Swiss Brokers to stop accepting US clients come July 2011

Following the last year’s approval of Dodd-Frank rules all foreign brokers, who aren’t registered as RFEDs in the US, had

Following the last year’s approval of Dodd-Frank rules all foreign brokers, who aren’t registered as RFEDs in the US, had to stop accepting US clients. The only exemption was for foreign banks which could continue accepting US clients until July 2011. At the time MIG Bank, amongst others, announced that they can still accept US clients – which was a major draw to many US forex traders seeking higher leverage and greater trading flexibility which could only be achieved outside US.

Unfortunately for US retail forex traders this is about to change again. We’ve seen Deutsche Bank as the first foreign bank which decided to publicly announce its withdrawal from the US market and now I can confirm that MIG, and probably Dukascopy and Swissquote Bank as well, are going to stop accepting US clients come July 2011. The only legal way as far as I know for US traders to trade outside US is through their foreign companies which can open corporate accounts with foreign brokers – this is a costly and lengthy operation and may only be suitable for larger traders.

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CitiFX Pro emerges as the single biggest winner in this scenario – it is the only forex bank left which can continue accepting US, and other, clients.

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This is what MIG had to say when I contacted them:

“We will definitely stop accepting US clients in July 2011 in line with the US regulations. As for the current client base, a decision is still to be made and we are evaluating various options. We will not sell any client as such but we are looking into different strategic partnership opportunities. We will inform you once the situation is clear.” Ilgar Rustamov – Head of Marketing, MIG Bank

Grab your latest copy of the Forex Magnates Retail Forex Industry Report for Q1 2011.

 

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