Forex Broker INC welcomes US customers? | Forex Factory

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Forex Broker INC welcomes US customers?

  • #1
  • First Post: Apr 27, 2014 5:16am Apr 27, 2014 5:16am
(I have NO relation with this broker)

Today, I received an email from MyFxBook about a contest, and the rules of this contest (run by Forex Broker INC) are:
2. Only US or Japanese residents can participate in the ForexBrokerInc Contest

That was surprising, and I had a look at this broker website.
So it seems they are openly and aggressively targetting US customers and are offering 1:500 leverage and no hedging restrictions. By looking a little, it seems that it is a Belize unregulated broker. This kind of behaviour is exactly what will get them troubles with NFA and CFTC.

What do this guys have in mind ? Take as much deposits as possible and run with the money ???
  • #2
  • Apr 27, 2014 8:40am Apr 27, 2014 8:40am
Quoting Mevo
(I have NO relation with this broker) Today, I received an email from MyFxBook about a contest, and the rules of this contest (run by Forex Broker INC) are: 2. Only US or Japanese residents can participate in the ForexBrokerInc Contest That was surprising, and I had a look at this broker website. So it seems they are openly and aggressively targetting US customers and are offering 1:500 leverage and no hedging restrictions. By looking a little, it seems that it is a Belize unregulated broker. This kind of behaviour is exactly what will get them...

This company is not regulated. They look very suspicious.. Stay away :-)
Buy at the Low, Sell at the High You make money by waiting not by trading.
  • #3
  • Apr 28, 2014 5:16pm Apr 28, 2014 5:16pm
I wonder why myfxbook is promoting such shady brokers.
All human being are Children of GOD - Thanking GOD for everything.
  • #4
  • Apr 29, 2014 12:31am Apr 29, 2014 12:31am
Quoting HedgeManager
I wonder why myfxbook is promoting such shady brokers.
The answer is simple: money.
Buy at the Low, Sell at the High You make money by waiting not by trading.
  • #5
  • Apr 29, 2014 12:58am Apr 29, 2014 12:58am
these offshore brokers know they can't except U.S. customers so what are they up to, to steal your money. FF should delete this thread
  • #6
  • Apr 29, 2014 1:33am Apr 29, 2014 1:33am
Quoting HedgeManager
I wonder why myfxbook is promoting such shady brokers.
Exactly, I sent them an email to ask them if their were OK to promote such a broker... They didn't answer. (Last time I emailed them about a bug in their system, they answered pretty quickly). I guess Lacunoide is right: Promoting a contest must be some form of advertisement and theyvmust get paid for that.

Poundtrader: delete a thread which purpose is to warn people ? I will always be astonished by some guys ideas and way to think...
  • #7
  • Apr 29, 2014 1:52am Apr 29, 2014 1:52am
Quoting Mevo
{quote} Exactly, I sent them an email to ask them if their were OK to promote such a broker... They didn't answer. (Last time I emailed them about a bug in their system, they answered pretty quickly). I guess Lacunoide is right: Promoting a contest must be some form of advertisement and theyvmust get paid for that. Poundtrader: delete a thread which purpose is to warn people ? I will always be astonished by some guys ideas and way to think...
warn people, U.S. traders know they are not allowed to trade offshore, if there stupid enough to put there money there then thats on them, only a sneaky U.S. trader would wanna trade with a unregulated offshore broker
  • #8
  • Apr 29, 2014 2:12am Apr 29, 2014 2:12am
You're an experienced trader so don't waste time on it Don't never follow advertisement, it's very dangerous.
  • #9
  • Edited 2:50am Apr 29, 2014 2:33am | Edited 2:50am
Quoting PoundTrader
{quote}warn people, U.S. traders know they are not allowed to trade offshore, if there stupid enough to put there money there then thats on them, only a sneaky U.S. trader would wanna trade with a unregulated offshore broker
I don't want to enter a long debate on this, but US traders are allowed to open an account wherever they want (should it be a bank or a forex account). They may have to report it by filling the appropriate form, that's right (at least this is the case for bank accounts). For FX, NFA and CFTC rules forbid BROKERS to sollicit and accept (edited) US customers without being registered with NFA/CFTC. There is NO restriction on US traders, they are just "kindly encouraged" to check if a broker is registered with NFA/CFTC before applying, that's it. For banks, it's another story, the US made so complicated and time consuming reporting requirements that banks prefer to not accept any US customer anymore (which was probably the goal)

Ok, maybe US customers won't open an account with them, but all other should be carefull (so carefull that they should NOT put 1 cent there in my opinion), because it's probably either a scam or they will probably be shooted down by NFA/CFTC sooner or later (and usually what they do first is seizing the assets, being right or not, they take the money of everybody.) I had some money seized from my liberty reserve account like that. Account in my name, with all correct infos, money coming from 100% legal source, never done anything illegal or wrong with my LR account, and never saw or heard a warning from the US until they said that they were watching LR since years and that it was only used for criminal activities, etc...


[Edited: The CFTC strongly urges the public to check whether a company is registered before investing funds. If a company is not registered, an investor should be wary of providing funds to that company. (Source: Court documents CFTC vs FxOpen)]

[Edited 2: As I was curious, I searched for the rules to be able to register with NFA/CFTC, and to act as a forex dealer, minimum capital requirement is $20 millions]
  • #10
  • Apr 29, 2014 9:05am Apr 29, 2014 9:05am
For information, I just received an answer from MyFxBook:

"Hello Mevo,

Please note the contest is held with a demo account, meaning absolutely no risk for you with the possibility to win real money.Regarding the regulation of the broker - please contact the broker directly as I do not have any information about it.

Thanks
,Ethan,
Myfxbook support."


They are not wrong. Even if it's a pure scam, you can still participate in the contest
  • #11
  • Aug 20, 2014 3:39pm Aug 20, 2014 3:39pm
I am a US citizen. I see from reading the above, someone says I can use an off shore broker and someone says no I can not. Where can I find the answer? Also I would like to know if I can trade with a leverage of 1:200? Also where can I find the answer?
Ron
  • #12
  • Aug 20, 2014 4:53pm Aug 20, 2014 4:53pm
Quoting packgreen49
I am a US citizen. I see from reading the above, someone says I can use an off shore broker and someone says no I can not. Where can I find the answer? Also I would like to know if I can trade with a leverage of 1:200? Also where can I find the answer? Ron
Hi Ron,
My understanding is stated above. I understand the restrictions are on the brokers side, not on the US traders side.
http://www.cftc.gov/International/Fo...reignprodsales

CFTC and NFA are the entities to contact to confirm that.
Now, if you aren't aware of this, as a US resident trader, you will have a really hard time to find a non-US broker to accept to do business with you...
  • #13
  • Aug 20, 2014 5:14pm Aug 20, 2014 5:14pm
Quoting Mevo
{quote} Hi Ron, My understanding is stated above. I understand the restrictions are on the brokers side, not on the US traders side. http://www.cftc.gov/International/Fo...reignprodsales CFTC and NFA are the entities to contact to confirm that. Now, if you aren't aware of this, as a US resident trader, you will have a really hard time to find a non-US broker to accept to do business with you...
Ok, so I could go with anybody who would take me and get any leverage?
  • #14
  • Last Post: Aug 20, 2014 5:39pm Aug 20, 2014 5:39pm
That anybody would most likely be a scammer. But sure, there are plenty of people who will take your money if you ask them to. Getting money back will be the hard part.
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