1/5
People concerned about adding stock CFDs are citing companies that broke US regulation as a reason not to do this.
They fail to realize that sites like Plus500, eToro, AvaTrade, and IQ Option have offered CFDs for decades without issue.
How?
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2/5
They don't allow US users, or have US Counterparty operations.
Exactly what FTX is doing.
eToro is one of the largest players in the space, and eventually compliantly entered the US with their own separate, licensed, eToro US operation.
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Stock CFDs are legal and unlike the US, most countries regulate the services in their countries, not the services used by their citizens, so there is less of a compliance issue.
Why did 1Broker and Abra have issues?
US users, US operations, US counterparties.
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4/5
What were the only US actions against traditional CFD vendors who followed the rules?
Plus500 was fined for "internal rigging" once.
But they all still operate and eToro is probably worth $3B-$5B at current value.
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5/5
CFDs aren't illegal - and offering them for US traded companies on the NYSE and NASDAQ is allowed - you just need to follow the regulations and not try and skirt the rules just because you are on a blockchain.
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They've already got a pretty good help article that outlines this stuff and that their coverage is via compliant EU based investment entities: help.ftx.com/hc/en-us/artic
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Yeah their page is really helpful :)
But I don't imagine many folks actually make the effort to click and read more. Your tweetstorm is the right amount of concise and clarifying haha
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yea interestingly it seems like reading the product outline is not really in the cards for some commentators.
It's the age of short attention spans haha. I'll be honest, I'm guilty of it myself.
The FAQ page was very helpful to get more depth after I checked out Adam's post!
Btw, big congrats on this Sam!
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This is a different situation because of the partnership with CM-Equity, enhanced diligence, etc.
help.ftx.com/hc/en-us/artic has the most up-to-date info
