CFD's for US resident

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monte cristo

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CFD's are my ticket and I refuse to be denied. I know it was discussed on here before and I contacted a guy who can help but he hasn't returned my message. There has to be a way I tried everything shelf companies, nominee directors nothing! I refuse to believe that no US resident out there is trading CFD's. Guys PLEASE help.
 
OK, this is how one might do it... but in no way would I advocate it as I suspect that the US authorities would not be delighted.

Set up a company in a different jurisdiction and open the CFD account in the name of the company.

This is not straight forward though because the broker's KYC / AML will require beneficial ownership and Director's details. If you tell the truth (that you are a US resident) you may not get an account. If you lie... you are in breech of contract.

If you used brass plate directors / shareholders and formed it in a fund structure you may find parties willing to stand between you and the money - at a price.

As the US authorities are deeply opposed to off-shore finance however you will need to be careful moving the money around if you go this route. If it is under $1mm the cost / leverage benefits of CFDs would not justify it.

I really would not bother if I were you. Why not just trade the underlying and avoid the angry men with the big guns? If you can't live with the local restrictions, live somewhere else.
 
Tried that with IG they wanted a non nominee director and he had to have his information notarized and it was a hassle. How bout you open an account for me and give me power of attorney?
 
How about you send your money to a stranger who you met on a forum on the web?

If you have power of attorney they will want all the same AML / KYC as they would if you were opening the account yourself.

Scenario C is that you open an account through a friend or family member in the UK.

I still advocate trading the underlying assets / futures and avoiding unwanted legal attention. If you don't break the law... they can't get you (well, unless you live in the US).

Good luck.

NQR
 
US cash margin accounts are not interesting. Neither is waiting around for a trade signal on 50 liquid currency pairs. Where else am I going to get this sort of opportunity and leverage? CFD's are the future and I want in on the action.
 
Hi monte,

Out of curiousity, what is it that makes you so hell bent on trading CFD's only?

I am based in the UK and actually choose NOT to trade CFD's in favour of trading U.S. Stocks in the real market. U.S. Share trading is cheap, spreads are tight, and you know you are trading in the actual market, not someone else's version of an underlying price. You also get the choice of about 10,000 stocks to trade every day. Additionally, in the real market you get access to many different Order Types that can give you great flexibility in your trading.

Please don't think I'm being confrontational........I'm just interested in the reasons behind your apparent love of CFD's !


Thanks

Damian
 
Leverage! Ten to one! Thats what speculating is all about. not about order types and spreads BUT MONEY its why we do this here.
 
That leverage is what attracts people, but there are also problems with some cfd providers, incl.
delayed fills and re-quotes, limited stock availability, wide spreads and platform failure.
I agree some US laws are a little crazy, but so are some of ours in the UK, but you can't seriously expect any UK trader to advise you on how best to break US law even if we knew how..................especially when UK citizens who haven't broken UK law get extradited to the US and put in chains for allegedly breaking your laws.....
You wouldn't be part of an FBI sting operation by any chance, would you.........?
Richard
 
I'm not looking to break the law i'm looking for help. I can easily get a fake passport and utility bills online and haven't even thought twice about doing something like that. I just seriously doubt no one in the us trades cfd's.
 
monte cristo said:
Leverage! Ten to one! Thats what speculating is all about. not about order types and spreads BUT MONEY its why we do this here.
Click to expand...


Of course we trade for profits, and flexible order types and tight spreads can help us achieve those profits.

So is that your only reason........leverage?

Trading stocks I can hold up to 10 or 12 different stocks at any one time, which is more than enough to keep my eye on. What exactly would you do with all that leverage.......hold more positions?


Thanks

Damian
 
Respectfully those are technicalities to me that never affect my bottom line. I worry about the direction of the prices i'm not in front of a screen sweating every last tick, if my fx trade launches 400 pips why am I stressing the spread? But thats beside the point FX signals are taking to long and I see so many on equity charts i'm leaving money on the table and its depressing me.
 
So are you already making profits by buying stocks, and you feel you could make even more in CFD's with the extra leverage?


Thanks

Damian
 
FX spreads are tiny, CFD spreads on US stocks are often 5c.
You're quite right the opportunities are huge and varied on stocks, far more than on FX.

Let's say you are trading AAPL on CFDs. Real market direct access bid 94.62, ask 94.63. Let's say you go long and it stalls out at 94.98, you can exit at 94.97 direct access with 4:1 leverage.
Let's say you go long cfd with the spread 94.60/94.65. If it's moving up it is highly likely you will get re-quoted with a buy price of 94.70; you take it and price rises to 94.98, but then stalls out and you try to exit your cfd. By the time they have re-quoted you it will be 94.82/94.87 and you are out for 12c profit rather than 34c direct access.
Think what happens when you get the direction wrong........
CFD providers get rich easily, a bit like bookmakers........
If you are trading longer term swings then what cfd providers do isn't as significant, but you are still much worse off than in the real market.
Richard
 
That makes sense if i'm Day trading.......i'm not. Thats not how I work, if i'm going to make an issue over things like that i'd do something else. I'm looking at midterm $15-$20 dollar moves. Not so much the leverage that has me interested but the possibilites of making more trades. Part of being good is patience but if theres something better out there why wait? This is a cash business.
 
So if your idea is to use the leverage to increase the number of trades that you can do, how many different CFD positions do you want to be holding at any one time?


Thanks

Damian
 
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