Top 6 Offshore Forex Brokers for US Clients 2020 - Review

ASIC Regulation Thread - Regarding the proposed changes ( Australians effected the most )

I'm hopeless at formatting text, so if you think you can structure this post better take everything i write and put it into an easy to digest way. I'm just going to type out everything i know in text as fast as possible. I'm not a legal expert, I'm not somehow who understands every bit of information in the PDF's below, but i know I'm a retail trader that uses leverage to make profit which is why I'm posting this, in the hope that someone who can run a charge better than me, will.
Some of you are already aware of what might be happening, this is just a post to educate retail traders on changes that might be coming to certain brokers. This effects Australian Customers the most, but also effects those living in other countries that use Australian brokers, such as Pepperstone and others.
Last year in August 2019, ASIC ( Australian Securities and Investments Commission ) was concerned about retail traders going into Forex and Binary options without understanding these instruments properly and started sticking their noses in for tough regulation.
ASIC asked brokers and anyone with interest in the industry to write to them and explain what should and should not change from the changes they proposed, some of the proposed changes are very misguided and come from a lack of understanding exactly how OTC derivatives actually work.
I will provide the link to the paper further down so you can read it yourself and i will provide a link to all the submission made by all parties that sent submissions to ASIC, however the 2 main points of debate are:
1, To reduce the overall leverage available to retail traders to either 20:1 or 30:1. This means people who currently use leverage such as 100:1 to 500:1 and everything in between will be effected the most, even more so are those traders with relatively small accounts, meaning in order to get your foot in the door to trading you will need more capital for it to be viable.
^^ This point above is very important.
2, The removing of Binary options trading, which basically includes products like "Bet if gold will rise to this price in the next 30 seconds" This sort of stuff. So far from all the submissions from brokers and individuals nobody really cares if this changes as far as i know, though if you have concerns about this i would start voicing your disapproval. Though i would not waste your time here, all is pointing to this being eradicated completely with brokers also supporting the changes, I've never used such a product and know very little about them.
^^ This point above isn't very important and will probably be enforced in the future.
Still to this day i see retail traders not understanding leverage, they think of it as "dangerous and scary", it's not, position size is the real danger, not leverage. So ASIC is aiming to limit retail traders access to high leverage, they are claiming it is a way to protect traders who don't really understand what they are getting into by attacking leverage and not the real problem which is position size relative to your capital.
If it was truly about protecting retail traders from blowing up their accounts, they would look for ways to educate traders on "understanding position sizes and why it's important" rather than attacking leverage, but their goal is misguided or has an ulterior motive . I will give you a small example below.
EXAMPLE - We will use 2 demo accounts for demonstration purposes. If you don't understand my example, i suggest you try it for yourself. - Skip if not interested in examples.
Lets say we open 2 demo accounts with $1000 in both, one with 20:1 leverage and one with 500:1 leverage and we open an identical position on both accounts ( say a micro lot '0.01' on EURUSD ). You are safer on the 500:1 account as you don't need to put up as much margin as collateral as you would on the 20:1. If the trade we just opened goes against us and continues against us, the account with 20:1 leverage will run out of free margin a lot faster than the 500:1 account. In this simple example is shows you that leverage is not dangerous but safer and gives you a lot more breathing room. This trade was a small micro lot, so it would take hundreds of pips movements to get margin called and blow up that $1000 on each account. Lets now use a different position size to truly understand why retail traders blow up accounts and is the reason why trading can be dangerous.
This time instead of opening a micro lot of '0.01' on our $1000 dollar demo accounts, lets open a position size much larger, 5 lots. Remember we only have $1000 and we are about to open a position much larger relative to our capital ( which we should never do because we can't afford to do that ) the 20:1 probably wont even let you place that trade if you don't have enough margin as collateral or if you could open the position you would have a very tiny amount of free margin left over, meaning a small pip movement against you will instantly blow up your $1000 account. On the 500:1 account you wouldn't need to put up as much margin as collateral with more free margin if the trade goes bad, but again a small movement could blow up your account. In this example, both accounts were dangerous because the lack of understanding position sizes, opening a position you can't afford to open. This is what the true danger is, not the leverage.
Even in the second example, the higher leverage would "margin call" you out later. So i would go as far to say that lower leverage is more dangerous for you because it margin calls you out faster and just by having a lower leverage doesn't stop you from opening big positions that can blow you up in a 5 pip movement anymore, any leverage size is dangerous if you're opening positions you can't afford to open. This is also taking into consideration that no risk management is being used, with risk management higher leverage is even more powerful.
ASIC believes lowering leverage will stop people opening positions that they can't afford. When the reality is no matter how much capital you have $500, $1000, $5000, $50,000, $500,000, $5,000,000. You don't open position sizes that will blow that capital up completely with small movements. The same thing can happen on a 20:1 or 500:1 account.
Leverage is a tool, use it, if your on a lower leverage already such as 20:1, 30:1 it means your country has been regulated and you already have harder trading conditions. Just remember higher leverage allows you to open larger position sizes in total for the amount of money you own, but the issue is NOT that your using the higher leverage but because you are opening positions you can't afford, for what ever reason that is, the only fix for this is education and will not be fixed by simply lowing leverage, since you can just as easy blow up your account on low leverage just as fast or if not faster.
So what is going on?
There might ( get your tinfoil hats on ) be more that is involved here, deeper than you think, other agendas to try and stop small time retail traders from making money via OTC products, theories such as governments not wanting their citizens to be traders, rather would prefer you to get out there and work a 9 to 5 instead. Effective ways to do this would be making conditions harder with a much larger barrier of entry and the best way to increase the barrier of entry for retail traders is to limit leverage, lower leverage means you need to put up more money, less breathing room for trades, lower potential. They are limiting your upside potential and the downside stays the same, a blown account is a blow account.
Think of leverage as a weapon, a person wielding a butchers knife can probably destroy a person wielding a steak knife, but both knifes can prove fatal. They want to make sure your holding the butter knife then tell you to butcher a cow with it. 30:1 leverage is still workable and can still be profitable, but not as profitable as 500:1 accounts. This is why they are allowing professionals to use high leverage, this gives them another edge over successful retail traders who will still be trying to butcher a cow with a butter knife, while they are slaying limbs off the cow with machetes.
It's a way to hamstring you and keep you away rather than trying to "protect" you. The real danger is not leverage, they are barking up the wrong tree, how convenient to be barking up the very tree most retail traders don't fully understand ( leverage) , pass legislation to make trading conditions harder and at the same time push the narrative that trading is dangerous by making it even harder. A full circle strategy to make your trading conditions worse, so you don't succeed.
Listen carefully especially if you trade with any of the brokers that have provided their submissions to ASIC. Brokers want to seem like they are on your side and so far some of the submissions ( i haven't read them all ) have brokers willing to drop their leverage down to 30:1 because they know by dropping the leverage down it will start margin calling out their clients at a much faster rate, causing more blown up accounts / abandoned accounts with residual margin called funds, but they also know that if they make trading environments too hard less people will trade or even worse move their funds elsewhere offshore to unregulated brokers that offer higher leverage.
Right now it's all just a proposal, but as governments expand and continue to gain more control over it's citizens, it's just a matter of time till it's law, it's up to you to be vocal about it, let your broker know that if they drop their leverage, you're out, force them to fight for you.
If you have any more information related to this, or have anything to add, post below. I'm not an expert at this technical law talk, i know that i do well with 500:1 leverage and turn profits with it, it would be harder for me to do on a lower leverage, this is the reason for my post.
All related documents HERE
CP-322 ( Consultation paper 322 ) & Submissions from brokers and others.
https://asic.gov.au/regulatory-resources/find-a-document/consultation-papers/cp-322-product-intervention-otc-binary-options-and-cfds/
submitted by southpaw_destroyer to Forex [link] [comments]

Questions of Inexperience

i started trading in october of last year. when i joined a lot of people i knew recommended Hugo’s Way, which is an unregulated broker. although i haven’t and the guys who told me have never had a bad experience with them, it just really concerns me in the back of my mind that it’s a risk. (i really do like their site though, it’s simple to use and easy to withdraw) so with that being said, i have a couple of questions ..
1.) is it illegal to USE unregulated and or offshore brokers as a US citizen?
2.) will it effect me paying my taxes on forex?
3.) i obviously haven’t made a lot of income yet as a new trader, so should i be worried about filing my taxes from 2019?
4.) how much income as a trader should i bring in before i start having to report it to the IRS?
if anyone can answer these questions for me, it will be greatly appreciated lol. googling them hasn’t been giving me the most direct answers i’ve been looking for, but i did see a few other reddit posts that helped generate an answer.
submitted by MajTheAlmighty to Forex [link] [comments]

Dodd-Frank and resident aliens

I'm pretty new to the whole Forex thing and I'm looking for a broker.
I've come across some confusing and conflicting information about whether US citizens can use foreign forex brokers and use higher leverage and trade CFDs and the like.
From what I know, I believe the answer is "no" thanks to the recent Dodd-Frank legislation, which forbids foreign exchanges from serving US citizens without being registered with US regulators.
However, although I'm personally living, working and residing in the US, and am subject to US taxes, among other things, I'm not a US citizen.
So my questions are:
I had a brief look at the text of the act itself but apparently it's nearly 900 pages long.
EDIT: Reading into it more, it seems the penalties are generally imposed on the brokers themselves under "Memoranda of Understanding" between the US and various countries. It also seems that the restrictions do indeed apply to residents as well. At least the brokers that make a statement on the matter use the word "resident". It seem mainly the media and forums that use the word "citizen". My impression so far is that some brokers operate in countries that aren't subject to the memoranda and as such are outside the jurisdiction of the US regulators, so continue offering services to US citizens/residents.
There's a good list of foreign brokers that work this way here. Tallinex, Tradersway and Fxchoice seem to be the main ones. Out of those only Fxchoice appears to be regulated but it's not clear whether it's selling ECN (they call it "NDD") or not.
submitted by bobobo1618 to Forex [link] [comments]

Best Forex Brokers For People In The USA - YouTube 9 Simple Techniques For Best offshore Forex Brokers ... Not known Facts About Latest List of Offshore Forex ... Best Forex Broker For Americans - Top Recommendation - YouTube

Check Top 3 best offshore Forex Brokers accepting US Clients or Citizens or Residents in 2020 and offering unrestriced trading conditions to outperform! Complete list of trusted offshore Forex Brokers accepting US Clients in 2020. Allows Hedging, Scalping, EA trading, No FIFO Rule, No Deposit/Withdrawal Fee, Free VPS, 100% Bonus, 24/5 Professional Live Chat Support. To avoid such high fee, high operational expense and paper mess, offshore Forex Brokers just stopped accepting US Citizens. It is easier for them to decline the US Citizens than incur the unforeseen expenses. So, Dodd-Frank Act is the primary reason that has forced offshore Forex Brokers to decline US Citizens or Residents. The Latest List Of Offshore Brokers Accepting US Residents. It’s time to free Americans from a severely restricted trading environment such as limited leverage, no hedging & FIFO rule set by the NFA & CFTC.. As of now, there are around 10 offshore Forex brokers that accept US citizens. Contents1 US regulated forex brokers2 Why many offshore international forex brokers don't accept US residents as clients3 Offshore forex brokers that still accept US Clients: US regulated forex brokers Note: We don't include IBs(introducing brokers) in this list. Broker Type Regulation US residents Mini account Minimal Lot Spreads Lowest spreads EURUSD Interactive Brokers(Visit) ECN/STP NFA ... FXChoice is one of the few regulated offshore forex brokers for US citizens. It was founded in 2010 and is regulated by International Financial Services Commission (IFSC) During my research for the best offshore forex brokers, I came across FXchoice. When I dug deeper, I figure out US traders are satisfied with what they get from this broker so I went through its website to have a look. Seems ... Trusted Offshore Forex Brokers that Accept US Clients. The last few years have seen a boom in communication technology which has positively impacted almost every industry. Needless to say, the virtual platform was completely transformed once the Internet became an essential for everyone instead of a luxury. Trading online was not always the most welcome activity because a lot of people were ... Below you will find a list of Forex Brokers accepting US traders as clients. Due to the strict and complicated regulatory environment, it became quite a challenge for FX companies to operate in the US. To make it worse, thanks to the Dodd-Frank Act and the Memorandum of Understanding, many licensed Forex Brokers all over the world stopped accepting US clients. Still, there are some offshore ... Forex Broker; US Citizens and offshore brokers; There has been a lot of talk about how to open an offshore forex account if you are a US citizen so I though I would start a post and let everyone share their ideas. If you have a way for US citizens to open an offshore forex account share it in the comments section. Dustin Pass. Dustin is recognized as one of the top Forex traders and education ...

[index] [17155] [15872] [26926] [19146] [3701] [12646] [14977] [10147] [3021] [17955]

Best Forex Brokers For People In The USA - YouTube

CLICK HERE FOR MORE INFO: https://rebrand.ly/forex33 And start earning in the Forex Market Now! In our expanding international corporate atmosphere, there ar... CLICK HERE FOR MORE INFO: https://rebrand.ly/forex33 And start earning in the Forex Market Now! In our growing multinational company setting, there are compa... This is an IG US Review. They have taken over the top spot. The best Forex broker for Americans right now just happens to be the newest player in the game. A... Day trading and forex is extremely popular around the world, in the US it’s finally starting to gain some traction. But, there still aren’t MANY brokers that...

http://arab-binary-option.kamtaret.cf