Trading forex has become a craze among traders as it helps them earn quick money. The forex is the second largest financial market in the world and more and more traders want to invest in the same and US traders are no exception. However, there are many restrictions for US citizens trading and hence most of the forex brokers have banned US citizens from trading from their account. Most of the US citizens have to rely on the limited number of brokers that allow the US citizens to trade from their account. Most of the time it happens so, that the broker of trader’s choice does not allow US traders to trade from their account. This is mostly because of the lengthy paperwork involved when a trader from US opens an account with a broker.
Most of the time, the traders want to trade forex as US citizen outside US. However, there are a few problems that they encounter and include:
- The US brokers are not allowed to allow hedging by CFTC and NFA, a regulatory authority in US
- The trader will have to bring all their hard earned money out of US
- For tax reasons the trading and the business that you have need to be sent offshore
- And most of the time the broker of your choice does not allow traders from US to trade from their account
Above are some of the problems which an US citizen faces when they trade forex as US citizen outside US. Also, to open an account for US citizen there is a lot of paper work involved which most of the brokerage firm do not want. As a result, most of the brokerage firms all over the world have banned US citizens from opening an account with them. However, there is a solution to all this and may require a weeks’ time to get done. You can also look for professional help if needed for the same. The solution to above problem is:
- Buy a package which contains in it a foundation for offshore company which is actually owned by a foundation but gives you a POA (Power of Attorney) for the business. In this you are the one who will manage everything but officially you do not own anything and that is what you require.
- Make sure you open at least 3 bank accounts all over the world that will hold all your money in the major banks that are outside US
This will help you own everything and have all the rights behind the scenes though publicly you will never be the owner of anything. This allows you to make profits through your business, be it trading without getting caught under the long hands of your authorities who are always chasing to grab your hard earned money. The best thing about this is that it will help you trade forex not only with those brokers who will allows US traders but also those who do not accept US citizens. With this you have the liberty to trade with the trader of your choice and evade the tax applied on the US citizens. Look for a professional who will help you know the details of this solution.
Forex trading in US is governed by stringent laws put forward by CFTC and NFA. Because of this many brokers do not allow traders from US to trade from their account. However, having a regulated broker is always a boon as it keeps your invested money safe.