Comment Text:
10-001
COMMENT
CL-00683
From:
Sent:
To:
Subject:
Sid Stanton
Tuesday, January 19, 2010 3:42 PM
secretary
Regulation of Retail FOREX
The thought of implementing the proposed change in leverage makes me ill. It's quite obvious to
anyone thinking of engaging in retail FOREX that there are extreme risks and the probability of success
is very limited. Anyone interested in limiting their exposure has the option of chooseing a lower
leverage ration from at many retail brokerages.
Most of the websites pertaining to retail FOREX are explicity geared toward education or, at least, the
stress the importance of education and cleary outline the inherant risks. FOREX is a high risk game
with potentially large payoffs. It should stay that way.
The last thing we need is heavy handed regulation. My guess is that traders would simply move their
accounts off-shore to avoid the rule change.
I agree with Andrei Pehar, Chief Currency Strategist atfxKnight when he says:
"I am not opposed to regulation nor regulatory agencies. But that regulation needs to be fair,
transparent, and open to
public input. Otherwise it becomes corrupt and self-serving Sure high
leverage can get you into trouble if used thoughtlessly. Sure hedging when not done properly turns one
loss into two. But I believe the cure is EDUCATION, not restricting what people can and cannot do
with their investment decisions. Guide, don't dominate - government was invented to protect people and
their property, not to limit their potential."
Please keep your hands out of the free market.
Thank you.
Sid Stanton
Washington, DC
