If you’re using an offshore entity of a trusted broker like Pepperstone, it’s generally safe—but you won’t get the same protection as with FCA, ASIC, or CySEC. You get higher leverage, but less regulatory security. It’s a trade-off—choose based on your risk tolerance.
For many scalpers, offshore entities offer the leverage they need, and trusted brokers still maintain high standards. Just remember, if something goes wrong, you can’t turn to top-tier regulators for help—so only go offshore with well-established brokers.
On the contrary. As attested to in the Babypips course, and by hundreds of posts in a multitude of threads, those are the only ones you CAN turn to for help, because they’re the only ones with both the power and the will to take the customers’ side in a dispute.
This is probably the very worst, and most dangerous advice that’s ever been offered in this (or any other) trading forum.
If (as it seems from what you’ve posted so far, some of which has thankfully already been deleted by our kind moderators) you’re here to promote offshore brokers, you’ve picked the wrong place.
“Well-established” has nothing to do with regulation. Offshore brokers are the ones who have chosen to deny their customers the right to effective regulation that can realistically protect them.
THIS POST, from yesterday, explains the position clearly - and of course there are hundreds of others, posted over the years by a huge number of experience members, doing the same. As in all trading forums that care about their members.
The promotion here of offshore, poorly-regulated/unregulated brokers is the one and only thing I really do find uncomfortable about this otherwise great forum.
You obviously know that you’re far from alone, there.
But I guess it’s the other side of the “free speech” coin?
Members like @SmallPaul perform a valiant service regarding “due diligence” and “reporting back” in the main thread you’re thinking of, and should be thanked for it.
But the sad reality is that there isn’t really a way of explaining to most people that limited leverage isn’t the reason they can’t trade profitably. It’s well nigh impossible to change deeply-held and continually reinforced beliefs, however mistaken they are. And there’s a whole (mostly corrupt and unethical) world out there wanting people to continue to believe that. I think that’s what the big issue’s really about, for the most part.
This is ALL it’s about. If the CFTC/NFA and their equivalents in the UK, EU and Aus allowed higher leverage, the whole issue would disappear (together with all the offshore crooks, too). And they must know that.
Well, it’s almost all it’s about.
(There are also a very few people - only in America, I think - who are just so anti-regulator that there’d never be any way of satisfying them, however good or bad the regulation might be, and that handful of opinionated, politically-motivated people would probably find some other way of avoiding regulation or complaining about it, whatever happened.).
It will be endless arguments about regulation and offshore broker. There is Forex Expo in Dubai incoming October. In case it’s close to you, you can visit and asking them. You will surely satisfy why they operate an offshore and how secure it is.
As I told before, asking about regulation meaning you are a beginner, so it’s not time for you to focus on this topic. When there is time you want to deposit bigger fund, my advice is you have to visit the broker, have some interview. When you are not satisfy with the broker, find others. This is the best. It will be worthless to argue about regulation while we just put in less then 1000 in it. It’s not because I don’t appreciate 1000 USD, but nothing is really safe on earth.
You can just pick any well known broker near your region. For Asia Pacific, there are few famous broker such as ICMarket, Vantage, Pepperstone, CMCMarket, Exness, Robo Forex, VTMarket, XM and many others.
For Europe region, you can have TickMill, FXView, AMarket, StarTrader, Exness and many others.
These broker has more than 100k users. Let say you put 1000 USD with them, it’s less then 1% of the capital, it’s 0.00000001 %, they don’t even care to scam you.
It’s better we focus on how to trade and reaching consistency. That’s the point
If people seriously “advocate” against regulation, a good question to ask them is “Do you think banks ought to be regulated, and would you want to depend on an unregulated one if they could choose whether or not to be regulated and some were regulated while others weren’t?”
Once upon a time, it was frowned upon to have a offshore bank account in an offshore location like a Caribbean island or a small Latin America country because the regulations there were quite relaxed, Many people didn’t realize that these places had become popular among super rich individuals and big corporations.
Regardless of whether someone supports or opposes the regulation of brokers, if a person is unhappy with the existing trading environment in their country and discovers a better option elsewhere, what’s the problem?
One problem is maybe that if it turns out not to be better after all, but to be Bernie Madoff, they will have no legal protection at all?
It happens rather more often with unregulated brokers than investment schemes like Madoff, because such a high proportion of offshore brokers are dishonest. That’s why they’ve chosen to be offshore.
Not hard to understand.
Brilliant question. It should end the discussion. But of course it won’t.
This is accurate; additionally, many of the largest frauds have come from the United States, including Bernie Madoff and various other financial schemes, Protection at Its Finest.
The program American Greed is a great way to begin understanding the situation.
No matter what you do in life, due diligence is crucial, and it matters even more when it relates to your financial health.
Most of the online forex brokers have offshore licenses so we never can find out when even a good regulated broker turned in to scam and stop paying the traders since we have many past examples of such cases. Therefore, i think whatever broker we choose we continue to keep withdrawing the profits leaving the necessary capital behind in order to stay on the safe side.
As someone who trades through HFM and IB, I’ve found them smart: good execution and tools, but I only keep small equity there-otherwise I stick to FCA‑regulated accounts for the peace of mind
This is all completely wrong. You’ve profoundly misunderstood how the industry works.
If a well-regulated broker also has an offshore branch that isn’t properly regulated, that’s a separate limited company. If your account is with the well regulated one, they can’t do what you’re saying at all!
What can you do? Keeping quiet about it, rather than continuing to make promotional posts after you’ve already been banned here once might be a good idea?
