Discussion in ' Forex Brokers ' started by jetq , Jan 10, Log in or Sign up. America blocked out of country gambling as such, Forex is classed as gambling, basically they don't mind Americans losing Billions at poker while drunk to each other but they don't want that money leaving the country.
Pekelo and Zzzz1 like this. Outside US Forex firms follow different accounting procedures than what is dictated by regulators here, not to mention other compliance issues that are related to funds, segregation, etc. Its not only the items mentioned above. It doesn't matter if its FX, Equities, Bonds or anything else. Americans are not welcome abroad because of the amount of bureaucracy and hassle it takes to both onboard and maintain Americans as clients. We're not talking KYC here.
We're talking paperwork beyond that, on the brokers side, for reporting etc. A large part of it comes down to the worldwide taxation policy the US has, hence the IRS wants to collect data on what its citizens are up to abroad. And that generates a whole load of additional admin paperwork that quite frankly is not financially worth it for the majority of small-time americans who would be opening accounts abroad.
There are also draconian penalities for any financial firm that fails to comply with the stupidly complex rules surrounding the reporting. This only serves to increase their reluctance to deal with yanks. The general state of play you'll find is they'll refuse new accounts from US citizens, and if they have not already done so tell existing US accounts to go back where they came from. Lou Friedman likes this. You must log in or sign up to reply here.
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