So, what have we learned about offshore forex trading? It can be just as risky, dangerous, and more likely to be a form of a gamble like any other kind of forex trading. Hiring offshore forex brokers also needs the same utmost caution and care as any domestic forex broker. Technically, they aren’t really that much different from a regular or domestic forex broker. In fact, many people have grown to dislike off shore forex trading, because of the instability that leads to the unreliability of some offshore forex brokers. Many also have bitter experiences in clinging to much to the exaggerated hopes that offshore forex trading apparently could have brought them.
If that’s the case, then why offshore forex brokers would still be chosen over any other kind of forex broker? What conditions would give us the proper reason to hire them for our business? Why would it even be on the main list of different forex brokers to begin with?
Hiring offshore forex brokers apparently has some advantages that go in line with the same advantages of offshore forex trading itself. Take a look at these two substantial advantages:
1. Tax advantage – many people within this industry know very well that offshore, unlike domestic forex, is not chained to a set of trade laws that limit that generally limit the income potential of your forex strategies. By hiring an offshore forex broker, you can potentially get a tax advantage (depending on the location of your offshore forex broker), which can consequently mean increased income given that the correct choices are made.
2. High leverage trading – many laws around the world have already established limitation to the maximum trading limit possible in forex. This is temporarily ignored by collaborating with they, because you are relatively trading well outside your own country. Of course, like our first advantage, you might well have to research a bit on the laws of the offshore forex broker’s location, just in case you don’t want ending up at a worse position than before.
So as we can see here, the exact instability (country-wise) that they have, can be used to your advantage to improve profits. Remember, always trade at your own risk though, as there is still a significant chance that you’ll lose everything that you have invested in one gamble if you’re not well prepared. It acts as a double-edged sword, a heavy one that almost always lands on you if you’re not cautious enough.