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Domestic or Foreign Broker?

  • #1
  • First Post: Dec 29, 2007 4:47am Dec 29, 2007 4:47am
Hello!

I'd like to open an FX account, but I'm not yet sure, if I should open it in EU (I'm from EU, Slovenia) or in US?

As far as I know, the only difference would be in cost of funding and withdrawing my money. But since I don't plan to do a lot of this, it's not a major issue.

But I wonder, are there any other issues, I should be aware of? Maybe something about taxes or anything similar?

Your help is much appreciated!
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  • #2
  • Dec 29, 2007 4:27pm Dec 29, 2007 4:27pm
The biggest question you should ask is: are you comfortable with how the foreign brokerage is regulated (if at all).
  • #3
  • Dec 29, 2007 4:41pm Dec 29, 2007 4:41pm
Not really, but what can I do? As far as I know - nothing.
  • #4
  • Dec 29, 2007 5:04pm Dec 29, 2007 5:04pm
Quoting Treehugger
Not really, but what can I do? As far as I know - nothing.
What can you do? Open an account with a broker who submits to regulatory oversight. How hard is that?

Quoting Treehugger
Why don't you use one of the ECN brokers? Oanda doesn't even offer protection for you capital, and since they are market makers, with dealing desks, they can easily manipulate prices, trigger stop-losses and everything else. I really don't understand why would anyone trade with a market maker broker.
What I don't understand is you offering advice on one thread and then crying on another.
  • #5
  • Last Post: Dec 29, 2007 5:24pm Dec 29, 2007 5:24pm
Hi, philmcgrew.

That was a few hours ago. I've spend several hours today on reading about brokers, regulations and other stuff.

I will most probably open my account at EFX or Interbank FX. Both of these brokers are regulated. EFX is ECN type of broker while Interbank is a NDD broker (No Dealing Desk). I still have to decide which should I prefer.

When I was selecting a stock broker, things were MUCH easier to decide, since there was less research needed to be done, because I knew what I was looking for. But this Forex stuff is still pretty new to me.
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