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Home Forex Terms

Offshore Forex Broker

by Miracle Admin
January 10, 2021
in Forex Terms
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Definition – What does Offshore Forex Broker mean?

An offshore forex broker is a broker that is located in a different country than the trader opening an account. A trader may choose an offshore forex broker for tax or regulatory reasons. To open an account with an offshore forex broker, a trader may need to have an address within that country.

ForexTerms explains Offshore Forex Broker

Some forex traders open accounts with offshore brokers to minimize taxes on their profits or increase the amount of leverage they are able to trade with. However, it is important for traders to research the regulations of the nation the broker is based in. There can be surprises as far as transferring funds in and out, as well as the regulatory protocols if a firm is investigated or goes bankrupt.

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