All forex brokers in the Cayman Islands are regulated by the Cayman Islands Monetary Authority (CIMA), a government regulator which is also tasked with overseeing the nation’s currency. Although forex brokers in the Cayman Islands are regulated, it’s worth noting that this regulation is much more relaxed than in other regions like the US, Canada, the EU, and Japan. As such, high trading leverage and flexible conditions are common among brokers in the Caymans.
The Cayman Islands has for a long time been a popular jurisdiction to register all kinds of companies, including forex brokers, hedge funds, offshore banks, and many others in the financial services industry. The regulator there has thus gained lots of experience in dealing with these types of companies, which has made the Cayman Islands one of the more reputable jurisdictions in the Caribbean today.