Benefits of Unregulated Forex Brokers – What You Should Know

Published on: 08/19/19 2:54 PM

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Category: Newsletter

4 benefits of investing with unregulated forex brokers that nobody is talking about

The argument on whether to trade with regulated or unregulated forex brokers has been on for a while now. Many traders have decided to distance themselves from unregulated forex brokers because of reasons raised. However, there is an ultimate question one must answer relating to this argument. Do unregulated forex brokers have special benefits? Of course, they do, and we will consider some of these benefits in this article. Before we do so, let’s consider why some forex brokers are unregulated.

Why Some Forex Brokers are Unregulated

No doubt, obtaining a license gives forex brokers a bragging right as majority of them display it on the homepage of their website. They pitch to potential users of their trading platform that they can be trusted and so on. Some brokers, however, decide to operate from offshore to evade registration and do not obtain licenses. Does it mean that they are out to defraud people of their money? It is not the case on most occasions. Some of these forex brokers might simply not have a huge amount of money required for such registration, especially when starting up. They decide to operate without a license and under no regulation to reduce their operating cost drastically. Are there unregulated brokers that defraud traders? Yes, but one cannot use a minute fraction to judge all. Several unregistered forex brokers exist with legitimate business considerations why they fail to register and obtain a regulation license. So, the issue here is not about deceiving or defrauding people; it is about the benefits of being an unregulated forex broker.

Benefits of Unregulated Forex Brokers

  1. Freedom
A regulated forex broker has many restrictions like Hedging, Scalping, and EA Trading restrictions. These restrictions make it difficult for them to operate in a certain way they would have loved to, especially about offers. But unregulated forex brokers enjoy the freedom. They can decide to offer leverages of 1:500 without restriction. They can serve products that they might not be able to if regulated. For this reason, most of them operate offshore having their headquarters in countries where there are not many restrictions.
  1. Little or no Tax
If you look at the headquarters of most of the unregulated forex brokers, you will discover that they are located in countries considered tax havens. As a result, many of them are able to limit the taxes they pay and increase their profit.
  1. Unmatched Trading Conditions
Due to the low operating cost and taxation that unregulated forex brokers shoulder, they can offer traders excellent and competitive trading conditions like tight spread, better leverages, extremely fast execution, and more. These conditions make it easy for traders to achieve their financial goals quickly.
  1. More Bonuses and Promotions
Also, unregulated forex brokers offer more bonuses and promotions because they save money due to low tax payments and operating costs. Sometimes, some unregulated forex brokers even offer free trading analysis tools to traders.
There are other benefits of unregulated forex brokers, but the ones above are the main ones. With the information garnered from this article, it is believed that traders will be able to take informed decisions when selecting a forex broker for trading purposes.