You make a great point, @Mordengaard!
In this earlier discussion, we talked about the major financial centers where forex is traded. It makes sense to look for brokers regulated in these countries: What are the Deposit and Withdraw Option of FOREX.COM
If you live in Australia or Canada, you can also look for brokers regulated by ASIC or IIROC respectively. Funds deposited with ASIC-regulated brokers are segregated in accordance with Australian client money rules, and funds deposited with IIROC-regulated brokers are protected for up to $1 million per client by the Canadian Investor Protection Fund.
Also, try to confirm on the regulator’s website if the broker is truly regulated by them.