Hi Finserv123, Check out this article for details regarding legislation. Finance Feeds rocks as a site too! Don't bother
with firms registered in Cyprus, Vanuatu, or the British Virgin Islands, or elsewhere besides the 3 places below.
As per the article link below...why to stick with only 1. USA 2. Australia 3. UK Regulated Firms:
https://financefeeds.com/cysec-no-t...s-still-offering-bonuses-one-month-bonus-ban/
In the United States, it is illegal for domestic clients to work with overseas firms that are not NFA members, therefore the NFA can be absolutely sure that any service being provided to anyone in America is in accordance with the requirements, and no NFA member can onboard clients via an offshore entity to circumvent rules or place overly attractive bonus offers on websites.
In Australia, things are also actionable on a cross-border basis.
Two years ago, ASIC contacted the Japanese regulatory authorities and was able to close down Australian retail FX firm Pepperstone’s Japanese office. At the time, Pepperstone stated “Pepperstone does not currently hold a license issued by the JFSA and we have therefore decided that we can no longer service Japanese residents until such time as we hold the appropriate license issued by the JFSA.”
Currently, CySec does not have the powers to take firms to court, or to restitute clients, nor does it have cross-border jurisdiction outside of the European Union (CySec is under MiFID regulations) thus this practice can prevail via the back door.
The only action CySec can take against this is to cancel the CySec license of firms which promote bonuses and high leverage – even if they are onboarding clients through offshore entities – and listing CySec licenses on their websites in order to gain credibility.