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For a foreign broker with a US presence, they could be subject to US regulation. For example, the IRA I have with Gain Capital could be an issue, and they may force me to return it to US jurisdiction. I have been investigating other options since I simply won't use a US broker or be bound by 50:1 leverage. The "nuclear option" would be to withdraw the Roth IRA account and eat the penalty, putting the money where I want in accord with the second paragraph. Another option would be to place the money directly with a bank which isn't subject to the CFTC. Deutsche Bank, for example, is not governed by the CFTC and offers 100:1 leverage. I've already been in contact with them, and they aren't sure how they will approach US customers. I'll contact them again in a while. Of course, I also need the "thumbs up" from Equity Trust, and I'll approach them if DB is interested in the business. I'd prefer to avoid going nuclear over this, as a Roth IRA is a very nice tax-free income vehicle in my old age. But I'll go nuclear before suffering with a US based broker, FIFO, no-hedging, and 50:1.
I have spoken with at least one foreign broker without a US presence, who does not feel subject to CFTC regulation, and will gladly continue serving US clients. Such a broker will continue to have my taxable account business, and will also get my retirement monies if I go nuclear.
The US government may try to force compliance from foreign brokers, but how can they do this without a US presence ? Diplomatic channels?! Maybe we'll declare war against Mauritius over this...
