Comment Text:
i0-001
COMMENT
CL-03985
From:
Sent:
To:
Subject:
Charles Sims
Tuesday, January 26, 2010 5:09 AM
secretary < secretary@ C FTC. g ov >
Regulation of Retail Forex
Re: RIN 3038-AC61
Dear David Stawick,
I am writing in regards to your proposal that will limit the leverage that forex traders can use to
10:1. I have been trading forex for three years now with Oanda. Though I have traded with other
companies I find that Oanda seems to have the traders' best interest in mind. I say this because
they have always restricted their leverage limits to 50:1 while other companies allowed traders to
trade at up to 500:1 leverage. A leverage of 50:1 or 100:1 allows a trader to utilize risk but at the
same time does not exploit a novice trader's belief that forex can make you rich very quickly which
leads them to overleveraging their account until it's non-existent. Ido understand that the
proposal would limit this behavior but I feel that other methods should be used that won't impose
on all retail traders. Though I don't know the statistics, I do realize that there will be investors that
lose no matter what business they choose to invest in, whether it is forex, stocks, or opening up a
new restaurant. Unfortunately, with this proposal, you will negatively affect the established traders
that depend on forex as a means of providing for their families. Please reconsider your proposal
and find other methods to monitor forex trading activities. If you do still find the need to limit
leverage limits even after receiving public feedback, hopefully you will consider a leverage such as
Oanda's which would be a compromise between allowing traders some risk as well as better
regulating the industry.
Thanks,
Charles Sims
