Yeah, I know it's illegal in the US. I had an account with dbfx with 100:1 but they are now closing their retail fx arm, so I was just curious if anyone knew of any other banks that may offer it.
Eric215, I have resolved that I must open an offshore entity to accomplish this. I am researching how to do this from the United States without travelling abroad to establish it. I do not know the cost and the mechanics to do it...but I will need Utility Bills and an address. I am doing it this way as it seems to be the only legal way I can trade Forex with higher leverage and hedging, while residing in the USA. It seems that the rules actually state that if I reside in the USA that I cannot trade offshore...this offshore entity may not establish anything for Forex and this is what confuses me... I will pay my taxes as I alway have done...this is not the issue. I pay them quarterly here in the USA...Its just that the CFTC/NFA/Dodd-Frank Act is making it very hard to get around the rules.. Eric...google this: "going offshore to escape the CFTC" Hope this helps and if anybody can help me with the interpretation of the new rules I would very much appreciate it. Will an offshore entity permit me to trade Forex with dealers outside of the USA? Can someone refer me to a company that I can call to establish a legal way for me to form this entity, assuming it will accomplish my goal of legally trading with a dealer outside of the USA, while residing in the USA? Maybe my proposed legal entity is considered a separate Juridical Person and it resides 360 days a year in the country it is formed in...I am looking for a low cost way to do this as my numbers are not in the millions yet. I currently am making an unbelievable ROI which is actually disgusting and I know it cannot continue...but I need this entity to be legal... I think... Help! Is forming a legal entity just a one time cost or is there yearly renewal costs and such? I am thinking of the Cayman Islands. Is it unethical and a bad practice to discuss this on the internet? Again I am not evading taxes ...I am just looking to be legal as I do not want to worry about being made an example of or to be made a part of some sting operation. I think I am too little to bother with and to form this entity will represent a big cost to me right now (maybe not later if I keep trading as well as I do now). Can somebody that can answer my questions please PM me...preferably someone who has an entity and can tell me what the cost and the process was. ES
google this: "going offshore to escape the CFTC" - an updated list of the 92 brokers, hope that helps
I do not see anything improper about forming an offshore corporation provided all income to oneself is properly reported to the IRS and the proper Treasury form TD F 90-22.1 is filed. There are companies in the Caymens and elsewhere which advertise incorporation services. I guess the ideal would be to involve a U.S. attorney who has high ratings on lawyers.com. I am thinking of doing that also (of course following all U.S. and local laws and reporting requirements). A corporation has residence where it is incorporated under international tax law and agreements (there could be exceptions so I need to research it carefully still). Another possibility could be to trade through a hedge fund or proprietary trading firm that is large enough to be exempt as a qualified investor.
Oh I should have added that cautious brokers might still not accept a foreign-incorporated client if the major shareholder was from the U.S.A.
"Land of the Free" Keep quoting it, get the citizens to keep chanting it, and then they'll believe it. PS. Anyone for a game of online poker