You make a great point, @cigarmanstan.
When it comes to choosing a forex broker, the most important factor is strong regulation. Recently, there have been several discussions on this forum highlighting the dangers of trading with unregulated brokers:
Forex is regulated by government bodies in major financial centers around the world. For traders who live in those major trading centers, it makes sense to focus on brokers regulated in their home country.
Even traders who don’t live in one of those countries should consider brokers regulated in a major financial center appropriate for their region. For example:
- In the US, forex is regulated by the CFTC and NFA, and brokers are required to maintain net capital of $20 million.
- In the UK, forex trading is regulated by the FCA and funds are protected for up to £50,000 per client by the FSCS.
- In Canada, forex trading is regulated by IIROC and funds are protected for up to $1 million per client by the CIPF.
Once traders focus their search on well-regulated brokers appropriate for their region, they can choose from among those regulated brokers by considering on other important factors such as customer service, trading platforms, charting options, educational resources, research and spreads.