Mitchel

I don’t mean to sound rude, but I have an economic background, I traded with a very famous American broker at one time, so I can explain everything in detail. To begin with, I’m not personally trading with AAFX, but my brother is and he is very pleased. When he read this article, he asked me to explain everything, because he already wanted to withdraw money and find other broker. I will now write the same thing I told him. Shortly – statement that offshore registration equals to unreliable broker is wrong. Let’s start with the basics of economics – rich countries have more money. According to the law of competition, they want to protect their dominance. If the country has more money, the prices are higher, but the income is also higher. There is such a thing as Purchasing Power Parity. If we compare the USA with a less developed country, we can see that it is 1 PPP in the USA, and in less developed countries it is from 2 to 4. This means that in these countries you can buy 2-4 times more goods than in the U.S. for 1 dollar. But the salaries are 6-10 times lower there, so people live poorer. This has always been the case. People from poor countries simply couldn’t get into the rich ones and earn as much As americans or Europeans do. Now everything has changed – we have the Internet. Look, traders in Kenya or Malaysia trade in the U.S. stock market, earn the same money as traders from the U.S., but live in countries where almost everything is 2-4 times cheaper. It turns out that the US or EU lose their money, that goes to less developed countries. They don’t want to lose their money, so limit that in every possible way. As a result, for many brokers it is simply impossible to get a license. More precisely, they can get it. But it costs money, a lot of money. Millions. Taxes in the U.S. are actually about 45% on financial services. The AAFX takes a fair commission. But if it registers in the U.S., it will have to take twice as much money to compensate for the taxes. Add to this the fact that each trader will have to pay 40% of what he or she has earned in the form of taxes or deal with bureaucracy, proving that he or she will pay taxes in another country. Interesting prospect? Would you like to trade in this way? There are also about 1400 SEC instructions that regulate each transaction, so in order to make a deposit or withdraw money, you will have to wait not for 1-2 days, as in the AAFX, but much longer. I hope you understand why the AAFX isn’t trying to get the US or EU license?. The broker wants to be convenient for the client, not for Uncle Sam (or for aunt Merkel).