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Attention all US residents/citizens
https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=3418		 Page 1 of 2
Author:  SteveHopwood [ Wed Jan 29, 2014 9:49 am ]
Post subject:  Attention all US residents/citizens
I received this in a pm last night, from a member who does not wish to be identified:
Attention US residents/citizens:

Did you know that it's possible to open up an offshore company to trade from and use that to open a corporate account at some brokers? This way the broker faces the company registered in Seychelles or BVI (for example) and can accept the application rather than reject the application that comes from a US citizen.
Anybody contemplating this route would have to speak to their broker to confirm that this is possible.

Is there anybody out their who could post a blow by blow description of how a US citizen would go about this?

:D
Author:  dudest [ Wed Jan 29, 2014 9:58 am ]
Post subject:  Re: Attention all US residents/citizens
There's an awesome resource on Babypips on the same topic ( Titled: "Going offshore to escape the CFTC" ) by a member I respect ( Clint ) dating back to 2010.

The latest update ( on Post #1 ) was made 6 days ago ( so it's quite up-to-date! ).

Post #1 also includes a comprehensive list of brokers who accept US Citizens without any issue ( i.e, brokers not subject to US regulations and accepting US clients)

Cheers
Author:  kwanann [ Wed Jan 29, 2014 11:54 am ]
Post subject:  Re: Attention all US residents/citizens
I do know this to be true because I.ve seem them

Whilst I do not know the step by step I do not believe it will be that hard
Author:  garyfritz [ Wed Jan 29, 2014 7:39 pm ]
Post subject:  Re: Attention all US residents/citizens
It can be done. There are many places that will open offshore LLCs, in Belize, Dominica, and other places. In general it costs about $800-$1000 to open the LLC, and nearly as much for annual upkeep. So it's not worth it unless you plan to invest a significant amount.

HOWEVER it will not necessarily accomplish what you want. Many brokers will not accept accounts from LLCs if the officers of the LLC (the ones who benefit from profits and can make withdrawals) are US residents.

So as Steve said, verify that your broker will accept your LLC before you take on the expense. Or find another broker who will.

The "list of brokers who accept US citizens" on babypips is good, but nearly all of those brokers are no-names in unregulated countries. I wouldn't risk much money with any of them, except FinFX and maybe Tallinex.
Author:  dudest [ Wed Jan 29, 2014 8:29 pm ]
Post subject:  Re: Attention all US residents/citizens
True dat Gary.

If I was in this situation, only FinFx would do.

( Never heard of Tallinex, checking them out now )

--

PS: in other news, when are you darkening the doors of my EA thread?! :)
Author:  garyfritz [ Wed Jan 29, 2014 10:02 pm ]
Post subject:  Re: Attention all US residents/citizens
Do you mean TMA_CG?

My time is really limited these days, and I only keep up with a few threads that have caught my attention. Should I be paying attention to yours?? :D
Author:  nonlinear [ Wed Jan 29, 2014 11:39 pm ]
Post subject:  Re: Attention all US residents/citizens
garyfritz ยป Wed Jan 29, 2014 2:39 pm wrote:It can be done. There are many places that will open offshore LLCs, in Belize, Dominica, and other places. In general it costs about $800-$1000 to open the LLC, and nearly as much for annual upkeep. So it's not worth it unless you plan to invest a significant amount.

HOWEVER it will not necessarily accomplish what you want. Many brokers will not accept accounts from LLCs if the officers of the LLC (the ones who benefit from profits and can make withdrawals) are US residents. Global Prime, for example, says ASIC prohibits foreign LLCs with US officers.

So as Steve said, verify that your broker will accept your LLC before you take on the expense. Or find another broker who will.

The "list of brokers who accept US citizens" on babypips is good, but nearly all of those brokers are no-names in unregulated countries. I wouldn't risk much money with any of them, except FinFX and maybe Tallinex.
I have heard of one approach (no legal advice here, mind you): setup a trust and have the trust open the LLC, which then opens the forex account. The LLC then pays the U.S. trader as a employee, who in turn pays U.S. taxes. Makes all parties happy. :yahoo:
Author:  Jeuro [ Thu Jan 30, 2014 10:19 am ]
Post subject:  Re: Attention all US residents/citizens
.
The LLC, Trust or any type of legal person setting up trading accounts is not that easy.
Obviously, the vendors of such set-ups tell no problems.

I have a formal Corporation in one of the EU countries, but being a USA citizen I do not have it easy
to open accounts in the name of the EU corporation. To be honest, I think that would not fly if I did not "really" reside in the EU. I mean...as a USA citizen and principal of the company, I have to show double the documents that I reside outside of the USA. Also, they request a list all shareholders, their Address, ID and place of residence... a real pain. And that not only for the opening, but every year.

So, like Steve mention..beware of spending any money creating these legal entities before consulting the Broker of your preference.

Yea.. FinFX is about the best option out there.
Tallinex not sure.. They are local to me like Armada Markets. Armada is an excellent Broker, but do not take USA clients... I hear Tallinex do not take Local clients... I have not follow up on that but sound weird :D

J.
Author:  nanningbob [ Sat Feb 01, 2014 3:28 am ]
Post subject:  Re: Attention all US residents/citizens
I can get around this by opening a bank account in China and open a MasterCard account with that bank. I then can open an account with a foreign broker because my card is non-USA and the money never graces USA shores. The problem I have then is some brokers wont take Chinese cards. LOL
Author:  fxdaytrader [ Sun Feb 23, 2014 3:19 pm ]
Post subject:  Attention all US residents/citizens
Did you know that it's possible to open up an offshore company to trade from and use that to open a corporate account at some brokers? This way the broker faces the company registered in Seychelles or BVI (for example) and can accept the application rather than reject the application that comes from a US citizen.
registering a company is not difficult (but the questions regarding tax could be, principal place of business and so on, so this is not a legal advice):
contact the registered agent of your choice and get things rolling, example:

BVI: http://www.bvifsc.vg/en-gb/regulatedent ... gents.aspx
Seychelles: http://www.siba.net/?s=links-icsp
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