Yes Hotforex is great but unfortunately only for non-US citizens. You can try ameritrade though.
Anyone knows why usa residents can't open forex account in hotforex or other brokers?
- Thread starter jetq
- Start date
Yes Hotforex is great but unfortunately only for non-US citizens. You can try ameritrade though.
Simple solution to the whole matter the NFA will not change it's policy not will any other self regulated body. Go abroad and trade in a true freemarket. Become a stateless person and the IRS will still be looking for revenue. Born in America means you will be taxed for eternity, regardless where you are within known existence.
Akuma
BTW CHF/JPY looks interesting right now....
Akuma
BTW CHF/JPY looks interesting right now....
Sad but true, these law and how it works simply makes things a lot more difficult for most people in the name of protection. as simple as trading forex online (which should be easy) it becomes more complicated and even a crime. good lord thats unfair. but we work with what we have i guess. dont get me wrong hotforex is a good broker yes. but sadly not everyone can have a good time trading with them. it is what it is.
Great answer and I might add- and I'm so surprised that not many traders mention this- the first in first out rule (FIFO) and no hedging rules come with that Dodd - Frank
Great answer and I would like to add- and I still don't know why more traders don't mention these- the first in first out rule (FIFO) and no hedging rule came with that ridiculous Dodd- Frank. I'm convinced these rules are why 80% of traders loose. If more traders could figure out how to use no fifo and allowed to hedge they would probably be more profitable. U.S. citizens are getting screwed by those rules and other countries do it, their platforms are setup to allow it so the U.S. forces them to not allow Americans to sign up with them. It's not ab out taxes, that's a simple W-9 form and they can report anytime they pay you. it's about that nasty ass Dodd- frank. How in the hell is this still going on??
To be fair, you can actually hedge by either using currency futures, not a perfectly hedge but at least it's better than nothing or trade in opposite-moving currency pairs so hedging is really not a problem. The only problem is FIFO where you are forced to close out positions that you first opened even though it might be profiting more lucratively but in the long run it comes out the same and doesn't really affect the profit that much.
The biggest problem with the overreaching of the Dodd-Frank regulation is really the limiting of choice of brokers that US traders can have and forcing US traders to take on unnecessary risks by investing with unscrupulous off-shore brokers, the exact pitfall that the regulation is supposed to protect the traders from.
There are no rules against hedging. There are rules about simultaneously holding identical opposite positions at the same broker. Because that's idiotic, it's mathematically exactly equivalent to selling your position, except you pay double the commissions. I suppose trying to legislate basic math skills may not be the best use of our time, but if you can't grasp that very basic concept than it certainly isn't Dodd-Frank that's keeping you from making any money, or having any success in work/business at all!
This is the exact thinking of the idiots who wrote those rules. The thinking of non-traders. And what about the fifo rule? Their argument is that since accountants use first in first out with inventory then it should apply to trading too. THIS HAS ABSOLUTELY NOTHING TO DO WITH TRADING! In my opinion the best way to hedge is to hedge the instrument you are trading. You obviously have never traded without those two rules in place. My friend, if you ever get a chance you will realize how you've been trading in the dark until now. Open your eyes! Go to FXCM-UK, Ig-uK or any of those companies that allow hedging and no fifo and just open a demo account. You can do that just don't check U.S. when they ask for country of residence. Trading with no fifo alone will blow your mind. I want to compare P&L with someone like you to see if you really make money. If you are you will double or triple it with no fifo if you really know what you are doing. This false belief is the reason why I never see traders bitching and complaining about those two rules like I do. YOU DON'T KNOW THE POWER OF THOSE TWO STRATEGIES IF YOU REALLY KNOW HOW TO USE THEM.