I merely ask; will this last?

[Torch]

It should be noted that not all FX brokers are counterparty.

HG

This is exactly the kind of thing that I'd suggest could potentially be affected by the influx of the 'hordes'.

Technically most of the retail shops reserve the right to act as counterparty if only just to cover themselves;
(Hotspot for example advertise heavily their usp is not acting as counterparty, yet they cover themselves in the small print to be exactly that!)
Oanda (who I still feel are in an entirely different to their competitors) claim to hedge their trades on the basis that they just have so much daily turnover going through they can do very well just on the spreads from those many traders fed up of the hi-jinx elsewhere. Their spreads are aggressively tight and after using them regularly with some success (and no subsequent 'interference'...), their overall business model seems to be that they will prosper if you prosper etc.

However, lets fast forward eighteen months or so. A deluge of the 'something for nothing' crew, sick of being scammed by E-Gold tricksters and looking for a more successful 'dream instigator' then Supermodel Casinos etc, follow these endless 'Make a Forex fortune in 5 minutes' banners to all the retail shops (who will of course all feel obliged to compete for their business; cue MORE banners; cue MORE mug punters)

Lets assume that between overleveraging themselves, blindly following their Nostradamus compasses (or whatever the latest, loudest holy grail is that week) and, well, just being as greedy, undisciplined and misguided as most gamblers are, lose all their accounts. And then come back for more ANYWAY:!: (this being I think a key point..)

Is there not a severe danger that even the retail shops we perceive as the 'good guys' will find it irresistible to alter their business models to aggressive counterparty mode on the basis that you can only say no to so much free mug money?

Also, as a matter of interest, if (when) all of this does lead to increased regulation, will Forex retail or Forex spreadbetting be the most affected for the average UK trader? Or is it best to keep fingers in all the pies?