Comment Text:
i0-001
COIMMENT
CL-08666
From:
Sent:
To:
Subject:
Abdul Latif
Saturday, March 20, 2010 4:39 AM
secretary
Regulation of Retail Forex
Dear Sir/Madam,
Identification Number: RIN 3038-AC61
On January 13, 2010 the U.S. Commodity Futures Trading Commission
(CFTC) announced the proposed rules to public on proposed regulations
concerning retail foreign exchange trading. One of the proposed rules
is the limit to leverage in trading by 10-to-1. However, I oppose the
rule to limit the leverage in trading to 10-to-1.
I understand that the new rule is to protect traders from losing a lot
of money, but I am afraid that it will not really solve the problem.
The main reason of traders lose a lot of money is that the lack of
education that traders have in trading. A trader is unavoidably lose a
lot of money if he clearly has no education in trading. If a trader is
greedy, he will increase his margin in his 10-to-1 leverage trading to
get maximum profit without the education he really needs.
The best solution is to impose rules to have traders getting
education. I also suggest to impose a rule that allows traders trade
with low funds with brokers. Trading in foreign exchange is not
necessarily a deal which is profitable for all the participants.
Instead of limiting the participants, it would be suitable of
minimizing the loss the participants could make. A trader can open an
account with low funds as low as $10 to trade with brokers. Once he
has confidence and patience in trading he can increase his funds to
trade. Besides, traders who do not trade with education will lose
money which certainly he can afford.
I am not an American myself, but I like American brokers. Besides,
this rules can give affects to other regulators of other countries and
one which regulates my broker with their same reason to protect
traders. I hope that the rule to limit the leverage to 10-to-1 will
not be imposed. I also hope that my suggestion to impose rules to have
traders getting education and to allow traders trade with low funds
with brokers will be considered.
Thank you for giving me the opportunity to give comments about the
proposed rules to retail foreign exchange trading.
Yours Sincerely,
Abdul Latif Bin Azman
