Definition – What does Offshore Forex Account mean?
An offshore forex account is a trading account that is based in a different country from the trader opening the account. A trader may open an offshore account to receive favorable tax treatment on profits or avoid regulatory limitations imposed on domestic forex accounts. Opening an offshore forex account may require an address within that country.
ForexTerms explains Offshore Forex Account
Offshore forex accounts are basically a way for traders to get around regulatory restrictions, such as leverage limits, or avoid excessive taxation on profits. It is very important, however, that a trader understands any restrictions that the foreign country. Although leverage and taxation terms may be more generous, an offshore account may come with other limitations, such as restrictions on transferring funds back to a trader’s domestic accounts.