011 10:52am Jul 6, 2011 10:52am
Quoting SquareRoot
Is there anything in the new laws that makes it illegal for US citizens to trade with a foreign forex broker? I have found several foreign brokers that accept US customers. Dukascopy is closing my account.

What brokers have you found? Which do you recommend? And why?
  • #152
  • Jul 6, 2011 8:11pm Jul 6, 2011 8:11pm
I just received this email from my broker:


You might be aware of the recent changes in U.S. regulations regarding off-exchange retail foreign exchange. The new regulatory rules—implemented by the Commodity Futures Trading Commission (CFTC), the U.S. government agency responsible for the regulation of retail foreign exchange—apply to retail forex transactions that are offered or entered into by entities registered with CFTC under the Commodity Exchange Act (CEA).


Tadawul FX Ltd. is regulated by Cyprus Securities and Exchange Commission (CySec) and complies with all applicable European Union laws and regulations, including those under the European Markets In Financial Instruments Directive (MiFID). Although, Tadawul FX does not have any offices or operations in the U.S. and is not subject directly to the licensing laws of US regulators, further to our compliance checks it appears that the CFTC does not allow retail forex transactions to be provided to U.S. clients by entities not registered with the CFTC.


Due to the regulatory restrictions in the U.S., it is with great regret we inform you that Tadawul FX will no longer be able to accept any transactions from U.S. residents from 8th July 2011.

Procedure for USA resident clients
By 8th of July 2011 (22:00 CET) all open positions and all pending orders must be closed. Any positions left open will be automatically closed at the last available price, and all pending orders will be cancelled.


Any ideas on where we can move our accounts too with a NON-U.S. broker if we're U.S. residents?

I've tried 3 others and they said they're taking "New" U.S. resident accounts but they may be required to close them in the near future. They are "Waiting on clarification of the CFCT Regulations"

Welcome to the land of the free traders!
  • #153
  • Jul 6, 2011 8:27pm Jul 6, 2011 8:27pm
Well TDFX was one I was currently considering

So its looking like the solution is an offshore LLC

btw, how many times do I have to post before I can start my own thread?
  • #154
  • Jul 6, 2011 8:33pm Jul 6, 2011 8:33pm
Quoting PIP-Squeak
I just received this email from my broker:


[color=Blue]You might be aware of the recent changes in U.S. regulations regarding off-exchange retail foreign exchange. The new regulatory rules—implemented by the Commodity Futures Trading Commission (CFTC), the U.S. government agency responsible for the regulation of retail foreign exchange—apply to retail forex transactions that are offered or entered into by entities registered with CFTC under the Commodity Exchange Act (CEA).


Tadawul FX Ltd. is regulated by Cyprus Securities and Exchange Commission...
you can't move, your stuck.
  • #155
  • Jul 6, 2011 8:53pm Jul 6, 2011 8:53pm
So, "Tadawul complies with all applicable European Union laws and regulations, including those under the European Markets In Financial Instruments Directive (MiFID)" and THOSE regulations are what is stopping them from servicing U.S. accounts?

Are we to assume then that a broker that DOES NOT recognize or adhere to the applicable EU laws and regulations COULD open an account for a U.S. Citizen?
  • #156
  • Jul 7, 2011 6:55am Jul 7, 2011 6:55am
Quoting FlyingTurtle
What brokers have you found? Which do you recommend? And why?
Right now I don't recommend anyone ... but HotForex and FinFx have emailed me and said they are accepting US clients. Of course that may change after July 16th.
Enter Signature
  • #157
  • Jul 7, 2011 7:54am Jul 7, 2011 7:54am
If the CFTC can get to TDFX they can get to anyone as TDFX is probably one of the largest or at least really fast growing.

The others will just fall in line. The biggest reason is likely liquidity... they dangle that liquidity carrot over their head when things get tough and they have but little choice to take it with "conditions"... memorandum of understanding or whatever you want to call it.

Off-shore company is the only way at this point I believe... unless you are considered "high net worth" --- like a cool 10 million. That shuts most people out.

But the off-shore company route has even more inherrant risks than just trading forex. We should know more in a few more weeks... but it likely won't be good. [CFTC is here to protect you from yourself... so stop ramming your head into the proverbial FX wall.]


"No FOREX for YOU!"

  • #158
  • Jul 7, 2011 9:01am Jul 7, 2011 9:01am
Quoting pip_seeker
If the CFTC can get to TDFX they can get to anyone as TDFX is probably one of the largest or at least really fast growing.

The others will just fall in line. The biggest reason is likely liquidity... they dangle that liquidity carrot over their head when things get tough and they have but little choice to take it with "conditions"... memorandum of understanding or whatever you want to call it.

Off-shore company is the only way at this point I believe... unless you are considered "high net worth" --- like a cool 10 million. That shuts...
WEll they suck. Why they did all this bullshit. They have already lower the leverage and now they try to sell us their crappy compagny. If am a canadian, will i have to follow USA CFTC regulation. Most of the time, when US is doing something Canada follow them
  • #159
  • Jul 7, 2011 12:36pm Jul 7, 2011 12:36pm
Quoting SquareRoot
Right now I don't recommend anyone ... but HotForex and FinFx have emailed me and said they are accepting US clients. Of course that may change after July 16th.
What's significant about july 16th?
  • #160
  • Jul 8, 2011 11:59am Jul 8, 2011 11:59am
Quoting FlyingTurtle
What's significant about july 16th?
July 15th is the final deadline for foreign brokers to close unqualified US accounts.
Enter Signature
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