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CFTC Rules - Broker Q&A for Traders

Discussion in 'General Forex Talk' started by AsstModerator, Sep 29, 2010.

  1. GinjaNinja

    GinjaNinja Recruit

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    Awesome... ;)
     
  2. GinjaNinja

    GinjaNinja Recruit

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    Still need more than the House to pull this off. You can create other legislation to override this law though... looks like the next President is going to have their hands full as long as they aren't apart of the DemoSocialist party..
     
  3. GinjaNinja

    GinjaNinja Recruit

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    Option 1: Wouldn't do that... if all of a sudden you have a $10M increase in assets in one year.. the IRS will have a field day with you. All in all, not a bad idea but sadly, all of our government entities talk to each other. (Except for law enforcement and intelligence bodies, go figure)

    Option 2: Too complicated, I've looked. However.. you could start a Panamanian bank..

    Option 3: This is the option I am playing with. The question is Where? BVI seems to be a good option, but I'm not opposed to Panama either. I'm all for an offshore hedgefund/bank.

    It's sad we have to go elsewhere to pursue the American dream.
     
  4. Damon

    Damon Founder/Director Pellucid FX

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    What do Americans want?

    Hey guys,

    So now that you are seeking out unregulated brokers:

    Can any of you think of a way that a broker could be unregulated and still prove that it was on the up and up?

    Or multiple ways?
     
  5. Pharaoh

    Pharaoh Colonel

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    The US is making it harder and harder for US residents to open accounts with offshore brokers, regulated or unregulated.

    For any broker, US or other, you need to do some research. Check the reviews here at the FPA and look for serious complaints on withdrawals. By serious, I don't mean "I asked for my money 4 days ago, where is is?". I mean cases where the person has been asking for several weeks and keeps getting excuses.

    Run a google search on the broker's name and see what else you find.

    There's more info on researching a broker here:
    http://www.forexpeacearmy.com/forex-forum/forex-basics-boot-camp/2333-how-select-forex-broker.html

    And, on how to spread your money so that one bad broker can't wipe you out here:
    http://www.forexpeacearmy.com/forex-forum/forex-basics-boot-camp/3033-wealth-protection.html


    You can also ask a professional Due Diligence service like www.4xangels.com to do research for you.
     
  6. Gainpips

    Gainpips Recruit

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    I dont understand why some brokers allow US clients, while other brokers (within same City) have discontinued their relation with US clients?

    Is the US government 'choosing' which brokers it will allow and which not to allow US citizens to open an account with?
     
  7. maxwel

    maxwel Recruit

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    Hi
    Sorry for my English.
    I'm interesting in binary options. Does it under CFTC/NFA regulation too? If I US citizen/resident can I work with non-US binary broker?
    Thank you.
     
  8. mkeysor

    mkeysor Recruit

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    It seems like this thread is just about dead, but I need some help. I used to trade with TDFX until they stopped accepting US clients, now I'm currently with Hot Forex and they are ending their service of US client on June 5th. I only option I know that I can trade with is FinFx, but I'm sick of moving my money around. I have to have hedging abilities and I can't do that with US brokers. I'm a US citizen, i'm thinking of opening an off-shore corporation so I can trade a corporate account, but I don't know if they'll accept it. Any ideas of working around this?
     
  9. marsh56

    marsh56 Private

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    It is insidious just how long an arm the US has with these ridiculous regulations. In my case, I use FXDD because they are able to offer hedging without breaking the rules. However, due to the 50:1 margin, you basically need to use 4 to 8 times the capital.

    Regarding offshore options, I understand that the UK may have some relatively inexpensive options. The challenge is that none of the officers of the corporation can be US citizens, at least to my knowledge.

    As long as you have $10k or more, I would go with FXDD.

    Mark
     
  10. mkeysor

    mkeysor Recruit

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    Oh FXDD does? I didn't know that. I'll have to jump on a demo account and check it out. Thank you! ...You're right the 50:1 is a killer.

    As for the offshore stuff, it's kinda foreign to me but it looks like it could work in Seychelles, Nevis, or a few other places, but it would be between $1400-3500 to get all the documents, bank account, registered office, etc.

    Mike
     

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