Forex and CFD trading is high risk. Most retail traders lose money. Read this before you open an account with any broker reviewed on this site.
Leverage works against you as fast as for you
CFDs and leveraged forex let you control a position far larger than your deposit. At 1:500 leverage, a price move of 0.2% against you wipes out your whole margin. Many offshore brokers offer leverage of 1:1000 or more, where far smaller moves do the same. Only trade with money you can afford to lose completely.
Offshore regulation protects you less
Many brokers that accept traders from Asia and the Gulf serve them through entities licensed in places like Seychelles, Mauritius, Vanuatu or St Vincent. These licenses usually come with weaker capital rules, limited or no compensation schemes and little practical help if a broker refuses to pay you. Our reviews state which entity would hold your money and what its license is worth. Check that before you deposit.
Check the law where you live
Rules on trading with foreign brokers differ by country, and in some countries residents face clear legal limits. A broker accepting your registration does not mean it’s legal for you to trade with it.
- India: The Reserve Bank of India allows residents to trade forex only through authorised entities and on permitted exchanges, and it publishes an Alert List of unauthorised forex platforms. Sending money abroad to trade leveraged forex with an offshore broker can breach foreign exchange rules.
- Pakistan: Foreign exchange rules restrict sending money abroad for speculative trading. Check current State Bank of Pakistan guidance before you trade.
- UAE: Firms offering trading services to UAE residents onshore need a license from the Capital Market Authority (CMA, formerly the SCA), the DFSA or the FSRA.
- Saudi Arabia: Securities business with Saudi residents falls under the Capital Market Authority. Check whether a broker is authorised before you deal with it.
- Malaysia: The Securities Commission Malaysia keeps an investor alert list of unlicensed platforms. A Labuan FSA license does not by itself authorise a broker to serve Malaysian residents onshore.
This is a summary, not legal advice. Laws change, so check with your local regulator or a qualified adviser.
Watch for these warning signs
- Bonuses that lock your withdrawals until you hit a trading volume
- Account managers who call you and push you to deposit more
- A license you can’t find on the regulator’s own website
- Withdrawals that get delayed with new document requests each time
We track brokers that show these signs on our warnings page.
Not financial advice
The Spreadlog compares brokers. Nothing on this site is investment, financial, tax or legal advice, and nothing here is a recommendation to trade. A broker’s past record doesn’t guarantee how it will treat you.