Comment Text:
i0-001
COMMENT
CL-08639
From:
Sent:
To:
Subject:
Tihon
Friday, March 19, 2010 6:30 PM
secretary
Regulation of Retail Forex
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 1:1oo
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: lOO to 1:1o. This will clearly demonstrate a complete dismissal of a regular Forex
trader's interests if they happen to be conflicting with the 1-nterests of the "big wallets" - banks
and non-retail futures brol~ers. 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 traclers are macle to believe it is) and now clearly
realize the 1:1o leverage will be the last nail into their coffin. These retail brokers will therefore
start moving their businesses to other countries and servicing US cfi°~6~°~i:~'~ 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 Cyprusetc.
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 makfng 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 $1,5oo).
~o" As all trading accounts will be on the companies' names, the US government may heavily
se 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, t-he government is
harming themselves in the end.
Since recently, America has been turning from a land of opportunities
to
a land of restrictions.
Very sad to see this, indeed.
Yours sincerely,
Thien Nguyen
P.S.
RIN 3038-AC61
