America has seen a fair number of restrictions. With no hedging, limited leverage, and the FIFO rules set by the CFTC and the NFA, more and more people are looking to trade with offshore brokers instead.
That being said, since rules and regulations are different in every country, not every foreign broker can accept users from the United States. Only a limited number of companies are compliant and authorized to work in the United States. This article will give you more details on that matter.
Latest List of Foreign Brokers Accepting US Clients
In January 2023, it was determined that there are 13 offshore brokers still accepting US citizens. That number is highly dynamic, as forex trading is increasing on a global level. At the moment, these are the brokers listed:
- Europe/UK: LMFX (Macedonia), Renesource Capital (Latvia)
- Caribbean/Central America: SageFX (St. Vincent and the Grenadines), EagleFX (Dominica), Coinexx (St. Vincent and the Grenadines), tradiso (St. Vincent and the Grenadines), AAFX (St. Vincent and the Grenadines), FXGlory (St. Vincent and the Grenadines), ProsperityFX (St. Vincent and the Grenadines)
- Middle East/Africa/Persian Gulf: Hanko Trade (Seychelles), Turnkey Forex (Mauritius), Hugo’s Way (Seychelles)
- Asia/Pacific: LQDFX (Marshall Islands)
While this is an updated complete list of offshore brokers that reportedly accept US clients, the stats can change in as little as a few weeks. In the past decade, there were more than 100 of these brokers. Now, because of regulation difficulties, there are only just over 10 of them left.
How Some Brokers Can Accept US Citizens?
While there are some very heavy regulations, there are still several Forex brokers accepting US clients, as long as they meet certain conditions. This can be done even if they are not registered under US regulatory bodies such as the CFTC and the NFA.
The condition is that said broker must have an affiliate brokerage company based in the United States. In this case, the company will still have a section under the IS regulations, which means you can easily trade. Countries part of the Memorandum of Understanding may also trade with each other, meaning that foreign brokers can easily accept US clients.
Some brokers may have decided to stop accepting new clients, but may still keep the old clients. For example, if new regulations forced a trader into no longer accepting new clients, this will not affect old members. As long as the accounts were made before the change and the clients are actively trading, their accounts will not be affected.
Bear in mind that these regulations only affect the company. As an individual, the US government doesn’t care who you trade with if you report your taxes to the IRS.
Even if the company does not meet all the regulations or changes them later on, you will not be affected as an individual. Just make sure that you are working with a trusted broker so that you are not scammed.
The Bottom Line
There are not many forex brokers left that accept traders from the United States, but there is still a small selection. You just need to do proper research on each broker in particular. Check their leverage and potential restrictions, and inquire about making an account.
