GEM - Global Extra Money. When it comes to Fx brokers, US citizens seem to live in very restricted circumstances which most of them are not aware of. Forex brokers in the US are regulated by the National Futures Association NFA and the Commodities and Futures Trading Commission CFTC. The regulatory framework set out by these two bodies is often found too strict for free trading, a few examples of rules US Forex Brokers must follow are;.

The CFTC released the new trading rules regarding the use of leverage and margin by clients in , setting out a leverage requirement of 1: With the new NFA rules, US brokers no longer allow hedge and they need to implement FIFO First In First Out. Hedging is simply coming up with a way to protect yourself against big loss namely a trader that is long a foreign currency pair, can protect oneself from downside risk; while the trader that is short a foreign currency pair, can protect against upside risk.

This FIFO has never become common outside US. The Office of Foreign Assets and Control OFAC has placed limitations on who US forex brokers can accept into their network.

Nationals of countries on the OFAC blacklist are not permitted to open forex trading accounts with US forex brokers. Those from affected countries who already operated accounts with US forex brokers had their accounts shut down as a result. US forex brokers therefore have to operate within pretty stringent guidelines and so they tend to restrict their business to a certain class of traders.

The law is pending approval from the CFTC. However, as the NFA is assigned by the CFTC to supervise the futures and Forex industry, once a measure is formalized by the NFA, rarely does the CFTC make many amendments in rulings. The news follows a greater than year long enquiry into credit card deposits that began in January of Specifically brokers with smaller size deposits were expected to be especially affected by the ban.

BTW, Freedom in the World reported US as a Free Country as shown in the below map;. Are US citizens really free? There are strict regulations that limits doing business with US citizens originated by the US government.

Below is the primary reason why almost all offshore international Forex brokers do not accept US citizens now.

The Dodd-Frank Act is a federal statute which president Obama signed into law. It first became operational on July 21, The act brought forth new rules that are designed to regulate all financial markets including stocks, futures, options and Forex.

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Dodd-Frank Act requires that Forex brokerage company who wants to do business with US citizens must first be registered with both Commodity Futures Trading Commission CFTC and National Futures Association NFA. Many of them are still not registered with these two bodies. To avoid the paper mess, they stop accepting US citizen to open account with them. 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 international offshore Forex brokers to decline US citizens. As a result US citizens desiring to trade in Forex are forced to open US Forex accounts, and trade with very low leverage So in essence the Dodd-Frank Act indirectly, even if unintentionally, makes it harder for the poor in America to trade Forex, but it is not a problem for those who are already rich and have enough extra income they can afford to use in a US Forex account.

Despite the regulation, for a US citizen, there are chances you can open an account with international brokers not registered by US regulatory bodies — NFA and CFTC. However, this is done under certain different conditions. Let me quote the discussion from the babypips. These agreements have effectively extended U. And there are a few offshore brokers, in Memorandum countries, who have the courage to defy the over-reaching U. But, they cannot yet prevent US citizens from having those accounts.

Means, the brokers in the countries where Forex itself is not regulated such as Finland can accept US citizens without being bothered by Dodd-Frank act remember the Act affects the brokerage but not you as an individual, as long as you report what is required to IRS, you are not subject to be punished. Having explained, fortunately, US strict regulations do not completely stop international brokers from accepting US citizens. This data source is Babypip. Electronic Communication Network 2 STP: Straight Through Processing 3 NDD: Non Dealing Desk 4 DD: Dealing Desk 5 MM: Each Trusted Broker was judged to be exemplary based on these criteria: Spot Forex exchange transactions are not considered financial instruments by the St Vincent and the Grenadines Financial Services Authority FSA regardless of their purpose i.

This determination means that St Vincent and the Grenadines does not categorise spot Forex as a securities product and, therefore, the retail spot Forex business carried out by Tallinex Limited does not fall under securities regulation in St VIncent and Grenadines, and requires no additional licensing.

We have stated that we are registered with them but not regulated.

Just For Your Information. As said, this list is based on the babypips. BTW, in addition to Passive Trading you have read, we GEM deal with 6 Advantage Play as follows;. Just in case, you have not accessed to the below Free Program, suggest Do It Now, You will Not Lose Anything But Only Make Profit;.

You can access to;. All are FREE now, hope you will be impressed with the quality of the program. Password for Members Only Page Contact Us. Time To Open Your Eyes!! Why Do US Citizens Need Offshore Brokers? The regulatory framework set out by these two bodies is often found too strict for free trading, a few examples of rules US Forex Brokers must follow are; Limited Leverage The CFTC released the new trading rules regarding the use of leverage and margin by clients in , setting out a leverage requirement of 1: OFAC Restrictions The Office of Foreign Assets and Control OFAC has placed limitations on who US forex brokers can accept into their network.

BTW, Freedom in the World reported US as a Free Country as shown in the below map; Are US citizens really free? Why do Many Offshore Forex Brokers Decline US citizens to Open Account? Dodd-Frank Act The Dodd-Frank Act is a federal statute which president Obama signed into law.

Rationale Why Some Offshore Brokers Can Still Accept US Citizens Despite the regulation, for a US citizen, there are chances you can open an account with international brokers not registered by US regulatory bodies — NFA and CFTC. The List Of Outside US Brokers Accepting US Residents Having explained, fortunately, US strict regulations do not completely stop international brokers from accepting US citizens.

Notes The list does include not only Regulated Brokers but also Non-Regulated Brokers which you may want to put low priority or make full due diligence. Broker Type Abbreviation 1 ECN: Tallinex — Tallinex Limited is licensed to operate as an IBC under St Vincent and the Grenadines law. TradeWise FX — You are right about how SVG considers brokers. BTW, in addition to Passive Trading you have read, we GEM deal with 6 Advantage Play as follows; Sports Matched Betting 0 Risk Casino Bonus Clearing 0 to Marginal Risk Bingo Bonus Clearing 0 to Marginal Risk Sports Spread Betting Bonus Clearing 0 Risk Sports Arbitrage Betting 0 Risk Value Bet by Proven Tipsters Slight Risk.

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