Profits with an Offshore Broker

Hey all. I'm a U.S. based trader who's been trading FX for about 3 years now. I was recently getting annoyed with U.S. brokers, along with the crippling restrictions by the NFA.

So let's get down to business: I currently have accounts with Oanda and forex.com. I earn enough to make a living. Problem is, U.S. retail brokers are dying like flies. Interactive Brokers kicked me out with their "have $10 million or get out" statement in 2016, and now FXCM is out of the U.S. game with their recent actions. On top of this, the NFA is slaughtering my leverage, and the margin call limits are through the roof (ex: for forex.com, you get a margin call at 100%)

I'm not happy about what's going on for us U.S. traders these days. Not at all.

So, me being the adventurous (i.e. crazy) entrepreneur that I am, I decided to go back to offshore brokerage account (it's one I created a while ago to test a recent trading system which didn't work). Yeah, you heard me right. OFFSHORE BROKER. So let's see whether it works out, no?

Here's the results so far: in the past 2 weeks, I deposited about $500.

Broker: fxchoice

Initial total deposit (since going back on 2/13/17): $500

Profits (as of 2/26/17) : $15,828

Withdrawals (as of 2/26/17): $4800

More details are in my trading platform. Withdrawals do NOT seem to be a problem, and I was able to get the money thus far and made a profit on it. The question is, will the broker continue to give me my withdrawals? It IS regulated, but in Belize. And it's website regarding customer disclosures and FAQs leave much to be desired in my opinion, but so far....I was able to get money in my bank.

Any opinions? Personally, this account made more profit than all my other accounts combined (weekly profit), but the leverage involved in my new trading strategy as well as apprehension over the offshore broker status makes me a bit worried.

Who knows. Maybe I'll blow this account up on the next day, or maybe the broker won't give me my money back. At any rate, I earned a 960% return on my recent investment, so I'm golden for now.

Wow, that's a hell of a return in 2 weeks!!! Sort of in the same boat as you. Been making a living trading for 4 years with FXCM but now just started with Oanda. I opened a Corporate Account with FX Choice a few years ago but never funded due to the same concerns that you have. also at the time they would charge you percentage based on withdrawls and it was a show stopper. I mainly use Wire's to transfer to/from my broker. Can you elaborate a bit on what Fx Choice is charging for withdrawls? Is it flat fee or percentage based? Thank you

What kind of account did you open at FX Choice? Was it classic or pro? I'm in the US and thinking about opening an account with them as well. Thanks.

I am currently using an offshore broker, I am also U.S. based. If anyone is interested in some more information I can share it. I have had no issues with them with deposits or withdrawals for 6 months now.

Could you share which offshore broker you use and your experience with them? Thanks.

Same here, US based, got annoyed with the US brokers. Therefore, I'm with an offshore broker for quite some time now, nothing to complain about. Going offshore is not as scary as many traders think

Wow, that's impressive return. Do you also manage accounts?

Any proofs here? C'mon man its impossible to make 3000% in 2 weeks, unless it was not a lottery ticket for you . And I doubt that a broker will release any profit made in such a short period of time. I made 250% in a year with Hotforex and it was a hard earned profit with hell of time spend behind the monitor.

The proof is in his Trade Explorer.
He made great gains and also lost them all.
This shows me one thing; regardless of ECN or MM, if the trader is not good and has no good money management, he ought to lose the capital. It is just waiting to happen event.

I agree with you on the hard work. It takes great deal of work, monitoring, analysis to make good return.

Seems Vermillion is good trader and his lot size are big which can not withstand MM moves. It is good learning experience for me.

I'm thinking about trading with this broker too. Please keep us updated.

any US trader hear about trumps new tax proposal? it says that overseas money will be taxed, think that counts for the money we have in offshore brokers?

I had no problems withdrawing my profits from Evolve Markets and SimpleFX bitcoin denominated accounts. Both of them are offsore brokers.

I generally would not recommend using offshore brokers to trade because there is a number of inherent risks involved with becoming their client. Offshore zones are known for their lax or even non-existent regulation, having less capital requirements for the brokers licensed by them (take Mauritus for example, their capital requirement is only $28,000!) place little emphasis on compliance-checking, reporting and supervision and, more importantly, companies are not required to report individual transactions. What is more, there are usually no compensation plans in place in case something does go wrong.

That is not to say that all offshore-regulated brokers are scammers, I am far from that thought. But, if you can work with an FCA, or ASIC, or AMF, etc. regulated broker, you’ll be taking on fewer risks.

FXCM was an FCA regulated broker. That did not stop them from stealing from their clients and getting shut down.

I don't think you can depend on regulators at all.

FXCM is still a FCA regulated broker..

Except it is no longer FXCM (although it may still do business under the name) - all assets were transferred to Gain Capital.

https://www.bloomberg.com/news/artic...-as-fxcm-exits

Have you looked into Australian brokers? Pepperstone or Axitrader.