Having an FX Rates Account in a Different Country
As the world of FX rates trading is all online it is possible to get a brokerage account with a broker in a different country. There are a lot of traders who have accounts with brokers located in a different country. Of course, you have to consider what the implications of this are and whether you should be doing this.
The Big FX Rates Companies
There are a number of large FX rates brokerage companies out there. If you are looking to go with a large company then you may have a limited choice as to the country they are in. However, if you are also going to consider the smaller companies then you increase your options. Of course, you have to be careful when you look at any company. You have to consider their reputation and how well you will be able to trade with them. This is why a lot of people simply look for the big companies because they are likely to have a good reputation and be easy to trade with.
When you look at a broker in a different country you have to consider the regulation of where the broker is located. There are certain countries that have stricter regulations than others and there are countries that do not have any regulations at all.
The most strictly regulated country is the United States of America. Brokers in the USA have to have a minimum amount of capital and cannot offer more than 50:1 leverage to their clients. There are other countries like Australia that regulate the amount of capital a broker has to have. However, many of these countries do not limit the amount of leverage on offer. If you are looking to use high leverage then you need to look for a broker in a country where this is not regulated.
Contacting the Broker
Being able to contact your broker is very important. Most brokers will have an online customer support facility that runs 24 hours. This allows retail traders in different countries to contact them if they have a problem. However, there are some brokers that do not offer this facility. These brokers may require a support ticket or need you to call them. This can be a problem if you are in a different country because of call charges and time differences.
Alternative Trading Options
There are a lot of brokers that have alternative trading options. This is a fail safe for people who are unable to get online, but want to complete a trade. The most common options for this are trading via email, over the phone and by fax. If you are in another country to the broker your alternative trading options may be limited. It is possible that you will not be able to use any of the alternatives as they are done within the business day of the country the broker is located in. You may also have a problem connecting to the numbers that the broker provides because they are in another country.
There are a lot of traders who use forex brokers located in a different country. When you consider this you have to think about the impact of the regulations in the country and how you can contact your broker.