Comment Text:
i0-001
COMMENT
CL-05290
From:
Sent:
To:
Subject:
[email protected]
Wednesday, February 10, 2010 12:22 AM
secretary
Regulation of Retail Forex
To Whom It May Concern,
The purpose of this email is to address one of the proposed regulations of retail forex.
It is my understanding that their is a proposal to reduce the forex leverage from 100:1 to 10:1, and that the intent
of this new proposal is to
protect the consumer. While the intent is admirable if this is implemented the result would hurt the consumer.
The problem with most small investors is they lack the knowledge to invest correctly. Most small investors are not
willing to do their due
diligence and put in the thousands and thousands of hours of work to learn how to invest. The result is they
eventually lose their investment
no matter what the leverage on their investment. A good example of this is the number of people who have loss
thousands and thousands of
dollars in their 401 k, traditionally one of the so called safer investments.
On the other hand their are investors like myself who have put in the time and the work to learn how to invest with
knowledge. Most small
investors have a small amount of capital to invest, I would estimate $10,000. Investing in the Forex market with
the 100:1 leverage allows us
to maximize our investment dollar with the possibility of substantial gain. If this leverage is reduce to 10:1 it will
not protect me as a consumer it will knock me out as an investor and as always only the rich will get richer!
In conclusion a fool and his money are soon parted. The amount of leverage whether it is 100:1,10:1 or 1:1 has
no effect on the capital an
investor will lose if he is not prepared. He will lose his money investing no matter what type of investment he
chooses.
America became great on capitalism, we are all adults and know their is risk. With out risk their is no reward. If
this proposal is implemented
it would force me to use a Forex broker in another country. As an American consumer I would feel more protected
if I traded with a broker in
the U.S. so if the intent is to protect consumers please do not change the Forex leverage.
Sincerely,
Thomas Torti
