A regulated broker is a financial intermediary or institution that operates within the legal framework and is subject to the oversight and supervision of a regulatory authority. The role of a regulated broker is to facilitate the buying and selling of financial instruments, such as stocks, bonds, commodities, and currencies, on behalf of clients.

Regulatory authorities, such as financial regulatory bodies or government agencies, set specific guidelines and rules to ensure fair and transparent trading practices, protect investors' interests, and maintain the integrity of the financial markets. These regulations typically include requirements related to capital adequacy, client fund segregation, risk management, reporting obligations, and compliance with anti-money laundering and know-your-customer procedures.

By choosing a regulated broker, investors can have confidence that their funds are held in segregated accounts, and the broker operates in a transparent and responsible manner. Regulated brokers are also obliged to provide clear and accurate information to clients, maintain appropriate risk management systems, and resolve any disputes or complaints in a fair and timely manner. Overall, working with a regulated broker offers a higher level of security and protection for traders and investors.