Good brokers, bad brokers, a good broker should have a sizable A and B book and match shorts and longs in house before hedging any outstanding positions. A bad broker doesn't really want an A book at all and would rather just take the other side of your bet themselves and come out the winner as the majority of retail traders lose.

The former, as a business model, is relatively safe, they will weather most types of market upheaval. The latter is more at risk from unexpected events causing major turns in the market. Brokers are naturally shy about disclosing their business model so it was surprising recently when Plus 500 released a news statement explaining to share holders that the recent major profits drop was due to 'their clients getting it right' in their call on the recent Covid and Oil market turmoil.

So in essence this broker is going to go bust unless their clients keep losing