Comment Text:
i0-001
COMMENT
CL-00430
From:
Sent:
To:
Subject:
Neil Smith
Tuesday, January 19, 2010 10:05 AM
secretary
Regulation of Retail Forex
ID:
RIN 3038-AC61
Dear Mr. David Stawick,
I am writing you today regarding the invitation for public comment about the new regulations
on retail forex. I encourage you to keep the current regulations where they currently are. A
limit of 10:1 leverage will prevent almost every 'full time' personal trader like myself to be cut
out of the market.
I am a 21 year old college student that, up until the new hedging regulations in August, was
able to trade Forex for a living, which in return paid for my education. I didn't have much
money to start out with, but after trading Forex, I was able to lead a great life. VVhen the new
regulations went into effect in August of 2009, it destroyed my ability to make money. Without
the ability to use 400:1 leverage, and Stop/limits, it threw me off. It subsequently lead to my
having to take time off college because I couldn't afford to pay my tuition, and put me back
into the job market pool, in less than a month.
I can tell you from being in the forex community for so long, that most of the full time traders
rely on 100:1 leverage, and 10:1 only is suitable for big banks. The only reason I could ever
see enforcing a 10:1 leverage would be to purposely cut the individual FX trader out of the US
market. In return, every mid level trader that has more than $5,000 will leave US brokers for
brokers in the UK to avoid these new regulations. This regulation will most likely cut a large
source revenue out of the economy.
The level of Risk that a trader is willing to take is up to the trader. Good traders don't trade the
market, good traders trade the risk.
Regards,
Neil Smith
