how exactly do regulators monitor forex brokers?

@kehinde - 10 months ago - Forex Education

Good morning, please I would like to know how exactly regulators keep an eye on forex brokers because I see lots of brokers cheating customers and there doesn't seem to be any penalty. For example, with my broker there is a lot of slippages so do regulators punish brokers for this slippage?

@tiny_ox - 10 months ago

regulators are supposed to check the order management to see if cases of slippage were genuine or fabricated. However, this is only in theory as most brokers register their clients under weak regulators who dont bother to check these things.

@skyfall - 10 months ago

I think the brokers are supposed to render reports on their activities to the regulators, who will then scrutinize them.