Comment Text:
i0-001
COMMENT
CL-05791
From:
Sent:
To:
Subject:
Tom Schipper
Wednesday, March 3, 2010 8:56 PM
secretary
Regulation of Retail Forex
Mr David Stawick; Secretary,
Regulation of the Forex industry is important to protect investors and traders. Over the internet it is
possible to set up an account anywhere, but I choose to set mine up in the US largely because of the
additional safety having a regulated market here gives me. As a US citizen it is also much simpler when
it comes to things like filing taxes.
The regulations in the market need to be designed to protect against unscrupulous business practices
without getting in the way of tools that may be used by informed traders. No set of regulations can
protect traders from being foolish.
The reduction from 200:1 to 100:1 leverage was a reasonable move as few informed traders would
approach that 100:1 limit anyway. Although a reduction to 50:1 would be unnecessary I would not
protest it. However, an effective Forex trading environment needs to have more flexibility than 10:1
provides.
Putting limits like that in place will encourage if not force serious traders to move money away from US
based Forex companies to companies in other countries, in many cases ones without sufficient
regulation.
Please reconsider this proposal and let traders make their own decisions with regards to how much
capital to risk.
Regards,
Tom Schipper
