Comment Text:
i0-001
COMMENT
CL-06578
From:
Sent:
To:
Cc:
Subject:
Robert Hill
Monday, March 8, 2010 5:14 PM
secretary
metatrader experts_and_indicators@yahoogroups, com
Regulation of Retail Forex.
To whom it may concern,
I have read that you are proposing a change to the leverage requirements for trading the retail forex
market. The leverage change would be from the current 100:1 to 10:1.
I am strongly opposed to this change for several reasons.
I have been successfully trading the retail forex market since 2005. I completely understand the risks
involved and have used several different strategies successfully. With the new regulations on leverage my
income from trading would be greatly reduced, perhaps to a level where I would no longer be able to make
enough income for the time spent. This would result in my becoming unemployed at the age of 62. I would
need to begin receiving Social Security earlier than planed just to make ends meet. Either that or move my
account to a foreign country with even less regulation.
The second reason is that I also receive income from the programming of Expert Advisors and custom
indicators for the Metatrader community. This income would also be greatly reduced or disappear
completely as most retail traders are forced to find another means of income. They would no longer
require the tools that I program to assist in their trading strategies.
With the current state of the economy such a change in the leverage requiremtns would cause many other
retail forex traders to either move their accouns to foreign countries or stop trading entirely. It would seem
that you are encouraging an increase in unemployment at a time when more jobs are needed to stimulate
the economy.
With a leverage of 10:1 only institutions and the wealthy would be able to trade retail forex.
I do not understand the reason for this ruling except to protect the futures brokers from losing clients to the
retail forex market. Either that or enough retail traders are becoming successful and the losers at the other
end, either brokers or banks, want to shut that down.
It has also been mentioned that you are making this change to protect investors/traders from scams. I do
not see how this change would protect anyone except the brokers and banks. There will always be people
who will believe the scams for any venture, not just retail forex. Just look at all the weight loss methods
that do not work. As more and more online forums discuss these scams the public will become more
aware of them and no longer fall for them.
It would seem that your job would be to educate the new traders on how to avoid the scams rather than to
attempt to protect those successful traders who already know such scams exits and avoid them.
Sincerely,
Robert Hill, MT4 programmer and retail forex trader.
