Comment Text:
i0-001
COMMENT
CL-02094
From:
Sent:
To:
Subject:
John Dennegan
Thursday, January 21, 2010 6:45 PM
secretary
Changes to Forex Leverage
Dear Sirs:
The change in Forex leverage from 100:1 to 10:1 is wrong and ill advised. If you know anything about trading
then the most important thing for a successful trader to have is a valid trading methodology. Excessive leverage
in any investment vehicle can bring ruin to the individual very quickly. There are brokers with 400:1 Forex
leverage. Those should be changed to 100:1 or have greater funding requirements.
These are free markets, Forex. It is the not CME. It almost sounds as if you are forcing the small trader to move
from Forex and into CME trading vehicles or other American Exchanges where there is less leverage.
Leverage of 100:1 is fine. There are brokers that let you choose your leverage. 100:1 is fine for the small trader.
Remember, water seeks it's own level. Likewise investors will trade Forex overseas, that is move there money
where they can get 100:1. I wonder if that will take revenue from American Forex brokers.
Thank you for your time and patience. I applaud sincere attempts to protect all investors and know it's a daunting
task.
Please reconsider this change. Keep at least !00:1 Forex leverage.
Humor, why not tell the banking committee in D.C. that all mortgages must have 10% down. That's 90%
leverage. FHA has 3% down with 97% leverage. Now that's excessive, also called sub-prime. You know how
well that turned out.
You should do an informal review of Forex brokers and see what they offer to their clients.
Here is a link with brokers and what they offer:
http://www~f~rexspies~c~m/f~rex-br~kers/c~mparis~n/nfa-regu~ated-f~rex-br~kers-c~mpare.asp
John D.
