Anyone have any good ideas for potential brokers? My accounts in the UK and Australia have been canceled, thanks to the US government. Seems that as a US citizen, i am too ignorant to handle my own finacial affairs (thanks big brother...)
Same here....they're kicking me out of Go Markets(aus). There's a thread on babypipsdotcom regarding the subject. We, as traders; have to bounce back and find a way to keep trading.
So far, I know that Dukascopy is still accepting US accounts (minimum 1,000), but they are not live with MT4 yet. Also FX Open, is a partner with Dukascopy and have MT4; they confirm a couple of days ago that they will still accept US accounts. On the US side, so far I'm looking at Interbank FX open, which I believe is an ECN, but leverage will be 50:1. Anybody else that can add to this thread will be appreciated. Dan
Hi, as it is said, 'to each problem there must be a solution ...'! What if... a Ltd. European Company opens an MT4 Account for you to trade it under this Company's name but all guarantee is given to you, login, passwd etc... to trade 'normally'. Could you then be imaginative or creative to build a kind of LPOA giving you the right to master and conduct your Account/Trading....and think about a compensation a kind of incentive % or Fees if only Profits. If this is Legal, I am ready to Help.
As a US citizen there is no protection for your privacy in Europe as the Swiss banking fiasco showed. So Europe is out. Has to be the east.
You can do that through IBC and nominee directors. Trust funds. Couple of legal vehicles for it and a few jurisdictions of which ironically Hong Kong stands out as the most US friendly, mainly because they won't give a hoot if the US government puts pressure on them. They only have 2 tax treaties - with Belgium and Thailand. And HK isn't on any of the tax haven lists. No local tax if you don't do any business in Hong Kong.
Once you set up an IBC with nominee directors there will be no indication to the broker what so ever that they are doing business with an American citizen. And I don't think anything prevents you from owning a business abroad.
Tax is a separate issue, you can still declare the income an it be all legal.
But it costs money, look at about $5000 a pop. So it's not for the average Metatrader jockey.
Why are the U.S traders being given such a hard time ? Are the authorities 'actually' doing all this in the traders' best interest or do they only think they are ? Are the traders actually being protected by all these new regulations? Just doesn't seem fair in my opinion. Didn't realize your govt. can actually do things to even prevent non-U.S brokers from serving U.S clients. Doesn't really seem fair to prevent traders who are quite capable of making their own choices and decisions.
Oh well... I hope u guys figure out a good alternative. 😉
The retail fx side is small. And most of these regulations don't affect the big players. All I can think is that there is a bigger agenda and that the US retail traders are just collateral damage.
Problem is half the liquidity providers are US, so whatever happens to the US traders will spread globally.
One just has the accept that change will always be inevitable in this environment. It is the sharp end of capitalism. Huge players all with their own political and financial agenda slugging it out in high stake chess games. Just got to stay nimble and keep an eye on the ball. All we can do.
I wonder whether the big 'hidden' agenda is to completely eliminate all 'retail' brokers ?😱 Probably because they are eating into the large financial institutions/banks ? More than they originally anticipated.
Well... I suppose at the end of the day, if all this results in a scenario where all brokerages globally fall in-line with a banking-like regulatory system it would be good for us ? Just thinking out aloud. 😉
That's not a big agenda. Retail fx is small. This is more about taking the control of money away from the banks. I've been told this is part of a larger push to get fx traded on exchanges like the CME.
The almost socialist Obama is wrestling the banks for control of the money and thus power. This is all an effort to look good to 300 million voters and the banks are the evil people - seeing they just made as all poor again. In truth they did really cock it up, but will do so again in 15 years or so. The more things change the more they stay the same.
Ultimately we small fries are just spectators of a slow motion train wreck. All going to end in tears anyway.
And I'm up to my elbows in fx and algorithmic trading in general. Have a few friends trading at the right levels, where it's important enough for them to stay on top of things and of course they know people who know people, and some of them knows exactly how the systems work up to bank level as they worked in the banks.
The moving fx away from banks I picked up over a few beers in Singapore some time ago. I was actually told all the changes were having now was coming months before the process even started. I didn't know exactly the shape it would take, but I knew we were in for big changes.
I was very specifically told if I wanted to stay in the fx game I better get moving, we have like 2 years retail fx left. And that was a year ago. After that I'd have to be a serious player to stay in the game. Or go play futures and options on fx.
Is it true ? I don't know, but I suspect were far from seeing the end of all the new regs. Hearing all kinds of funny things and I don't think it's exclusive to fx. All we can do is just keep the ears open and adapt till things settle down again and we have the final new rules.
Also trying to solve problems for myself, my country has exchange controls, so I had been looking at vehicles to put assets in a decades ago already, just so happens my problem is different, but for the Americans the solutions is the same as mine. Go offshore, use nominee directors. Just years of experience I guess.
In this environment it will always be like this. Every time we have a hiccup there be some new rules as politicians try look good.
Eventually the whole thing thing will collapse under it's own weight and then politicians will look good while trying to scrap rules.
It's really a question of embracing change and just figuring out how to profit from it, instead of trying to stick to what worked last week. Adapt or die. That's why we're here and the dinosaurs aren't.
That of course means the methodology that relies on lack of change is doomed.
Elkart posted: Ultimately we small fries are just spectators of a slow motion train wreck. All going to end in tears anyway.
Well... let's make the best of what we have now and hope that we'll be able to continue to do so even if it means having to make significant changes eh ?
Oh wait a min... what you have said is basically only for the U.S or did you actually mean on a global scale via a central exchange? I doubt the U.S will be able to get acceptance on a proposition such as that, considering the new economic super powers such as China and others emerging in the region, who don't really care too much about pleasing the U.S.. if you know what I mean.
Global. I'm talking USD only. US control it's currency. It's not a proposal that's up for debate anywhere else than the US and I don't think it be much of a debate.
If the US government wants to do it, they will do it. It's simply changing the internal distribution mechanism of the US. Banks will complain sure, cause they'll have to come buy their dollars on auction same as anyone else.
Look, I'd need a degree and a few years study to be able to even begin to understand what the mechanisms, impacts and implications are to who. And I'd rather sit on the beach to be honest.
All I can say is what I've heard. Since my systems aren't predictive it doesn't really matter what happens. All I worry about is the technical effect it will have on me, in terms of margin, trades sizes, cost of trading, brokers, instruments, laws of territories to use the instruments from and so on...
Doesn't matter how I look at it, makes sense to be offshore and outside off exchange controls, so I can move bucks around in a hurry if I have to.
Ironically the safest place for US citizen to get such a company would probably be Hong Kong.
Beach idea sounds good! 😄 I'm just a hop away anyway. 😎
I'd hate to think what would happen to the U.S economy if China decides to dump their US$3trillion forex reserve and maintain all of their reserves in gold instead just to spite the U.S?? Catastrophic ?! 😲
'One of the major advantages of utilising a Hong Kong company is that there is no immediate suggestion that the company is a tax avoidance vehicle as Hong Kong is major trading entity in its own right. Hong Kong is the world’s eighth largest trading economy calculated in terms of total value of trade undertaken. It is the world’s seventh largest importer and the world’s ninth largest exporter and the vast majority of the 50,000 Hong Kong companies incorporated annually are local trading companies doing real business in the region. Additionally, Hong Kong does not appear on the OECD list of tax havens and is not a member of the OECD so, unlike all other OFCs does not have to introduce the exchange of information procedures required by the OECD. Hong Kong only has two Tax Treaties (with Belgium and Thailand). Hong Kong may be therefore be the last bastion of confidentiality and this is likely to be of very considerable advantage in the future. '
They won't do it, cause to much harm to them. China is always a failed harvest, or economic disaster away from a complete regime change. And they know it to. They were worried at 6% growth already that they'll have social unrest.
I think everyone is being really careful at the moment. But the US has to devalue the dollar.