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Under FBAR laws - how should I report "account churning?" - Yes you must report each account and it's maximum balance during the year. I agree it looks like you might have hundreds of thousands of dollars but this is irrelevant. Each account must be reported if you have in all aggregated accounts passed the 10K reporting requirement threshold.
Under FBAR 220.127.116.11.6 - Account Valuation # XXXXX - The value of stock, other securities......reported on FBAR is the fair market value at the end of the calendar year...etc. - No,it is the highest balance during the year, translated to USD at the 12/31 exchange rate.
What about forex accounts? - only the maximum value of the account as a whole would be reported if the account is held offshore. If the account has numerous positions then the total of all positions would be reported.
I hope this helps, please let me know if you have any further questions.
How is that treated? In this instance you would ignore all the different positions you hold in the foreign account and look to the market value of the account as a whole. This is the balance that is reportable, not each position.
What is the reporting criteria? - the reporting criteria is the same as all other accounts. If the aggregate value of all your foreign accounts at any point in the year exceed 10KUSD then each account is reportable.
Does a spot trading forex account fall under stocks and securities that is the fair market value at the end of the calendar year or not. - Yes, if the trading account is held in a foreign non US account the balance would be reportable.
I hope this clears it up for you. Please let me know if something is not clear.