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Anonymous
Trading Contracts for Difference 2017-06-03 06:13:07 Post No. 2265601
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Trading Contracts for Difference 2017-06-03 06:13:07 Post No. 2265601
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Now I'm sure most of you know that US citizen "retail traders" (anybody not in some special category according to CFTC and SEC) are barred from trading CFDs on domestic and foreign exchanges. However I've noticed a few exchanges don't put much effort into stopping Americans (for ex, BitMEX will not flag any account registered over Tor from a non-US exit which then logs in from the US over clearnet. SimpleFX just has a thing at the bottom about making sure it's legal to trade CFDs in one's country. There's also BTC-e.
What I want to know is, if as an American within America, if I manage to find a broker which does not prevent me from trading in CFDs, what are the legal implications I face trading in CFDs? Understandably I must pay taxes on profits, so I take it that CFD trading must be explicitly disclosed? Will the IRS simply be happy they're getting their pound of profits or will they actively shut down CFD traders by forwarding them to CFTC/SEC?
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Bump, because this matters to most /biz/nessmen. Many of the exchanges you margin trade on use some form of CFD.
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Really? Nobody fucking knows how Dodd-Frank could bite them in the ass for trading in CFDs?!
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>Burgerland
Sorry, I only know about legalities of CFD trading in Europe.
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Just use VPN the whole point of crypto is to avoid people in-between you and your money
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>>2265868
Dodd-Frank would never do that.
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wtf why don't they want you guys trading cfds?
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>>2265955
It was banned in '10ish because "10x leverage qualifies as gambling'.
What really happened is that tons of people got into CFDs too quickly and lost all their money, like usual, but CFDs made them lose the money too fast so regulators acted so that everyone could feel like they were protected.
It doesn't matter, 90% of retail traders are doing just fine blacking out their accounts without any help from CFDs. At least with crypto, a digital asset has to depreciate and you have to sell to lose money.
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