Comment Text:
i0-001
COMMENT
CL-04821
From:
Sent:
To:
Subject:
Robert Lowder
Wednesday, February 3, 2010 12:36 PM
secretary
Comment on Proposed Regulations Regarding Retail FOREX Transactions
David Stawick, Secretary, Commodity Futures Trading Commission
Dear Mr. Stawick,
Please consider my comments regarding past and proposed regulations for Forex retail transactions. In
2007 1 began trading the Forex following MASSIVE losses in the precious metals market with a well
known firm whose sterling reputation is applicable only to fools. During the crash in 2006 the broker
would not take calls. Thus my seemingly endless attempts to close trades were in vain.
Forex trading with a representative of a firm was very helpful and I made money and lost money.
Eventually I lost all of my account. Not to be discouraged I reloaded and did it again, and again. Still
not persuaded to leave the market I research more brokers/dealers and studied margin, indicators and
ideas of brokers who are successful. May 2009 1 emptied my account again and determined to trade
only in "demo" mode until I was successful before reloading an account.
My suggestions are:
¯ require full financial disclosure by brokers
¯ require disclosure and evidence that traders have received training in margin and rollover charges
¯ REQUIRE traders to certify using a demo account that they understand margin and rollover
¯ allow traders to leverage up to 400:1 if they certify that training in margin and rollover charges
has been practiced by them
¯ allow hedging and exit of trades in any order regardless of when placed
Implementing these few suggesting will return the freedom to trade as skill allows. Greed cannot be
regulated as is evidenced by the financial condition of the treasuries of most countries.
Some Forex brokers are better than others. They work on the premise of what they can get traders to
accept, which frequently is detrimental for all concerned. I would never trade with my first brokerage
house again. But I have found others that are pretty good. None of them are training traders to use
leverage thoroughly. Some help to identify trends but how a person trades is very individualist. I have
taken courses and suggest that be done by all new traders. None the less how I trade is an expression of
who I am. Please do not regulate trading in an attempt to force greed out of the system. Each trader
must decide what will or will not work for them.
Risk disclosure statements are now given like airlines presenting emergency procedures on each flight.
Disclosure does NOT equal proper margin management. Similarly drug and alcohol laws permit an
individual to determine the level to which they will indulge in the practice. So should Forex trading
regulations.
Respectfully,
Robert Lowderi0-001
COMMENT
CL-04821
Release: 5772-10
For Release: January 13, 2010
CFTC Seeks Public Comment on Proposed
Regulations Regarding Retail FOREX
Transactions
The proposed rules follow the passage of the Food, Conservation, and Energy Act of 2008, Pub. L. No.
110-246, 122 Stat. 1651, 2189-2204 (2008), also known as the "Farm Bill," which amended the
Commodity Exchange Act in several significant ways. In particular, the Farm Bill: Leverage in retail
forex customer accounts would be subject to a 10-to-1 limitation. All retail forex counterparties and
intermediaries would be required to distribute forex-specific risk disclosure statements to customers, and
comply with comprehensive recordkeeping and reporting requirements.
