There are only a few Forex CFD brokers that are actually licensed, accredited and regulated brokers. This small group of licensed brokers are also know as the best brokers in the industry, and they are naturally among the largest brokers in the world.
The simple reason why you need to be trading with a licensed broker, is due to the widespread fraud that exists in the online trading world. By trading with a licensed broker, depending on your country of residence, you are protected by the financial regulator.
United Kingdom brokers are licensed by the Financial Conduct Authority (FCA).
Australian Forex brokers must be licensed by the Australian Securities and Investments Commission (ASIC).
One of the most popular brokers in Australia is Pepperstone.
Many European brokers are licensed by CySEC in Cyprus, which is a large regulator of brokers in the European Union. Individual countries like Germany, Italy and Netherlands have their own licensing divisions.