Offshore brokers

[Yurii-Ihor]

Hi everyone
I live in Eastern Europe and here are a lot of Forex brokers, but officially they are registered in Offshore countries. So, there are a lot of law issues with them, and I do not understand why mostly traders here do not choose normal brokers, which work in Western Europe, like fxpro. Are there any legal issues? Or it's just because Western brokers aren't highly promoted?
I am newbie and I really want to know the reason, so sorry for such a dumb question)

 

[hatemypips]

Hi everyone
I live in Eastern Europe and here are a lot of Forex brokers, but officially they are registered in Offshore countries. So, there are a lot of law issues with them, and I do not understand why mostly traders here do not choose normal brokers, which work in Western Europe, like fxpro. Are there any legal issues? Or it's just because Western brokers aren't highly promoted?
I am newbie and I really want to know the reason, so sorry for such a dumb question)

If you know that FXpro is good and has no issues why are you asking about legal and other issues. Smells fishy...

 

[NVP]

hi there

my personal checklist on brokers is always prioritised around tenure of my funds and security

i need to know they will not go broke and lose my money .....as some have done in the past

chasing discounts and commissions and low spreads is pointless if they go broke or run away with your money .....or take months to pay out ...or despute prices and stop slippage

follow this and you will be fine

N

 

[DT5]

I do my own research before choosing a broker. Simple Google or Facebook searches can point you in the right direction of the good ones. I tend not to go for the ones offering bonuses etc....

 

[Pat494]

Not a stupid question at all.
Must have reliable brokers as stated above.
They are worth the little extra.

 

[Yurii-Ihor]

If you know that FXpro is good and has no issues why are you asking about legal and other issues. Smells fishy...

I mean if there are any legal issues because of my location, because, as I said, many traders here work with with bad local brokers, instead of adequate west. But it looks like western brokers are just badly promoted

 

[hatemypips]

I mean if there are any legal issues because of my location, because, as I said, many traiders here work with with bad local brokers, instead of adequate west. But it looks like western brokers are just badly promoted

Who knows your location better than you? And what do you mean under Western brokers? Those which are not based in Russia dear Yurii ?

 

[Teejy88]

I have read a lot about offshore brokers, some seem like they can be pretty reputable, others not so, they can offer some better leverage which is the main upside from what I can see.

 

[J_C_Anderson]

As for me, it would be better to trade with brokers regulated by european authorities like FCA (UK regulator) or FINMA (Swiss regulator) and to avoid offshore brokers. Of course, sometimes offshore brokers could offer interesting trading conditions but it seems it is just because they are not going to get the money back.
The regulator`s requirements to the broker depend from the jurisdiction, so it is easier to create a broker somewhere in the country with weak regulation and customer protection requirements. Another point is that legal costs in case of any dispute with offshore broker would be extremely high, and it is less likely that offshore regulator will help you.

The in-depth research should include the following steps:
- check the license of the broker - just search for the number, placed on the broker website, through the regulator`s register.
- find the "Terms and Conditions" document and read it carefully, as it contains details on the agreement between you and the broker.
- search for reviews and discussions about that broker through the forums. Keep in mind that some of them may be paid by broker, so focuse on negative ones, trying do define whether that trader lost his money for his own mistakes or due to the direct actions or negligence of the broker.

 

[hatemypips]

Yes I also consider it an advantage for traders, another question is it safe enough for newbies to provide them with this option. I think they have to start trade in an environment where risks are reduced and low leverage is best solution for that.

 

[DT5]

Loads of decent offshore brokers out there. Just do your due diligence before signing up to one of them

 

[hatemypips]

Loads of decent offshore brokers out there. Just do your due diligence before signing up to one of them

The question is how to understand what are possible pitfalls and what are early signs of them when you start testing a broker.

 

[bhagesh.nair]

well, as long s they are regulated by a reputed body, no harm in dealing with the broker regardless of them being registered offshore.
There are several mainstream brokers who have offshore regulation as well to offer better leverages to their clients.
But please check if they are STP/ECN, if not.. i wouldnt recommend them.

 

[hatemypips]

well, as long s they are regulated by a reputed body, no harm in dealing with the broker regardless of them being registered offshore.
There are several mainstream brokers who have offshore regulation as well to offer better leverages to their clients.
But please check if they are STP/ECN, if not.. i wouldnt recommend them.

The problem is that most offshore regulations can't be considered trusted or reputable. It really complicates the choice because several reliable brokers started their business there because of tax reasons and ease of doing business of such kind. Offshores have their own advantages but most of the time it is misused to the harm of traders.

 

[scarlet jones]

I think it is safe to add fxbrew now to the recommending list. Have been trading with them for like 7-8 months now and no funny business came to my attention. Spreads are tight as mentioned and genuinely offering good service when it comes to customer support. Good broker

 

[James turtle]

You can try Turnkey forex.They are quite good and offer tight spreads.

 

[aa9]

In babypips thread, there is an active thread talking about trusted offshore brokers, we go for it because we hate restrictions. Since link sharing is restricted. I’ll list it down here.
The four trusted-marked US-friendly offshore brokers according to that thread:

• Coinexx
• LMFX
• TurnkeyForex
• Fxchoice

Other brokers which are kind of new brokers yet good and accept US clients:

• Fxbrew
• CryptoRoket
• LQDFX
• Renesource
• Paxforex

 

[NVP]

I think it is safe to add fxbrew now to the recommending list. Have been trading with them for like 7-8 months now and no funny business came to my attention. Spreads are tight as mentioned and genuinely offering good service when it comes to customer support. Good broker

how much real money do you have with them ? ..and would you invest say $5,000 of your funds with them ?

 

[NVP]

In babypips thread, there is an active thread talking about trusted offshore brokers, we go for it because we hate restrictions. Since link sharing is restricted. I’ll list it down here.
The four trusted-marked US-friendly offshore brokers according to that thread:

• Coinexx
• LMFX
• TurnkeyForex
• Fxchoice

Other brokers which are kind of new brokers yet good and accept US clients:

• Fxbrew
• CryptoRoket
• LQDFX
• Renesource
• Paxforex

trusted ? .........all irrelevent .......its all about being registered in countries that have grown up laws and brokerage companies large enough to suffer losses........the rest is irrelevant guys

possibly (??) if you are playing with mickey mouse money ...but serious money needs serious brokers

N

 

[GMoore87]

officially they are registered in Offshore countries.

There is nothing wrong with an offshore broker (I trade with one). The only reason they want to be offshore and unregulated is that they dont want their leverage to go from 1:500 to 1:30, this will effect there business to loads.