With the introduction of strict leverage limits being applied to US based Forex brokers some traders are keen to find a Forex broker not located in the USA. With some foreign based brokers offering leverage up to 1000 times your initial deposit, moving to an offshore broker sounds appealing.
But beware, some offshore brokers are unregulated and there’s no guarantee your money is safe. Yet more brokers offer levels of leverage so high you’re almost certain to lose your deposit within a few trades.
So we’ve created the following guide to help you choose a properly regulated offshore Forex broker. Follow these simple guidelines and you should be able to find a broker that’s both trustworthy and reliable. At the end of the article we’ve listed all the best known Forex brokers based outside the USA.
3 Things to Look For When Choosing a Forex Broker Not Located in the USA
1. Make sure they’re properly regulated; Forex brokers in certain other countries around the world can operate without any regulation whatsoever, Russia is a prime example. You don’t want to find yourself inadvertently funding the Russian mafia.
Whilst the regulations of other countries are somewhat less than the over regulated USA, they still ensure you’re deposits are safe and the company itself is above board and legitimate.
2. Leverage is a powerful tool in the right hands, but a deadly one in the wrong ones. Learning how and when to use leverage is one of the most powerful things a Forex trader can learn.
You won’t find any professional traders using leverage of 1:500 and there’s a reason for that, it’s far too risky. Trading at that kind of leverage is guaranteed to wipe you out if the market moves against you, and in Forex it usually does.
So why do some Forex brokers offer leverage up to 1:1000? Well it’s precisely because of the reason above; they know sooner or later you’ll lose your deposit so they don’t feel the need to back your trades up on the traditional spot market. They simply wait for you to get wiped out and bank your deposit.
It’s always a good idea to choose a broker that has a vested interest in you being successful rather than one that sets you up to fail.
3. Training and education. Forex is an ever changing world, you never stop learning. So try to choose a broker that has a multitude of training and educational materials. These could be in multiple formats, from webinars to videos, maybe even a few group sessions.
But whatever format they take, they should be free and available at all times. It goes without saying that a broker whose only interested in you failing isn’t going to supply you with materials to help you succeed.
So which brokers are safe? Well we’ve compiled a list of popular Forex brokers not located in the USA. Check out the list below and you can clearly see which brokers are regulated and the levels of education they offer. Follow the guidelines above and your money will be in safe hands.
|Forex Broker||Min Account Size||Min Position Size||Max Leverage||Country Registered
||Regulated||Training & Education
|UFX Bank||$100||0.05||1:200||United Kingdom|
|GFT Forex||$250||0.1||1:400||United Kingdom|
|IFC Markets||$1||0.001||1:400||Brit Virgin Islands|