Comment Text:
i0-001
COMMENT
CL-00105
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Sent:
To:
Subject:
Attach:
Ramon
Friday,
January 15, 2010 4:35 PM
secretary
Public Comment on Proposed Regulations Regarding Retail FOREX Transactions
ramonr testa.vcf
To Whom It May Concern: I think lowering the leverage requirement for
retail FOREX transactions will do the exact opposite in regards to
customer protection.
It wouldn [] t matter if you lowered or raised the leverage amount in terms
of customer protection. The fact of the matter is many uneducated people
try their hand at FOREX and lose. Reducing leverage will not change this
outcome when FOREX brokers blanket the internet with advertising
promising fast and easy money with a little disclaimer at the bottom of
heavy risks of loss.
The fact is the FOREX is a zero sum market. Lowering the leverage of
retail FOREX in the U.S. would do nothing but kill a legitimate
business. Why would Americans keep trading in a climate that is laden
with laws against them? Why would foreigners open a FOREX trading
account in the U.S. when the rules are prohibitively against them
compared to other jurisdictions around the globe? [Leverage works for
you as much as against you.]
We have already suffered massive restrictions in the U.S. already from
the NFA with imposing No hedge rules and FIFO. Most U.S. brokers have
already opened brokerages outside the U.S. already due to the enactment
of these rules and to my knowledge all have plans to do so.
By enacting this legislation to restrict and limit traders further will
only cause a mass exodus of FOREX trading in the retail U.S. markets.
This will cause American traders to put their money in less than
scrupulous brokers with less ethics than what the U.S. permits via the
NFA oversight.
So if American traders put their money in a foreign FOREX broker how can
you say this will benefit the trader? How will this protect the American
trader? How will this benefit the U.S. based broker? How will this
encourage investment from foreign means in the retail U.S. FOREX market
when rules around the globe are more favorable to the trader?
Are we not satisfied until we move all high paying jobs overseas?
Before we were hit with all the erroneous NFA rules and regulations we
were afforded up to 400:1 leverage. Guess what? people were blowing
accounts even at that level. Changing the level of leverage will do
nothing to prevent someone from blowing an account or losing in FOREX.
The U.S. retail FOREX market is an infant when comparing it to the U.K.
and various other places. Yet they don[]t see the need for these kinds of
rules and restrictions. If you are so worried about the consumer you
should educate them and not restrict them.i0-001
COMMENT
CL-00105
Because an educated trader will know better when the time comes.
Limiting leverage or some of these other ridiculous things the lawmakers
that be come up with all in the name to protect us from OURSELVES? What
a pathetic joke. If it[] s not obvious already I would hope that you elect
to leave leverage rates the way they currently are at the minimum of
100:1. Otherwise the blood of the retail U.S. FOREX markets are on your
hands and the people you are trying to protect will be leaving your
jurisdiction in droves. BTW, this isn't a threat it's a promise.
Sincerely,
Ramon Testabegin:vcard
fn: Ramon Testa
n:Testa;Ramon
adr:;;Via della Corte, 6;Castello (Fraz. di Valsolda);Como;22010;Italia
tel;cell: 0039-347-5398977
url:http://zhinengqigongblog.blogspot.com
version:2.1
end:vcard
