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It’s well known that online CFD trading is banned (as well as, say, binary options) in the US. It’s questionable whether the law protects citizens from fraud or traditional traders from rivalry. The question is simple: if you’re into CFD trading commodities and stuff, and you happen to have US citizenship, how to trade there? Well, there are ways, but they all require some inventiveness. Still, we recommend you read this to satisfy your curiosity.
Trading In The USA
How To Access Trading Sites And Apps?
The law that bans CFD or binary options trading in the US implies that the apps that let you do it from your phone are not available if your account says you’re a citizen of the US. You will need another account that you register as a citizen of some other country where it’s lawful. To ensure it works, you need to connect with your VPN, having chosen the same country you’re using in your profile. Probably you will have to connect through a VPN each time you want to reach the site or launch the app.
Still, you will have to find a trustable offshore broker regulated by ESMA, FCA, or another well-reputed regulator.
How Does One Withdraw Money?
Let’s assume you have been lucky and have earned some money on your so-cherished account. Well, now let’s withdraw it. The sites (as you know) do not want to violate American law, so chances are they will not accept your American credit or debit card where you can receive the money.
Hey, and what about PayPal, Venmo, Payoneer, and their likes? Yes, you get a better living through online payments. But it’s just the beginning. You will need to:
- withdraw the funds to your bank account (given that American cards may be declined by brokers)
- report this income in your tax return.
We are not supposed to instruct you on violating American laws and trying to fool the IRS. So this part of the question remains intendedly unanswered.
Proxy Or Tourist Trading
Perhaps you can imagine a scheme when you physically go abroad to do the trading. No VPN is needed to connect. Some local friends can provide you with their cards to use when registering or withdrawing the money.
Vice versa, you can ask some non-American friend or relative to act as your proxy. While CFD trading is prohibited for US citizens, foreigners can access American CFD platforms and do the trade. Again, it’s up to you how you declare the income.
The Hard Way
Hey, but is there a completely legal way to trade CFD in the US? One that would require no VPN, no need to report the income, and stuff? The answer is yes. All you need to know is how to trade and become a stockbroker at a regulated exchange.
If you want to get there, you will need some education (not those YouTube lectures, as informative as they may be, but a well-reputed business school), then training at a brokerage firm, and then some even tougher time to receive the license and the FINRA registration. A piece of cake, isn’t it?
How To Trade?
While the law has a definite answer, you may want to find another. It’s harder than it may seem, but still possible.
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