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The rule of thumb is to always seek out a credible, well-known "Regulated" Forex broker for obvious reasons regarding security for your investment. There are exceptions to the rule, though.
Example: Some people live in jurisdictions where Forex trading is unavailable in their countries or need access to many good brokers offering reasonable spreads and small commissions. As a result, these individuals, particularly many clients in the United States of America, may seek out "Unregulated" Brokers, not because they want to, but because they have very few options regarding the regulated ones. In the United States, ridiculous rules exist, such as FIFO and tight leverage restrictions on many pairs. For an aggressive trader that uses a percentage-based money management system and a variable stop loss, such small leverage will ruin their strategy, as the fewer pips they sacrifice, the more lots are required. Traders should have "Flexibility" when trading. As such, offshore, Unregulated Brokers will become appealing. The problem is finding the right one to trust. Some offshore brokers are genuine and offer good business, especially regarding US clients.
Nonetheless, always go for those if you can access good, regulated Brokers. Unregulated brokers should only be an option for traders whose Countries are lagging in Forex Trading.
Example: Some people live in jurisdictions where Forex trading is unavailable in their countries or need access to many good brokers offering reasonable spreads and small commissions. As a result, these individuals, particularly many clients in the United States of America, may seek out "Unregulated" Brokers, not because they want to, but because they have very few options regarding the regulated ones. In the United States, ridiculous rules exist, such as FIFO and tight leverage restrictions on many pairs. For an aggressive trader that uses a percentage-based money management system and a variable stop loss, such small leverage will ruin their strategy, as the fewer pips they sacrifice, the more lots are required. Traders should have "Flexibility" when trading. As such, offshore, Unregulated Brokers will become appealing. The problem is finding the right one to trust. Some offshore brokers are genuine and offer good business, especially regarding US clients.
Nonetheless, always go for those if you can access good, regulated Brokers. Unregulated brokers should only be an option for traders whose Countries are lagging in Forex Trading.
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