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XE Trade - Account Cancelled


Alpha1

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Anyone else have an unauthorized cancellation?

The policy is:

Reasons for cancellation can include, but are not limited to:

  1. Failure to remit payment for booked transactions;
  2. Unusual account activity, suggesting potential misuse by a third party; or
  3. Instructions from you to cancel your account.

Please advise...

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What was the timing of the cancellation?

With the July 1, 2014 new extensive FATCA reporting requirements, XE may simply have found that the costs of IRS required client tracking of Americans in Mexico, and IRS required reporting for companies with Mexican clients was just not worth the extra costs of having clients who live in Mexico and do business in Mexico.

Congress forced the IRS to require 30% withholding on clients who live in Mexico (unless they certify that they are paying US taxes), is an expensive pain for US businesses, and Congress also mandated IRS fines for companies that make a mistake at $10,000 per error on clients living in Mexico (or abroad). Thank your Congressman.

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No Snowyco, FACTA does not apply to Canadians.

Actually, the corporate home of a financial institution does not make it exempt from FATCA.

Stick with facts:

~ XE chooses to operate in the USA, which legally requires XE to follow FATCA requirements when it operates in the USA.

~ Canadians in the USA are bound by FATCA rules, when they deal with any financial institution operating in the USA.

~ XE chooses to operate in the USA, which legally requires XE to follow FATCA requirements when dealing with American citizens who live in Mexico.

So far, these legal realities cover the people's comments on Chapala.com describing problems with XE

Joco,

You can read FATCA rules and W-8BEN and W-8BEN-E instructions to better understand US law and the problems people are facing at XE.

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The OP is not in the USA, does not have an account in the USA and he is not subject to laws in the USA. Once again I will tell you, learn to read.

Joco,

Please help me, I read everything the OP wrote, Do you know the facts that were not written above?

Has the OP written the country of their citizenship?

The OP wrote that they have "non-resident accounts" in Canada, making them legal non-residents of Canada.

Has the OP written where they opened the XE account?

If they opened the account in the USA, or used the account in the USA, their transactions can be bound by US laws.

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Stick with facts:

~ XE chooses to operate in the USA, which legally requires XE to follow FATCA requirements when it operates in the USA.

Where did you ever get this idea? XE is located in Newmarket, Ontario. It is a financial services software company and uses a clearing house based in the UK to handle currency trading.

When you sign up for an xe account they request a photocopy of your passport to determine your citizenship. Based on the OP's comments, we don't know what country he/she is a citizen of or what country he/she has a bank account in that is triggering this cancellation.

From the OP's posts we can "assume" he/she is a non-resident Canadian citizen living in Mexico and using a bank account at a Canadian institution. If so, should not be subject to any FATCA compliance.

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I have contacted the company, however at this time the only reason seems to be that I live in Mexico, even though I have other financial accounts in Canada as a non-resident which XE is aware of.

Joco,

Please help me, I read everything the OP wrote, Do you know the facts that were not written above?

Has the OP written the country of their citizenship?

The OP wrote that they have "non-resident accounts" in Canada, making them legal non-residents of Canada.

Has the OP written where they opened the XE account?

If they opened the account in the USA, or used the account in the USA, their transactions can be bound by US laws.

Alpha wrote that he is a non-resident Canadian and his accounts are in Canada. He never wrote that his accounts are in the U.S. or that he is from the U.S. He wrote that HE IS a non-resident Canadian, not that his accounts are non-resident Canadian which wouldn't make a lick of sense.

He is not subject to FACTA. He would have asked if it was caused by FACTA if he was subject to U.S. law.

He did not ask about FACTA or if FACTA could have caused his cancellation. FACTA does not apply to non-U.S. citizens with non-U.S. accounts handled by non-U.S. companies.

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Could it be as simple as Canada told XE to check out these folks in Mexico and they don't want to so they cancel the account as that is the least amount of work.

That's how US government rules are being handles by many banks in US like Bancomex/Citibank.

Not saying I know just lets think about why they would cancel accounts in Mexico?

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Alpha wrote that he is a non-resident Canadian and his accounts are in Canada. He never wrote that his accounts are in the U.S. or that he is from the U.S. He wrote that HE IS a non-resident Canadian, not that his accounts are non-resident Canadian which wouldn't make a lick of sense.

My apologies. I accidentally took Alpha's statement: "I have other financial accounts in Canada as a non-resident " - to mean that Alpha is not a legal resident of Canada.

Being a "non-resident Canadian" is legally different than "having financial accounts in Canada as a non-resident "

Canada must have different legal definitions of who is officially a "non-Resident" - where Mexico and the USA define visitors to the USA and visitors to Mexico to be "non-residents".... Canadian-speak, eh, is too confusing for me.

Best of luck to the Canadians in figuring out why a Canadian company cancelled the account of a Canadian citizen.

Laugh, smile, enjoy the day...

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I applied for an XE account but, when they found out that I was living in Mexico - they could tell this from my IP address - they declined to have me as a client. A friend of mine - who has her IP address through a Gorilla device that shows her as being in Florida - was accepted straight away for an XE account with no questions being asked. Seems to me that it might be purely because the OP is living in Mexico that their account was cancelled, as simple as that. Now why they don't want to deal with anyone living in Mexico is another question entirely and one I have no answer for.

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change your ip address, I went the online for ss deposits and at first I had not turned the program on and they said you are in Mexico.

Turned the program on then went on the website and changed financial institution with no problems, even received an email telling me what month it would be done. I love this program that changes your ip address when needed.

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My apologies. I accidentally took Alpha's statement: "I have other financial accounts in Canada as a non-resident " - to mean that Alpha is not a legal resident of Canada.

Being a "non-resident Canadian" is legally different than "having financial accounts in Canada as a non-resident "

Canada must have different legal definitions of who is officially a "non-Resident" - where Mexico and the USA define visitors to the USA and visitors to Mexico to be "non-residents".... Canadian-speak, eh, is too confusing for me.

Best of luck to the Canadians in figuring out why a Canadian company cancelled the account of a Canadian citizen.

Laugh, smile, enjoy the day...

Give it up.

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change your ip address, I went the online for ss deposits and at first I had not turned the program on and they said you are in Mexico.

Turned the program on then went on the website and changed financial institution with no problems, even received an email telling me what month it would be done. I love this program that changes your ip address when needed.

Which program did you use?

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