Is Forex Broker Regulation that important?

I think the regulation of Forex brokers is a key factor to look at when choosing a broker. I personally prefer regulated brokers since they operate as per the set rules of the regulatory body. Every regulatory body has a set of rules which all the brokers wishing to conduct business within that region or country should follow.

With Regulated Forex Brokers, you are also safe from scams. You can easily launch a complain to the relevant authorities in case of any mulpractices and you will be assured that your complain will be looked at.

Most of the regulated brokers that I have come across are regulated by CySec out of Cyprus, Markets in financial instruments (MiFID) of Europe or SEC of the United States. But there are other regulatory bodies in different countries and regions. Yo just have to investigate which one your broker has registered with.

However, I have also come across a number of traders who prefer to use unregulated brokers which is very risky unless they have other reasons which am not conversant with. The only thing that am sure about is that brokers choose to forfeit regulation so as to reduce their total operational costs. I am yet to understand if there are any benefits for the trader.