Offshore forex brokers that accept US clients offer traders a wide range of trading tools and features, including 24/7 support, user-friendly platforms, and tight spreads. Many brokers also provide valuable educational materials and webinars to help traders improve their skills.
What you Should Know About Offshore Forex Brokers
Offshore brokers offer many benefits and a lot more flexibility. However, it is important to be aware that there are risks associated with offshore investment accounts.
This article will explain offshore brokerage accounts and all you need to know about offshore accounts.
Offshore brokers, which are not regulated brokers, allow you to open investment accounts in countries other than your home country.
Offshore brokers offer more flexibility than regulated brokers. Once you have made a deposit into your offshore account you can start trading, regardless of your cash or credit.
Offshore brokerage accounts can be used to hold, invest, and trade a variety of financial instruments. These accounts can be used to hold stocks, Forex, bonds and many other financial instruments. This account is considered offshore and allows you to transfer your assets with substantial tax benefits.
Most offshore broker accounts are owned and managed by companies, not individuals. This account type is not common for retail traders who are small or inexperienced.
The pros and cons of using an offshore broker
There are many advantages and disadvantages to these brokers over regulated brokers. Before you open an account, it is important to know these facts.
These are some of the main pros of offshore brokerage accounts.
Flexibility
Investments and profit can be made anywhere in the world. Offshore accounts offer many investment options. These include stocks, Forex, mutual funds, futures and bonds.
Tax Advantages
This provides many tax savings for businesses and offers incentives. Offshore brokers can ignore these regulations, while forex brokers that are licensed must follow strict regulations to ensure fair trading.
Leverage
Unregulated Forex brokers often have a higher ratio than the US limit. You have more flexibility to invest your money for greater returns. This also means you are exposed to greater risk.
Privacy
Your financial information and transactions will be kept private due to the offshore status of your account. Many offshore companies have strict confidentiality policies that ensure their customers are protected.
These are the top cons of offshore brokerages.
Open a costly account
An offshore account often requires a higher initial deposit. While this may vary between brokers, an offshore account can be more costly than one that is regulated.
Financial risk
Customers are often swindled by untrustworthy brokers who have a bad reputation. Unregulated brokers allow these brokers to scam customers without any consequences. Although they offer many advantages, some can be dangerous.
Legal issues
Brokers have been known for hiding illegal information about foreign clients and evading taxes. Many countries have strengthened their tax laws, especially in the US and Europe.
List of the Top 10 Best Offshore Forex Brokers That Accept US Clients
If you are looking for a reputable offshore forex broker that accepts US clients, here are the top 10 brokers that you should consider:
1. FxGlory
FxGlory is an online platform offering trades in currency and commodity instruments. It’s based in Dubai and regulated in Seychelles. The company’s website says a team of financial specialists formed it to deliver a premium online trading experience featuring high leverage, zero commissions, and rapid trade execution.
Markets
FxGlory users can trade 33 currency pairs, including majors, minors, and exotics. Major cryptos like Bitcoin and Ethereum are available to trade, while on the commodities side, traders can opt for oil and precious metals. Binary options trading isn’t available, and neither is trading in indices or stocks.
Fees
FxGlory offers fixed spreads to every trading account level, making it easier to account for them when calculating gains or losses. A standard account provides spreads beginning at two pips for forex pair majors. For CIP account holders, spreads start at 0.1 pips.
Leverage
Leverage offered by FxGlory varies by account level. Standard accounts get 1:3000. Premium accounts get 1:2000. VIP accounts can take advantage of 1:300 leverage, while CIP accounts can get 1:50.
It’s important to note that leverage on trades offers the possibility of significant gains but also brings the risk of large losses.
Tech platforms
FxGlory offers trading via MetaTrader 4 (MT4) and WebTrader. MT4 is the market leader thanks to its ease of use, advanced features and options that customise it to individual preferences and instruments.
Its ease-of-use makes it a favourite of novice traders, while its more sophisticated functionality is ideal for experienced trading professionals. MT4 can be downloaded for free from the FxGlory site.
Traders who don’t want to download and install software can choose a web-based platform called WebTrader, and execute trades directly through their default web browser. WebTrader is both Mac and PC compatible.
It has most of the functionality MT4 offers, including one-click trades, a market news feed, and multi-language support.
2. N1CM
N1CM (Number One Capital Markets) is an online trading platform owned by a holding company based in Vanuatu and regulated by the Vanuatu Financial Services Commission (VFSC).
The company’s website says it was founded by a veteran team of online finance professionals and blends technological innovation with excellent client service.
Markets
N1CM offers three account levels: Cent, Standard, and ECN Pro. Islamic accounts are also available, along with negative balance protection. Traders can use the platform to trade major, minor, and exotic pairs, as well as contracts for difference (CFDs), indices, precious metals, and energy commodities like oil and gas. Its liquidity providers include Bank of America, UBS, Barclays, and JP Morgan.
Fees and leverage
N1CM offers variable spreads across all three account types. Available leverage is the same for all three — up to 1:1000, though with margin minimums in place for different levels. So, for example, taking on leverage of 1:400 requires a minimum margin of 0.25%. This is designed to keep trades in proportion to deposit size.
Tech platforms
N1CM uses the MetaTrader 4 (MT4) and WebTrader platforms. MT4 is the market leader thanks to its mix of simple interface and advanced features that let traders customise it to individual preferences.
Its ease-of-use makes it a favourite of novice traders, while its more sophisticated functionality is ideal for experienced trading professionals.
Mobile trading is available with MT4 apps for iOS and Android. The MT4 desktop software and mobile apps are all available at the N1CM site.
Traders who don’t want to download and install software can choose to use WebTrader, a web-based trading portal that lets users trade through an add-on for their web browser. WebTrader is both Mac and PC compatible and offers most of the functionality MT4 does, including one-click trading, market news feed, and support for multiple languages.
3. LQDFX
LQDFX is an online forex brokerage based in the Marshall Islands. Established in 2015, it offers a non-dealing desk (NDD), straight-through processing (STP) model, giving traders direct access to markets without the additional time and cost of requotes.
Markets
LQDFX users can trade more than 70 currency pairs, including majors, minors, and exotics. A total of sixteen precious metals can be traded, including gold, platinum, palladium and silver. Twenty-one stock indices can be traded, along with six energy and agricultural commodities.
Fees
LQDFX spreads are floating and structured differently for each account type. Micro accounts have the widest spreads at between 1.6 pips for EUR/GBP and 1.3 pips for EUR/USD. Islamic accounts and gold accounts have tighter spreads, with EUR/GBP hovering around 1.2 pips, GBP/USD at 1.3 pips, and EUR/USD ar ca. 1.1 pips.
Traders with premium VIP and ECN accounts get the most competitive spreads, with a typical range of 0.5 pips for EUR/GBP and 0.1 pips for GBP/USD.
Gold, Islamic, and Micro accounts are all commission-free. ECN accounts incur a USD 3.50 charge per lot, while VIP pays USD 2.5. The broker also charges for swaps that hold positions open overnight.
Leverage
Traders can take advantage of flexible leverage at ratios up to 1:500 with a Micro account, but leverage on other accounts maxes out at 1:300. Only VIP accounts do better at up to 1:100. It’s important to note that leverage on trades offers the possibility of significant gains but also brings the risk of large losses.
Tech platforms
LQDFX offers trading via MetaTrader 4 (MT4). MT4 is the market leader thanks to its ease of use, advanced features and options that customise it to individual preferences and instruments.
Its ease-of-use makes it a favourite of novice traders, while its more sophisticated functionality is ideal for experienced trading professionals. MT4 can be downloaded for free from the LQDFX site.
4. LMFX
LMFX is an online forex trading platform based in the Republic of North Macedonia. Founded in 2017, its website says it has a global user-based and differentiates itself from other brokers by offering higher-than-usual leverage on trades.
Markets
LMFX offers a broad spectrum of trading instruments, including spot prices on currency pairs, precious metals trading, and contracts for difference (CFDs) in several markets.
Forty-eight major, minor, and exotic currency pairs can be traded. There are five commodity-backed CFDs, including metals and agricultural goods, three energy CFDs, and four precious metal pairs. Traders can also open trades against eight global stock indices. There are also 35 stock CFDs available, comprised of shares from the NASDAQ, LSE and NYSE.
Fees
LMFX offers variable spreads that are somewhat lower than the industry average.Premium accounts see a typical spread of 2.5 pips for GBP/USD and 2.1 for EUR/GBP. As the name suggests, a Fixed account offers fixed spreads. However, base rates are somewhat higher than the norm, coming in at 2.6 pips for GBP/USD, for example.
Leverage
The leverage ratios offered by LMFX are very competitive. A Premium account can access leverage of 1:1000. Rates for a Fixed account are lower at 1:400. Zero accounts offer leverage of up to 1:250. Remember: leverage on trades offers large gains and brings the risk of large losses.
Tech platforms
LMFX offers trading via MetaTrader 4 (MT4) and WebTrader. MT4 is the market leader thanks to its ease of use, advanced features and options that customise it to individual preferences and instruments.
Its ease-of-use makes it a favourite of novice traders, while its more sophisticated functionality is ideal for experienced trading professionals. MT4 can be downloaded for free from the LMFX site.
Traders who don’t want to download and install software can access LMFX services with WebTrader, which execute trades directly in the end user’s default web browser. WebTrader is both Mac and PC compatible. It has most of the functionality MT4 offers, including one-click trades, market news feed, and support for multiple languages.
5. ProsperityFX
ProsperityFX is an online platform offering crypto and forex trading. It’s owned by a holding company based in St Vincent and the Grenadines and regulated by the local authority. The company’s website says it promises low spreads and ‘maximum excitement’ from the trading experience.
Markets
The brokerage offers an extensive list of trading instruments, including more than fifty currency pairs, thirty crypto CFDs, plus a range of CFDs on indices, commodities, and equities.
Fees and leverage
ProsperityFX makes leverage available to traders at ratios of up to 1:500 and charges a trading commission of USD seven dollars per lot.
Account funds can be topped up with large-cap cryptos like Bitcoin, wire transfer, as well as major credit cards MasterCard and Visa (Note ProsperityFX uses a third-party payment provider for card transactions.
Tech platforms
ProsperityFX uses the MetaTrader 4 (MT4) platform. MT4 is the market leader thanks to its mix of simple interface and advanced features that let traders customize it to individual preferences.
Its ease of use makes it a favorite of novice traders, while its more sophisticated functionality is ideal for experienced trading professionals.
Mobile trading is available with MT4 apps for iOS and Android. The MT4 desktop software and mobile apps are all available for download at the ProsperityFX site.
6. CryptoAltum
CryptoAltum is an online platform offering crypto and forex trading. It’s owned by a holding company based in The Marshall Islands and regulated by the local authority there.
The company’s website says it aims to be the crypto and forex broker of choice for traders in more than 150 countries, offering next-generation technology, tight spreads, and generous leverage.
Markets
The brokerage offerstrading on a selection of nearly 60 cryptocurrency pairs, plus various CFDs on gold, indices, and fiat currencies.
Fees and leverage
CryptoAltum offers a 50 per cent bonus on your first deposit. Leverage ratios are as high as 1:500. Account funds can be only be topped up with cryptocurrencies. At the time of writing, CryptoAltum accepted Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin and USD Tether. Remember: leverage on trades offers the possibility of significant gains, alongside the risk of large losses.
Tech platforms
CryptoAltum uses the MetaTrader 5 (MT5) platform. MetaTrader’s next-generation version offers a mix of straightforward and advanced features that can be configured to suit different trading styles.
Its ease of use makes it a favorite of novice traders, while its more sophisticated functionality is ideal for experienced trading professionals.
Mobile trading is available with MT5 apps for iOS and Android. The MT5 desktop software and mobile apps are all available at the CryptoAltum site.
Read Also:
Top 10 Best CFD Brokers That Accept US Clients 2022
10 Best Forex Brokers with Quick Withdrawal Methods
10 Best Forex Brokers with Sign-Up Bonus in South Africa
7. Coinexx
Coinexx is an Edinburgh, UK-based online trading platform offering trades in cryptocurrency and traditional fiat pairs. Its website says it was launched on the premise that only a crypto currency-driven brokerage could address common forex trading frustrations like delays in withdrawal and high fees.
Markets
The brokerage gives traders access to both crypto and standard forex pairs. Coinexx users can also trade in a range of indices and commodities. As the name implies, funding Coinexx accounts require access to cryptos like Bitcoin and Ethereum.
Coinexx also accepts Litecoin, Ripple, and Dash— though accounts can only be denominated in crypto majors like BTC and ETH.
Fees and leverage
Coinexx offers some of the lowest trading fees available anywhere. The platform’s raw ECN feed starting at zero pips and only charges a USD two-dollar commission per lot. Contrast that with some onshore forex brokers where a standard lot is 100k currency units.
For instruments where USD is the quote currency, one dollar in commission equals 0.1 pips, for a total spread of 0.2 pips, which is lower than the norm.
Tech platforms
Coinexx uses the MetaTrader 5 (MT5) platform. MetaTrader’s next-generation version offers a mix of straightforward and advanced features that can be configured to suit different trading styles.
Its lightning-fast trade execution and ease of use make it a favorite of traders at every level, while its more sophisticated functionality is ideal for experienced trading professionals.
Mobile trading is available with MT5 apps for iOS and Android. The MT5 desktop software and mobile apps are all available at the Coinexx site.
8. Hankotrade
Hankotrade is an online forex trading platform registered and regulated in The Seychelles. The company’s website says the biggest advantage it offers traders is low spreads — some of the lowest available anywhere (it claims).
Markets
The brokerage gives traders access to both crypto and standard forex pairs as well as a range of indices and commodities. Hankotrade only accepts payments in cryptos like Ripple, Bitcoin, and Ethereum.
Fees and leverage
Across three different account levels for novices, intermediates, and professionals, Hankotrade offers maximum leverage of 1:500 against spreads, starting as low as 0.0 pips. That would give it some of the lowest trading costs available anywhere.
It claims to have zero fees on withdrawals and deposits. Trading accounts can be opened with as little as ten US dollars.
Tech platforms
Hankotrade uses MetaTrader 4 (MT4) to execute trades, the forex market leader. Its ease of use, advanced features and options make it configurable to individual preferences and instruments.
It’s the go-to choice for most novice traders, while its more sophisticated functionality is ideal for experienced trading professionals. MT4 can be downloaded for free download from the Hankotrade site.
9. AAFX
AAFX (AAFX Trading) is a no-dealing-desk broker offering forex spot trading and a range of CFDs on crypto, indices, equities, and commodities.
Founded in 2014 and headquartered and regulated in St. Vincent and the Grenadines, its currency trading offer covers 45 pairs, including all majors and selection of minors. It also has offices in Malaysia, Hong Kong, and Australia.
Markets
AAFX offers 45 major and minor currency pairs for leveraged trading. Under CfDs, The broker lists 140 stocks and 11 global equity indices. Fifteen commodity CfDs are available, including coffee, corn, sugar, and soybeans.
The broker has recently expanded its offering to crypto, listing one trading pair, BTC/USD. AAFX supports all order types. Traders can use risk mitigation techniques such as stop-loss orders and take-profit targets, plus other conditional orders available on MetaTrader 4 (MT4).
Fees
There are no fees attached to AAFX trades, but margin accounts have costs, and traders will need to consider the broker’s spreads. Spreads can vary by trading volume, asset type, and market conditions.
Traders can choose between fixed or floating spreads, while the spreads on CFDs vary by asset class. AAFX charges interest on margin of between two and five per cent.
Leverage
Leverage offered by AAFX varies by account level and asset class. Leverage on currency trades can be as high as 1:2000. On all other assets, leverage ranges from 1:20 for equities to 1:1000 for commodities.
It’s important to note that leverage on trades offers the possibility of significant gains but also brings the risk of large losses.
Tech platforms
AAFX offers trading through MetaTrader 4 (MT4) and WebTrader. AAFX supports MT4 on Windows, macOS, and tablets. Traders can use MT4 to access all AAFX’s range tradable assets, with one-click trading and full EA functionality.
Hedging and micro lots are supported. MT4 can be downloaded for free from the AAFX site.
Traders who don’t want to add new software to their machines can use a web-based platform called WebTrader. It provides access to AAFX services, and lets traders execute trades directly in a web browser window.
WebTrader is both Mac and PC compatible. It has most of the functionality MT4 offers, including one-click trades, a market news feed, and multi-language support. A downloadable, locally-installed version of the software is also available.
10. Turnkey Forex
Turnkey Forex is a UK-based online trading platform for traditional fiat currency trading. Headquartered in London, the company isn’t regulated by Britain’s Financial Services Authority (FSA).
Its website says the firm aims to keep forex trading simple: with no bells or whistles, just tight spreads, low commissions, and excellent service.
Markets
Turnkey Forex offers trading in 85 currency pairs and CFDs on commodities, shares, indices and ETFs. Users can choose from five types of live trading account, including a swap-free Islamic trading account.
Like most onshore brokerages, it offers a free demo account for novice traders to learn with and PAMM accounts where all trades happen on a single money manager’s account that consolidates funds from multiple traders.
Fees
Turnkey Forex makes its money with a mixed fee structure that blends commissions and spreads. Commissions start at around one US dollar per lot and max out at two dollars. The company claims to have zero fees on withdrawals and deposits.
For Micro accounts, the spreads come in at 0.2 pips against max leverage of 1:200 on a minimum five-dollar deposit. VIP accounts have average spreads starting at 0.0 pips against leverage of 1:100 on a minimum USD 25,000 deposit.
Leverage
Turnkey Forex offers maximum leverage of 1:500 against spreads, starting as low as 0.0 pips. Trading accounts can go live with as little as ten US dollars at kickoff.
Tech platforms
Turnkey Forex offers trading via MetaTrader 4 (MT4) and ZuluTrade. MT4 offers experienced traders advanced features and options that make it customisable to individual preferences and instruments.
Its simple interface makes it a favourite of novice traders. MT4 can be downloaded for free free download from the Turnkey Forex site.
Web-based ZuluTrade lets traders engage in social and automated trading, meaning they can mimic more experienced traders’ trades and strategies in over 180 countries.
Accounts are protected by proprietary risk management tools that limit losses if the traders being followed deviate from their standard strategies.
Conclusion
Be aware that the risks of engaging in forex trading with an offshore broker could vary significantly depending on the circumstances.
About Author
- I’m a firm believer that information is the key to financial freedom. On Coindecimal Blog, I write about personal finance and crypto.
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