So if regulated FX /CFD ( depends where) can go out of business what chance a client has to recover any thing from a non regulated thinly regulated broker going burst,
My point is to stick with the regulatory broker who also have a repute and even then we should keep withdraw our profits just to stay on the safe side.
Yes true and not only that see if you can choose a broker who is in such a jurisdiction which has some Client Money Protection,,,For OTC product brokers only UK provides it up to 85K Pound per a/c or per person/ entity, ASIC in Australia or SIPC in USA Does not cover you if it is a OTC broker,, or Futures , Only for equity SIPC protects you.. having said al this Market Maker model is still an issue ( conflict of interest) , Best combination would be to to use a UK regulated Futures broker and trade US listed Currency or commodity futures through them , you wont get the crazy leverage, but you get transparency of a centralized market + FCA protection