I am not American so don’t have to worry about their ridiculous regulations on trading that removes the freedom of the trader to trade the same way everyone else in the world is trading. Effectively US Citizens are being handed a major handicap by their governments regulations on trading and the US Government are trying their best to stop US Citizens from even being able to trade with foreign brokers or put their money in foreign banks.
That being said their are still a handful of brokers that don’t care about US Regulations and will still accept US Citizens. Here is a list I have compiled mainly from US Traders discussing them in the Forex Trade Room.
Broker List: (Disclaimer: I have not personally used any of these brokers. I am just providing a comprehensive list of brokers who accept US Citizens.)
FinFX (1:200 leverage, based in Finland, Account size $1000 for ecn or $100 for micro)
(NOTE: FinFX seems to be the broker of choice for US Traders based on conversations from people in the Forex Trade Room who use them)
FX Choice (Starts with 1:25 and up to 1:200 leverage, minimum account $100)
Forex Broker INC (Leverage 1:200 on ecn platnium, based in Belize, minimum amount balance $100)
FX Tradeweb (1:500 leverage, based in Finland, Minimum Account $1000)
Smart Trade FX (1:200 Leverage, Minimum Account ecn standard $25 or ecn pro $2500)
Tallinex (1:400 on ecn micro, based in Estonia, Minimum account $100) Estonia Estonia
WARNING: After Pellucid FX went bust some US Traders lost their accounts. The general recommendation is to have accounts with multiple brokers so if any one goes bust then you will not have lost your entire trading capital. Many of the brokers above claim to have client funds in segregated accounts to protect client funds but not sure how that works in reality.
Trade Anywhere With Any Broker Using An IBC
The other way you can get an account with forign brokers is to set up an IBC. Members of the Forex Trade Room have successfully done so using http://www.orionibc.com/.
An IBC is an international company. You can setup a international company and trade anywhere but there are additional IRS forms you need to deal with to declare your earnings but as that probably changes from time to time I will not list it here. You will need to speak with an international tax account as from what I hear most normal US tax accountants don’t deal with it or know anything about it.