Comment Text:
i0-001
COMMENT
CL-04233
From:
Sent:
To:
Subject:
Mike Cooke
Wednesday, January 27, 2010 8:39 AM
secretary
Regulation of Retail Forex
To Whom It May Concern,
I would like to voice my opposition to lowering the maximum leverage on
Forex trades to 10:1.
I'm sure your office is constantly inundated with complaints from people
who have lost money
because they chose to ignore the warnings that are prominently displayed
on every broker's website
that I have ever visited.
I understand that lowering the leverage would probably serve to reduce
those complaints because the
majority of the retail brokerage business would be driven out of the
U.S. and therefore out of your jurisdiction.
I'm sure you understand, that anyone who wants to trade with the higher
leverages would still be able to do
so and would be willing to endure the headaches of dealing with an
offshore broker in return for the dramatically
higher returns.
If the U.S. brokers are doing something illegal or unethical to take
money from unsuspecting traders, by all means
put a stop to it. If anything, put an end to the whole dealing desk
model where brokers are playing against the traders
with all of the traders information in hand.
Unfortunately, this action seems to be more of an attempt to protect the
ignorant at the expense of the educated and
the U.S. based brokers that we deal with.
In reality you would probably continue to receive the same complaints
because the same ignorant masses will sign up
with an offshore broker to get the higher returns and not understand
that your office has no regulatory power over
these brokers.
Are you really helping anyone by putting the majority of U.S. brokers
out of business and then answering complaints
by referring the party to a regulatory agency in another country?
I urge you to rethink this action.
Sincerely,Mike Cooke
i0-001
COMMENT
CL-04233
