Numerous online forex brokers offer multiple assets for trading on their software trading platforms. “Offshore brokers” is the term used to refer to unregulated brokers that accept clients from other countries outside their jurisdictions.
These offshore brokers are mostly registered in territories that are commonly called ‘tax havens’; where taxes are cheap and foreign companies can easily obtain licenses and documentation.
An offshore trading account is an account that gives you access to speculate on the prices of forex and CFDs that are available for trading on the broker’s trading platforms. Retail or individual forex traders need to register an account with a broker in order to have access to trade forex.
Opening an offshore forex trading account
Before a trading account can be opened, you need to register with the broker and have access to your customized ‘personal area’. Follow the steps below:
- Register a new account: Visit the broker website and click on ‘open account’ or ‘register an account’. This will display the account opening form.
- Complete the form: Enter your personal details such as name, phone number, email, etc on the form and submit. Some offshore brokers will immediately log you into your personal area while some will send an email to you. This is for email verification and account activation; it will contain your login ID and password.
- Verify your account: The next step is to complete the registration form and “Know your customer” (KYC) verification. This requires uploading a soft copy of your ID card and a recent utility bill.
At this juncture, you have to wait for your account to be approved by the broker’s client support service. Usually, it takes less than 24 hours before you receive the approval email. When the account is approved, proceed to create your offshore forex trading account.
Method 1: opening an account from the clients’ area:
- Login: Access the personal area of the broker’s website by logging in with your ID and password.
- Create an account: Select accounts from the menu and click on ‘create account’. Complete the form by selecting the account details such as account type, currency, leverage, and platform. This varies from broker to broker. Upon completion, the new account will be created immediately.
- Make a deposit: If you already have Bitcoins, then you can make a deposit immediately by clicking on ‘deposit’; then input the amount and other required info. The broker displays its BTC address for you to make a deposit within a stipulated time. The BTC will be deposited in your wallet or account depending on the broker.
- Transfer funds to account: For some offshore brokers, all deposits go to the wallets. In this case, you will need to do an internal transfer from a wallet to the trading account before you can start trading. This is a simple process that is done from the personal area. Just select ‘account’ from the menu and select ‘transfer from wallet to account’.
After the account is funded, you can download the trading platform and commence trading.
Method 2: Opening an account from the MT4 platform
Almost every offshore broker offers the MT4 trading platform. Some brokers allow a trader to open an account directly on the MT4 platform. But, many offshore brokers do not allow this method of account creation.
Follow the steps below to open an account from the MT4 trading platform:
- Download the MT4: From the broker’s website or personal area, download the windows desktop version of the MT4 and install it on your PC.
- Select server: During the installation process, you will be asked to select a server; either demo or live. Choose the appropriate server as provided by the offshore forex broker. Click ‘next’.
- Open an account: The next screen will ask you to either log in to an existing account or create a new one. Click on ‘new real account’ and click ‘next’.
- Input your details: On the next screen, enter your personal details; name, address, phone number, email, etc and choose the account leverage. Check the box to agree to subscribe to newsletters and Click ‘next’.
- Complete your account: Your new account will be created; a user ID and password will be displayed on the screen for you to log into your new account. Click ‘finish’ to create your new account.
The new account will reflect in your personal area of the website when you log in. From there, you can fund the new account and the funds will reflect in the MT4 platform. Then, you can start trading.
Advantages of offshore forex trading account
Below are some reasons why you should open an offshore forex trading account:
- It gives you access to trade forex, indices, commodities, stocks CFDs, crypto CFDs; all the assets available on the broker’s platforms.
- You can choose your leverage; which normally ranges from 1:50 up to 1:1000 depending on the offshore broker.
- You may be eligible for bonuses such as a 100% deposit bonus.
- The minimum opening balance is usually low. Typically, it ranges from $10 to $50.
- It attracts no deposit or withdrawal fees.
- It is a great way to save on taxes.
Creating an account is the first step to start trading with an offshore forex broker. This can be done by registering for a new account on the broker’s website and then creating a trading account from the trader’s personal area. This method works for all brokers but for some offshore forex brokers, you can as well create an account directly on the MT4 trading platform.
An offshore broker account gives you access to trade currencies as well as all the other instruments and CFDs offered by the broker. It comes with high leverage, low trading fees, bonuses and much more.
However, offshore broker accounts are not monitored by any authority and may be subject to manipulations by the broker. So, be very careful if you choose to trade with offshore forex brokers because the risks are very high when compared to US-regulated brokers.