What are the differences between US-regulated and offshore forex brokers?

US‑regulated brokers follow CFTC/NFA rules with 1:50 leverage caps, no hedging, FIFO order rules, and no bonuses, prioritizing client protection through strict disclosure and fund segregation. Offshore brokers offer higher leverage up to 1:1000, hedging, scalping freedom, bonuses, and wider asset ranges but weaker oversight and recourse. US firms emphasize transparency and lower risk but limit flexibility; offshore provide aggressive conditions appealing to experienced traders willing to accept higher broker risk. Capital requirements and reporting differ dramatically, affecting stability and spreads.