Loud and clear.
That's EXACTLY what it means.
You only find out what kind of people you're dealing with when something goes wrong, and that's when you need your broker to be well regulated.
There are reasons that dodgy counterparty "brokers" choose to be registered in Central America, the Caribbean, Vanuatu, the Seychelles and Cyprus ... and they're NOT reasons that are designed protect their customers' interests when something goes wrong!
It matters hugely.
It matters almost to the exclusion of everything else, in that if a "broker" is regulated in one of the jurisdictions mentioned above, that should completely and immediately rule it out of your consideration, before you even look any further.
No disrespect, Kreg, but you're not ready to do "thorough analysis" yet, or any other kind of "analysis" either, because you don't yet know what the factors are that actually matter. And you need to learn that first.