Are you a US Citizen? Are
you into the Forex market? Do you want to know about offshore brokers that accept
US citizens? This content will enlighten you and educate you about all you need
to know regarding offshore brokers you can trade with. It is common knowledge
that there are some US citizens who might want to trade with offshore brokers,
but, as you may not know there are only a few reliable offshore brokers who
accept US clients to trade with them. In this article, we are going to discuss
elaborately the best offshore Forex brokers you can deal with.
When considering the idea
of Forex trading, working with the right Forex broker can be all you need to be
successful in the Forex market. A Forex Broker can make the difference of
whether you will buy a new car before the end of the year, or sell that old one
you have been managing to pay up debts incurred. No doubt, it can be a puzzle
to figure out where to find the best Forex trading broker that offers topnotch
Forex trading services, and a bit of a challenge to make sure the broker is
reputable and can meet your needs. However, this article is about offshore
Forex brokers you can pitch your tent with due to the high demand for offshore
brokers. This article will also make you understand why US traders now seek to
trade with Offshore Forex brokers rather than US Forex brokers.
In our offshore Forex
brokers reviews list, we have considered a wide range of ranking factors, from
leverages, fees, and spreads, trading platforms, trading and analysis options to
make it easier for you to select a reliable offshore broker, and influence your
success in the Forex trading market.
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
• Offshore brokers such as Hugosway, fxchoice and lmfx offers numerous trading options which is why they should be your choice as a US trader seeking offshore brokers who would accept you to trade with them.
• Due to their exposure and experience with various traders
from different countries they possess knowledge about various factors that
could affect trading and this places them in the best position to ensure your
profitability in the Forex market.
•Trading with offshore brokers helps you to save your money
due to the taxation policies of the countries where they operate and which
would be more favorable to you as a US trader who is trying to dodge the high
taxation in the US Forex trading market.
• Offshore brokers also have high leverage, deposit bonuses
and various incentives that are fascinating to Forex traders.
•It is also worthy to note that due to the large size and
continuous growth of the offshore Forex trading market you will have limitless
earning opportunities than your US counterparts.
There are quite a number of differences
between Offshore Forex brokers and US Forex brokers and this will be discussed
under some subheadings:
Ø
LEVERAGE
• Leverage is low for US Forex brokers because the CFTC has
mandated a leverage cap of 1:50 for forex majors. However,an offshore broker
can use leverage of up to 1:2000. It is the distinct difference in leverage
that makes offshore brokers more attractive to most Forex traders.
• Leverage caps make it more expensive to trade Forex in the
USA.
Ø
TRADING OPTIONS
• Most US traders love to trade CFDs on stocks, indices and
other commodities. However, US Forex brokers do not offer such. Therefore, if
you want to engage in CFD trading, offshore Forex brokers are your best option.
• It is against US securities law to engage in CFD trading
(CFD- Contract for differences) and as such you would not see any CFD products
listed for trading on US Forex broker platforms.
Ø
REGULATION
• Offshore brokers regulators also offer some degree of
consumer protection which should make you more comfortable to trade with
regulated offshore brokers who accept US clients. They are also known to be
more lenient which allows for traders to have wide trading options with their
Forex brokers.
• US broker’s regulators are quite strict and as such it
doesn’t allow US Forex brokers to provide as much trading options as offshore
brokers do.
Ø
BONUS & INCENTIVES
• Offshore brokers are known to be very benevolent when it
comes to giving bonuses and incentives. They even offer deposit bonuses which
encourages traders to trade more with them because of the benefits they get.
• Quite a number of US brokers also dole out bonuses and
incentives to their traders but not as much as offshore brokers do.
Pros
Low taxation policies
Wide range of trading options
Allows Hedging
No deposit charge
Demo accounts are available
Cons
Some offshore brokers are unregulated.
Fraudulent tactics by some offshore brokers
No comprehensive market research
Description
Hugosway is popularly
known for the MetaTrader 4 Forex trading platform. They offer over 50 Forex
currency pairs which include cfds, stocks, indices, gold, cryptocurrencies for
trading options. They are also well known for the cryptocurrency feature which
allows traders to deposit or withdraw using cryptocurrency. They also offer high
leverage and lower fees.
Hugosway is highly
recommended because they offer a 24/7 crypto trading which helps traders with
busy work schedules to trade conveniently on cryptocurrency despite their tight
schedules
Pros
Low minimum deposit
Competitive spreads.
Fast and easy withdrawal and Deposit process.
Easy and straightforward MetaTrader 4 platform.
Secure platform for both FX &cryptotrading.
Hugosway offers solid platform for both FX &cryptotrading 24/7.
Cons
Slow customer support service response.
Not currently regulated.
High Commissions
Description
FXchoice allows traders to
trade under 40 different currency pairs. Fxchoice offers traders two type of
account; pro account or classic account.
Fxchoice only requires a minimum deposit of $100 for all types of account you
operate with them unlike other Forex brokers who have different account options
with various minimum requirements. They also ensure the protection of traders’
personal information and the safety of all transactions.
They are one of the few
regulated offshore brokers you can come across while trying to select offshore
brokers that are regulated. They also allow traders to access their two types
of trading accounts even in demo mode to walk them through what they might
likely experience with the live platform. Fxchoice offers the following market
instruments: Forex CFDs, Crypto CFDs, Index CFDs and Commodity CFDs. Unlike
many Forex brokers who still operate with the metaTrader 4 on their trading
platforms, Fxchoice has upgraded to the MetaTrader 5 to help enhance traders
experience while using their trade platforms.
Pros
Bonus and incentives for customers
Provides MQL5 trading signals
Commission discounts for active traders.
Numerous rewards for increased volumes of trading.
Wide range of deposit methods
Cons
High stock CDS fees
No educational tools
No share CFDs available.
Description
Lmfx offers MetaTrader 4
and mobile trading platforms. Lmfx offers three account types which include: Zero, Fixed and premium accounts and
they have high spreads across all of these accounts. It also offers traders
over 45 currency pairs, cfds, indices, commodities, for your trading options.
They offer a spotless customer support service and they could help beginners as
regards their products and services and also procedures to help them have a
smooth sail in Forex trading.
They offer several trade
calculators even though they have limited research offering. This offshore
broker is also well known for how it delivers fast execution speeds and
flexible leverage of up to 1:1000. They also boast of a 24/7 multilingual
support ready to assist their clients for any general enquiries or technical
difficulties.
Pros
Quick account opening process
Wide range of trading instruments
Automated Trading
No commission on trades.
Cons
Cryptocurrency trading is not available
Does not accept US traders
Poor Customer Support Service
Difficulties with wire transfers
Ø
Hugosway.com
Deposit
Methods
Hugosway
has different methods of funding your accounts. One of such is funding your Credit
or Debit cards. Credit/Debit cards have a maximum of $600 per transaction. If
you also deposit by card, you must also withdraw by card before taking profits
via another method.
Hugosway
equally provides you with the option of making deposits and even withdrawals by
Bitcoin. Additionally, you can also make use of wire transfer which is the most
wide-spread money transfer method in the world. Furthermore, VLoad is also a
quick and efficient way of funding your Hugosway account. It uses vouchers to
top your account fast and easy. Hugosway charges $25 for fees deposits of up to
$5000.
Withdrawal
Methods
Hugosway requires traders to withdraw funds using the
same deposit methods. The total amount you fund your account with your
credit/debit card is the total amount that is legally allowed to return to that
card, this is set by anti-money laundering guidelines and then you can take all
other profits out using other withdrawal methods.
Hugosway can also send your profit to you via bitcoin,
once you create a withdrawal request inside your account, Hugosway will process
it the same day. The Broker also allows you to transfer money from your Hugosway
wallet to your bank account. They charge $25 for banking fees on withdrawals of
up to $5000. Wire transfers usually take up to 6 days but Hugosway ensures it
is processed within one business day.
Ø Fxchoice.com
Deposit Methods
Fxchoice has a rule that the client should use the same payment account he used to deposit for withdrawals. You are also not allowed to withdraw in a different currency than the one they used to deposit. Third parties are not allowed and Fxchoice has the right to cancel client’s deposit or withdrawal if there is an attempt to use a third party account. The initial minimum deposit for all account is 100 USD or equivalent in another currency.Fxchoice offers traders this method of depositing their funds which include:
·
Bank
transfer
·
Skrill
·
Neteller
·
Epay
·
VLoad
·
STICPAY
·
ADVCash
·
Litecoin
·
Ethereum
·
Debit
card
·
Bitcoin
Withdrawal
Methods
Fxchoice requires traders to withdraw funds using the
same deposit methods. However, in a situation where your initial deposit method
has been suspended you can request to withdraw via other methods. Fxchoice
allows you to withdraw via wire transfer and has a minimum amount for
withdrawal of $1000 and has withdrawal fees of 0.25%.
VLoad is an online payment
system of vouchers that can help you also withdraw your funds from Fxchoice
into your bank account.VLoad has a maximum limit of 5000 USD per transaction
and a processing fee of 3.5% for withdrawing into VLoad. Bitcoin is also
another withdrawal method that Fxchoicehas allowed traders to make use of and
there is no limit on transactions and the processing fee is based on the
industry-standard dynamic crypto transaction fee.
Ø LMFX.com
Deposit Methods
Similarly, with other brokers mentioned above,LMFX.com
has a rule that the client should use the same payment account he used to
deposit for withdrawals. The lowest minimum deposit is $50 while the highest is
$250. Acceptable minimums are based on account type. LMFX charges zero fees on
deposits. There is no charge on any deposit method.
Visa and MasterCard deposits are credited to an account
within 30 minutes. Bank transfers usually take between 2 to 15 business days.
All other deposit methods include Skrill, Neteller and VLoad.
Withdrawal
Methods
LMFX charges no fee for withdrawals. The lowest accepted
minimum withdrawal amounts for Visa, MasterCard, Skrill, Neteller, Fasapay and
VLoad is 10 USD while for wire transfer is 1000 USD. The maximum withdrawal
amount is unlimited. Withdrawal fees depend on your corresponding bank and withdrawal
time can also take between 2 to 10 business days depending on your bank. Skrill,
Neteller, Fasapay, and VLoad always take the same business day to get processed.
WHY
SHOULD US TRADERS CHOOSE OFFSHORE BROKERS
As an American trader, you
should be aware that there are too many restrictions in the US for Forex
trading. For beginners who are not aware of this, the truth is that if you are
trying to trade with US Forex brokers your trading is highly restricted due to
the tight regulations in the US and which makes it difficult for you as a
trader who is trying to make lots of profit to do so.
Many individuals when they hear about offshore
investments, what comes to their mind is about an individual or a corporation
who use the offshore investment to stash away their stolen funds or ill-gotten
money. As much as there may be lots of shady deals with offshore investments
there are also legal offshore investments. Many of those who have offshore
investments do so because they are trying to evade tax. I highly recommend
offshore traders to USA traders because operations of offshore brokers are less
costly and legal despite contrary opinions. This is not to rule out that there
are fraudulent offshore brokers.
The NFA (National Futures Association) and the CFTC
(Commodities and Futures Trading Commission) regulate Forex brokers in the US
and the regulatory framework set by these two bodies actually restricts free
trading in the US which means you have limited trading options as a trader in
the US.
There are different
reasons why US traders should choose offshore brokers to trade with and few of
those reasons will be discussed below:
·
No Restrictions: Making huge profits and having
different trading options is important to every Forex broker as every trader
whether a beginner or an expert trader seeks freedom. Offshore brokers do not
have any constraints or regulations that may hinder the freedom of traders. The
offshore brokers offer you high leverage up to 1:500, No hedging restrictions,
No FIFO rules, No Scalping restrictions among other restrictions.
·
Lesser requirements: US Brokers have a lot of
requirements which US traders have to meet before they can begin trading with
them and this stresses out a whole lot of US traders. The Offshore brokers have
lesser requirements which let you get on board for trading easily.
·
Bonuses and Incentives: When investing in ay business,
investors’ concern themselves more with the profitability of their investment
and offshore brokers have put this into consideration which is why they offer
promotions such as (Deposit bonuses, Free deposits and Free Analysis tools)
which most US brokers do not offer.
·
No Limitations\Strategy: Offshore brokers do not limit your
trading options or your trading strategies as traders have the opportunity to
trade freely as they want using any strategy they deem fit and they also get to
choose amongst the different trading options available to them as provided by
offshore brokers.
·
Superb trading conditions: Individuals go into Forex trading to
fulfill their financial goals. In other to do this, there are things that need
to be put in place to ensure a successful trading experience which include
better or higher leverages, tight spreads, fast and quality executions. These
are what offshore brokers offer you to enable you have a smooth trading
experience.
·
Ban of the use of Credit Cards: If you are looking to use your credit
card for Forex trading with a US Forex broker then you should know that the NFA
has banned the use of credit cards to fund your Forex accounts. Majority of the
US Forex brokers have their deposits in form of credit card and this rule
actually affected brokers with smaller size deposits. If you have plans to use
your credit cards for deposit in your Forex trading account, then it is
advisable to start turning to doing business with offshore brokers instead.
·
No Hedge & FIFO rule: NFA has implemented rules that no
longer allow US brokers to hedge and they also need to implement FIFO (First in
First out). Hedge can be defined as coming up with a way to protect yourself
against big loss i.e. a trader that is long a foreign currency pair can protect
oneself against downside risk; while a trader is short a foreign currency pair
can protect oneself against upside risk.Offshore brokers are not bound by FIFO
rules which make traders who select offshore brokers not to be restricted
against hedging.
BONUSES
YOU CAN EARN WITH OFFSHORE BROKERS
Unlike US brokers, offshore brokers provide you with
plenty of bonuses and incentives to help encourage you to trade more. The
purpose of partaking in Forex trading is to make profit and having plenty
bonuses to help boost your profit isn’t a bad idea after all. Below we are
going to discuss the bonuses the three offshore brokers mentioned above offer their
traders.
v
LMFX
LMFX might not be
regulated but they are highly reliable and they provide you with spread from 0
pips, a minimum initial deposit of 50 USD for premium account, Scalping is
allowed, EA allowed, VLoad accepted, no requotes, Leverage up to 1:1000. LMFX
offers three bonuses to their clients and they include:
The phone validation bonus
is available to all clients who validate their mobile phone through LMFX system,
deposit funds in the accounts they open and trade three standard lots. Once a
client meets this requirement the phone bonus is made available and can be
freely traded or even withdrawn.
The deposit match bonus
provides you with a 100% credit bonus which acts as an account leverage which
you can use for trading. This particular bonus is made available after a
minimum deposit of $100 and once the minimum amount of trading volume is met,
the funds are deposited into the client’s account and can be used with no
restrictions or limitations.
If you register with the
Phoenix program it grants you with 15% recovery bonus in case you lose your
initial deposit. The bonus will be placed in your account once you make the
next deposit, which helps you to get back to the previous level of trading. The
Phoenix funds is made available to you in the site or for withdrawal as you
deem fit.
v
FXCHOICE
Fxchoice is a trusted and
regulated broker and it is regulated by
the local IFSC (International Financial Services Commission), it accepts
Bitcoin for trading, has a leverage up to 1:200, Spreads from 0.0, Minimum
initial deposit of 100 USD, VLoad is accepted, No requotes, Scalping is
allowed, EA allowed. Fxchoice gives you 20% special bonus on your first deposit
up to $5000 USD. The bonus also applies to existing customers who already
registered but have not deposited yet.
v
HUGOSWAY
Hugosway might not be regulated but they are highly reliable and they provide you with spread from 0.0 pips, a minimum deposit of 10 USD, Scalping and hedging is allowed, EA allowed, Vload accepted, no requotes, Leverage up to 1:500. Currently Hugosway does not provide any form of bonus or incentives as seen on their official website but then they could offer their clients bonuses and incentives at a later time.
Yes, no US law prohibits US residents from trading outside the US. Infact , many us traders are trading with offshore broker for the flexibility of trading : i.e. Non FIFO, Hedging, and high leverage facilities).
It depends entirely on the brokerage. Offshore
brokers aren’t inherently doggy or insecure. Many brokers are operating their
service over the years with reputation.
Yes, offshore brokers are free from NFA, CFTC
regulation. So traders get trading freedom there.
CONCLUSION
Conclusively, offshore brokers are available to give you the best trading experience and also ensure you make profit which is your end goal. Offshore brokers range from the regulated offshore brokers to the unregulated ones. Being regulated doesn’t mean they are not liable in engaging in Forex scams as well and for those who are not regulated they still exist based on their great reputation. Another thing to note is that while reading reviews from other traders seeing one or two bad reviews does not make the Broker a bad one whether they are regulated or not as it is normal for traders to experience some difficulties sometimes which might even be their own fault but they had rather blame the Broker for their mistakes. Once good reviews outweigh the bad ones it means the offshore broker is a reputable one and your money is safe with them whether regulated or not.
We have
reviewed three offshore brokers here both regulated and unregulated but whose
reputation speaks volume just to help you streamline the best in making your
choice. However, you would still have to take into consideration their pros and
cons as discussed above to be able to select the one that suits your trading
style or that guarantees the profit you envisage in earning.
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