Offshore regulation is a relatively lenient form of regulation. Offshore regulated foreign exchange license does not require the applicant to set up a physical office, provide financial services in the jurisdiction of the regulator. And offshore regulated license application time is shorter, the application fee is lower, less supporting documents, and taxes are not high.
In terms of restrictions on licensed brokers, offshore regulators are also more lenient in their requirements. Most notably, in terms of leverage caps, brokers in offshore jurisdictions can offer leverage caps as high as 500:1, 300:1, and 200:1, which has led to the establishment of branches of these brokers in offshore jurisdictions. These institutions can operate independently of the fully regulated parent company and recruit more clients with high leverage.
Common offshore regulators:Vanuatu (VFSC)、Belize (IFSC)、Cayman Islands (CIMA), British Virgin Islands (BVIFSC)
How to choose offshore supervision?
1. Hard main regulation is the primary condition for the selection of foreign exchange platform
The main regulation is too hard, the new increase in offshore regulation can be relied on. Regulation is not omnipotent, but no regulation is impossible.
2.Transaction costs are one of the most important considerations besides the safety of capital
3.Stability of deposit and withdrawal
Fast service, normal account opening, authentication, deposit, all let investors have a scale in their hearts.
4. The visibility of the platform provider
The platform with visibility is more durable to the market test
5. Services of the platform
It is also necessary for investors to choose a platform provider with quality services for trading.
To learn more about Forex trading knowledge and skills, please follow FxGecko Forex Education:
Twitter: https://twitter.com/FxGeckofx
Facebook:https://www.facebook.com/FxGecko-Forex-Education-103027949161965
Reddit:https://www.reddit.com/r/Forex_Knowledge/