Comment Text:
i0-001
COMMENT
CL-04814
From:
Sent:
To:
Subject:
natalia krasnoiartsev
Wednesday, February 3, 2010 9:51 AM
secretary
Regulation of Retail Forex
RIN 3038-AC61
I'm a writing to voice my opinion about the proposed changes to change
leverage to 10:1.
As a responsible retail forex trader, I depend on the current 100:1 to
grant me the ability
to risk a healthy 3% of my total $10,000 account and still be able to
earn $10 per pip on my trades
because in this case I would be trading about 1 standard lot.
However, the proposed change will force me to trade only 1 mini lot
because I don't wanna risk
more than 3% of my 10,000 account. Trading one mini lot, it would
take me 5-6 years to grow the account
to an ammount that will allow me to make a comfortable daily income.
Therefore, if the leverage is dropped,
it will warrant me to move my money to a UK, German, or Swiss broker,
where i can still get 100:1 leverage.
This way I will still be able to trade forex as a full time business.
Please keep in mind that I am not the only retail forex trader that
will be forced to move my money to europe.
I am sure you are aware that the average retail forex trader has about
$3,700 in their live accounts.
For them, a 10:1 leverage coupled with their plan to only risk 3% of
their accounts will disallow them to trade
forex completely.
In conclusion, you are not protecting the retail forex trader by
lowering the maximum leverage to 10:1.
Thousands of retail traders will close their accounts and simply move
it to europe to continue their trading efforts.
The dollar will drop in value, smaller brokers may go bankrupt, and
the big liquidity brokers will loose clients on the USA front.
I urge you to leave the leverage as it is; to protect the value of the
dollar, protect the retail forex trader in his/her
effort to continue risking 3%, and prevent the transfer of money into europe.
Sincerely,
Natalia Krasnay
