US Based Clients Using Offshore Brokers - Any Issues?

[ozzymandius]

So I was thinking of using some non-USA brokers for trading as they offer much greater leverage than what I can get here in the US. There are a handful with good reps that accept US clients (most do not).

Questions for any US traders doing offshore FX trading - have you run into any issues after you do your taxes? Like has the IRS or some other US government watchdog told you to *cease* using offshore FX brokers and only to use US ones? I know that the feds do not want foreign FX brokers soliciting US-based clients but my understanding is that it is still perfectly legal for a US citizen to trade with a foreign FX broker just as long as everything is declared and that said broker did not actively solicit the US client to trade there. Is my understanding correct?

Any advice much appreciated!

 

[DavidC1]

I have met a couple of people who use them. I haven't heard of anyone having problems.

 

[ozzymandius]

Thanks. That gives me more confidence in trying them out.

 

[AsstModerator]

Many offshore brokers won't accept US clients. Many of the ones that do are unregulated or are poorly regulated.

If anyone wants to discuss the pros and cons of specific offshore brokers that do accept US clients, please do so in the Company Comparisons and Competitions folder.

 

[Pharaoh]

I recall the CFTC went so far as to take a broker with no US clients and which never had solicited US clients to court for not blocking US clients.

It's too bad they don't apply this excess aggression to binary options scam brokers that directly or indirectly do solicit US clients.

 

[ozzymandius]

I recall the CFTC went so far as to take a broker with no US clients and which never had solicited US clients to court for not blocking US clients.

Man, that's nuts. I can only imagine that broker had a branch or an office in the US, or maybe hosted their site on a US server. Foreign brokers should be smart and just remove all their ties to the US to avoid overzealous cross-border prosecution.

 

[Faelar]

Offshore isn't evil, it's an absolutely habitual practice, which allows brokers to save money, so don't be afraid of it, especially since it can be profitable for you as well.

 

[Enayess]

Do you think there's no problem with any other broker? It happens all the time, because there are very few real brokers now, it seems that there are almost no normal brokers left. Everything should be competently checked and tracked all the operations that are carried out with your money. There is no other way.

 

[Mnefyn]

It seems to me that the American system of control over trading activity is one of the most powerful and this leads to the fact that there is really no need to fear that the problems will be regular.

 

[Gromvelt]

I think that problems can arise even if the company is completely fine...
It may be related to some financial issues or to the fact that the client himself did not understand the terms of cooperation...
Everything is relative...