If you’re looking for the best offshore forex brokers that accept US traders, then look no further. In this blog post, we will list and discuss some of the top options available to help make your decision easier. We’ll also provide a comparison table so you can see how each broker stacks up against one another. We hope that our guide helps you find an offshore broker that is right for you!
TOP 3 OFFSHORE BROKERS COMPARISON 2020
|Best For Crypto Trading||Accepts US TradersMinimum Deposit: 1Maximum Leverage: 500:1Trading Platform: MT4, WebTrader, Desktop Terminal, Mobile Trader||Check Now|
|Best for All Around US Traders||Accepts US TradersMinimum Deposit : 20 USDMaximum Leverage : 500:1Trading Platform : Metatrader 4 , Web, Mobile||Check Now|
|Best For Wide Section of Instruments (Top Pick)||Accepts US TradersMinimum Deposit: 50Maximum Leverage: 1000 : 1Trading Platform: MT4, Web, Mobile||Check Now|
5 THINGS YOU SHOULD KNOW ABOUT OFFSHORE FOREX BROKERS
• Offshore brokers such as Hugosway, LQDFX, and LMFX offer 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.
DIFFERENCES BETWEEN OFFSHORE FOREX BROKERS AND US FOREX BROKERS
There are quite a number of differences between Offshore Forex brokers and US Forex brokers and this will be discussed under some subheadings:
• 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 the 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.
• 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.
• 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.
BONUS & INCENTIVES
• Offshore brokers are known to be very benevolent when it comes to giving bonuses and incentives. They even offer deposit bonuses which encourage 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.
- Low taxation policies
- Wide range of trading options
- Allows Hedging
- No deposit charge
- Demo accounts are available
- Some offshore brokers are unregulated.
- Fraudulent tactics by some offshore brokers
- No comprehensive market research
3 BEST OFFSHORE FOREX BROKERS THAT TAKE USA RESIDENTS
Products Offered: Forex, CFD
EA/ Robots: Allowed
Demo Account: Available
More features: Demo Account Available, No Live Chat and Phone Support, NO offer negative balance protection
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 24/7 crypto trading which helps traders with busy work schedules to trade conveniently on cryptocurrency despite their tight schedules
- 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 a solid platform for both FX &cryptotrading 24/7.
- Slow customer support service response.
- Not currently regulated.
- High Commissions
Related: Hugosway reviews: Key features Pros and Cons
Regulation: Offshore Broker
Products Offered: Forex,Commodities,cryptocurrency,CFD
EA/ Robots: Allowed
Demo Account: Available
More features: Demo Account Available, Live Chat and Phone Support, offer negative balance protection
LQDFX broker is a Marshall Island-based company that offers an easy and clear solution for investors to trade on the global financial markets. They are transparent, offer live support with outstanding customer service – all at just 20 USD! With their MetaTrader 4 platform (available in Windows, Android & iOS), you can invest from anywhere around the world while enjoying 24/7 trading opportunities.
The LQDFX brokerage was established as one of London’s leading forex brokers in 2015 but has since grown rapidly through partnerships with specialists across Asia Pacific and Europe who have been able to share proprietary knowledge whilst expanding into new territories such as Australia’s lucrative retail FX market via mobile phone apps and online platforms which facilitated trades
- Bonus and incentives for customers
- Unrestricted Trading Environment
- Commission discounts for active traders.
- Numerous rewards for increased volumes of trading.
- Full STP execution — No requotes
- High stock CDS fees
- MT5 and cTrader Platform is not available
Products Offered: Forex, CFD’s, Energy sources, Metals
EA/ Robots: Allowed
Demo Account: Available
More feature: Demo Account Available, Live Chat, and Phone Support offer negative balance protection
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 offerings. 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 24/7 multilingual support ready to assist their clients with any general inquiries or technical difficulties.
- Quick account opening process
- Wide range of trading instruments
- Automated Trading
- No commission on trades.
- Cryptocurrency trading is not available
- Does not accept US traders
- Poor Customer Support Service
- Difficulties with wire transfers
DEPOSIT AND WITHDRAWAL METHODS OF OFFSHORE FOREX BROKERS
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 easily. Hugosway charges $25 for fee deposits of up to $5000.
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.
LQDFX has a wide range of deposit and withdrawal methods. You can possibly use your bank wire to make deposits or withdraw, but you could also take advantage of their other available options like vis cards, MasterCard, Neteller and Skrill. They’re working hard on making the process as seamless for users as possible by introducing new features all the time!
You can withdraw via the same methods that you used to deposit your accounts. Card withdrawals are being processed by LQDFX within the next business day, however, an extra time frame of 5-10 business days is also required, depending on the corresponding bank.
They are unable to process withdrawal amounts by Credit Card that exceed the initial deposit or sum of all credit card deposits. In this case you are entitled to receive the difference via another method according to your regional availability; please check with them for more information about which options apply in these circumstances and how soon they will be able to transfer funds back outwards after providing a crypto address if needed
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.
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 uses 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 A FEW OF THOSE REASONS WILL BE DISCUSSED BELOW:
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.
US Brokers have a lot of requirements that 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 that let you get on board for trading easily.
BONUSES AND INCENTIVES:
When investing in a 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.
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 includes better or higher leverages, tight spreads, fast and quality executions. These are what offshore brokers offer you to enable you to have a smooth trading experience.
Ban 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. The majority of the US Forex brokers have their deposits in form of credit cards and this rule actually affected brokers with smaller size deposits. If you have plans to use your credit cards for deposits in your Forex trading account, then it is advisable to start turning to do 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). A 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 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 a profit and having plenty of 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.
LMFX might not be regulated but they are highly reliable and they provide you with a spread from 0 pips, a minimum initial deposit of 50 USD for a 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:
- A $20 phone validation bonus
- A 100% deposit match bonus
- A Phoenix recovery bonus
The phone validation bonus is available to all clients who validate their mobile phones through the 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 account leverage that 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 are made available to you on the site or for withdrawal as you deem fit.
One of the perks that LQDFX offers is an incentivized bonus program. For every dollar you deposit, your account will be credited with another $1 before trading begins! In order to qualify for this payout, traders have a set volume requirement they must meet within their first month active on our platform. This offer applies to any new or existing trader who deposits more than 250 dollars into his/her account and it’s available through all types of accounts at LQDFX
Hugosway might not be regulated but they are highly reliable and they provide you with a 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.
FREQUENTLY ASKED QUESTIONS ABOUT OFFSHORE FOREX BROKER
(A) CAN US CITIZENS USE OFFSHORE BROKERS?
Yes, no US law prohibits US residents from trading outside the US. In fact, many us traders are trading with the offshore brokers for the flexibility of trading: i.e. Non-FIFO, Hedging, and high leverage facilities).
(B) ARE OFFSHORE BROKERS SAFE?
It depends entirely on the brokerage. Offshore brokers aren’t inherently doggy or insecure. Many brokers are operating their service over the years with a reputation.
(C) CAN US TRADERS HEDGE WITH OFFSHORE BROKERS?
Yes, offshore brokers are free from NFA, CFTC regulation. So traders get trading freedom there.
Conclusively, offshore brokers are available to give you the best trading experience and also ensure you make a profit which is your end goal. Offshore brokers range from regulated offshore brokers to 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 volumes 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.