Comment Text:
i0-001
COMMENT
CL-07515
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RECEP KALAYCI
Sunday, March 14, 2010 6:49 PM
secretary
NO 10:1
Dear Sirs.docx
Windows 7: GOndelik i~lerinizi basitle~tirin.
Size en uvclun bilclisavar~ bulun.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'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 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.
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.
You rs sincerely,
R. KALAYCI
