Comment Text:
i0-001
COMMENT
CL-01789
From:
Sent:
To:
Subject:
AlfaCorp,LLc
Thursday, January 21, 2010 11:56 AM
secretary
'Regulation of Retail Forex' MUST BE STOPPED!!!
To whom it may concern,
I am a small business that relys solely on the forex market and its current leverage requirements. I have been a professional
trader for over 13 years and have come to know that leverage when used properly is actually safer to new and experienced
traders alike as it provides more participation and liquidity which prevents excess volitility leading to less risk. YES LESS
RISK, because a new trader can open his/her account with less startup capitol(higher leverage allows this), therefore he/she
has less overall risk due to capitol limits. This has allowed me to tutor and train young traders with minimal out of pocket cost
to the trader.Conversly the new trader that uses max startup capitol (as will be the case with your proposed requirement) will
place this inexperienced trader at a huge disadvantage as he/she is very unlikely to ever build upon this initial deposit and will
be encouraged to take larger risk by holding trades longer, not using stops etc, based on the illusion that he/she can afford
this risk. In my experience high leverage can be very beneficial and has been the main reason for the recent popularity and
successes associated with the forex market. The proposed requirement does not take into consideration real life retail trader
scenarios and will ultimately put retail traders and small businesses out of business!!
I ask that your seriously reconsider this proposal and allow the retail trader community who you claim to want to protect, have
their input as well as the brokerage houses. We are liquidity providers in our own right and are on the front line of currency
markets around the world. I fear that if this proposal does pass, it will not only increase unemployment but also force more
brokers, retail traders and small business to take their business overseas as many have already begun. This will be a travesty
to all market participants and the American people as a whole!!!
David Rosenthal
Best Regards
identification number RIN 3038-AC61
Best Regards
