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Author Topic: New CFTC Rules --- Foreign Brokers for Americans  (Read 28351 times)

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #165 on: November 01, 2010, 04:07:54 AM »
Quote
That sounds like a plan, especially if you have gains, but what would you do if you take on huge loss?

Depends on what sort of risk you're talking about.  There are unregulated brokers well known and with excellent reputations in the retail forex community I trust much more than the likes of FXCM, Alpari-US, Gain, FxSol, et al.  I don't think they'd run off with my money.  If they do... well that's what I mean by risk.  One post in forex peace army & their businesses are dead meat.

And I have enough confidence in my abilities at this point not to get myself in trouble with my trading.

A regulated broker outside the US with a segregated client bank account is clearly the best solution.  But if pushed to it, and that solution became totally unavailable, some unregulated foreign brokers are distinctly superior to the US ones, IMHO.  They may be unregulated, but they've been around for years & are extremely responsive to customer issues on forexpeacearmy & elsewhere.  I trust them, and would trade with them in a heartbeat.  As compensation for my troubles and the added risk, the US government would learn nothing from me about the accounts, and by the very nature of those brokers themselves (no discrete physical location, no segregated account,...) they'd be very unlikely to find out about the account elsewhere.  If that's the path our regulators want to take, then so be it.  It's not helpful to the government.  It's not helpful to me.  But it is what it is.

A.
« Last Edit: November 01, 2010, 04:25:00 AM by aicohn »

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #166 on: November 05, 2010, 10:14:31 PM »
Got a call from my new australian broker last night just out of the blue asking how I was getting on with their trading platform, congratulating me on my trading success and encouraging me to keep doing what I'm doing.

About 50 trades the past 2 weeks, not a lick of slippage, spreads low and tight, 200:1 leverage, money safely on deposit in a segregated account at National Bank of Australia.  All angels and harp music.

I'm so glad I have the CFTC working hard to protect me.  What a terrific bunch of public servants and tax money well-spent!

;)
« Last Edit: November 05, 2010, 10:35:08 PM by aicohn »

Offline Scuba Stan

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #167 on: November 06, 2010, 05:17:51 AM »
Got a call from my new australian broker last night just out of the blue asking how I was getting on with their trading platform, congratulating me on my trading success and encouraging me to keep doing what I'm doing.

About 50 trades the past 2 weeks, not a lick of slippage, spreads low and tight, 200:1 leverage, money safely on deposit in a segregated account at National Bank of Australia.  All angels and harp music.

I'm so glad I have the CFTC working hard to protect me.  What a terrific bunch of public servants and tax money well-spent!

;)

I was able to set up account #2 with them ( the broker in question) this week..

ditto here.. No runs, no drips, no slip, no errors... ( can't say my money has done as well as yours, but hay,, trading is up to us!)  8)

Offline Rick

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #168 on: November 06, 2010, 06:42:04 AM »
Got a call from my new australian broker last night just out of the blue asking how I was getting on with their trading platform, congratulating me on my trading success and encouraging me to keep doing what I'm doing.

About 50 trades the past 2 weeks, not a lick of slippage, spreads low and tight, 200:1 leverage, money safely on deposit in a segregated account at National Bank of Australia.  All angels and harp music.

I'm so glad I have the CFTC working hard to protect me.  What a terrific bunch of public servants and tax money well-spent!

;)

Hello AI, thanks for all the great info you have been sharing... very encouraging.
I have tried to find the info on what are the brokers your talking about that you are so satisfied with but can't seem to find it anywhere... I would sure appreciate if you can let me know who it is that I can use living in the usa.

Thanks a bunch in advance,
Rick 

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #169 on: November 06, 2010, 07:41:26 AM »
You can't use them if you don't already have an account with them.  They stopped accepting US resident clients on October 19th.

If things get bad enough I suspect I can open an account with go or anybody I want by moving out of the US.  The restrictions seem based on residence not citizenship.  That may become necessary.

Noose is tightening.  Those unfortunate enough to continue living in the US may soon be restricted to fxopen, tadawul & ones from countries like Russia happy to stick it to the US.
« Last Edit: November 06, 2010, 07:43:36 AM by aicohn »

Offline Scuba Stan

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #170 on: November 07, 2010, 02:04:56 AM »
You can't use them if you don't already have an account with them.  They stopped accepting US resident clients on October 19th.

If things get bad enough I suspect I can open an account with go or anybody I want by moving out of the US.  The restrictions seem based on residence not citizenship.  That may become necessary.

Noose is tightening.  Those unfortunate enough to continue living in the US may soon be restricted to fxopen, tadawul & ones from countries like Russia happy to stick it to the US.

I got an account just 1 day before the cutoff.. I now have two accounts with them.. hoping to rename one to my IRA.


Offline Rick

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #171 on: November 07, 2010, 03:23:06 AM »
Congrats to both Scuba and AI for getting in on time... I did some scrambling myself just before the deadline in Oct and opened in a couple countries that seem to be pretty good but still sorry I missed the boat with these guys... ya never can have to many  :)     

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #172 on: November 07, 2010, 03:56:38 AM »
I am still looking to repatriate out of the US in about a year, even though I don't need to do that emergently right now because of this issue.  Once living elsewhere, this all becomes a moot point as even GoMarkets would welcome me back, though I'm not sure I'd go (pardon the pun).

Government has gone too far with this, so it's time to strike a blow for freedom by cutting ties with the US.  And I suspect this isn't the last encroachment on financial freedom US citizens will suffer.

For example, the government is really bankrupt considering all its off balance sheet obligations, and the $17 trillion in IRA and 401K plans will be a tempting cash cow for them to milk and/or slaughter.  There's a reason more americans believe in UFOs than believe they'll see a dime from social security.

Best to get out before the capital controls come in full force.  A second passport is a prudent hedge and I'm starting to save for one now.

JMHO.
« Last Edit: November 07, 2010, 04:04:32 AM by aicohn »

Offline Scuba Stan

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #173 on: November 07, 2010, 05:04:00 AM »
Dominica ..... $75k + fees... $100k +fees for a family..

sounds like an option...   but that is just dual citizenship... they wil still track you....

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #174 on: November 07, 2010, 06:34:51 AM »
Dominica ..... $75k + fees... $100k +fees for a family..

sounds like an option...   but that is just dual citizenship... they wil still track you....

It's a very good option because there are no income taxes on foreign derived income & no estate taxes.  I'm counting on $100K for myself by the time you include the cost of investigating myself and everything else.  That's what I'm budgeting for the effort.  But after that I could potentially live tax free. If I have a year to tie things up in the US & save an extra $100K for that, terrific.  If not, I have a reserve fund in the bank I'd use to move on this immediately, if I get a call from my broker that ASIC called them up and my business is no longer welcome.  A decent broker is essential to my livelihood.  Sooner or later, the US has lost the spirit, and so it's also lost me.

Yes, it's dual citizenship, but you do need that before formally renouncing US citizenship at a consulate.  Wouldn't want to be stateless, would you.  I agree merely getting the citizenship by itself is pointless, though it would give you residency abroad even without US renunciation.  And that seems to be the ticket to an account at GoMarkets and others.
« Last Edit: November 07, 2010, 06:45:28 AM by aicohn »

Offline DaveO

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #175 on: November 07, 2010, 07:11:22 PM »
Aircohn, did you check out my suggestion for looking at Casey Research to find their lifestyle research service. And Casey himself is right up your street with attitudes. They pretty much cover the globe for alternate location assessing all the pros and cons.
Get the job right first and the Money will follow.
Prerequisite for trading "My alphabet starts where your alphabet ends" (Dr Seuss)

Offline aicohn

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Re: New CFTC Rules --- Foreign Brokers for Americans
« Reply #176 on: November 10, 2010, 09:28:41 PM »
US forex brokers suffering under the CFTC.  FXCM lost $24 million in capital  from end of August to end of September.  Gain Capital (aka forex.com) despite its acquisition binge from forex brokers quitting the business shrank overall as well.  Oanda really the only one hanging in there.  This doesn't yet reflect the time period where the rules became imposed, just the lead-up to it.  On top of this, their businesses will be impacted by the leverage cuts themselves as each dollar of that reduced capital base can only be leveraged half as far (one-fifth as much for minors).  CFTC took a wrecking ball to the forex brokerage industry.  The CFTC doesn't need to hold an even bigger gun to our heads forcing us to use a bunch of inferior brokers.  They just need to come up with a better product!  Heaven forbid we should have access to an honest broker with decent spreads who doesn't manipulate the trading environment to steal us blind.  Leverage restrictions and a bunch of idiotic rules saying we can't close an order on the 2nd Tuesday of the month when Gary Gensler's left nostril itches is not helpful either.

Bottom Line: CFTC can make whatever rules they want, but money will still go where it's treated best.

And US forex brokers just aren't competitive.  They weren't competitive before the leverage reductions and are less competitive now.

http://cftc.gov/MarketReports/FinancialDataforFCMs/index.htm



« Last Edit: November 11, 2010, 03:22:29 AM by aicohn »

 

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