Comment Text:
i0-001
COMMENT
CL-03779
From:
Sent:
To:
Subject:
Nick Edwards
Monday, January 25, 2010 12:57 PM
secretary
Regulation of Retail Forex
Regarding:
"Leverage in retail forex customer accounts would be subject to a 10-to-1 limitation." from:
http://www, cftc.gov/newsroom/generalpres sreleases/2010/pr5772-10.html
I am for basic protection of retail traders/investors. I have personally signed up for investment services
that turned out to be a scam, and I believe organizations who are committing outright pre-meditated
thievery should be stopped.
I am
not
for eliminating the potential for reward by over-limiting the inherent (not pre-meditated) risk in
investing. It is very hard to enter the forex market without getting an education on the risks involved; the
disclaimers and warnings are all over educational information, and all over broker websites and
literature. Anyone who is somehow able to invest a large amount of over-leveraged funds in forex
without coming across these warnings is a lost cause. I am particularly against limiting the leverage
traders can use. While some leverage offered by brokers can get extreme (200-1), forcing 10-1 nearly
eliminates the potential for investment-savvy, initially low-income individuals like myself to prosper in
forex. I'm sure this would only drive retail traders to use non-US brokers. A better path to take is to
foster and promote the helpful retail trader community's educational efforts. Most in this community
would agree that leverage protects more than it draws down.
Please see that the leverage-limiting provision in question, and any provision that would similarly limit
potential for prosperity is not used. Thanks.
Nicholas Edwards
Phoenix, Arizona
