Anyone knows why usa residents can't open forex account in hotforex or other brokers?
- Thread starter jetq
- Start date
Since IB pulled out of the US retail market the answer is none. Best option (IMHO) is CME FX futures.
MattZ
Sponsor
Outside US Forex firms follow different accounting procedures than what is dictated by regulators here, not to mention other compliance issues that are related to funds, segregation, etc. if you are based in the USA, as suggested above, use Currency Futures on the CME regulated exchange and a reputable firm for execution.
Its not only the items mentioned above.
It doesn't matter if its FX, Equities, Bonds or anything else.
Americans are not welcome abroad because of the amount of bureaucracy and hassle it takes to both onboard and maintain Americans as clients.
We're not talking KYC here. We're talking paperwork beyond that, on the brokers side, for reporting etc.
A large part of it comes down to the worldwide taxation policy the US has, hence the IRS wants to collect data on what its citizens are up to abroad. And that generates a whole load of additional admin paperwork that quite frankly is not financially worth it for the majority of small-time americans who would be opening accounts abroad.
There are also draconian penalities for any financial firm that fails to comply with the stupidly complex rules surrounding the reporting. This only serves to increase their reluctance to deal with yanks.
The general state of play you'll find is they'll refuse new accounts from US citizens, and (if they have not already done so) tell existing US accounts to go back where they came from.
It doesn't matter if its FX, Equities, Bonds or anything else.
Americans are not welcome abroad because of the amount of bureaucracy and hassle it takes to both onboard and maintain Americans as clients.
We're not talking KYC here. We're talking paperwork beyond that, on the brokers side, for reporting etc.
A large part of it comes down to the worldwide taxation policy the US has, hence the IRS wants to collect data on what its citizens are up to abroad. And that generates a whole load of additional admin paperwork that quite frankly is not financially worth it for the majority of small-time americans who would be opening accounts abroad.
There are also draconian penalities for any financial firm that fails to comply with the stupidly complex rules surrounding the reporting. This only serves to increase their reluctance to deal with yanks.
The general state of play you'll find is they'll refuse new accounts from US citizens, and (if they have not already done so) tell existing US accounts to go back where they came from.
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I think the odds and risks are lower with Poker compared to Forex. I would say Forex would be like playing slot machines but with leverage. Imagine going to a casino and you bet 1 dollar and somehow now you lose and owe the casino 80 dollars.
What a BS bro. In casino your offered to play negative odds game (like presence of zero in roulette or programmed bias to losing outcome in slot machines) where you also can not carry out any analytics how to increase your odds. What impedes you of using small lot size and trade only high probability trades like Central Bank speeches, etc, keep strict money management. Trading is flexible in this terms but the other question is that it is incorrectly advertised as a path to financial Olympus
Yes for bucketshops... but normal brokers do suffer from this too.