Comment Text:
i0-001
COMMENT
CL-04923
From:
Sent:
To:
Subject:
[email protected]
Thursday, February 4, 2010 3:49 AM
secretary
[] Regulation of Retail Forex []
CFTC regulatory proposal for retail forex transactions to restrict
leverage to 10:1 fails to be of a transitionary nature.
I would like to approach this matter with an open mind, and
share any concerns CTFC may have towards retail forex.
I think you need to differentiate between customers who represent
a limited liability company and personal accounts BEFORE SETTING
ANY NEW REGULATIONS IN PLACE.
A business of an export/import nature requires access to a good
retail forex provider, OANDA without hesitation, is probably the best,
why persecute them.., some fine tuning maybe, but please apply some common
sense too, i.e. don't upset the apple cart..
CTFC would be better to instruct the retail forex operator to
offer a service that is more transitionary in nature, for new and
long standing clients.
This would be more socially responsible to operate as a legtimate
forex retailer and fair to long standing clients. (and weed out the
one's who are always advertising high leverage, we vknow who they are,
OANDA is
not one
of them)
A. One strategy may be to limit new customer's (retail forex) to
10:1 leverage for first 12 months or first 3 years.
B. 50:1 Leverage being only available to customers with a
retail account of five years or longer. (as they are not really
retail forex clients at this stage)
After 5 years, their status should be amended to non - retail if they
are registered as a limited liability company.
C. OANDA does not operate like other retail forex accounts, their maximum
leverage is 50:1, OANDA should not be penalised because of the many other
retail forex provider's that advertise 24/7
to lure in new customers with high leverage on a constant basis. (Ban all
forex retailer advertising that includes any leverage being offered, i find
it personally offensive and no better than a
used car salesman outfit, definitely a blight on the genuine forex retailer
that is not chasing it's business) Maybe there should be a ban on any
advertising of the retail forex provider and
this would require that retail forex provider's obtain their business from
customer's approaching them, NOT the retail forex provider constantly
chasing business; that is where i see the real
problem. (the advertising of the product and misleading advertising) Many
of the retail forex community may go out of business if therei0-001
COMMENT
CL-04923
~vas a ban on advertising and maybe my
vie~v is too extreme, but i agree that there is a problem ~vith
the integrity of the retail forex sector and there are better
~vay's that just addressing the leverage issue.
E. A limited liability company should not be disadvantaged for
belonging to a retail forex provider. (especially if they have
been ~vith the same retail forex provider for a
minimum 5 years)
Best Regards
Colin William Brown
New Zealand
