Comment Text:
i0-001
COIMMENT
CL-05662
From:
Sent:
To:
Subject:
Greatestsale, Inc. (Alex)
Monday, March 1, 2010 9:05 PM
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. If I 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
Alex
