CFDs Banned For US Citizens Inquiry | Forex Factory

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CFDs Banned For US Citizens Inquiry

  • #1
  • First Post: Edited Aug 5, 2025 8:32pm May 27, 2016 3:52am | Edited Aug 5, 2025 8:32pm
Z8
  • #2
  • May 27, 2016 3:55am May 27, 2016 3:55am
Quoting chartsndream
So, If I have an offshore brokerage account (i.e Tradersway), I have the ability to trade CFD of securities (such as Apple) with no issues. However, looking into more details on CFDs I read that they are banned in the USA. So my question is, yes I have the ability to trade CFDs with an offshore account as a US citizen but am I really legally able to do so in this manner? In regards to when it's time to report taxes at the end of year and whatnot? I am starting this thread because I could not find a clear answer on the web. Thank you in advance.
Well according to Frank-Dodd rule, it's NOT legal to do so but there is a reason WHY they are called "offshore" because they are in places where US government's hands have not been able to extend to, yet.
Make your losses in demo. Earn your profits live.
  • #3
  • May 27, 2016 3:57am May 27, 2016 3:57am
Quoting Forexia
{quote} Well according to Frank-Dodd rule, it's NOT legal to do so but there is a reason WHY they are called "offshore" because they are in places where US government's hands have not been able to extend to, yet.
Thank you for the response. So what does one do for when it's time to report taxes? That is my main concern? Not paying taxes seems a more serious crime than committing murder itself, at least in the eyes of the Government, they want "their" damn money.
  • #4
  • May 27, 2016 2:36pm May 27, 2016 2:36pm
Quoting chartsndream
{quote} Thank you for the response. So what does one do for when it's time to report taxes? That is my main concern? Not paying taxes seems a more serious crime than committing murder itself, at least in the eyes of the Government, they want "their" damn money.
That I dunno. You might have to consult a lawyer for it or maybe that's the whole purpose of stashing money "offshore".
Make your losses in demo. Earn your profits live.
  • #5
  • Last Post: May 29, 2016 11:33pm May 29, 2016 11:33pm
@chartsndream I probably wouldn't report the income but rather wait for the fine, that is if you are in the big league. Other than that it is pretty much a grey area, if the amount is in 3 digits they probably wouldn't send an IRS agent. Just consider them as a collection agency for the government, but I do know that it is negotiable through an accountant while filling the forms.

However don't take my advice for it, seek out legal help as @Forexia suggested.
militarymonk
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