In this episode of Truth About FX, Walter explains that while some might consider the fact that other forex related services do not accept US clients as dishonesty, it’s really just a business decision.
Many brokers consider USA clients “second class” traders because of the regulations involved on USA forex trading accounts.
Download (Duration: 02:40/ 3.06 MB)
In This Episode:
00:39 – US clients
00:57 – paperwork involved
01:54 – just being efficient
02:09 – business decision
Some forex related services that are associated with US clients are more regulated than others. [Click To Tweet].
Selective forex services is not dishonesty. [Click To Tweet].
It’s just efficient paperwork and wise business decision. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hey, Walter. A quick question: some forex related services do not accept US clients. Does that mean that they’re dishonest?
Walter: It’s not that. It’s just has to do with the regulations that are associated with US clients. US clients can only have certain leverage or whatever. It doesn’t mean that the broker is dishonest.
It simply means that the broker doesn’t want to deal with the headache of having to deal with a US client because of all the additional reporting and paperwork involved.
Think about it like this: let’s say, you’re a small businessman and let’s say you’re running a Doctor’s office. You’re a doctor. You got a Doctor’s office and you need to hire a secretary.
Now, would you hire a secretary who comes in from this around the corners, lives around the blocks from your office and says “Hey, I’d like the job” and clearly you know that this secretary is American and she’s been living in the states. She was born in there and she’s gather social security card and all that.
Or, would you import someone who applies for the job from Japan knowing that you have to go through all that immigration and all that paperwork crap. That’s basically what these brokers are saying. “It’s not worth it to us to deal with these, all the stuff and so we’re just going to work with the local people here.” So, they’re not being dishonest. They’re just being efficient with their paperwork.
Hugh: Yeah. And a lot of time, that stuff cost money. I think I was talking to a signal guy and he said that if they had to go through all that regulations, like they’ll just break even so that didn’t make any sense.
Walter: Yeah, exactly. It doesn’t make any sense. It’s a business decision, basically. It’s not anything to do with them being dishonest, they’re shading or anything. It’s just a business decision. We don’t want to deal with these. Like you say, it’s too much work for our effort.
Hugh: Yeah, I’m glad we cleared that up.
Walter: Yeah, great. Well, see you next time, Hugh.
Hugh: Ok. Thanks, Walter.