Offshore brokers

#1
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

Well-known member
279 6
#2
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

Legendary member
36,176 1,763
#3
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

Junior member
19 2
#4
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

Legendary member
13,213 1,270
#5
Not a stupid question at all.
Must have reliable brokers as stated above.
They are worth the little extra.
 
#6
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
 
Last edited:

hatemypips

Well-known member
279 6
#7
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 ;) ?
 
#8
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.
 
#9
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

Well-known member
279 6
#10
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.