Disliked{quote} Actually they can make it difficult on them regardless of existing laws. 1broker.io was a perfect example of an offshore broker, who had no affiliation with anything in the USA, and was shutdown and forced out of business by US authorities. Recently there's been several offshore brokers who have halted accepting US clients after years of allowing them. They did so after US regulators went after one of them. Even tho they have no physical presence in the USA. {quote} We both know it could very well happen at anytime.Ignored
In terms of business structure these prop firms function like a Tshirt shop. You buy a product one time and thats that. Obviously monthly sub type models wouldnt be allowed because then its a whole other kettle of fish.
The original exodus of the US for brokers was caused by the CFTC suing brokers for exorbitant amounts and forcing settlements. See: Fxopen.
FXOpen was sued for 500 million and they had a total of 24 k in US deposits. So brokers went "you know what this isn't worth it". The US market at the time was crap anyway so it was pointless to go through the headache. Now the CFTC leaves these shit shops that are accepting americans alone for some obscene reason, i suspect because their focus has switched from dodd frank.
For Prop firms I think there are some AML/CTF elements that could come into play and could heavily restrict usage, but thats more an iran/african nation matter and not so much a US matter due to the nature of the purchase.
Also, if a prop firm hasn't papered you and is sending you money, they are a breaking the law. Your ID/ proof of address and some sort of agreement has to be in place accompanied by an invoice for every transaction. Anyone caught without it can be shut down at any moment citing AML law.
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