Despite the enormous size of the forex market, there is very little regulation because there is no governing body to police it 24/7. Instead, there are several national trading bodies around the world that supervise domestic forex trading, as well as other markets, to ensure that all forex providers adhere to certain standards . For example, in Australia, the regulatory body is the Australian Securities and Investments Commissions(ASIC)

There cannot be very strict regulation due to the vastness of the market, however it is quite well regulated considering everything, and while you still need to be careful it is ideal to find a broker that shows reputability and you should be safe.