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Offshore for US Citizens

May 02, 2012 at 16:58
3,128 Views
29 Replies
ForexScam
forex_trader_32776
Member Since Mar 28, 2011   1008 posts
May 02, 2012 at 16:58
Hotforex pulled the plug on US citizens. All open positions will be closed on June 5th

Is finfx next?

Are there any other offshore brokers still accepting US citizens?
TradeCopier2012
forex_trader_67014
Member Since Feb 24, 2012   77 posts
May 02, 2012 at 17:46 (edited May 02, 2012 at 17:46)
It´s a shame. Everybody should be allowed to make some spare money. Because this money will be spend. And this is good for any country.
Member Since Apr 13, 2012   6 posts
May 03, 2012 at 06:43
There are still work arounds. The Dodd Frank mentions 'residences' not 'citizenship'.

I'm not willing to discuss it publicly, for fear of Big Brother, clamping down even tighter on the freedom of the American people.
TheCyclist
forex_trader_28881
Member Since Feb 07, 2011   724 posts
May 03, 2012 at 08:52
Member Since Apr 13, 2012   6 posts
May 04, 2012 at 07:35
IBC's will no longer work as of late last year. I confirmed this with the legal team at my broker of choice.

Basically they find out who the owner is and where they are banking and you will not get into a Forex broker using an offshore corp. They will find out you are a US resident.

Again note I said 'resident' and not 'citizen'.
Member Since Jul 23, 2010   70 posts
May 04, 2012 at 11:54
I hear central america has affordable beachfront property...
go with the flow; just be on the right end of the wave
TheCyclist
forex_trader_28881
Member Since Feb 07, 2011   724 posts
May 04, 2012 at 12:09 (edited May 04, 2012 at 12:11)
OF

I'm going to respectfully have to disagree with your 'legal team at your broker of choice'.

You can do a hybrid IBC in a jurisdiction like Hong Kong and there simply is no way of finding out anything. The Swiss might have sold out and there are a few jurisdictions labeled as tax havens that could sell you out, but the rest of the world hasn't. In particular the Chinese. Who probably hates Americans.

Ironic, isn't it?
Member Since Jul 23, 2010   70 posts
May 04, 2012 at 12:19

   OceansideForex posted:
   IBC's will no longer work as of late last year. I confirmed this with the legal team at my broker of choice.


Yes they want you to think that forex brokers are omnipotent wizards who can see the future with a crystal ball...
 
C'mon man think about, ofcourse they are going to tell you that same line of garbage to dissuade anyone who asks from trying it which like pip-g said is easy if they can't find out it's you.

It's not in their best interest to say 'yes you can do this'
most lawyers only ever tell ppl what NOT to do, lol!
go with the flow; just be on the right end of the wave
Member Since Apr 13, 2012   6 posts
May 07, 2012 at 06:10
Thanks for the replies, no direspect has been taken.

There are a few work arounds that I've found that have worked, but I was under the impression that the IBC routine had gone the way of the dinosaur.

I'll look more into your sovereigngroup link.
Member Since Nov 25, 2010   12 posts
May 07, 2012 at 16:26
I like you, am with Hot Forex and in the same situation. I have looked into the IBC route and to get around you being part of the corp and a resident of the US, you have a nominee director for the IBC that has residence in that country, but gives you full power of attorney to do what you need to do.
Member Since Apr 20, 2012   7 posts
May 12, 2012 at 09:54
nominee will not work. Not with power of attorney, if broker cares, they will say you are us citizen.if broker doesn't really care, it will be fine. Hot forex appears to be taking the hard line of no us owners, directors etc
TheCyclist
forex_trader_28881
Member Since Feb 07, 2011   724 posts
May 12, 2012 at 12:03
There is a form of hybrid company gents, which is a trust with a board that you might or might not sit on. There is no ownership to declare or power of attorney.

It should still be ok to use that structure.
Member Since Mar 07, 2010   35 posts
May 12, 2012 at 14:18

   robl45 posted:
   nominee will not work. Not with power of attorney, if broker cares, they will say you are us citizen.if broker doesn't really care, it will be fine. Hot forex appears to be taking the hard line of no us owners, directors etc

If I had my choice of any offshore broker, I wouldn't go with HF. They don't have the best trading conditions in terms of executions and disconnects. It's also ironic that they were still accepting U.S. residents when most brokers had already closed their doors to them, and now they are not accepting foreign companies with U.S. residents as directors which most brokers will accept. Maybe they just can't read.
Member Since Apr 13, 2012   6 posts
May 12, 2012 at 15:39
Correct. Most legitimate brokers are now wanting to know 'who the owner is' and if you don't give it to them....you don't get an account.

Don't fall prey to 'scam' brokers.

Instead, write a letter to your government asking why you have no freedom..
Member Since Apr 20, 2012   7 posts
May 12, 2012 at 19:13
no that won't work either, they will want to know the settlor of the trust and the beneficiaries. if the broker doesn't care, and many I believe won't, then a simple IBC will be fine, if they do care, this otherstuff won't help. go look at any bank application, if you open as a trust, they will not to see ID and address verfication for all settlors, trustees, protectors, etc. I was just reading over an offshore bank application yesterday.
Member Since Apr 20, 2012   7 posts
May 12, 2012 at 19:33

   Britt posted:
   

   robl45 posted:
   nominee will not work. Not with power of attorney, if broker cares, they will say you are us citizen.if broker doesn't really care, it will be fine. Hot forex appears to be taking the hard line of no us owners, directors etc

If I had my choice of any offshore broker, I wouldn't go with HF. They don't have the best trading conditions in terms of executions and disconnects. It's also ironic that they were still accepting U.S. residents when most brokers had already closed their doors to them, and now they are not accepting foreign companies with U.S. residents as directors which most brokers will accept. Maybe they just can't read.

HF has some redeeming qualities, the disconnects have for the most part stopped, the executions aren't great, but aren't terrible. there is no slippage except for the occasional gaps. not to mention they have very high rebate rates. and because their feed is flitered, my ea's tend to do better on it.

I have been looking at pepperstone, but then its approximately half the rebate size. if you have ea's that aren't going for fixed pips then i suppose the lower spread would help but the difference in spread between HF and pepperstone is like .4 or so, its not that big of a deal
Member Since Apr 20, 2012   7 posts
May 12, 2012 at 19:34

   OceansideForex posted:
   Correct. Most legitimate brokers are now wanting to know 'who the owner is' and if you don't give it to them....you don't get an account.

Don't fall prey to 'scam' brokers.

Instead, write a letter to your government asking why you have no freedom..

we will never have any freedom, things get taken away, they don't get given back.

actually from what i've heard, most brokers could care less who the owner is as long as the corp is foreign as the entity is opening the account and it would be had to believe that the usa is going to coerce these companies to go through all their foreign corps to find ones that have usa owners or directors and such.

the real problem is that this comes from chatting with the brokers. I'll believe it more when i get confirmation that people have opened accounts.
Member Since Apr 13, 2012   6 posts
May 12, 2012 at 19:35
I guess the debate here is whether or not you are going to use a broker who 'doesn't care' if they can't verify the owner. The problem with that is you have brokers like MF Global.......White Swan Group.....and the myriad of other Scams who can and sometimes do close up and disappear with your funds.

We trade at MIG Bank.

The offshore IBC/Trust setups will not work there. However MIG Bank is a Bank. Your initial deposits are protected by the Swiss Government. The execution is amazing. The liquidity feeds are amazing. I've yet to see a 'price spike' (and I stare at charts at least 60 hours a week), and you can still Hedge, use your margin at your discretion, and there's no FIFO.

Anyhow...I didn't mean to get into a 'plug for MIG Bank' speech here, I'm just saying companies like Hot Forex, and FinFX....well......how are you as the client protected if you can sneak on in and use them? I've seen Forex 'companies' that look just like them....close up shop and scam their traders.

----

However I'd like to repeat again because I have found workable solutions to this question.

The Dodd Frank Bill.....does not talk about citizenship. It talks about residency.
Member Since Mar 07, 2010   35 posts
May 12, 2012 at 20:12

   robl45 posted:
   

   OceansideForex posted:
   Correct. Most legitimate brokers are now wanting to know 'who the owner is' and if you don't give it to them....you don't get an account.

Don't fall prey to 'scam' brokers.

Instead, write a letter to your government asking why you have no freedom..

we will never have any freedom, things get taken away, they don't get given back.

actually from what i've heard, most brokers could care less who the owner is as long as the corp is foreign as the entity is opening the account and it would be had to believe that the usa is going to coerce these companies to go through all their foreign corps to find ones that have usa owners or directors and such.

the real problem is that this comes from chatting with the brokers. I'll believe it more when i get confirmation that people have opened accounts.

I'm in the same boat as you, Rob. But supposedly an IBC is its own entity, and there's is no specific wording that says an IBC with U.S. residents as directors can't open an account with foreign brokers, from what I've gathered. I doubt that anyone who has successfully opened accounts this way will post it on a public forum.
Member Since Apr 20, 2012   7 posts
May 12, 2012 at 20:54
true, but brokers confuse that as well,some will open if you us citizen not residing in usa, others like hotforex said too bad, us ciitizen or resident, you are out. at any rate, are you saying mig bank takes us residents?


   OceansideForex posted:
   I guess the debate here is whether or not you are going to use a broker who 'doesn't care' if they can't verify the owner. The problem with that is you have brokers like MF Global.......White Swan Group.....and the myriad of other Scams who can and sometimes do close up and disappear with your funds.

We trade at MIG Bank.

The offshore IBC/Trust setups will not work there. However MIG Bank is a Bank. Your initial deposits are protected by the Swiss Government. The execution is amazing. The liquidity feeds are amazing. I've yet to see a 'price spike' (and I stare at charts at least 60 hours a week), and you can still Hedge, use your margin at your discretion, and there's no FIFO.

Anyhow...I didn't mean to get into a 'plug for MIG Bank' speech here, I'm just saying companies like Hot Forex, and FinFX....well......how are you as the client protected if you can sneak on in and use them? I've seen Forex 'companies' that look just like them....close up shop and scam their traders.

----

However I'd like to repeat again because I have found workable solutions to this question.

The Dodd Frank Bill.....does not talk about citizenship. It talks about residency.
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