Comment Text:
i0-001
COMMENT
CL-04063
From:
Sent:
To:
Subject:
Mikke Kar
Tuesday, January 26, 2010 11:57 AM
secretary
Regulation of Retail Forex - RIN 3038-AC61
Dear Sir!
This letter is in regards to the proposed regulation of retail forex that would limit the leverage
for retail forex traders to 10:1 from 100:1.
I am an individual retail forex trader and derive my income from the forex markets.
This proposed rule would be devastating to individual traders like myself. This rule
would essentially wipe out the small traders in the markets and take away their
livelihood because the 10:1 rule would mean that a large deposit of a minimum $10,000
would be required in order to place a decent trade that has a chance of return where
a monthly income can be generated.
As you know, that leverage is an essential part of trading and if leverage is limited
the chances of a decent return are limited which means traders will most likely
move their funds overseas and brokers may also move out of the country since
large deposit requirements and limited leverage will be less appealing to investors.
This in turn will have a negative cascading effect on an already wounded economy
where thousands ofj obs will be lost if the brokers were to move elsewhere.
Basically, investors and traders should have the choice of the type of leverage
they want. Those that choose to go with high leverage do so at their own risk.
There is no need for a babysitter.
It is already tough to find employment let alone derive an income
from your own efforts and this type of regulation will just strangle
entrepreneurs and investors big and small.
I urge you to take this letter and other similar letters you receive
into consideration.
Sincerely,
Mikke Kar
