Compare The Best Offshore CFD Brokers in 2023
Are you looking for an offshore broker that can offer higher leverage than your Australian broker? If so, you have come to the right place.
With ASIC’s leverage restrictions in full effect since 29 March 2021, traders continue to look for offshore CFD brokers to trade with. This will ensure that they can continue to trade with the (higher) rates of leverage that they have become accustomed too.
What Is An Offshore CFD Broker?
An offshore CFD broker is one that operates a CFD business that is located outside the main financial hubs. In our opinion, an offshore broker is one located in places like Belize, the Seychelles, the Bahamas, the British Virgin Islands, Vanuatu etc.
Offshore brokers are often considered to be unregulated entities, operating in tax-haven jurisdictions and a little bit dodgy. It is true that was once the case but times have changed and plenty of offshore CFD brokers are regulated by the financial bodies within the country they operate.
Effectively, “offshore” is any broker that is not based within a country of a major regulatory body, like the FCA or ASIC for instance.
Our #1 Recommended Offshore CFD Broker?
Having launched in 2014, BlackBull Markets is now considered a top-tier CFD broker with a global presence. They offer a true ECN trading experience (no dealing desk), fast execution and some of the lowest spreads going.
- Who are they? An award-winning NZ broker, offering high leverage and low spreads
- Leverage: 500:1
- Regulation: FMA (NZ)
- Minimum opening amount: $0
- Spread type: Variable
- Trading platform: MT4 and MT5
- Australian residents are welcome to sign up with BlackBull Markets.
Is New Zealand a Safe Offshore Jurisdiction To Trade With?
Although NZ is hardly considered a financial hub, it is a country with a highly developed free-market economy and a very large GDP for its small population (5 million). NZ also has a very established, sophisticated and secure banking system.
When you think of more commonly- known offshore jurisdictions, you think of the Seychelles, Belize, the Bahamas and the like. You do not really think of New Zealand.
Put it this way; would you rather trade with a broker that is regulated in New Zealand or one that is regulated in Vanuatu or the Seychelles? The answer seems rather obvious to us!
Why Use An Offshore Broker?
Leverage. Leverage is one of the main benefits of trading CFDs. By restricting leverage, a trader will need more money on their account to open the same position/s as previously.
Given that Australia’s financial regulator, ASIC, has introduced leverage restrictions on all Australian CFD brokers, traders are looking elsewhere. For most CFD traders, restricting leverage is a huge negative and they will either stop trading or they will look offshore for other options.
What To Look For In An Offshore CFD Broker:
Regulation: please ensure your CFD broker is regulated in some form. Trading with an unregulated broker is a terrible idea and your money is at risk.
Trading Costs: please review the costs involved before committing to a broker. Some are cheaper than others! Always review their spread and commission costs, and compare with other brokers before making a decision.
Support: we all need quality customer support when trading so ensure your broker has 24/5 support in place. Most brokers will offer support across email, live chat and phone but please check!
Leverage: most offshore brokers offer high leverage, so please ensure your broker of choice actually offers high leverage!
