Comment Text:
i0-001
COMMENT
CL-02689
From:
Sent:
To:
Subject:
Mary Helen Welter
Friday, January 22, 2010 12:18 PM
secretary
Regulation of retail forex
Hello,
I totally disagree with the 1:10 leverage proposal, RIN-3038-AC61 There are few very good reasons why it must
not be implemented. The number 1
reason is that it will keep people like myself who have studied for years, and been trading on a demo account,who want
to be able to trade live, and don't have the money, from being able to do it.
With all due respect, your job is to protect against fraud, not tell people how much they can risk. Besides that with
1:100 you dont have to risk that much. A better solution is to make a new rule
to requiring brokers to better explain leverage to new clients. Perhaps Brokers should require that a new client use a
demo account for a certain period of time before they live trade. Everyone would be happy!
PLEASE! don't implement it. Everyone who wants to keep thier trading style who has worked hard to learn, and
knows money management, but doesn't have huge money to start with will go to brokers somewhere else. What is the
reason for this propossed regulation anyway? The people who go into FOREX as a get rich quick sceme and don't
understant what the are doing ,should loose, in fact that is how many people learn!
This country was built on free enterprise, and the enterprise of FOREX is tricky and dangerous IF you don't
understand it, or take the time to really learn it. To keep the many people like me who are struggling, and have dome
thier homework, but don't have the money to get into the FOREX quite yet, from being able to trade, is not fair or
American; it is helping the old money make more by over regulating, and not helping the regular Joe at all...in fact just
stabbing him in the back.
If everyone goes to brokers in other countries, how will this help our economy. Quite protecting people from
themselves ...... more eduction would be the key.
Like I said, require that a new client trade on a demo account for a period of time before getting into the live accounts.
Make the brokers do extensive explaining of how leverage works!! And money management!
But to put the leverage to 1:10 will not allow me to even get in and trade without huge amounts of money. Oh yes i could
do Micro lots and make $5.00 a day.., but believe me I didn't study and practice for 2 solid years everyday for that!!!. I
am not in the FOREX to get rich quick. But If it was left at 1:100 I could make a living, or at least supplement my living if i
had $5000.00 to $10,000.00 to start with,which I don't. With the 1:10 I would have to have much more in to trade with/or
make much less, not enought to help me live.
Many people I have talked to will go to brokers in other countries, as I will have to also, this is not good for our
economy.
Please keep this looking like a free country, DO NOT implement RIN-3038-AC61.
Thank you for your time and consideration
Mary Welter new forex trader who has studied and practiced for 2 years)
