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Why every US trader needs to trade offshore

  • #41
  • Jul 20, 2015 3:55am Jul 20, 2015 3:55am
As long as you declare and pay your taxes both onshore and offshore you will not have a problem. If you are making over 250k per year you must make sure you have all documentation because you can bet you will get audited. Make sure you take your accountant and tax attorney with you to the audit.
At least take a look [demo offshore] because IRS [aka treasury department] does not tax you on demo accounts lol
All trends begin with the smallest time frame
  • #42
  • Jul 20, 2015 8:32am Jul 20, 2015 8:32am
Quoting qiktrader954
As long as you declare and pay your taxes both onshore and offshore you will not have a problem. If you are making over 250k per year you must make sure you have all documentation because you can bet you will get audited. Make sure you take your accountant and tax attorney with you to the audit. At least take a look [demo offshore] because IRS [aka treasury department] does not tax you on demo accounts lol
Absolutely correct. You report your taxes just like you would if you were trading with a US broker. Once again, trading offshore is simply to reduce your risk and compound winnings quicker, it is not done to try to dodge the IRS or break any US laws. Your money is not protected with a US broker, so why keep 10 times more than you need to with ANY broker. It simply allows you to trade pre- regulations. That's it, plain and simple.
  • #43
  • Jul 20, 2015 4:48pm Jul 20, 2015 4:48pm
Nice thread here. I've long wondered why more traders don't go offshore.
There's a thorough thread over on Babypips about going offshore with detailed info on different brokers open to US citizens.
  • #44
  • Jul 20, 2015 4:55pm Jul 20, 2015 4:55pm
Many US traders would go offshore, including me, but the options are generally riskier and more difficult to find (just look at who everyone was using 3-4 years ago, its like a hot potato). The list of options is really short and with little transparency. I suppose if you keep your account small and withdraw all the time, it lessens risk.
  • #45
  • Jul 20, 2015 5:02pm Jul 20, 2015 5:02pm
yes that is the way to do it. keep with drawing your profits
All trends begin with the smallest time frame
  • #46
  • Jul 20, 2015 5:37pm Jul 20, 2015 5:37pm
Yes, Spyderman nailed it. There is a thread over on babypips that has everything you need to know basically on the first page. Its called something like going offshore to escape the cftc or something like that. The creator of the thread has a list of every broker still accepting U.S. clients and a very large list of brokers that don't. Its a very long thread filled with people commenting on brokers they've used, ones to stay away from, and ones they would recommend. He even marked the brokers that got high praise as Trusted Broker, and also the iffy ones there is a message to use caution. It helped me a lot when I got sick of FXCM right around the time SNB dropped the bomb. I've been using a few for around 6 months now and am still very happy. New traders coming into the business have no idea how it was pre 2010 I think it was when hedging was available, no FIFO dumb ass rule, better leverage, etc. So yes check out that thread.

Something's gotta give already, because I'm getting a little tired of the government treating me like kid, trying to protect me and my money from my dumb ass self. Meanwhile, the national debt is at ......... well you get the idea.
  • #47
  • Jul 20, 2015 9:10pm Jul 20, 2015 9:10pm
Quoting TheDirtySerb
Yes, Spyderman nailed it. There is a thread over on babypips that has everything you need to know basically on the first page. Its called something like going offshore to escape the cftc or something like that. The creator of the thread has a list of every broker still accepting U.S. clients and a very large list of brokers that don't. Its a very long thread filled with people commenting on brokers they've used, ones to stay away from, and ones they would recommend. He even marked the brokers that got high praise as Trusted Broker, and also the...
Funny thing is, they don't protect anyone from Vegas, where the odds are already against you. There is nobody at the door asking how much your bringing in or where it came from. You can walk in and put your life savings on red 7 and nobody says a word. How about the lottery, nobody regulating how many tickets an individual may purchase. These regulations on forex are for one purpose only....to eliminate retail forex from the US, so everyone will go back to futures. They are accomplishing their goal, as there are now only 4 brokers in the US.
  • #48
  • Jul 20, 2015 9:40pm Jul 20, 2015 9:40pm
my 2 cents...I opened an offshore account back in January after I almost lost my account due to fxcm's financial problems, anybody that is interested can see on my trade explorer who I use. I have made several withdrawls from my broker and the money is wired into my account usually within 2 days, I will not keep more than 50,000 in my trading account,(could they just one day close up shop? sure) but thats just me, as Profit stated, use what you need for trading and keep the rest tucked away in an FDIC insured account at home. I will never use a U.S. broker ever again
  • #49
  • Jul 21, 2015 9:25am Jul 21, 2015 9:25am
Quoting wyley187
my 2 cents...I opened an offshore account back in January after I almost lost my account due to fxcm's financial problems, anybody that is interested can see on my trade explorer who I use. I have made several withdrawls from my broker and the money is wired into my account usually within 2 days, I will not keep more than 50,000 in my trading account,(could they just one day close up shop? sure) but thats just me, as Profit stated, use what you need for trading and keep the rest tucked away in an FDIC insured account at home. I will never use a...
Glad to see folks catching on. Everyone thinks trading offshore is risky. However, your money and more of it are at greater risk with a US broker. I trust my broker 1000 times more than the likes of FXCM, Oanda and Forex.com.
  • #50
  • Jul 21, 2015 10:23am Jul 21, 2015 10:23am
Quoting Profit Daily
{quote} Glad to see folks catching on. Everyone thinks trading offshore is risky. However, your money and more of it are at greater risk with a US broker. I trust my broker 1000 times more than the likes of FXCM, Oanda and Forex.com.
Hi Sir,

I am canadian and I am looking a reliable broker offshore. Now I'm with Pepperstone and I like this broker. But I want to open another broker. Because I think it is safer to diversify our portfolios. It is a smart idea.

Can you share the name of your darling broker. So I can enjoy the same feeling as your.


Thanks

Sai Ram
Being a fxtrader is not easy. Ones must working hard.
  • #51
  • Jul 21, 2015 11:58am Jul 21, 2015 11:58am
Quoting Profit Daily
{quote} Glad to see folks catching on. Everyone thinks trading offshore is risky. However, your money and more of it are at greater risk with a US broker. I trust my broker 1000 times more than the likes of FXCM, Oanda and Forex.com.
All brokers are crooks to some extent. Some are more than others obviously. However, the strict regulation of the US does still provide a degree safety that you would not necessarily get with an offshore broker. Now I am sure there are some trust worthy offshore brokers, but you would always be at the mercy of that country's regulations if you have a problem with that broker and it is much more difficult to file suit against an offshore broker. For me personally, the benefits do not yet outweigh the risks. Yes more leverage is nice, but for most people, including myself, it isn't necessary. It all depends on your strategy. For long term traders, leverage is not as important. To day traders and scalpers especially, leverage is much more important due to the smaller price movements. For these type of traders, leverage also allows the trader to hold more positions at one time or open an outsized position. Obviously all theses things increase risk as well, and most people with good risk management typically wouldn't use more than or even as much as 1:50 leverage.

Overall, I agree that the freedom of choice should be there. The US is a "free" country and US citizens should be allowed to blow their accounts if they so choose. The same way we are allowed to blow as much as we want in casinos. That just goes to show how much some things are backwards in our great nation. However, unless they continue to lower the leverage, 1:50 is fine for me and gives me a better peace of mind with my money knowing that it is at least regulated by someone I can hold accountable.
  • #52
  • Jul 21, 2015 12:19pm Jul 21, 2015 12:19pm
Quoting PipC
{quote} All brokers are crooks to some extent. Some are more than others obviously. However, the strict regulation of the US does still provide a degree safety that you would not necessarily get with an offshore broker. Now I am sure there are some trust worthy offshore brokers, but you would always be at the mercy of that country's regulations if you have a problem with that broker and it is much more difficult to file suit against an offshore broker. For me personally, the benefits do not yet outweigh the risks. Yes more leverage is nice, but...
I appreciate your thoughts, however, there is no "peace of mind" here. Who are you trading with? FXCM, Forex.com. They are fined over and over for breaking the rules and yet they are allowed to continue. The US government doesn't have your back when it comes to forex, so in my opinion, it's just the same as no regulation. Only difference, if something were to happen to either of our brokers, I'm only going to lose 10% of my trading account where you will lose 100%. My other 90% sits safely in my bank. When SNB removed the peg, FXCM account holders, who have 10 times more money on deposit than required because of the ridiculous leverage, came within an hour of losing their entire accounts. The US government would have done nothing. Forex.com and Oanda didn't have any issues simply because they made a killing that day.
  • #53
  • Jul 21, 2015 6:46pm Jul 21, 2015 6:46pm
Quoting Profit Daily
{quote} You pose some great questions. As far as what brokers are available, there are 13 left who will accept US clients, only 3 are worth trading with, as I stated above only one truly stands out above all. I do not want a commercial label, so I am more than happy to share via PM.
Yes please. PM sent.

Thank you
Charts are limited in nature. What is the relative location?
  • #54
  • Jul 21, 2015 7:12pm Jul 21, 2015 7:12pm
Quoting traderathome
{quote} SEC Should Replace NFA, CFTC? Surely You Jest! "SEC should be agent for fx trading, not NFA, CFTC." - Are you kidding? The SEC is the granddaddy of all false regulators! The "Thieves of Wall Street" (remember, these are the banks) have had the SEC in their back pocket for decades, many, many decades. And where do the past heads of the SEC go when they "retire" from doing next to nothing to protect the public and shareholders? They go right to some cushy seat on the board of some company related to the "Thieves of Wall Street", where they...
Real culprit is CME who made all these happen. They simply do not want spot forex trading. Period. They want every one to trade futures at CME. CFTC helps CME in big way by enforcing all these stupid and anti-profit rules at US fx brokers. But they go one step further. They have gone to every corner of the world and bullied most of the overseas brokers into not accepting US clients. All this in name of protecting retail traders. They think retail traders are all stupid. Hypocrisy about these is that US government goes to every developing country and preach them to open their markets. Only reason they are getting away with these stupid rules, is that US retail traders are not united under one banner. So when all these decisions are being made there is no one to represent interest of US retail fx traders. If I make enough money trading fx, I would like to hire an influential law firm and challenge the constitutionality of thee monopolistic rules imposed on US traders.
  • #55
  • Jul 21, 2015 8:01pm Jul 21, 2015 8:01pm
Hello Sir, Good to see all is going well with you. I am very glad you are still here helping people. I agree with you that it just keeps getting harder to survive with the US brokers. I just read today that Hillary wants to tax all short term trading. It's very possible too if she wins. I sent you a pm as well. God Bless you Sir. Mr D
Jesus my Lord
  • #56
  • Jul 21, 2015 8:10pm Jul 21, 2015 8:10pm
Quoting Abhimanyu
{quote} Real culprit is CME who made all these happen. They simply do not want spot forex trading. Period. They want every one to trade futures at CME. CFTC helps CME in big way by enforcing all these stupid and anti-profit rules at US fx brokers. But they go one step further. They have gone to every corner of the world and bullied most of the overseas brokers into not accepting US clients. All this in name of protecting retail traders. They think retail traders are all stupid. Hypocrisy about these is that US government goes to every developing...
Dead on correct. They tried to disguise the regulations as protecting the trader, but you hit the secret motive right on the head. If they really wanted to protect us, they would at least allow segregated accounts and maybe have a 3 strike and your out policy on brokers. How many times has FXCM and Forex.com been fined?
  • #57
  • Jul 22, 2015 8:37am Jul 22, 2015 8:37am
Quoting Profit Daily
{quote} I appreciate your thoughts, however, there is no "peace of mind" here. Who are you trading with? FXCM, Forex.com. They are fined over and over for breaking the rules and yet they are allowed to continue. The US government doesn't have your back when it comes to forex, so in my opinion, it's just the same as no regulation. Only difference, if something were to happen to either of our brokers, I'm only going to lose 10% of my trading account where you will lose 100%. My other 90% sits safely in my bank. When SNB removed the peg, FXCM account...
Actually I use neither. I use TD Ameritrade for forex. I have heard nothing but bad things about both FXCM and FOREX.com. The only reason I am going to consider using them is because they are the only providers that allow you to trade forex in an IRA. My taxable account stays with TDA. I spoke on the phone with a sales rep from FXCM and he explained how the CHF disaster affected them. He mentioned that they were the ones that had to eat the costs, not the over-levered customers. Still I decided not to try FXCM and will probably open the IRA with FOREX.com instead.

What I do agree with you about is the fact that using only 10% of your total funds, you can still manage your risk the same way you would with having to have the total balance in one account. In that sense your risk is limited. That is a great idea. However, what about the fees associated with funding the accounts. Most offshore brokers charge fees for depositing and withdrawing funds whereas US brokers typically can fund and withdraw via ACH for free which is very fast and easy. Additionally, I recall trying to fund an offshore account one time and they told me that they never received the funds, even though the funds were withdrawn from my bank account! I spent nearly 1 month trying to argue with them about the fact that they had my money and told me that it was the payment processor who is responsible for dealing with the discrepancy. This really upset me and scared me from trying offshore brokers again.
  • #58
  • Jul 22, 2015 9:10am Jul 22, 2015 9:10am
Quoting PipC
{quote} Actually I use neither. I use TD Ameritrade for forex. I have heard nothing but bad things about both FXCM and FOREX.com. The only reason I am going to consider using them is because they are the only providers that allow you to trade forex in an IRA. My taxable account stays with TDA. I spoke on the phone with a sales rep from FXCM and he explained how the CHF disaster affected them. He mentioned that they were the ones that had to eat the costs, not the over-levered customers. Still I decided not to try FXCM and will probably open the...
I completely understand why you would have a bad taste in your mouth. Unfortunately, there are some bad brokers (both here and offshore). I have always followed the motto you can't let one bad apple spoil the bunch. I have sent you a PM.
  • #59
  • Jul 24, 2015 7:15am Jul 24, 2015 7:15am
Just want to give a quick update. I just made my weekly withdrawal and they are now instant with my broker. Hit e-wallet immediately and on it's way to my bank already!
  • #60
  • Jul 24, 2015 7:23am Jul 24, 2015 7:23am
Quoting Profit Daily
Just want to give a quick update. I just made my weekly withdrawal and they are now instant with my broker. Hit e-wallet immediately and on it's way to my bank already!
Have you found eWallet to be a better option than wire?
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