Many international forex brokers have rules that limit American traders, which is no longer a secret.Many international forex brokers operating overseas do not accept American residents to open accounts with them.Many of these brokers are regulated.This reason will become very clear when we solve each reason.There are strict regulations restricting doing business with American citizens.Most of these rules stem from the US government.Fortunately, the rules did not completely prevent international brokers from accepting American citizens.There are many offshore international foreign exchange brokers who accept American citizens.Here are the main reasons why some overseas international forex brokers do not accept American citizens.Dodd-Dodd-Frank ActThe Frank Bill is the latest federal regulation President Obama has signed into law.It began operations in July 21, 2010.Purely a reform agenda developed to regulate financial markets.The Act proposes new rules designed to regulate all financial markets, including stocks, futures, options and foreign exchange.Dodd-Frank Act requires that every foreign exchange brokerage company that wants to do business with American citizens must first register with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA.Many international forex brokers find this very difficult for them.Recent statistics show that a considerable number of such international brokers are still not registered with the two US regulators.These are legal and regulated offshore brokers.To avoid paper confusion, they no longer accept that American citizens open accounts with them.It is easier for them to reject American citizens than to pay unforeseen expenses.The main reason for forcing international offshore foreign exchange brokers to reject American citizens is to implement Dodd-Frank Act.In addition, the US government has made other reforms and changes to financial market services, prohibiting its citizens from opening accounts with international brokerage companies.Some of these regulations are directly linked to CFTC activities.The US government has implemented some of these measures directly.Besides that, Dodd-Frank Act has many other shortcomings.Many foreign banks cannot continue to accept American customers because of this regulation.Secondly, most of the forex brokerage services have significantly changed the level of minimum account transactions, leverage and spreads for US citizens.Despite the restrictions imposed by Dodd, the solutionSome overseas international foreign exchange brokers still accept the joining of American citizens.If you are a US citizen, it is possible for you to open an account with an international broker who is not registered with the US regulator --NFA and CFTC.However, this is done under certain different conditions.Such offshore brokers are only allowed to accept US customers in the United States-Brokerage company.Conclusion regulation of offshore foreign exchange brokerage companies requires them to register with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) before accepting US citizens, which has both advantages and disadvantagesThe main benefit of regulation is to ensure the safety of funds for American residents.This is the intention of regulation.In addition, since investment funds cannot leave the US border, the Treasury Department is expected to enrich itself from regulation.However, this regulation has several other shortcomings for both American citizens and the government.First, American citizens cannot enjoy these services if international brokers are not regulated by the US government.Second, brokers who accept American citizens have raised their minimum capital requirements significantly.S. citizens now face unfavorable trade conditions because of this regulation;Low prices are poor and lower leverage.
