What 'regulated' actually buys you
A tier-1 licence isn't a rubber stamp. It typically requires the broker to keep client money segregated from company funds, hold minimum capital, follow conduct rules, and give you access to a formal dispute process (and sometimes a compensation scheme). If the broker fails, those rules are what stand between you and your money.
Offshore registrations in jurisdictions with light oversight usually require little of this. The broker can still operate legally there — but your protection if something goes wrong is far thinner.
Why offshore entities exist
Offshore arms let brokers offer things tier-1 rules restrict: very high leverage (1:500, 1:1000+), deposit bonuses, and looser marketing. That can look attractive, but the same features that draw you in are the ones regulators limit to protect retail traders.
It's not automatically a scam — plenty of large, reputable brands serve most of the world through offshore entities. The point is to know that's what you're getting and to size your risk accordingly.
How to tell which entity serves you
Read the account-opening terms and the footer disclaimers, not just the homepage. Brokers must disclose which legal entity you're contracting with — and it's often different from the tier-1 entity featured in their advertising.
In our reviews we flag, where we can, which entities typically serve retail clients and where the strongest regulation actually applies. When in doubt, verify the licence on the regulator's register before you deposit.