So many regulated brokers have closed office in the past, the last one being an Israel based binary option broker who got clearance from Cyprus regulatory authority a month ago. Forex is a OTC (over the counter) market. Thus, regulations have very little effect on the broker. Even though it gives a sense of confidence to a trader, still, it does not guarantee total transparency on the part of a forex broker. The best thing for a trader to do is visit forex related forums and discuss about the broker before making a final decision. There are specialized websites which constantly monitor forex brokers. Since prevention is better than cure, it is better to decide the forex broker based on messages from fellow traders than totally relying on regulatory mechanism.