Comment Text:
i0-001
COMMENT
CL-06678
From:
Sent:
To:
Subject:
CURT HAWKINS
Tuesday, March 9, 2010 11:14 AM
secretary
Regulation of Retail Forex.
From: Curtis Hawkins < [email protected] >
Subject: Regulation of Retail Forex
To: [email protected]
Date: Tuesday, March 9, 9010
Dear Sirs,
I would like to hereby express my deep concern with the intentions of CFTC to limit the maximal leverage for retail Forex brokers from
the current 1:100 to 1:10. In my opinion, the following scenario is likely in that event:
1. The maximal leverage reguirement will be increased for all US-regulated brokers from the current 1:100 to 1:10. This will clearly
demonstrate a complete dismissal of a regular Forex trader's interests if they happen to be conflicting with the interests of the "big
wallets" - banks and non-retail futures brokers. We do not wish to be "protected" till we go broke just to make them even richer.
2. US-based retail
Forex brokers will sure be unwilling to lose their business completely. They~e already got burned with the recent self-
imposed regulations of the NFA (which is not even a government agency, although many traders are made to believe it is) and now
clearly realize the 1:10 leverage will be the last nail into their coffin. These
retail brokers will therefore start moving their businesses to
other countries and servicing US customers from there, successful examples of which already exist: Dukascopy in Switzerland (which
has recently introduced MT4 in addition to their custom platform), ATCBrokers and FXCM in the UK, FXDD in Malta, FXPro in Cyprus
etc.
3. The US government in response will do everything possible to prevent US traders from enjoying the benefits of being serviced in
other countries by making overseas transactions to personal bank accounts even more controlled and restricted.
4. Those traders who make a living from their trading will then have no other choice but to set up offshore companies for themselves
through the Internet (contrary to a popular belief, this doesn't cost much - one can get an offshore company with an overseas bank
account for as low as $1,500).
5. As all (or most) trading accounts will be on the companies' names, the US government may heavily lose on the income tax they
collect from US Forex traders. Thus, trying to harm the average Joe trader and make the banks and futures brokers richer at his
expense, the government is harming themselves in the end.
Yours sincerely,
Curtis Hawkins
Rel~12 to sender
I Re~_e~N__Lo__g_r_o__u.e I ~__e__b_j~_o__s_t I
Start a New T~_o.#_[c~
M .e..s...s..a...q .e..s... Ln...t b.Ls...t..o.p..Lc. (3)
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COMMENT
CL-06678
From: Curtis Hawkins < [email protected] >
Subject: Regulation of Retail Forex
To: [email protected]
Date: Tuesday, March 9, 9010
Dear Sirs,
I would like to hereby express my deep concern with the intentions of CFTC to limit the maximal leverage for retail Forex brokers from
the current 1:100 to 1:10. In my opinion, the following scenario is likely in that event:
1. The maximal leverage reguirement will be increased for all US-regulated brokers from the current 1:100 to 1:10. This will clearly
demonstrate a complete dismissal of a regular Forex trader's interests if they happen to be conflicting with the interests of the "big
wallets" - banks and non-retail futures brokers. We do not wish to be "protected" till we go broke just to make them even richer.
2. US-based retail
Forex brokers will sure be unwilling to lose their business completely. They~e already got burned with the recent self-
imposed regulations of the NFA (which is not even a government agency, although many traders are made to believe it is) and now
clearly realize the 1:10 leverage will be the last nail into their coffin. These
retail brokers will therefore start moving their businesses to
other countries and servicing US customers from there, successful examples of which already exist: Dukascopy in Switzerland (which
has recently introduced MT4 in addition to their custom platform), ATCBrokers and FXCM in the UK, FXDD in Malta, FXPro in Cyprus
etc.
3. The US government in response will do everything possible to prevent US traders from enjoying the benefits of being serviced in
other countries by making overseas transactions to personal bank accounts even more controlled and restricted.
4. Those traders who make a living from their trading will then have no other choice but to set up offshore companies for themselves
through the Internet (contrary to a popular belief, this doesn't cost much - one can get an offshore company with an overseas bank
account for as low as $1,500).
5. As all (or most) trading accounts will be on the companies' names, the US government may heavily lose on the income tax they
collect from US Forex traders. Thus, trying to harm the average Joe trader and make the banks and futures brokers richer at his
expense, the government is harming themselves in the end.
Yours sincerely,
Curtis Hawkins
Rel~l.y to sender
I Re~__.eE~L~O__g[g__qu.l~ I ~__e_h_l&O~%t I
Start a New T.T_._o.~___[c~
..M..e..s...s..a...q .e..s...Ln...tb.Ls...t..o.p..Lc. (3)
