Comment Text:
i0-001
COMMENT
CL-04221
From:
Sent:
To:
Subject:
Baptist Chen
Wednesday, January 27, 2010 5:25 AM
secretary
Regulation of Retail Forex
To David Stawick, Secretary, Commodity Futures Trading Commission
Dear Sir,
I am writing to protest the changes that are being contemplated for retail Forex.
Currently being considered is to set the maximum leverage for US retail Forex to 10:1.
OUTRAGEOUS!!!!
You will kill a golden cow for new and small investors alike.
I am a small, active and successful part-time retail Forex trader. If this rule goes into effect, you will
render my ability to trade safely null and make it harder than before for me to profit on safe, solid
trading behavior! This, in turn, will force me to either take GREATER RISKS to make up for lost
profits OR make me move my trading account off shore to the more friendly and sanely regulated
European market to gain reasonable leverage options, e.g. - 100:1.
If the true intention is to protect American investors, you need to provide and enforce EDUCATION and
TRANSPARENCY by all BROKERS. Punishing or restricting grown adults and treating them as
children is not the way. I took the time to educate myself, I reviewed all information related to my
broker, leverage, risk, how retail Forex works, etc. and made MY OWN INFORMED decision to open
an account and trade Forex.
My broker offers a RANGE of leverage options - from 100:1 down to 10:1. The option to adjust
leverage as needed is available at any time to all account holders to adjust/lower their leverage, if they
VOLUNTARILY CHOOSE to, down to 10:1. I FREELY choose to maintain mine at 100:1. I do not
want it to be forced onto me. IfI had wanted no option but 10:1, I would have chosen a broker that only
offered that! They are out there!
What you need to do is enforce a rule that guarantees that brokers are free to offer a wide range of
leverage ratios BUT must offer leverage as low as 10:1, as an OPTION...a CHOICE for clients. This
should not be forced onto traders!
Forcing 10:1 leverage onto traders will only drive many small brokers out of business, move money and
JOBS offshore and guarantee further economic decline and dissatisfaction in this country. Please ensure
CHOICE and competition for traders!
Thank you for your time and attention
Yours truly,
Chen CH
