Although the financial services industry in Bermuda is overseen by the Bermuda Monetary Authority (BMA), this regulator is known to be much more flexible than regulators in Europe & North America. It is also known that although the BMA is in charge of financial oversight, it does not necessarily mean that all forex brokers in Bermuda hold a license from the agency. This largely explains why Bermuda is home to several high leverage forex brokers, many of which offer high trading leverage of up to 1:500.
Despite the fact that Bermuda is a British Overseas Territory, it is not subject to the same rules as forex brokers in the UK or EU are. As such, regulations on things like limitations on trading leverage and negative balance protection for non-professional clients do not apply in Bermuda. Bermuda is therefore one of those places where European and North American traders may be able to sign up with a broker that offers far higher leverage than what is available in their home countries.