Yeah I was looking at that, but I wasn't sure if profits from trading Forex with a foreign broker is considered Subpart F. In any case, before doing any offshore tax minimizing structure, it's best to consult with a tax lawyer. The penalties for making mistakes is significant. ----- Robert Green: thanks for your response and thoughts to my post! Though the CFTC enforcement attorney may say these things, I don't see how they can prosecute a US person dealing with a foreign broker since there's no law against it- no law is being broken. Americans have been opening accounts with foreign brokers accepting US clients (such as FinFX) without being sued.
Hi Robert. Since I posted this, I spoke to an attorney and learned it is true usa clients can open offshore retail accounts legally. The rules for forex are to protect retail forex traders from blowing up. It sounds like that CFTC attorney was lying -what a sum bag.