More Brokers Slapped by the CFTC. Their Crime? Daring to Accept US Traders.

Pharaoh

Colonel
Messages
19,957
Martin,
Social media is another option. If enough people complain, the law might get changed.

The drawback to that is a law can be change back and forth many times. A US Supreme Court ruling that overturns a law is likely to stick a lot longer and sets a precedent that can be applied in other cases of regulatory infringement on the rights of traders.

There's no reason that both avenues can't be tried simultaneously.
 

Pharaoh

Colonel
Messages
19,957
Some good news. Babis reports that he has heard from GigFx. Hopefully, they will be in touch with the rest of their clients soon.
 

duck

Private, 1st Class
Messages
47
The proper role of government as to forex is simply to protect against fraud. That's it. It's not to protect traders from themselves. If someone is made aware of terms and those terms are abided by then government should stay away.
 
Messages
8
There is a greater issue than US Citizens wanting to trade with an offshore broker.

There are some, not many US brokers that are acceptable, and two that are superb.

But the greater issue that a US trader faces are the rules that apply to them....lower leverage to be specific, and forced into a system where funds are within the accounts of the broker that you are dealing with, vs. other situations where you funds are kept in a reliable financial institution....Bank of New York for example. I do not need the protection from Dodd-Frank to be safe...the laws have "handcuffed" me.

Leverage is the major issue, however. You can't even get 50 anymore across the board.

As a "day trader" under the rules that allow foreign nationals to trade, I can profit heavily...more than 2% ROI per day, usually about 4% using the 200 leverage with a conservative approach. Under the Dodd-Frank laws, I am now a member of what I call the "96 club" which means that 96% of all traders lose all money within weeks or just a couple months.

This rule of low leverage gives all the money to foreign nationals, and even the ones that trade within our shores because of citizenship.

The law is a massive discriminatory policy that only affects US citizens. (a US broker is allowed to extend the higher leverage to a foreign national)

If the laws were meant to protect US citizens, it would be adjusted in the following ways: First, the funds would not be held in the broker account. Second, a margin call would only take a position away to satisfy the certain losses against an account, not a blanket closure that requires a rebuy to attempt to recover with spreads as additional costs, and sometimes commissions. AND Third, allow 200 leverage, but cut off spending at the 100 level.

These adjustments to the law could actually make the partial name of the Dodd-Frank "Consumer Protection Act" valid.

If you need to contact Chris Dodd about the issue, he is now the CEO of the Motion Picture Association of America. Barney Frank is going to be out of office 2013, because he is getting married to his boyfriend.
 

Red Herring

Corporal
Messages
388
But what about Non-US traders! Which broker and which regulator will give them safety? I tried to open an account with Oanda but I do not like their condition of withdrawal: They said that deposit and withdrawal methods have to be the same! Why man? Whats your problem! I may want my friend to deposit my money and may want to withdraw my money through Moneybookers (skrill)!
 

itkraze

Private, 1st Class
Messages
200
The reason why the brokers want same method for deposit and withdraw is to avoid misuse of funds exchange. There are fees associated with the exchange of funds from one payment processor to other.
 

Red Herring

Corporal
Messages
388
The reason why the brokers want same method for deposit and withdraw is to avoid misuse of funds exchange. There are fees associated with the exchange of funds from one payment processor to other.

Ok! I have got a solution...thanks for your response.
 

usxpat

Recruit
Messages
3
Hello, I am wanting to know if i am understanding this correctly. The CFTC has regulations preventing a usxpat from investing in any brokers not registered in the USA. I am American citizen, but reside in the Philippines. I have looked at multiple brokers and like some but they said they cannot accept US clients. I am sticking to ones registered in US, Eng., and Aus. Not really found any in the USA that I like that do not require high deposits.
 

Pharaoh

Colonel
Messages
19,957
Different brokers seem to interpret expats differently. It's probably best to ask each one individually.
 

usxpat

Recruit
Messages
3
thanks, just seems the ones i am more interested in from quick overview are the ones that dont take Americans. But then i was thinking may just use my wifes name. Then no worries.
 
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