Not that I'm saying that these companies should be avoided. Just because a company is regulated doesnt make it safe, Refco being a particular case in point. In anycase, I think its important to recognise that the forex market is only more recently recieving more regulatory intervention.
This article by Richard Olsen and Michael Stumm of Oanda, makes an interesting read :
Retail FX: the triumph of hope over experience
Retail FX: the triumph of hope over experience August FiX
I particularly like this quote on the result of the regulatory environment.
quote:
--------------------------------------------------------------------------------
If anything, regulatory action is working to limit inflows of new ideas and processes and the always necessary increased efficiencies.
--------------------------------------------------------------------------------