In the Cayman Island, CFD & forex brokers are overseen directly by the Cayman Islands Monetary Authority (CIMA). The island nation has a fair number of brokers registered there, and it has traditionally served as a safe-haven for US-based financial services companies and wealthy individuals.
Just as other companies located there, CFD brokers in the Cayman Islands enjoy a very business-friendly and low-tax environment. The national regulator has also traditionally taken a hands-off approach to the CFD & forex brokerage business, which has given these brokers freedom to operate in a more flexible way. Part of this is also offering CFD traders far higher trading leverage than what is available from US and European brokers.