Definition – What does Offshore Forex Trading mean?
Offshore forex trading refers to buying and selling currencies using an account based in a different country from where the trader resides. Offshore forex trading is essentially the same as regular forex trading as far as how the orders are placed and so on. The major difference between offshore forex trading and regular trading is that regulatory limits and tax treatment can differ depending on the nation where the account is based. Offshore forex trading is also known as offshore currency trading.
ForexTerms explains Offshore Forex Trading
Offshore forex trading is usually sought out by traders seeking to get around domestic leverage limits or hoping to reduce the overall tax burden on profits. Offshore forex trading can give a trader access to much higher leverage amounts and more tax options, but there may be other restriction. For example, a trader may not have the same legal recourse they are accustom to domestically should their offshore broker go bankrupt or accidentally empty an account.