U.S. Broker Choices (FXCM Orphan)

Wicked_Daddy

Active member
128 47
I'm an FXCM orphan. Regardless of their shady practices and lies, I have enjoyed trading on their Trading Station platform for years. It is simply the best as far as I am concerned. Now that it is revealed that FXCM has always been a market maker, it seems silly to go looking for a U.S. based broker that is not, as they all are. And actually, I knew this because I do read the details in the client agreements and they specifically state that FXCM may, at their discretion, take the opposite side of your trade. Who cares? Unless you are using ultra tight stops and/or gambling during volatile news periods, it's not an issue.

So now I have done many hours of research, trying to figure out which broker I will go with. I find that there are 2 choices - Gain Capital/Forex.com or Oanda. Any other U.S. based brokerage is really just an introducing broker to one of these two. It's pointless to add a layer to an already expensive spread.

Sure, I could jump through the hoops and spend the money on setting up an offshore corporation (I already trade within my U.S. corporation) but that is so tedious and expensive and the end result is that then my choices would include all the fly-by-night brokerages in various 3rd world countries that don't make me feel secure about my money. I'm not a micro lot trader. I do this for a living.

So what to do? I'll probably go with Forex.com. They seem to be the lesser of the two evils. Their platform is ugly, amateur and the data appears to be slow but it's better than Oanda's. And Oanda nickel and dimes you for everything.

Anyway, I'd be interested in any thoughts on this topic. There are a lot of us that will be searching for alternatives.
 

RubenDK

Junior member
17 1
I'm an FXCM orphan. Regardless of their shady practices and lies, I have enjoyed trading on their Trading Station platform for years. It is simply the best as far as I am concerned. Now that it is revealed that FXCM has always been a market maker, it seems silly to go looking for a U.S. based broker that is not, as they all are. And actually, I knew this because I do read the details in the client agreements and they specifically state that FXCM may, at their discretion, take the opposite side of your trade. Who cares? Unless you are using ultra tight stops and/or gambling during volatile news periods, it's not an issue.

So now I have done many hours of research, trying to figure out which broker I will go with. I find that there are 2 choices - Gain Capital/Forex.com or Oanda. Any other U.S. based brokerage is really just an introducing broker to one of these two. It's pointless to add a layer to an already expensive spread.

Sure, I could jump through the hoops and spend the money on setting up an offshore corporation (I already trade within my U.S. corporation) but that is so tedious and expensive and the end result is that then my choices would include all the fly-by-night brokerages in various 3rd world countries that don't make me feel secure about my money. I'm not a micro lot trader. I do this for a living.

So what to do? I'll probably go with Forex.com. They seem to be the lesser of the two evils. Their platform is ugly, amateur and the data appears to be slow but it's better than Oanda's. And Oanda nickel and dimes you for everything.

Anyway, I'd be interested in any thoughts on this topic. There are a lot of us that will be searching for alternatives.
ATC Brokers?
 

Wicked_Daddy

Active member
128 47
ATC Brokers?
They are (were) IB to FXCM for U.S. clients. I called them today and they have a plan for how to serve U.S. clients through a partnership with either Gain or Oanda. But it's only concept and nothing is in place, yet. We had a good conversation and I feel as though their strategy is good, but it will need time to come together.

I think it's time to set up an offshore corporation.
 

RubenDK

Junior member
17 1
They are (were) IB to FXCM for U.S. clients. I called them today and they have a plan for how to serve U.S. clients through a partnership with either Gain or Oanda. But it's only concept and nothing is in place, yet. We had a good conversation and I feel as though their strategy is good, but it will need time to come together.

I think it's time to set up an offshore corporation.
If you make a decent amount of money from trading it definitely might be worth it to set up an offshore corporation, however if you want to do it well and all legal it will cost you loads of money to get the right information and know how from lawyers and accountants, even before you can set up anything.

What is the average lot size you trade?
Most of the major fx futures are liquid enough to take 5-10 contracts, maybe that can be a (temporally) solution?
 

RubenDK

Junior member
17 1
Not sure if these allow US clients for FX but maybe TD Ameritrade, RJ O'Brien, FC Stone, ...

Edit: apparently OCBC and Swissquote do accept US clients
 
Last edited:

Wicked_Daddy

Active member
128 47
Not sure if these allow US clients for FX but maybe TD Ameritrade, RJ O'Brien, FC Stone, ...
TD Ameritrade is an IB to Gain Capital. The other two are clearing houses. There are two brokers left in the U.S. that provide forex trading - Gain and Oanda. Everyone else is an IB to one of them.

2 choices. That's it. And I think it will not be long before they give up as well. CFTC and NFA have made it cost and regulatory prohibitive, according to the people I have been talking with at the many brokerages I have now contacted.
 
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wackypete2

Legendary member
10,213 2,045
2 choices. That's it. And I think it will not be long before they give up as well. CFTC and NFA have made it cost and regulatory prohibitive, according to the people I have been talking with at the many brokerages I have now contacted.
That's because the CFTC and NFA are made up of large futures brokers and were afraid of losing clients to spot fx traders who offered very low margin limits. So, they changed the rules to benefit themselves.

I use thinkorswim by TDameritrade. I've been with TDameritrade forever though and get excellent rates and service, however I find the platform too slow to day trade equities.

Peter
 

T44

Member
57 8
Trade the Currency Futures? If you already trade for a living then likely worthwhile getting a CME membership to get the Exchange Fee discount, though if you're a big player might not be enough liquidity?
 

moka2

Established member
529 13
That's because the CFTC and NFA are made up of large futures brokers and were afraid of losing clients to spot fx traders who offered very low margin limits. So, they changed the rules to benefit themselves.
Peter
Typical conspiracy theory:devilish:... other large brokers like IB have not gone out of business!

the lowering of leverage to 1:50 for retail traders was implemented for a good reason! to reduce the "Gambling" nature of this game!
Without such regulations crazy leverage like 1:500 (n) would work to the benefit of brokers...
One can consider Exchange Traded Currency Futures , still get some leverage and all the advantage of being trading on an Exchange:smart:
 

tar

Legendary member
10,441 1,313
Typical conspiracy theory:devilish:... other large brokers like IB have not gone out of business!

the lowering of leverage to 1:50 for retail traders was implemented for a good reason! to reduce the "Gambling" nature of this game!
Without such regulations crazy leverage like 1:500 (n) would work to the benefit of brokers...
One can consider Exchange Traded Currency Futures , still get some leverage and all the advantage of being trading on an Exchange:smart:
Well infact now IB US cant provide leveraged forex for retail traders in the US anymore unless you are an eligible contract participant , in another words you have 10 Million dollars .

http://news.forexlive.com/!/interactive-brokers-to-cut-off-us-forex-clients-sept-1-20160812
 
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wackypete2

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10,213 2,045
Typical conspiracy theory:devilish:... other large brokers like IB have not gone out of business!

the lowering of leverage to 1:50 for retail traders was implemented for a good reason! to reduce the "Gambling" nature of this game!
Without such regulations crazy leverage like 1:500 (n) would work to the benefit of brokers...
One can consider Exchange Traded Currency Futures , still get some leverage and all the advantage of being trading on an Exchange:smart:
say again ?
 

wackypete2

Legendary member
10,213 2,045
"It's not that the Forex market is Evil at least to most of us. However USA Governance has long had this concept that they need to save US citizens from themselves. That's why we have "regulation" on everything from helmets to seat belts to cell phone management to timeouts on US based Financial Websites . Oh & by all means don't forget about the USA Dodd-Frank Act. It requires USA Brokers to program in FIFO rules & severely limits extended leverage. It also requires year end statements be filed with the IRS on the Brokerages clients income for taxation.
The rest of the world operates more on 'common sense' or 'Caveat emptor' approach. [Latin: "Let the buyer beware"] Now don't get me wrong here I do agree some regulation is necessary. However the USA regulates beyond the point of absurdity. I don't blame the Brokers for not wanting to deal with USA clients/regulators. Unfortunately the 'client/regulators' term is inseparable. The huge downside is it places the USA Forex clientele potentially in harms way by seeking a non USA Broker. Some of which.... well, nuff said."

- Ron Abrams
 

moka2

Established member
529 13
"It's not that the Forex market is Evil at least to most of us. However USA Governance has long had this concept that they need to save US citizens from themselves. That's why we have "regulation" on everything from helmets to seat belts to cell phone management to timeouts on US based Financial Websites . \

Not sure are you mocking this CFTC action or supporting it!

So what would you have ?
No regulations on anything?

Actually I am starting few new businesses

1) Would you like to become my client where I teach unsuspecting young and old people How to make millions overnight on the stock market!
Yah this bloody govt intervention has gone too far...
2) My next business is going to be deregulated Prisons....
3) Lets deregulate medicine and let quackery begin.. hell I have just invented a heart machine would you like to get a second one !
Or 4) what about me certifying the next long span bridge that your town is thinking of building, I think I can be an engineer why bother with all the codes and regulations FREE Market yah... lets do it
Or better I am going to join the all respectable mushrooming Binary Options brokers! wow:idea:
People come to jurisdictions like UK/USA etc hoping that the only thing they have to deal with is Market risk and they are protected from all this BS

It is a fashion to blame regulators...responsible people should be spending energy on how to better hold regulators responsible and make them them effective rather than trying to get rid of them....
 

SmartFXRebates

Junior member
14 3
Typical conspiracy theory:devilish:... other large brokers like IB have not gone out of business!

the lowering of leverage to 1:50 for retail traders was implemented for a good reason! to reduce the "Gambling" nature of this game!
Without such regulations crazy leverage like 1:500 (n) would work to the benefit of brokers...
One can consider Exchange Traded Currency Futures , still get some leverage and all the advantage of being trading on an Exchange:smart:
Why should there be a need to 'reduce the gambling nature of this game' in the first place? People do, and always have, been gambling. They do it in the casinos all the time. Why is it not ok to gamble in fx if someone so chooses?
 
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wackypete2

Legendary member
10,213 2,045
So what would you have ?
No regulations on anything?

Actually I am starting few new businesses

1) Would you like to become my client where I teach unsuspecting young and old people How to make millions overnight on the stock market!
Yah this bloody govt intervention has gone too far...
2) My next business is going to be deregulated Prisons....
3) Lets deregulate medicine and let quackery begin.. hell I have just invented a heart machine would you like to get a second one !
Or 4) what about me certifying the next long span bridge that your town is thinking of building, I think I can be an engineer why bother with all the codes and regulations FREE Market yah... lets do it
Or better I am going to join the all respectable mushrooming Binary Options brokers! wow:idea:
People come to jurisdictions like UK/USA etc hoping that the only thing they have to deal with is Market risk and they are protected from all this BS

It is a fashion to blame regulators...responsible people should be spending energy on how to better hold regulators responsible and make them them effective rather than trying to get rid of them....
It is not the proper business of government to regulate the way we live our lives. It is not the proper business of government to tell us how many calories we may consume, or how much we may drink, or how much of our paychecks we may spend on lottery tickets, or HOW MUCH FOREX LEVERAGE WE MAY USE.

And it's not the proper business of government to tell U.S. residents where they may do their banking, or where they may do their trading. Finally, it's not the proper business of government to tell U.S. forex brokers where they may set up foreign branches, or whom they may accept as customers in those foreign branches.

It is appropriate for the government to require brokers to furnish full and honest disclosure of the risks involved in forex trading, and to furnish full and honest disclosure of the terms and conditions of the trading accounts which they offer. And it is appropriate for the government to prosecute fraud wherever and whenever it occurs in any of the financial markets.

Beyond that, the government has no legitimate role, and they should butt out.

Peter
 
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