Comment Text:
i0-001
COMMENT
CL-02688
From:
Sent:
To:
Subject:
Randy Hogan
Friday, January 22, 2010 12:17 PM
secretary
RIN 3038-AC61 Regulating retail forex market
Dear Sir,
I am a Forex trader who uses a US-based broker for his trading. I wanted to express my deep
concern with the proposed reduction of leverage available to Forex traders.
As an American citizen, I am certainly concerned about the US Government's tendency to narrow
more and more the decision making latitude available to a citizen.
I do understand something about traders' psychology. When today a 100:1 leverage is available, a
beginning trader can invest $400 to be able to test out his or her ability. Most chances are that
s/he will lose this money - and this is a sum many people can afford to lose. Under the proposed
regulation, s/he will lose $4,000, which for most households is a substantial capital. I am confident
that the proposed rules will make many aspiring retail traders' families miserable.
As far as a small retail trader like myself is concerned, the scenario is clear: The moment the
leverage is reduced, I move my trading capital elsewhere. This is going to be a lose-lose situation:
I will lose access to a good broker, and the American economy will lose access to my (and
thousands other traders') capital. The only ones going to profit from the proposed leverage
regulations are the economies of Australia, UK, etc.
I plead to seriously re-consider the proposed reduction of leverage in the retail Forex industry.
Yours sincerely,
Randy Hogan
