Paul Elijah P Gonzalez#54

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What is offshore forex regulation and why is it controversial?

Offshore regulation refers to brokers licensed in jurisdictions with looser requirements, such as Belize, Seychelles, or St. Vincent. These regulators often have minimal capital requirements and weak enforcement. Benefits: high leverage, fewer restrictions, and global access. Risks: little to no investor protection, risk of fraud, and limited recourse in disputes. Many retail traders are drawn to offshore brokers for flexibility but face high risks of scams. Offshore regulation illustrates the global divide: strict regulators prioritize safety, while offshore hubs prioritize accessibility. The key is balance—retail traders must weigh opportunity against safety.