The main difference between a regulated broker and an unregulated broker lies in the oversight and compliance with legal and financial standards required by governmental or independent authorities.
A regulated broker is licensed to operate within a specific jurisdiction, or from a country with which there is a mutual regulatory agreement, ensuring the broker is adhering to a set of predefined rules, laws, and protection measures for traders and investors. This licensing shows that a recognized regulator is monitoring the broker's activities to make sure the broker follows fair trading practices.