Foreign Forex Brokers

Forex is a decentralized currency market, where participants can sell and buy currency in different parts of the world. Intermediaries between retail traders and the interbank foreign exchange market are brokerage companies that offer competitive prices through online trading, including a commission in the form of a spread for their services. Depending on the jurisdiction of the broker and the nationality of the traders, the trading conditions of the brokerage companies may differ. In this rating, foreign brokers are represented, let's take a closer look at what their advantages and disadvantages are.

What is an international broker?

Brokerage companies must necessarily have a license from the financial regulator of the country in which they are registered and provide their services. Each license has its own restrictions on the provision of services in a particular region. For example, according to ESMA, European brokers cannot provide leverage greater than 1: 30 for major currency pairs. In addition, some regulators set restrictions when opening an account, depending on the nationality of the traders:

• FCA – for UK traders;
• CySEC – for European traders;
• NFA and CFTC – for traders from the United States.

Moreover, American traders can only work with brokers registered in the United States. Detailed information and a list of reliable American brokers can be found here.

But there are brokerage companies registered in Australia (ASIC), New Zealand, Hong Kong, Mauritius, Belize, Saint Vincent and the Grenadines, Seychelles and the Cayman Islands, etc. These are the so-called international or foreign brokers that are available for practical use.ESCI is for all traders except for the United States, Iraq, North Korea and other countries (for more information, see the official websites of brokers).

Advantages of foreign brokers

• High leverage – up to 1: 500 and even higher;
• A wide range of trading instruments, including CFDs on stocks, indices, commodities, metals and cryptocurrencies;
• Low minimum deposit requirements;
• Simple registration and verification procedure;
• Availability of deposit bonuses and no deposit bonuses;
• Large selection of deposit and withdrawal methods;
• Simplified scheme of taxation.

Disadvantages of foreign brokers

• Lower reliability of financial regulators compared to FCA, CySEC and NFA;
• Lack of compensation funds in case of insolvency of brokerage companies;
• Sometimes spreads and commissions are higher than European brokers;
• It is not always possible to find technical support in your native language.

How to choose a reliable foreign broker?

As a rule, all reliable foreign brokers offer a choice of opening an account in various jurisdictions: in the UK (FCA) and Cyprus (CySEC) for European traders, in the USA (NFA) for American traders, in Australia (ASIC) and offshore for international traders. The presence of registrations from the above-mentioned regulators is sufficient when choosing a foreign broker, even if you will open an account in an offshore jurisdiction. Next, you need to check the availability of support for your language and see the trading conditions, as they may differ depending on the choice of jurisdiction.

On this page you will find the rating of foreign brokers for international traders.