It depends on where you live. In this thread, we discussed the global currency hubs: What are the Deposit and Withdraw Option of FOREX.COM
For traders who live in those major trading centers, it makes sense to focus on brokers regulated in their home country. Traders who don’t live in one of those countries should consider brokers regulated in major financial centers appropriate for their region.
The advantage of trading with a well-regulated broker is there are both financial and trading standards set, ongoing monitoring by the regulators to ensure compliance, a framework for handling complaints from customers, and the power to enforce actions against regulated brokers for violations.
- 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.
Where do you live, @siphiweAngel?