Recent Posts

What makes global foreign exchange markets more appealing? Numerous currencies to choose from, daily trading volumes reaching trillions of dollars, and flexibility, among others. Are you considering having an offshore forex trading account? Here are the steps.

Step 1: Choose a Reputable Forex Broker

You cannot open an account yourself. Conversely, not all brokers are trustworthy. It is a must to entrust your trading and capital to a reputable institution. Various sites like Forex Brokers Review evaluate the best and worst international forex brokers. Aside from selecting a broker, take into consideration the following factors: fees, minimum balance for creating and maintaining an account, commissions, and customer service. Also, look at how they comply to the regulations set forth by regulators including the Commodity Futures Trading Commission, as well as offshore laws.

Step 2: Open and Maintain the Trading Account

Certain documents are necessary to create an offshore currency trading account, including a notarized passport copy, bank statements, utility bills, and identification cards. The last two should confirm the applicant’s address. For first-time clients, they have to provide their personal details and agree to the brokerage firm’s terms and conditions. Some brokers allow an individual to set up an account for as low as $100.

Step 3: Find Other Options for Creating an Account

An offshore international business corporation is a feasible option for investors who have a starting capital of at least $100,000. An IBC provides an avenue for more flexible, safer ways to invest abroad. It enables entities to freely trade and invest like Americans. The setup cost is approximately $1,500 plus $600 annual fee. Also, the costs can be recovered through tax savings alone.

Step 4: Check their Disclosures and Legal Adherence

Like what we have mentioned in Step 1, you should be particular with the firm’s compliance with regulations. And this is the most important step. Rigid observance of existing regulations indicate you and your money are secured. US investors should familiarize themselves with the Foreign Account Tax Compliance Act, a law overseeing banking and investing abroad. The Internal Revenue Service’s FATCA FFIs list down all conforming foreign financial institutions.

Create an offshore forex trading account in four steps: select a broker, open and manage the account, look for alternatives, and check the firm’s adherence to existing laws and regulations.