Broker's Controversy

Its been the topic of many discussions, personally I did not pay
special attention to this. But it appeared that even long term traders
do not know what is happening exactly.
It is US and foreign brokers. I cannot state any names here.
A while ago hedging was prohibited to US brokers. Foreign brokers continued using it. Then the leverage 1:50 was imposed to US brokers when foreign brokers still enjoy 1:500.
After this "leverage issue" I opened account with an European broker and was everything OK but recently I decided to open MT5 account and they said: we accept all except US citizens. On my question 'why' I got answer that we do not want to have transactions problems. Another broker explained "We don't accept US Citizens it is the rules of our Company.
You will not be able to register from US or trade ".
They even track proxies on registering or trading from USA.
Can anyone explain what is really happening?
Thanks.

CFTC rules US retail should use only US regulated brokers. You will only find bucket shops willing to go beyond that.

Good luck with 50:1 leverage and only few US regulated brokers.

Regards
13

What is bucket shop?

Foreign brokers do not want to accept US residents.

Look here
http://www.cftc.gov/PressRoom/PressR...pr5997-11.html
http://jadefx.com/

I just got a reply from an Australian broker
"Due to CFTC rulings we no longer accept applications from the US since October 18 2010.

This ruling also known as the Dodd-Frank Act placed restrictions on US retail clients trading financial instruments higher than 50:1 leverage."

I do not know if I am logically right but it looks to me
that foreign brokers do not want help US residents break the US issued law
for US residents.