Comment Text:
i0-001
COMMENT
CL-00675
From:
Sent:
To:
Subject:
Josie Shepard
Tuesday, January 19, 2010 3:30 PM
secretary
Regulation of Retail Forex
Dear Mr Stawick:
I object to the proposed regulation of retail Forex traders (RIN 3038-
AC61), specifically to the provision that states, "leverage in retail
forex customer accounts would be subject to a lO-to-1 limitation."
Although I believe your intent is to protect small retail brokers, the
intended regulations will have the opposite effect for the following
reasons:
1. Increasing leverage requirements will drive retail traders to
offshore brokers who are not subject to regulation - traders' money
will be more at risk, not less. Money will leave the US and flow to
other countries.
2. Increased requirements for capital in order to trade will result in
small retail traders having more money at risk, not less.
I have five years of experience trading Forex; I don't need the
government trying to protect me by setting limits on leverage. As for
beginning traders, they have plenty of resources on the Internet to
learn about leverage including the NFA's website.
Josie Shepard, PhD
