Refers to the oversight and rules imposed by financial authorities on brokers to protect traders. A regulated broker must comply with standards for things like capital adequacy, client fund segregation, fair pricing, and risk management. Different jurisdictions have different regulators (e.g., CFTC/NFA in the USA, FCA in the UK, ASIC in Australia, CySEC in Cyprus, etc.), and each may impose certain trading rules: for example, ESMA (EU) limits leverage to 1:30 for retail traders and requires negative balance protection; US regulators enforce FIFO and no hedging for retail forex, and require brokers to be well-capitalized. For traders and especially automated strategies, regulation can affect how you trade (through those rules). It also provides confidence that the broker is not a scam and that your deposits are safer (often held in segregated accounts separate from the broker’s funds). When deploying a forex robot, it’s wise to use a broker regulated in a reputable jurisdiction – not only for safety, but also because regulated brokers typically have more transparent execution which is critical for accurate EA performance. Always verify what regulatory constraints might apply to your strategy (e.g., the hedging ban in the US or leverage limits in the EU).

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