When the US regulators said DO NOT chase the US public as potential clients they meant it! Cyprus based Trading Point has been given a harsh warning and fine by the CFTC as it has been found guilty of unlawfully soliciting U.S. customers to engage in foreign currency trading and was operating as a Retail Foreign Exchange Dealer (RFED) without being registered with the CFTC.
Since the Dodd Frank regulations were implemented in 2008 the whole OTC FX trading landscape was changed. US traders were forced to trade on low leverage and non US regulated brokers could not solicit clients from America. City Credit Capital UK was the latest forex broker to settle with the CFTC for soliciting US forex traders.
Trading Point has been asked to pay a fine of $140,000 in addition to close all U.S. customer accounts and to return each U.S. customer funds in the customer’s account. It also directs Trading Point to publish a prominently displayed notice on its website, stating that Trading Point does not provide services for U.S. customers.
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Most UK and Cyprus (regulated brokers) have clear disclaimers on their site informing US residents they cannot do business with them.
The CFTC and NFA have been cracking down on unlawful and un-regulated firms both in US and outside offering ponzi schemes, trading without authorisation and soliciting without regulations.
If there are any other non US regulated brokers solicitng US clients please feel free to share!
Forexmagnates team wrote a detailed report on the effects of Dodd Frank and MIFID 2, available in the Q4 2011 quarterly report.