As a forex trader, you might be looking for a good platform to put your trades on. Still, considering the number of options available, you might know exactly which U.S. platform gives you the best advantage. Sources like Topbrokers.com or Thebrokerssite.com provide reliable reviews and ratings for the top platforms in the U.S., allowing you to save time and make more informed decisions on which platform to use for trading. But here’s an idea: why even use a U.S. broker, to begin with? Why not opt for a foreign one instead? Here are some benefits of using a foreign forex broker:
They Have High Leverage Cap
In the United States, leverage is still relatively low, as the average leverage cap is 1:50, which is more than enough to make a profit. That being said, a foreign forex broker can provide leverage going as high as 1:2000. Considering there are many foreign forex brokers accepting US clients, it is understandable why most people would prefer an offshore broker compared to someone from their area.
They Feature High-Tier Regulators
American forex brokers do not have many regulators to deal with, except for the one or two that the law requires them to. Still, forex laws are similar throughout most European countries, which is why there will be multiple regulators out there.
There will be the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and many more. Typically, to increase their reach, most brokers in the area have these regulations, so you’ll be enjoying tighter security.
They Have More Trading Options
As a trader from the United States, you probably love trading CFDs on indices, stocks, and many more similar commodities. The problem is that brokers from the United States typically do not offer this benefit. The regulations of the United States do not allow it, so all you can do at this point is to go for a foreign broker. They will give you trading options that you cannot possibly get in the US.
They Have Fewer Requirements
A US broker will have quite a lot of requirements for their clients, which can be stressful for the average US trader. Some of these brokers cannot even open an account, as the requirements prevent them from doing so. This is why a foreign forex broker might be exactly what you need, as the requirements are not that tough here.
They Won’t Limit Your Trading
By going for local forex traders, there is a good chance that your trading strategies will be limited. However, if you go for a foreign broker, then this will not be the case.
Typically, foreign brokers allow utilizing any trading skills or strategies that you want, making it the perfect option for freestyle day traders. You will also get multiple trading options that you could not have possibly used in the United States, making it a freeing trading option.
The Bottom Line
Foreign brokers have the potential of increasing your trading experience by removing certain limitations. This will lead to more trading opportunities, especially if you are the kind of trader that likes taking calculated risks.
