Why is US prohibited

[nsinfodesk]

Am just wondering why US residents is prohibited from most forex brokers. Is there something wrong with US residents or is the problem with the brokers. It seems to me that this brokers don't want to be held accountable by US regulators and financial agencies, which could mean that they are not transparent in their dealings. What do you guys think?

 

[tacet]

No, it's because of difficulties with US taxation...

 

[Nimo2006]

Am just wondering why US residents is prohibited from most forex brokers. Is there something wrong with US residents or is the problem with the brokers. It seems to me that this brokers don't want to be held accountable by US regulators and financial agencies, which could mean that they are not transparent in their dealings. What do you guys think?

I think the main reason because conflict of interest between EU and US regarding trading rules in forex markets i.e ( EU allowing hedging but US not )

 

[nsinfodesk]

No, it's because of difficulties with US taxation...

Does it mean the brokers pay tax to all the countries they have clients

 

[tacet]

it's not about brokers but citizens - they pay US tax even if they reside outside the US....

 

[landorra]

it's not about brokers but citizens - they pay US tax even if they reside outside the US....

This is why I'm for NOT to be a US resident.

 

[Christina Ledger]

to do with tax reasons i believe

 

[Purekiller]

There is number of reason. First of all, the US has severe regulations and taxation issues and most brokers don't want any problems. Secondly, the US force it citizens pay the US taxes even if they live outside the US and there is also legal problems with this. That's why most brokers try to avoid the US citizens

 

[Pharaoh]

to do with tax reasons i believe

The US government does want to make sure to tax ALL sources of income, but it's more than just this.

Many Americans have lost large sums of money to offshore forex brokers (even regulated ones). Technically, it's not exactly legal for an offshore broker to accept most US citizens/residents (a few may have found loopholes and/or ways to avoid prosecution), but this leaves the US citizens with little recourse in the event the broker decides to steal all the money.

This way the US government can carefully watch more of the money in the name of protecting consumers, which conveniently makes collecting taxes on any profits easier.

 

[theforexarmy111]

yes most brokers cant board US clients