Comment Text:
i0-001
COMMENT
CL-02602
From:
Sent:
To:
Subject:
[email protected] on behalf of
Ronald Vogelezang
Friday, January 22, 2010 10:40 AM
secretary
Restricting leverage in retail forex trading to 1:10
Dear Sirs,
Please note that I oppose to your idea to restrict leverage in retail forex trading to 1:10.
If you do so you're effectivly killing retail forex trading in the USA. The amount of money amateur/part
time/private traders would need is to big for 99% of the traders. This would be a waste since for a lot of
us it is an extra source of income.
A few traders will stop trading, most will just bring their money to brokers outside the USA who are not
restricted by your rules.
This was already done by a few traders when you banned hedging (FIFO rule).
Please note that all non-US based brokers already offer leverages ranging from 1:300 (that's practicly the
minimum outside the US) op to 1:600.
A lot of US-based brokers are already setting up shop in Asia or Europe now to avoid the FIFO-rule. If
you restrict leverage to 1:10 the remainder of the brokers will either take their business and their jobs
with them overseas, or they will go out of business since they have no customers anymore.
Best regards,
Ronald Vogelezang
