I don't know about good or bad, but doesn't FXDD allow it? They're now NFA approved or whatever, so take a look.
Look at regulated UK brokers also: http://www.100forexbrokers.com/fsa-regulated-brokers
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I'm looking for a broker that allows hedging and has a mini/micro account. Does anyone know of any good ones? For me it used to be IBFX but now they stopped allowing hedging.
Thanks,
-Ron