Brokerages operating from jurisdictions which lack any real regulatory oversight can get away with very questionable behaviour to say the least. At worst, they can disappear over the horizon with your money without a scrap of paperwork for a trail. If choosing the most suitable broker for you, it is forex brokers regulated by cysec regulations highly recommended to opt for a broker with regulated status.
If a broker is regulated in more than one country, this tends to be a bonus because it adds yet a further layer of oversight and accountability the broker must comply with. Regulation typically requires brokerages to keep client funds separated from the firm’s operating capital, this prevents rogue firms from embezzling client money or using client funds to pay operating costs. Many unregulated brokerages don’t undertake basic measures to protect client funds and often do not comply with this simple rule. Foreign exchange regulation can be difficult to get to grips with as the regulatory environment differs significantly from jurisdiction to jurisdiction.