Forex Trading is one of the biggest and most liquid decentralized markets in the world with a lot higher volume than the most known Stcok Markets around the world.
FX Market in normal conditions is exceeding $5 trillion volume per day. The most exciting thing is that anyone can become a participant in this market, by trading online through a Retail Forex Broker.
However, making profit in Forex is not a fast and easy process; a newbie trader will need knowledge, information and the ability to manage risks. A very often question about forex trading is if there trusted Unregulated Forex Brokers
💹 Best Unregulated Forex Brokers 2021 (List)
Grand Capital (ECN – MT4 MT5)
 Grand Capital is a forex broker that holds No Regulation. Grand Capital offers a great ECN Pro Account, which is perfect for scalping, news trading and Expert Advisors. |
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| 🔍 Review: Grand Capital Review | 🔗 Website: grandcapital.net |
LMFX (MT4 Trading Platform)
 LMFX is an Unregulated Forex Broker established in 2017. Offering great educational materials, MetaTrader 4 Platform and beeing friendly to scalping, hedging and Automated Trading, LMFX is attracting many new Traders |
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| 🔍 Review: LMFX Review | 🔗 Website: https://www.lmfx.com/ |
What is a regulated broker mean?
When a broker is regulated, this means that there is Government Regulatory Authority to issue a License. The Authority acts as a supervisor to the broker’s activities and ensures the its complience with the Law.
This License meams that the broker follows some principles related to the local Law, fair trading, leverage restrictions, security and protection of clients’ funds, security of clients’ sensitive personal data, anti-laundering policies etc.
Holding such a License adds credibility and reliability to a Forex Broker’s profile, reducing the chance of the broker being a fraud.
Of course, every company builds its own relationships with its customers, and trust is something that requires a long time to build.
The most reliable Regulation Authorities are:
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- CySec: Cyprus Securities and Exchange Commission. Most European Forex Trading Brokers and CFD Brokers hold such a License.
- ASIC: Australian Securities and Investments Commission. Australian Forex & CFD Trading Brokers hold such License.
- FCA: Financial Conduct Authority. This is the UK Regulation Authority, referred to UK Forex Brokers.
Almost every country has its own Regulation Authority but these above are mostly met in Forex Brokers Market.
Let’s see an example:
Plus500 is a popular CFD Trading Broker in EU, UK and Australia. If you visit the Plus500.com Webpage you will notice that:
And if you scroll down with your mouse in the footer area, you will notice this:
- Plus500CY Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence No. 250/14). Plus500CY Ltd is the issuer and seller of the financial products described or available on this website. Office Address: Plus500CY Ltd, 1 Siafi Street | 3042 Limassol
- Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).
- Plus500AU Pty Ltd holds AFSL #417727 issued by ASIC, FSP No. 486026 issued by the FMA in New Zealand and Authorised Financial Services Provider #47546 issued by the FSCA in South Africa.
- Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039).
- Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore for dealing in capital markets products (License No. CMS100648-1).
Don’t burn your brain with all these informations. Plus500 is regulated by many Authorities such as CySec, ASIC, FCA and others.
What is an Unregulated broker?
We have now understood what is a regulated Forex Broker. On the other hand Unregulated Forex Brokers are Brokers that do not hold any kind of License.
Although this option “hurts” the trustworthiness of a Broker, there are quite a few reasons that a Broker selects to stay Unregulated:
- Saving License Costs: Getting a License from a Reputable Regulation Body means a lot of money.
- Saving Operational Costs: Operating under the supervision means monthly extra costs. Lots of strict rules should be followed and that is the
- Business Model Flexibility: There are no leverage restrictions, no bonuses restriction, etc
Most new entries to the Forex Brokerage Market select to stay Unregulated in order to lower the set up and first year operating cost.
Usually a new Forex Broker stays Unregulated for 1-2 years and then they get a License from an offshore Regulation Authority. We have described with detail the business model of an offshore Forex Broker.
What is important to know is that If you use an unregulated Broker then you are at the mercy of the relationship between the Broker and you. Since no Regulation Authority is supervising, there is no guarantee that the money in your account is protected.
Furthermore, if the Broker is fraud, it is very difficult to make a complaint.
On the other hand an Unregulated Broker is not de facto a scam. Unregulated Brokers build their reputation long term by offering fair trading.
Can a Forex Broker be at the same time Regulated by many Jurisdictions?
Yes. Plus500 follows this model quite effectively, by using subsidiaries that are regulated in different Jurisdictions.
Plus500 Ltd is the parent Company. Depending the trader’s residence address, the suitable subsidiary is used.
- UK Traders visit plus500.co.uk and trade via Plus500 UK Ltd
- EU Traders trade via Plus500 CY Ltd
- Australian & South African Traders trade via Plus500 AU Ltd
- Other Countries are welcomed through Plus500SEY Ltd (authorised and regulated by the Seychelles Financial Services Authority – offshore jurisdiction)
Plus500 trading platform is the same, no matter from where you use it.
Plus500 Trusted Review
- A popular CFD Broker in Europe, UK and Australia
- 2100+ popular CFD instruments
- Mobile, web or tablet trading
- Paypal Deposits & Withdrawls
- State of the Art Reliable Company
Plus500 is a leading CFD provider while continuing to lead in technology and innovation, and attracting new and existing customers.
Shares, forex trading pairs, commodities, cryptocurrencies, ETFs, options and indices are available to trade in Plus500 innovative platform.
Unregulated Forex Brokers Advantages and Disadvantages
| Advantages |
Disadvantages |
| They have easy KYC Requirements (if any) | They do not hold any license and to do obay to guidelines |
| They offer very competitive spreads |
There is a higher possibility to be a scam |
| They offer sign up bonuses and other promotions | Most of Unregulated Brokers are new to the market |
| They offer high leverage | They offer Anonymous Trading via Bitcoin |
| Most of them are using Bitcoin for higher privacy | They offer high leverage (Up to 1:2000) |
Regulated vs Unregulated Forex Brokers
| Regulated Brokers |
Unregulated Brokers |
| They hold a reputable License (Such as CySec, FCA, ASIC etc) | They do not hold any license |
| They follow strict Trading Rules |
They are flexible and do no need to follow any Rules |
| They follow strict Clients’ Money Protection Policies | Clients’ Funds are protected only by the Broker. |
| They apply strict KYC Requirements | They offer Anonymous Trading via Bitcoin |
| They do not offer high leverage | They offer high leverage (Up to 1:3000) |
| They do not offer promotions | They offer Promotions and Bonuses |
How to Check if an Unregulated Forex Broker is a Scam?
- Google the Broker to see if other traders mention him as a scam. Make an extensive research in many Forex Brokers Reviews Website, before signing up
- Check the “owner company” of the website. Some Brokers also have Facebook, Twitter etc. Check also these accounts.
- Check the Contact page to see the contact channels. Send them an email to see if they answer on time.
- Check the Clients Funds Protection Page (If there no such a page, then avoid this broker)
- Check the DEMO Account. Sign up and trade via DEMO.
- If everything OK, deposit a small amount of money. Trade some days with these money to see if this broker fits to you.
Unregulated Cryptobrokers
Cryptobrokers are Forex Trading Brokers where you can sign up and trade using Cryptocurrencies.
The main advantage of cryptobrokers is that if you deposit with bitcoins (and not use USD or Euro Deposits) you can trade anonymously, avoiding KYC Requirements.
Cryptobrokers in general are Offshore Companies and Unregulated. Some examples of Cryptobrokers are:
- Evolve Markets: In Evolve Markets you can trade Forex Pairs, CFD and cryptos using high leverage. Deposit with Bitcoins or Litecoins
- PrimeXBT: In PrimeXBT traders can trade anonymously using leverage up to 1:100, in a very friendly trading platform. PrimeXBT website operates under PrimeXBT Trading Services Ltd (Company Registered in Seychelles, number: 206865)
- XTBFX.io: The main difference of XTBFX is that this broker is a Regulated Offshore Forex Broker. But even if it is regulated, since you deposit with bitcoins, you can stay anonymous. The sign up process requires an email, a password and a country. After that you can trade 200+ trading instruments (Forex, Cryptos and CFD instruments) using high leverage (Up to 1:500).
- BaseFex: BaseFEX is a new margin trading broker, launched in October 2018. Sign up is really easy and fast, and there no KYC Requirements. Leverage is up to 1:100 for Bitcoin Margin Trading and 1:20 to all other instruments.