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.
