I wouldn’t want to see retail spot forex CFD’s disappear and no longer be available to “small punters.”
I think that’s the inevitable outcome, though, eventually.
It’s what happens to industries, especially financial ones, that won’t/don’t regulate themselves effectively: they end up being overregulated by inappropriate regulators they never wanted (and even some of their customers didn’t), or gradually made illegal, just like “binary options” now are in so many countries, entirely understandably and predictably.
It’s a shame, but the anti-regulation brigade will never learn the lessons of history, probably mostly because (although they don’t look at it in these terms and would never admit this) they’d actually prefer to “be right and be victims” than to make any concessions that would actually improve their lot and the position for future generations of punters.