Comment Text:
i0-001
COMMENT
CL-03773
From:
Sent:
To:
Subject:
Syed Omar
Monday, January 25, 2010 12:08 PM
secretary
Regulation of Retail Forex
Dear cftc.
How does 10:1 make sense to you guys? Leverage is a tool, a double edge sword. Smart traders use it
properly and gamblers always lose.
Forcing 10:1 leverage down our throats will result in the following:
1. US clients leaving the US brokers for foreign brokers that offer high leverage. US brokers are forced
to establish overseas services.
2. Dumb traders will always be there, will always make risky trades and blow their accounts (maybe at a
slower rate this time). You're not helping them either way. You're hurting the smart traders who need the
high leverage from time to time to take advantage of their well thought out research. By the way, smart
traders are not always the ones with the most money.
3. You're encouraging scams. You know people want leverage and scam brokers know that.
I think it would be a lot more constructive to require ALL US brokers to have a trading basics section in
their account forms. It would be a questionnaire form where each client will be asked basic questions on
leverage, margin, types of orders,risk management and the market itself. This will allow the clients to be
more informed before they open their accounts. If they fail to answer the questions correctly, the will
have to continue taking lessons that will explain those terms.
Thanks and keep our liberty alive. Cause we're not as stupid as you think.
Syed H. Omar
