So all of casinos in this world are bucket shops as they have conflict of interest with their customers. And so goes for insurance companies who win when their customers lose. So do you buy medical insurance? I guess you do and you don't care if they have conflict of interest with you. Those who blame unregistered brokers are bucket shops are simply ignorant. They never trade with any unregistered broker so all their knowledge about unregistered brokers are from their imagination. If you compare an offshore forex broker with a legally registered forex broker in United States, then the later is much worse as it charges 5 times higher trading cost than former and offer only 1/10 margin . There is no way you can survive with a legally registered forex broker if you daytrade with it, as your trading cost will be more than your total trading capital in a year. I have traded with both and I could not stay with a legally registered forex broker and I am happy now with my current offshore broker.As the former charges 0.11 pip on euro/ usd and my current broker charges 0.02 pip on the same pair.
Not saying do or don't. Just have all the info on the table prior so you can make a smart and wise decision. I'm aware of one case then an large CFD/FX broker in UK/EU stole $400,000 from a customer. This was a guy who did grow a five digit sum into $400,000 over a few of years daytrading and scalping equity index CFD. They froze his account and accused him of gaming the order book/order system. Believe truth is closer he was too successful and eating into their earnings. They wanted him out, and they didn't want to hand over him his winnings.
Well ,I have seen many cases that were posted on forexpeace that a trader blame a broker and at the end it turned out the trader did not tell the whole story and was not telling the truth. If a customer does same thing with a cosino he will lose the case too. Tell me how many times you see that kind of the case? Think it this way, now I am daytrade with a offshore forex broker, I may have 1/10000 chance to lose my account. If I daytrade with a legally registered forex broker, I have 100/100 chance to lose my account. Also, to my knowledge, all of forex brokers in UK/EU are registered brokers.So your case only proves a legally registered broker is no safer than an unregistered broker.