Quote from cornixforex:
Would appreciate any recommendations/information on the matter. The problem is following:
I manage OPM with UK based FX broker, but have several people willing to become clients who are US residents.
Broker says it's impossible due to US restrictions unless they are ECP (Eligible Contract Participants), which they are not.
I wonder is this situation really hopeless and I can't do anything but change to the US based broker in order to manage money of US residents or maybe there are some legal ways to avoid this restriction I could recommend to those people?
U.S. law and the CFTC have forbidden foreign brokers from soliciting U.S. residents. Although this is not quite the same thing as forbidding U.S. residents from opening accounts abroad, the CFTC has sued maybe a dozen foreign brokers for breaking the law, so brokers are being cautious and not accepting U.S. accounts.
There actually are a very small number of foreign brokers that will accept U.S. accounts, but I am not aware of any large ones in the U.K. In fact, U.K regulators are assisting the CFTC in enforcing its prohibition.
So no, there is no prudent way around it.