Why don't many brokers accept US traders? | Forex Factory

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Why don't many brokers accept US traders?

  • #1
  • First Post: Sep 21, 2015 12:18am Sep 21, 2015 12:18am
I know plenty of forex brokers and most of them don't accept US-based trader? What make US trader different than other regions? If US trader trading with them, what are the problems? Did google but not too much information.
  • #2
  • Sep 21, 2015 1:45am Sep 21, 2015 1:45am
Because of the FIFO rules.

http://www.babypips.com/blogs/espipi...ex_market.html
  • #3
  • Sep 21, 2015 6:57am Sep 21, 2015 6:57am
Tax issue, see UBS fined by US tax office.
  • #4
  • Sep 21, 2015 11:29am Sep 21, 2015 11:29am
$20 million dollars to play and NFA regs are the hurdle.
  • #5
  • Sep 22, 2015 5:14am Sep 22, 2015 5:14am
Quoting ste577
Because of the FIFO rules. http://www.babypips.com/blogs/espipi...ex_market.html
FIFO is just one thing. In general its because to deal with US based customers you have to be regulated by the CFTC. Considering the differences in regulations (FIFO, no hedging, leverage, capital resources ... just to name a few) that would come down to running a separate entity for these customers. Lots of work for an otherwise saturated market ...

However, if I remember correctly there is some trade deal similar to TTIP in the make but its targeting financial products, maybe that would open the US market for EU based brokers. I just can't remember the bloody name for that thing ...
  • #6
  • Sep 22, 2015 7:21am Sep 22, 2015 7:21am
Brokers work on the American market is controlled very tough and closely. To provide services for Forex trading, broker must obtain the appropriate license, and obligatory to have a guarantee deposit in amount of about 20 million dollars. Therefore, many brokerage companies from other countries, observing the requirements of US law, provide warnings on websites that their services are not intended for US citizens. But US law does not prohibit citizens of this country to trade in Forex market outside the US jurisdiction.
  • #7
  • Sep 29, 2015 10:15am Sep 29, 2015 10:15am
So does this mean that I can rely on US brokers fully? Oanda for instance?
  • #8
  • Sep 29, 2015 10:25am Sep 29, 2015 10:25am
Quoting Dunno67
So does this mean that I can rely on US brokers fully? Oanda for instance?
Their regulation is pretty tight yes, but since you're not US based it doesn't make much sense to pick a US based broker. The EU based or especially the UK brokers have a much better offer. Deposit protection fund (50k GBP in UK) and no stupid FIFO rule comes to mind.
  • #9
  • Sep 29, 2015 10:28am Sep 29, 2015 10:28am
Non US BROKERS has to comply with US gov - NSA, IRS etc to spy on US citizens.
  • #10
  • Sep 30, 2015 9:46am Sep 30, 2015 9:46am
Quoting JensG
{quote} Their regulation is pretty tight yes, but since you're not US based it doesn't make much sense to pick a US based broker. The EU based or especially the UK brokers have a much better offer. Deposit protection fund (50k GBP in UK) and no stupid FIFO rule comes to mind.
Thanks a lot for the answer! What do you think about brokers based in Asia, as I know Indonesian brokers don't have any regulation bur they have quite a big part of the market (FBS for instance)?
  • #11
  • Sep 30, 2015 10:00am Sep 30, 2015 10:00am
Quoting Dunno67
{quote} Thanks a lot for the answer! What do you think about brokers based in Asia, as I know Indonesian brokers don't have any regulation bur they have quite a big part of the market (FBS for instance)?
I honestly don't know. Since their servers are usually based in Asia, too (which makes a lot of sense for their local customers!) I've never had a look at their offerings. Apart from the server location thing I have quite some money with my brokers (I trade for a living) so I generally do not care for offers without a deposit protection. On top of that, they (or my local bank, or both ...) would probably charge me an arm and a leg for withdrawals.
  • #12
  • Sep 30, 2015 5:14pm Sep 30, 2015 5:14pm
I still see some offshore brokers accept U.S traders. How do they do it?
  • #13
  • Sep 30, 2015 5:19pm Sep 30, 2015 5:19pm
Quoting Dunno67
{quote} Thanks a lot for the answer! What do you think about brokers based in Asia, as I know Indonesian brokers don't have any regulation bur they have quite a big part of the market (FBS for instance)?

There are also decent regulated brokers in AU.
  • #14
  • Sep 30, 2015 5:23pm Sep 30, 2015 5:23pm
Quoting alvinbone
I still see some offshore brokers accept U.S traders. How do they do it?
They choose not to comply with US laws and feel they are outside the reach of enforcement, legally that is. A legit, honest FX broker in China that accepted US clients would make a killing because they are mostly beyond the enforceable reach of US regulators.... Same thing happening in these small island all over the place, but not so legit and honest...
  • #15
  • Sep 30, 2015 6:23pm Sep 30, 2015 6:23pm
https://www.tallinex.com/
  • #16
  • Sep 30, 2015 7:18pm Sep 30, 2015 7:18pm
It's the US version of capital controls... under the guise of "protecting" retail traders.

  • #17
  • Sep 30, 2015 8:55pm Sep 30, 2015 8:55pm
Quoting nonlinear
{quote} They choose not to comply with US laws and feel they are outside the reach of enforcement, legally that is. A legit, honest FX broker in China that accepted US clients would make a killing because they are mostly beyond the enforceable reach of US regulators.... Same thing happening in these small island all over the place, but not so legit and honest...
Ending up on uncle sam's shitlist is just no fun. For starters, you wont find a reputable international bank doing business with you. The US regulator has no extra-territorial jurisdiction. But firms on the US list are considered toxic by everyone in the financial world, and noone will want to touch them, unless they want to end up on the list as well. They even got some small time FX firms on some caribbean islands to settle, pay fines, cease & desist. The only ones that do take americans are outright scams or tiny shady firms that are somehow able to fly under the US' radar.
  • #18
  • Oct 1, 2015 12:10pm Oct 1, 2015 12:10pm
When I first see most broker don't accept U.S trader, I get chill out and think , money of US trader is something invulnerable. Since I believe most trader would lose their money for broker
  • #19
  • Oct 1, 2015 12:28pm Oct 1, 2015 12:28pm
Quoting alvinbone
When I first see most broker don't accept U.S trader, I get chill out and think , money of US trader is something invulnerable. Since I believe most trader would lose their money for broker
I honestly found it incredibly funny to find the US sometimes literally next to the axis of evil.
  • #20
  • Last Post: Oct 4, 2015 6:08am Oct 4, 2015 6:08am
US is a evil force and no broker is going to take risk with them. We have seen in past with Payment processors paying the price, so that is enough for every company to distance themselves from this monster.
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