Offshore vs top-tier brokers: how do you tell them apart?
The same brand often runs a regulated entity for clients in strict countries and an offshore entity for everyone else. Same logo, very different protections. Most beginners don't realise which one they signed up with.
Check your own account and share:
- which entity your account is with (it's in your client agreement)
- how you found out
- whether the protections differ between the two entities
The offshore vs top-tier guide walks through the differences.
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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