CFD brokers allowing EU residents to open an account through US entity

[Hydrogene75]

Hey guys. I live in western Europe and I am looking for some CFD brokers that would allow me to register my trading account with their U.S-based entity rather than being automatically redirected to an EU entity when opening my account. My goal is to have my account governed and regulated under U.S laws. I know I can set up an US LLC but that would cost me minimum $1,000
Thanks in advance.

 

[Martin Everson]

CFD trading is banned for US persons and residents so good luck finding a CFD platform regulated under US law.

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Trading CFDs is unfortunately banned for citizens from the United States. The Commodity Futures Trading Commission (CFTC) and The Securities and Exchange Commission (SEC) prohibit USA residents and citizens from opening CFD accounts on domestic or foreign platforms.

CFDs are illegal in part because they are an over-the-counter (OTC) product – not passing through regulated exchanges. Also, American regulators have concerns over the possibility of large losses stemming from using leverage. Despite this, some citizens from the USA do turn to offshore companies for access to CFDs. But that does come with risks, one of which is finding an adequately regulated option. Most FCA regulated firms, for example, do not allow USA citizens to open an online CFD trading account.

Non-US citizens, however, can trade CFDs on American shares and markets. The restrictions only apply to US citizens and residents.

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[Hydrogene75]

Then what about regular share trading with a broker allowing EU residents to open an account through their U.S entity. Actually my purpose is to avoid CRS reporting since most CFD brokers regulated in EU comply fall within the scope of the CRS

 

[Martin Everson]

Look at Tastytrade.

You can check your eligibility of whatever you are planning below.

https://support.tastytrade.com/support/s/solutions/articles/43000435355

 

[Hydrogene75]

Omg thank you so much. I have opened an account and the contractual agreement is indeed governed under U.S law, so my assets should not get reported under the CRS. Is it enough reliable and safe to invest like €20,000 ?

 

[Martin Everson]

I have not used them so cannot say.