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BizIPEsq., Attorney
Category: Business Law
Satisfied Customers: 996
Experience:  I am a business attorney. I represent individuals and companies with all business related matters.
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I just opened an overseas forex managed account. How do I go

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I just opened an overseas forex managed account. How do I go about making everything legal for reporting Taxes?

BizIPEsq. :

Hello, I will be assisting you.

BizIPEsq. :

If you are a U.S. citizen or resident alien, you must report income from all sources outside of the U.S. This is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or its foreign equivalents.

BizIPEsq. :

Does the overseas company has any presence in the US?


No the brokerage company has no US affiliates.


  • Tallinex operates under Estonian (EU) jurisdiction with funds segregated in the largest, most conservative Swedish bank - Swedbank

  • Various deposit & withdrawal options are available, such as bank wire transfer, credit/debit card, etc.

  • Raw spreads starting from 0 pips

  • All clients are A-Book clients

  • True ECN/STP broker with PrimeXM FX bridge and Integral FX Grid system

  • Leverage up to 1:400

  • No dealer intervention

  • Prices quoted to 5 decimal places

  • Hedging allowed

  • FIFO rule not applicable

  • STP model with real-time market and price feeds from FSA regulated banks

  • Scalping strategies and all EAs allowed - absolutely no restrictions

  • Open and fund a trading account in your choice of currency: EUR or USD

  • Multi-lingual support - English, Swedish, Russian and Finnish


The CTFC Banking rules do not allow USA brokerage co. This type of leverage, Hedging, and FIFO (first in first out) Rules apply. I can't find any laws I'm breaking but then again, the things I read about the CFTC Banking rules, I need clarification before I get to deep. I think I read somewhere where I need to register this type of offshore account with the Treasury Dept. The opportunity is too lucrative to pass up. The same account in use in America is yielding 12% (which is okay) a month. But in Estonia , with nothing at all different except the CTFC rules Yields 32% Net!!..Just crazy the difference. It is a simple as moving the account offshore. I don't want any hassle with the government or the IRS....I not trying to hide anything to either Just want the opportunity to trade offshore legally and pay my fair share of taxes......Thank you




I am awaiting an answer for being in compliance with all government and IRS rulings of an offshore non-USA affiliate brokerage account. What steps are needed and what order? Thank you.

BizIPEsq. :

As noted, the law requires U.S. citizens and resident aliens to report any worldwide income. This includes income from foreign trusts, and foreign bank and securities accounts.

BizIPEsq. :

In most cases, affected taxpayers need to file Schedule B, Interest and Ordinary Dividends, with the tax returns. A taxpayer may also need to file additional forms such as form 8938, Statement of Specified Foreign Financial Assets, or form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, with the Treasury Department

BizIPEsq. :

publication 4261 provides the guidelines for filing information about foreign financial accounts that exceed $10k (in aggregate)

BizIPEsq. :

If you will be paying tax in Estonia, you may also be able to take either a credit or a deduction for income taxes paid there. This benefit reduces the taxes you would pay in situations where both the U.S. and foreign country tax might double tax same income. The extent of the credit would depend in part on a treaty that may or may exist between Estonia and the US. Finally, as is recommended with most tax filings, you should use a CPA to file your tax return especially since this would not be an ordinary return.

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Thank you for allowing me to assist you

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Customer: replied 3 years ago.

Is this Kind of account (Forex non USA affiliate ) legal for US residents as long as we proceed with your said anwser? The only reason I'm asking this question is because I don't understand the CFTC Overseas brokerage accounting rules.....

To my knowledge there is no prohibition on US citizens from investing in foreign brokerage accounts. I believe that as long as the income and holdings are declared and the investment subject matter is legal then it should be ok. If you have a specific concern about the legality of a certain investment then you should consider consulting with a securities attorney.

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