Offshore entity experiences: what changed when you moved?
The same brand's offshore entity offers higher leverage and fewer protections — and the switch is sometimes made by the broker without much explanation. The experiences are instructive.
Share:
- the broker and the two entities
- what changed in your conditions
- what you wish you'd known
The offshore vs top-tier guide explains the trade-off.
Background: Offshore brokers vs top-tier regulation: what changes for you
Many well-known brands open accounts for clients in some countries through offshore companies. What you gain in leverage and what you give up in protection.
Is an offshore broker illegal?
Not in itself. But an offshore company offers fewer protections than one regulated by a top-tier authority, and some firms solicit clients in countries where they aren't authorised to operate.
Why do offshore brokers offer 500:1 leverage?
Offshore regulators don't impose the retail leverage limits used in the EU, UK, Australia and the US. Higher leverage increases both potential gains and losses.
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