7 Best Offshore Brokers Accepting US Clients for 2024  

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Offshore brokers are mainly unauthorized forex and CFD brokers that accept and register clients from anywhere. Though it is illegal for them to register and offer brokerage services to residents and citizens of the USA, they operate from locations outside the US and render their services over the Internet. This makes it difficult for them to be traced or arrested by the relevant authorities.

On the other hand, many US traders find offshore brokers appealing because of their generous and unrestricted services. The strict regulations of the US regulatory authorities take away the liberty of some ambitious traders to fully satisfy their risk appetite and reach their potential. This is one of the reasons why offshore brokers are popular with US traders.

Below is our list of the best offshore brokers: 

  • Hugosway | Best broker for ECN trading
  • KOT4X | Best broker for multiple accounts
  • LMFX | Most Trusted Offshore Forex Brokers
  • LQDFX | Best broker for beginner traders
  • EagleFX | Best broker for STP executions
  • ProsperityFX | Best broker for trading crypto CFDs.
  • Hankotrade | Best broker for low trading fees

Top 7 Offshore Forex Brokers Reviewed in 2024

Hugosway

Hugosway was registered in 2017 in St. Vincent and the Grenadines (SVG) as an online broker that provides the MT4 platform for trading forex and CFDs. It is an ECN/STP that offers tight spreads aggregated from multiple liquidity providers. Hugosway executes clients’ orders at the best market rates while charging a commission for each lot traded. 

The broker enjoys patronage by traders spread across the world, including USA and Canada. Every trading style or strategy is accepted, including hedging, scalping, and algorithmic trading. Bitcoin (BTC) is the major method used for deposits and withdrawals.

Pros

  • The minimum capital required to open a trading account is as low as $10.
  • The maximum leverage is high; up to 1:500
  • More than 150 instruments can be traded including forex, commodities, crypto CFDs, indices, and stocks CFDs.
  • Anonymous deposits via Bitcoin, PayRedeem eCards, or BTC via Instacoins.
  • The customer support desk can be reached on a 24/7 basis.

Cons

  • No regular Forex account that charges fees based on spread mark-ups.
  • No educational resources to help beginners. 
  • There are no trader tools or expert analyses.
  • Traders have no other platform choice except the MT4. 

KOT4X

KOT4X sums up its brokerage services by describing itself as the “kings of transparency”. Founded in SVG in 2017, KOT4X is an ECN/STP brokerage that offers about 250 tradable assets on its MT4 platforms. It has no dealing desk which means that there are no manipulations and no requotes.

Traders can choose from different account types depending on trading capital, trading instruments, spreads, and method of paying trading fees, either marked-up spreads or commissions. There are no hidden fees, and you are free to deploy your trading strategies.

Pros

  • You can start the opening position with a deposit of just $10.
  • Though only the MT4 is available, there are multiple account types.
  • Multiple Cryptocurrencies are accepted for deposits.
  • Spreads are tight; starting from 0.4 pips while max leverage is 1:500
  • PAMM accounts are available for investors or account managers.

Cons

  • There is no training academy to help beginner traders.
  • No other choice platform except the MT4.
  • Inactivity fees are charged. 

LMFX

LMFX is an experienced offshore forex/CFD broker that has been operating since 2015 from the Republic of North Macedonia. The broker is known for high leverage and low trading fees. Client funds are held in segregated accounts while standard security procedures have been implemented.

LMFX provides a ‘fixed account’ for traders who prefer to trade fixed spreads. It also has ‘premium accounts’ which have variable spreads and ‘zero accounts’ which feature tight spreads and low commissions per lot traded. Newbies are provided training articles; they can also open demo accounts and participate in the monthly demo contest.

Pros

  • The maximum leverage is 1:1000 which is high when compared to competitors.
  • Trading tools like the Economic Calendar, trading calculators, and free VPS are available.
  • Traders can win up to $1,000 in the monthly demo account content tagged “Learn and earn” contest.
  • Accounts can be funded using Cryptos, debit/credit cards, bank transfers, PayRedeem eCards, and e-wallets like Skrill and Neteller.
  • New traders are welcomed with a 100% deposit match bonus.

Cons

  •  No social trading platforms or managed accounts for investors.
  • MT4 is the only platform provided for all traders.
  • Assets are limited; you cannot trade bonds, ETFs, and crypto CFDs.

LQDFX

This award-winning forex and CFD broker was founded in 2015 in SVG. It is an STP execution broker that forwards all orders to its liquidity providers for fast executions. Though unregulated, it ensures digital security and maintains clients’ deposits in segregated accounts.

LQDFX offers up to 5 account types to suit different kinds of traders. For example, $20 is required to open a micro account while you need $25,000 to open a VIP account. Beginner traders are provided a robust training package in the form of video lessons and an eBook.

Pros

  • The minimum deposit required to start live trading is $20.
  • More than 30 video lessons are provided to train beginner traders.
  • A 100% deposit bonus is given to traders who deposit from $250 to $20,000.
  • 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.

Cons

  • MT4 is the only platform available for traders.
  • VIP accounts have a very high opening deposit.
  • No daily market news and analysis. 

EagleFX

This broker started its operations in 2019 from the Commonwealth of Dominica. On its MT4 platforms, you can speculate on the prices of over 150 forex and CFD assets. The broker offers only a real account and a demo account. Commissions are charged per lot traded from real accounts.

Accounts can only be funded through wire transfer or Bitcoin, if you do not have Bitcoin, you can be directed to buy it through Instacoins. Withdrawals are processed swiftly without charges.

Pros

  • You can choose your leverage starting from 1:20 up to 1:500
  • A minimum of $10 is required to open a live account and commence trading.
  • No restrictions on trading styles, strategies, or trading systems.
  • Clients are not charged for deposits or withdrawals.
  • 24/7 client support desk can be reached through email, web chat, or phone calls.

Cons

  • Limited payment options. 
  • No social trading or PAMM accounts.
  • No training resources for newbies, the education resources on the website are for affiliate marketers.  
  • No designation of account types to meet the needs of various types of traders.

ProsperityFX

ProsperityFX is a relatively new forex and CFD broker given that it was registered in 2020 in SVG. The broker accepts clients from all over the world who can trade about 200 assets on its MT4 trading platforms.

ProsperityFX offers multiple account types to meet the needs of different traders. Swap-free accounts are also available. You can fund your account with BTC and several altcoins but withdrawals are only in BTC.

Pros

  • You can trade with a maximum leverage of 1:500
  • A ProsperityFX account can be funded with either BTC or popular altcoins.
  • Proficient traders who are willing to prove their competency on a demo account can win up to $200,000 in trading capital for a real account while the reward is 80% profits.
  • Investors and managers can open PAMM accounts which can be rewarding to both parties.
  • You can contact the client support desk anytime 24/7.

Cons

  • There are no training resources for beginner traders.
  • No trading tools like market news and analysis to support traders.
  • MT4 is the only platform available for trading. 

Hankotrade

This broker was registered in SVG in 2019 and has been enabling its clients to trade forex and CFDs on its MT4 and MT5 trading platforms. The broker guarantees tight spreads starting from 0.0 pips and lightning-fast executions powered by its premium liquidity providers.

Hankotrade is a true ECN broker that offers very competitive trading fees and no charges on deposits and withdrawals. Its ECN plus account holders pay just $2 per round lot traded. Its STP account spreads start from 0.7 pips and no commissions are charged.

Pros

  • Traders can choose from two powerful and popular platforms; MT4 and MT5.
  • Leverage is capped at 1:500
  • Multiple account types including Islamic, STP, ECN, and ECN Plus accounts.
  • PAMM/MAM accounts are available for interested investors and fund managers.
  • A 100% bonus is available to traders who deposit from $100 up to a max of $25,000.
  • Tools like the Economic Calendar, trading calculators, and VPS are provided.

Cons

  • No research tools like market news, expert analysis, or trading signals.
  • No provision for training of new traders.
  • The assets index is limited. 

Why Many US traders prefer offshore forex brokers?

Offshore brokers are not monitored or regulated by any government agency, yet many US traders prefer to deal with them instead of US-regulated brokers. Below are some of the reasons why:

Variable Leverage

US-regulated brokers are mandated to restrict leverage to retail forex traders to a maximum of 1:50. But, with offshore traders, you can choose your leverage according to your risk appetite. Some offshore brokers like LMFX can offer as high as 1:1000

Low Spreads and Commissions

When compared to US-regulated brokers, offshore brokers offer lower spreads and charge less commissions.

Low Minimum Deposit

Some US brokers require a lot of money as a deposit before you can start trading forex, but offshore brokers only require a paltry sum of money.

Hedging Allowed

Most US-regulated brokers do not allow some trading strategies; such as hedging, scalping, and sometimes the use of trading robots. But, offshore regulators have no restrictions; you are free to come up with your own trading system or strategies. 

Tax Heaven

Perhaps, this is one of the reasons why US traders choose offshore traders. They do not report or file taxes if you earn profits from your trading. But, if you trade with US brokers, you are required to pay taxes, or else you can run into trouble with the law and even go to jail. 

Privacy

Perhaps, to evade taxes or to maintain a quiet life, offshore brokers do not share client data with government agencies or remit anything to them. So, US traders who wish to make their trading career private can opt for offshore brokers. Cryptos can be used for deposits and withdrawals so that their transactions can remain safe and undetected. 

How to Choose the Right Offshore Forex Broker

Most offshore traders are unregulated, so you have to be careful when dealing with them. Here are some guides when choosing an offshore broker: 

Reputation

Conduct thorough research on the broker and consider the relevant user reviews and years of operation. 

Customer Support

Most of them do not have phone support. Check if their web chat attendants are ready to respond to inquiries or assist with requests.

Deposit and Withdrawal

Fraudulent brokers easily accept deposits but the trouble starts when you want to withdraw. They will start asking for documents and start deleting requests and ignoring emails. Be sure that the broker attends promptly to withdrawal requests.

Leverage and Margin

Generally, the average leverage offered by offshore brokers is around 1:500. If you need higher leverage, you can check the maximum leverage offered by each broker before making a decision. But also note that leverage is a double-edged sword that is capable of multiplying potential profits as well as losses.

Trading Commissions and Fees

Charges vary from broker to broker; some charge low commissions while others charge higher commissions. Check if the trading fees are within your budget especially if you are a large-volume trader. 

Trading Platform Offered

Most offshore brokers offer the MT4 trading platform and only a few add the MT5 to it. If you need any other platform, then it may be difficult. But, if you specifically need the MT5, then you will need to check its availability with the broker before creating an account. 

Trading Instruments Offered

Most offshore brokers offer forex pairs and some CFDs; but if you trade some specific markets like crypto CFDs, then, you must check with the broker first before making commitments. 

Frequently Asked Questions ( FAQs)

What is an offshore forex broker?

An offshore forex broker is a firm located outside the trader’s home country jurisdiction. These brokers typically operate in countries with less stringent regulatory requirements compared to major financial regulators countries like the United States, Europe, or Australia. Offshore forex brokers may offer services to clients globally, including traders from countries where forex trading is heavily regulated or restricted. While some offshore brokers adhere to regulatory standards set by reputable authorities, others may operate in jurisdictions with lax oversight, posing potential risks to traders such as lack of investor protection or transparency.

Can US traders trade CFDs?

In general, US traders face restrictions on trading CFDs (Contracts for Difference) due to regulations imposed by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). These regulations are designed to protect retail investors from the inherent risks associated with leveraged trading. Consequently, US-regulated forex brokers do not offer CFDs to their clients.

However, offshore forex brokers may provide CFD trading services to clients from around the world, including US traders. Since offshore brokers are not subject to the same regulatory constraints as US-regulated brokers, they can offer a wider range of financial products, including CFDs.

You may also like : Best Offshore Forex Brokers for CFD trading

Final Verdict

Offshore brokers are online forex and CFD brokers that accept traders from all over the world including the USA; even though they are not authorized by law to accept US clients. They are mostly unregulated and do not bother traders with the restrictions usually imposed by financial regulators.

Some of the best offshore brokers are Hugosway, LMFX, Hankotrade, EagleFX, ProsperityFX, and LQDFX. They offer high leverage, crypto deposits, low trading fees as well as low deposit fees.

US traders often choose unregulated traders because they do not restrict trading strategies, offer high leverage, and low minimum deposit, and do not report or deduct taxes. To choose an offshore broker, check if they meet your requirements such as tradable assets, fees, platforms, leverage, etc.

Though trading with unregulated brokers is exciting and seems like a great option, do not forget that they come with higher risks to your invested capital when compared to US-regulated brokers.  

Written by

Jason Paine is a forex trader, researcher, and tech enthusiast. He is passionate about financial markets and cutting-edge technology. With a dynamic 16-year trading career, he's on a mission to guide fellow traders. Having navigated diverse forex brokers, Jason shares his insights at Brokersway to bridge the gap between traders and the right brokerage.

DisclosureAt Brokersway we're committed to delivering unbiased information. our opinions are our own and are not influenced by the payment we receive from our advertising partners. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money.

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