Michael R792 Hill

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What is offshore regulation and is it risky?

Offshore regulation refers to licenses issued by jurisdictions such as Seychelles, Belize, or Saint Vincent and the Grenadines. These regulators often have low capital requirements and minimal oversight, allowing brokers to offer high leverage and fewer restrictions. While some offshore brokers operate fairly, the risks are significant because investor protection is almost nonexistent. Disputes, withdrawal problems, or fraud cases are rarely resolved by offshore authorities. Compared to strong regulators like FCA, ASIC, or NFA, offshore licenses offer little credibility. Traders should treat offshore regulation as a red flag unless the broker also holds a stronger license in a reputable jurisdiction.