Comment Text:
i0-001
COMMENT
CL-07146
From:
Sent:
To:
Cc:
Subject:
Steven Johnson
Saturday, March 13, 2010 2:49 AM
secretary
[email protected]
Regulation of Retail Forex
Dear Secretary,
I wish to comment on the proposed Regulation of Retail Forex which will further reduce the leverage allowed from
100:1 to 10:1. I am against it as I do not see this a proper means of consumer protection. The CFTC has already
reduced the leverage down from the 400:1 and 200:1 that was allowed on some accounts previously. I believe that
was proper. However further reduction is unwarranted. Supposedly this measure is for Consumer Protection? I think
not. If The CFTC is so concerned about Consumer Protection, perhaps making sure that there is education in the
area in Risk Management techniques would more beneficial. Whether if in the equities markets, futures market or
the Forex markets, there will always be people who will lose there money because they are just thinking they can
make a quick buck and are not willing to put the effort in learning the proper way to trade. For years people have
lost their fortunes because they had no idea what they were doing and thought their stock brokers would tell them
the right stocks to be in. Most brokers had no more idea than the investors. I personally have only traded the Forex
with on 100:1 leverage, even before there was a limit on the leverage allowed. I think this further regulation is
dangerous in that it will drive many people to move their accounts overseas with regulation may or may not be as
good as here in the US. The real cause of most complaints against brokers is often the investor just was not careful
or got careless in the way they invested. Unfortunately now in this country, there is this idea it is never my fault, it
must be the the other guys fault. Investors need to start to take responsibility for their actions. One thing that I
have seen with the Forex brokers is that they have demo accounts that make it very easy for investors to learn how
the Forex market works without actually having to risk real money. These demo accounts come very close if not
actually replicate the live Forex market. I have run my broker's demo account along side my live account and see
little or no difference. To my knowledge, no other investment market, equities, options, or futures has such an
excellent training tool. In addition, my broker offers all sorts of training for both their potential and actual
custormers. Forex investors here in the US have just a wealth of investor education tools available to them either
free or for a fee. It is just a matter how well one wants to know what thery are doing and the effot they are willing
to put forth. Please do not over regulate or make the US market so it has so little profit potential that people are
driven overseas. We have no sure idea what fraud protection there will be there. Let's keep the jobs and money
here at home. Misdirected policies have decimated our manufacturing base here in this country. Please do not do
this to our investment services industry. Thank you.
Steven C Johnson
7235 Iron Gate Road
Canton, MI 48187-2154
734-259-8323
[email protected]
