Comment Text:
i0-001
COMMENT
CL-02687
From:
Sent:
To:
Subject:
Sherif Barakat < barakats1976@ hotmail.com >
Friday, January 22, 2010 12:16 PM
secreta ry < secreta ry@ C FTC. g ov >
Regulation of Retail Forex
Regarding the RIN 3038-AC61, a 10:1 leverage proposal
I would like to express my objection against this proposal for these following reasons:
1) This is not fair because if this proposal applied that mean forex for only rich people, ordinary
trader will be out of business, Only the big boys and the wealthy traders will be able to trade as
before, ONLY THE WEALTHY CAN MAKE MONEY WITH 1:10 LEVERAGE .... what about the others.
2) High leverage is one of the key characteristics of forex trading. If this proposal is implemented,
it will practically kill the American forex industry, as traders will move their business elsewhere, the
US retail forex industry will become completely uncompetitive.
3) This will force all US based companies to open branches in other countries
and leave america, this proposal will force US based firms to actually close US offices and just
move entirely to UK or another countries.
4) It will KILL the US forex firms; not merely hurt it. And it will force US firms to open up UK and
EU subsidiaries if not just completely shut down US offices altogether. And if they stay, they will
have to raise the minimum opening balance requirement of all new accounts. You simply won't be
able to make any decent trades or make decent income if you have less than $100,000 balance.
5) I think it is the responsibility of every trader to understand the concept of leverage before
starting to live trade. For many retail traders who have the skills of forex trading, leverage gives
them the possibility to access and profit from the forex market. It would be a terrible injustice to
impose this new CFTC rule as this would kill the hard work and passion of these traders.
6) the freedom and right to choose the amount of leverage that is appropriate for our individual
desired risk, and that this basic principle of 'choice'... "democracy" must be at leasta genuine
direction.
7) I believe that most traders will move to UK or other countries' brokers, other countries will sure
benefit from this regulation
8) when you implement 1:10 rule, most people won't be able to participate in the forex market,
also this proposal will force 90% of current retail customers to close their accounts in america.
Are you trying to shutdown the american forex industry ???i0-001
COMMENT
CL-02687
Best Regards,,
Shareef
M.
Barakat
Forex Trader
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