Comment Text:
i0-001
COMMENT
CL-03287
From:
Sent:
To:
Subject:
ryan transano
Saturday, January 23, 2010 2:10 PM
secretary
Regulation of Retail Forex
This email is to simply state that reducing the maximum allowable leverage provided by Forex brokers
is not going to protect consumers, but impair the Forex market of the group of retail traders that are
doing just fine. Example, lowering leverage is not going to convert people to sit down and research on
how to trade to trade for profits. What the reduction in leverage will most likely do, is let individuals
lose their account a bit slower, and paying MORE commission fees to the brokers which hurts them two
fold.
There are other methods to get the "consumer protection" method across without impairing the rest and
"shaping" the regulations to help the brokers gain more commissions. That is to help individuals that are
wanting to open live accounts to default them to a demo trial account. Or some type of personal
lettering to the brokers for individuals that truly know what they are getting themselves into. Basically,
place more barriers of effort that individuals would have to go through which would help indicate that
they know what they are getting themselves into. Simply cutting leverage is not going to bring positive
change, but disrupt.
--K
