Comment Text:
i0-001
COMMENT
CL-00967
From:
Sent:
To:
Subject:
Noah Bodhee
Wednesday, January 20, 2010 11:47 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. 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,
Brian Williams
Moorestown, NJ 08057
