Thread: CFTC NEW Document - Overseas Accounts OK?

Originally Posted by ;

7bit,
Can you think this answer to a trader is just CFTC blowing hot air trying to scare us back to the US. Or can they make it painful to continue to exchange oversees through possibly the IRS? Please read the answer below.

Quote)
Below is a formal clarifiion on the new CFTC regulations which...

in case your”foreign broker” is an unregistered affiliate of an FCM, as of October 18th, it'll either have to be enrolled as an RFED or FCM, or even move accounts to someone who's. In case your”foreign broker” has been a foreign bank, it could continue to serve as a forex counterparty to US retail customers until July of next year. Security deposit/leverage rules will apply to all entities doing business with US retail clients.

So it clearly states that they don't have any power what so ever over foreign owned/operated brokerages like go markets. . .who Don't Have Any ties

Originally Posted by ;

if your”overseas broker” is an unregistered affiliate of an FCM, as of October 18th, it'll have to be registered as an RFED or FCM, or move accounts to someone who is. If your”foreign broker” has been a foreign bank, it could continue to function as a forex counterparty to US retail customers until July of following year. Security deposit/leverage rules will apply to all registered entities doing business with US retail clients.

So it clearly states that they don't have any power what so ever over foreign owned/operated brokerages like go markets. . .who...

Assuming they can't control the broker, can they powerful arm the US trader if he/she utilizes someone like Go Markets? thanks.

Originally Posted by ;

Assuming they can't restrain the broker, can they strong arm the US trader if he/she uses somebody like Go Markets? thanks.

However, allow me to play devils advoe. How are current US taxpayers who own/operate companies abroad (Europe, Carribbean, mexico etc.. .) And earn an income on these companies armed???

They pay US taxes.

That is ALL the US may do...I mean look at that senator from DC. . .Charlie Rangel. . .he's in trouble since he rented out his condominium in the Dominican and did not pay taxes on the earnings he banked. He's a US citizen earning money in a different nation living in the US. . .how is that any different than any Currency Market trader who makes money from Austrailia? As long as you pay your taxes, what can they do!????

Originally Posted by ;

However, let me play devils advoe....

I hope your best. As I always do I intend to pay my taxes. I wish to trade without Barney frank jerking around me. I wouldn't put it to flag me for audits if I try to go around them like that however.

Originally Posted by ;

However, let me play devils advoe. How are current US citizens who own/operate companies abroad (Europe, Carribbean, mexico etc.. .) And earn an income on those companies armed???

They pay US taxes.

That is ALL that the US may do...I mean look at this senator from DC. . .Charlie Rangel. . .he's in trouble because he rented his condo in the Dominican and did not pay taxes on the earnings he banked. He's a US citizen making money in a different country residing in the united states. . .how is any different than any Foreign Exchange trader who makes cash...

If it had been about us paying taxes then jerk us around with the CFTC / NFA and the strict rules? They obtained over 9000 responses as to what we need did they not? They're forcing you to use'other means' as a way. It does nothing for the fair Joe who pays his taxes.

Sing America the Beautiful for me and tell me 'free' you really feel about today? Let Freedom Ring? Anybody?

It is simple to install an'offshore' firm from the comfort of your trading room and readily by-pass all this hedgemony. In my mind this is just to take the'guy' out of this market. But just because the'guy' give in fruion and might not know otherwise.

If you were a crook or looking for crooked means to avoid taxes they are litterally going to great lengths to explain to you the way you can do it. I really wouldn't have needed much a reason to look into it if they would have left it at 100:1.

Anybody trading with MB trading, US? I exchange with MB trading and did not get any email or any kind of notifiion about the leverage shift. I am going to contact them, but hope they will provide me the 100:1 leverage.

Maybe not 100% certain but they aren't besides this FXDC

http://forexmagnates.com/mb-tradings...-requirements/

Originally Posted by ;

Not 100% sure but they are not besides the FXDC

http://forexmagnates.com/mb-tradings...-requirements/

That link is dated Jan 27,2010 and has been issued BEFORE the comment period ended. [Old News]

Originally Posted by ;

Anyone trading Using MB trading, US? I exchange with MB trading and didn't get any email or any kind of notifiion about the leverage change. I am going to contact them, but hope they will provide me the 100:1 leverage.

Yes, I obtained this email from them now:

Dear Valued Client,

The CFTC has just published new rules that go into effect October 18, 2010. Included in these new rules is an increased margin requirement from 100:1 to 50:1 for the major Forex currency pairs. Clients that are highly leveraged may have to take action ahead of the start of trading on October 17 (5:00 PM EST) to prevent margin selling within their account. This affects our Desktop and MetaTrader 4 accounts .

For a complete summary of the CFTC's newly adopted principles and exactly what these changes will mean to you, please visitFOREX CFTC RULING.

This new margin requirement will impact all present positions as well as all new pending orders to the most date. Please note that the changes will have no effect on spreads, implementation, or commissions. Swap rate fees will DECREASE as less money is being borrowed to place a transaction.

If your current account margin is greater than 50:1 please think about what actions you will take to meet the new margin requirements when the rule goes into effect. Should you wish to create an additional deposit to address the new margin rules or to keep your current trading size, please visit FOREX Deposits for instructions. In the event that you need assistance calculating how these changes will affect your positions you can even contact customer care at 866-628-3001. Partial positions will be liquidated in any accounts exceeding the 50:1 margin requirement when the rules go to bring the account to compliance.

All live GTC orders which can cause your account to transcend the new 50:1 margin rule on October 17th will be rejected in their entirety. Please decrease the size of those trades or cancel them so. Our systems will go live with these changes daily on Sunday, October 17.

You might also visit the CFTC website for their documents on the new standards and coverage: CFTC Factsheet PDF.

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