Font Size: AAA // Print // Bookmark

Comment for Proposed Rule 75 FR 3281

  • From: Tim Jester-Pfadt
    Organization(s):

    Comment No: 230
    Date: 1/17/2010

    Comment Text:

    i0-001
    COMMENT
    CL-00230
    From:
    Sent:
    To:
    Subject:
    Tim Jester-Pfadt
    Sunday, January 17, 2010 4:55 AM
    secretary
    Regulation of Retail Forex
    Ladies and Gentleman,
    I'm a retail forextrader based in Germany trading with an US Broker. It seems that there will be new
    Leverage regulations for CFTC registered brokers. Even though a leverage limit of 10:1 wouldn't influence
    my trading in a great deal I have strong concerns that it would not serve the intended purpose.
    An amateur trader who's not able to make profits over the longer won't become a better trader because of
    lower leverage. Instead of killing his account in one trade because he puts on a way to large position his
    account will slowly bleed to death. There will always be ways to lose money so limiting leverage to 10:1 won't
    save anyone from losing money. So why impose it in the first place? I think customer protection is a good thing
    but I believe there a better ways to do the job. For Example making it harder to open an account for persons
    with absolutely no experience or financial securities.
    l'm afraid when this regulation takes effect a lot of highly paying will be lost at Brokerage Firms all across
    America.
    Maybe not a best thing to do in recession. Not to mention the lost tax revenue.
    Instead a lot of people will move to unregulated overseas brokerage firms where they can do what every they
    want.
    So much for costumer protection.
    Regards,
    Tim Jester-Pfadt