Forex Traders always look for trading with a broker that suits their trading strategies and preferences. The United States has strict regulations in forex trading. As a result, the majority of online forex brokers do not accept US clients because they can not meet the regulatory requirements of the US authorities. High leverage and CFD trading are restricted in the USA. However, many forex traders still opt for trading CFDs with high leverage. That is why many traders settle for offshore forex brokers.
LQDFX is an online offshore forex broker that is not authorized or regulated by any authority anywhere; so it is not under any obligation to abide by the rules guiding US-regulated brokers. In this blog post, we will explore whether LQDFX accepts US clients, its Pros and cons, and why US traders choose brokers like LQDFX and more.
Does LQDFX Accept Clients?
Yes, LQDFX accepts US Clients. Being an unregulated online forex broker, the broker has the flexibility to onboard clients from various locations worldwide, including the USA. Therefore, US traders are able to register for an account and trade forex and CFD trading with LQDFX.
Why Do US Citizens Use Offshore Brokers Like LQDFX?
Below are some of the reasons why a US trader will choose to trade with LQDFX:
CFD trading
Contracts for differences (CFDs) are financial contracts between a broker and a trader which allows the trader to take positions on the broker’s platform and speculate on the price direction of underlying financial assets without ownership. For example, with CFDs, a trader can make money by predicting the price direction of stock market shares of a company without owning the company shares.
Unfortunately, US traders are officially prohibited from trading CFDs by the regulators. However, LQDFX gives US traders opportunities to trade CFDs from stocks, indices, and commodities.
High leverage
Leverage is a tool that multiplies a trader’s market exposure in relation to his deposit. US traders are mandated to restrict forex leverage to 1:50 but LQDFX offers up to 1: 500. This means that with a deposit of $500; you can open positions worth $250,000.
With higher leverage, there is a higher chance of making more profits provided that the market moves in favor of your position.
Low trading capital
With LQDFX, US traders can start trading with $10 but US-regulated brokers demand a higher minimum deposit. Also, the trading fees and commissions are much lower with LQDFX than with the US-regulated brokers. Perhaps, because obtaining and maintaining a US forex broker license is very expensive.
Tax
The United States has stringent tax laws which are almost impossible to evade. Forex traders are required to pay taxes on their profits. Trading with unregulated brokers like LQDFX makes it easier to pay reduced taxes especially if BTC is used to fund and withdraw from the trading account.
Pros and Cons of LQDFX for US Traders
- ECN broker with spreads from 0.0 pips and full STP execution.
- The minimum deposit required to start live trading is $20.
- Zero-balance protection and segregated funds.
- A 100% deposit bonus is given to traders who deposit from $250 to $20,000.
- Variety of Account Types including Swap Free Islamic Account
- Training resources in the form of video lessons, eBooks, etc.
- More than 30 video lessons are provided to train beginner traders.
- Accept multiple deposit methods such as debit/credit cards, cryptos, bank transfers, and PayRedeem eCards.
- An Economic Calendar, trading calculators, and chart analysis are some of the trading tools provided by the broker.
- No regulation from any regulatory authority.
- MT4 is the only platform available for traders.
- VIP accounts have a very high opening deposit.
- No daily market news and analysis.
- No MAM Managed Account
- Withdrawal fees for Visa and MasterCard
Which countries are restricted on LQDFX
As LQDFX is an unregulated offshore forex broker. It can onboard clients from anywhere in the world. Currently, the broker does not have any restricted county list on its website. so it accepts clients from all over the world.
Frequently Asked Questions (FAQs)
What is LQDFX?
Founded in 2015, LQDFX is an online forex and CFD broker. It is an offshore forex broker that offers FX, Indices, Commodities, Metals, and Cryptos services to traders worldwide. The broker allows all trading styles including scalping, hedging, news trading etc. The maximum leverage of LQDFX is as high as 1:1000 in the micro account, while in the standard account, the maximum leverage is 1:300
Is LQDFX Regulated in the USA?
No. LQDFX is not regulated in the USA. It is an unauthorized offshore forex broker.
Does LQDFX have any office in the USA?
No, LQDFX does not have any office in the USA. As per their website, the broker is located in Gros-Isle, Saint Lucia.
Can Americans use LQDFX?
Yes, American traders can use LQDFX. However, traders should take care while trading with unregulated forex broker
Final Thoughts :
LQDFX is a forex broker that offers online forex and CFD trading services. The broker gives access to trade with a wide range of trading instruments including Forex, FX, Indices, Commodities, Metals, and Cryptos. The broker allows almost all trading styles including scalping, hedging, copy trading, and news trading.
LQDFX allows US clients to enjoy forex trading services on their own terms. If you like high leverage, LQDFX offers leverage up to 1:1000 for Micro accounts. Traders are allowed to use any strategies including scalping, hedging, news trading and so on. Unlike US-regulated brokers, LQDFX offers CFD trading. The broker offers MT4 as its trading platform.
Disclaimer: Trading forex and CFDs comes with the risk of losing your trading capital. Moreover, trading with offshore forex brokers puts your funds at higher risks
