Comment Text:
i0-001
COMMENT
CL-06821
From:
Sent:
To:
Subject:
Alex feliciano
Friday, March 12, 2010 6:14 AM
secretary
regulation of retail forex
DearSi~,
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've 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 Interne[ (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.
Since recently, America (which I reaLLy Love) has been turning from a Land of opportunities to a Land of restrictions. Very sad to see
this, indeed.
Yours sincerely,
Alexander Feliciano
198 woodland ave.
Rutherford, NJ 07070 US phone number 201 951 5512
