CALL TO ACTION: CFTC 10:1 - Share what you wrote here

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Vitaliy123

Recruit
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Not funny

I had a conversation with one of directors in one of USA brokers. He told me that they are not crazy and if they set 1:10 leverage they will loose most of clients for sure. So i think solution will be found and all will be fine. I realy do not understand what are usa forex organiztions doing - they thought that they are protecting clients :) No, they do not allow them to earn money - first FIFO rule, now this ****. What will be the next?
 

Agent86

Sergeant
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195
What a ridiculous post

To whom it may concern at the Commodity Futures Trading Commission:

I am writing to express my support, as a responsible FOREX trader, for the proposed restrictions on leverage from 100:1 to 10:1. It is absolutely absurd how these brokers prey on traders by, in many cases, REQUIRING 100:1 leverage and refusing to allow flexibility to reduce leverage. Why on earth would a broker REQUIRE someone to trade on exorbitant leverage levels as 100:1? We both know the answer to that...

People react to regulations and play within those rules. If they are being restricted to 100:1 leverage, then many people will of course trade at that level, and the whole time the brokers will be profiting from the gambling actions of unsophisticated amateur traders. Some data indicate that the success rate of retail FOREX traders is below 5%. This is directly linked to the encouragement (and as stated earlier the REQUIREMENT in some cases) of trading with far too much leverage.

I am sure you will be getting letters saying that it's all about "money management" and "risk management", but thats nonsense. There is no way to double-talk around the fact that people are borrowing 99x the amount they put down to trade -- causing small shifts to erase their principal capital.

The restriction on leverage to 10:1 is a responsible action that will save the money of MANY prospective amateur traders who are lured into essentially gambling on this currently overly-leveraged market by flashy advertisements on news and economics websites (something else that you should look into regulating...). The only people who are truly against this restriction are those who have had short-term success in trading with excessive leverage and of course the brokers who are extracting heavy rents from inexperienced traders.

I applaud your actions and it is these sensible regulations that will make the country a greater place with a more stable, productive, and REAL economy. Please continue the good fight so we can have a solid future for generations to come -- and please, do not give in to the lobbying actions of brokers and the minority fraction of traders who successfully use high-leverage in their trading strategies.

These regulations are needed and are common sense measures to maintain an orderly market and protect consumers from predatory actions of brokers.

Thank you.
Your quoting 5% of trading making money as if thats going to somehow increase if you change the leverage rules ? LOL

How is that going to change anything, rhetorically it's NOT

Did it ever occur that people like gambling ? HUh ?

Why do you think people go to Vegas man.

So now your force some brokers to close down and send the 95% majority packing; and then send em all to Vegas or sports betting because they won't have enough funds to pay for their entertainment.

Why don't you fools just leave everyone else alone.

Every time some liberal has a good idea they want to force everyene else into submission. Why don't they just trade the leverage they like and leave me alone.

I mean = it's not like the current rules don't allow you to select 10:1 ratio or anything, but why do you have to concern yourself with what everyone else likes to do.

Lets be clear since 95% are losers in your opinion why do the 5% get to dictate to the 95% HUH ? answer me fool ? if you can.

What if the 95% decide they don't care about your premise of trying to protect them.
Did it ever occur to you that the 95% know exactly what they are doing and don't want your interference at all. Did it occur to you that they don't care and that they know better then you what to do with their money ? Answer Fool

Why can't you just leave people alone and live your life and let others do the same.

But NOOOO your a liberal freak that needs attention and want a pat on the back as if your somehow protecting someone.

The only thing this will do is for the 95% to say take a hike I'm not putting up $10k or $20k to start trading, I'll take my 500 bucks to Vegas and entertain myself.

The 5% should not have any say in what the 95% want to do what gives them the right ?

Answer me fool if you dare ? Cause you already stuck your foot in it already.

It's call personal responsibility Get It ?
 
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Ricex

Sergeant
Messages
359
Why are there only 72 signatures on the petition? People need to get moving. Maybe the CFTC will listen if we are loud enough, but that means more signers.
There are over 5000 comments on the CFTC comments page, people are expressing themselves.

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Agent86

Sergeant
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195
They don't protect anything the hinder traders from trading period

Because these regulations are sensible and protect amateur inexperienced traders from predatory broker behaviour?

These regulations WILL pass, and 90% of the **** brokers out there will fail as a result of people no longer feeding them.
See my other post about this subject

We don't want or need your or the CFTC's insulting protection.

You can trade your preferred ratio and i'll trade mine how's that sound ?

Why don't you people leave others alone and let them trade the way they want to. As I pointed out in the other post 95% of the people should be telling the 5% what they want to do not the other way around.

If you making money in forex and your in the 5% then great. Leave the 95% majority alone and let them trade as they want.

Whats your problem anyhow.

The reason that high leverage is so good and even higher leverage is even better is because it allows small traders to get involved with very little risk to begin with.
The losses can be faster but the amount needed to open a position is super small.

I mean come on micro accounts and stuff, you can open and account at fxcm for $25 bucks man and trade @ .01 cent per pip.

Who are you trying to fool ? NO one ? There is some reason you are saying this and it's not to protect anyone at all. I'm calling you out.
Thats right you heard it, I'm calling you out to explain how this benefits you.
Thats the only reason you and others are saying this is for your benefit under the premise that your someone wanting to protect others.

Because it does not effect you one way or the other if people want to trade 100:1 or 400:1 ?

So the question is why are you saying this ?
I'm sure it has something to do with how it effects you if it benefits you by changing the rules to 10:1 then I can see your point, but other then that if it does not effect you then why do you care ?

Because 95% of traders are happy with it and don't care, in fact don't want it to change.
In fact they were happy with the 200:1 ratio's.

So come on , just come clean and explain how this benefits you cause your not fooling anyone at all.

Whats next are you going to shut down Vegas and call it predatory gambling which entices people to spend money on possibility of huge profits.

It's called personal responsibility and people know exactly what they are doing, and it's insulting to suggest that they need you to protect them from their own ignorance.

In fact it's your assumption that people are ignorant and need this type protection that is the most offensive of all.

As pointed out in other posts people are smart and they know what they want and in spite of it all they will look eslewhere for their entertainment and also trading needs.

Even if it means opening an offshore company and trading that way in order to get the higher leverage, they are going to do it until it's changed in all other countries as well.

Then what ? you will likely want to regulate that as well; and go after those that you claim need protecting; and try to have them arrested because they wanted to show you that you can't rule their lives and over regulate them.

Yep thats protection all right, put em all in jail then they'll be protected LOL

So respond you can ? and be sure to read my other post to clarify any confusion you may have.
 

marjiemiller

Private, 1st Class
Messages
35
No hedging,bad leverage,no segregation of Funds:Why would anyone do Forex in the US?

Hi - Here's my 2 pips...:err:

No hedging, bad leverage, no segregation of Funds: Why would anyone do Forex in the US instead of the UK?

Re: RIN 3038-AC61

Mr Chairman,

Let me say first that I think it is ironic that US citizens are moving their money to the UK to escape the incompetent US regu-dictators, who jerk people around for a year about the right to hedge and leverage, and don't even bother requiring segregated funds like the UK. Perhaps the US still has alot to learn from the UK.

Let me then say, that besides being jerked around by the CFTC/NFA on whether I should have the right to hedge, and then the 100:1 leverage restriction, and now the 10:1 leverage restriction, I refer you to the attached link below, dated in 2007 even, for another reason to not do FX trading in the US. Apparently, my funds aren't even safe in the US. In the UK they are segregated, and even guaranteed up to 30000 pounds at the brokerage and 50,000 pounds at the bank. Broker funds in the US aren't even guaranteed. What a joke. I've already moved 3 accounts to the UK, when hedging was outlawed in the US in 2009, and I will now be moving my other 3 accounts to the UK as well. Great job destroying yet another segment of the US economy. Will the US Retail Forex industry now get a bailout to revive what the CFTC/NFA has destroyed?

Lastly, I'm sending a copy of this to President Obama who is apparently your boss, and I'd like to ask him where he'd rather do business, and why we don't have segregated funds rules in the US, and why we've got morons like you telling intelligent people whether they can hedge and how much leverage they can use. Ever think of asking about the security of their funds? You're a waste of taxpayer money. Hire someone from England. Everybody else is. Why don't you just look at the UK FSA rules and try to copy them and you won't look like such morons.

Marjorie Miller

In US, REFCO uses investors funds to pay off bankruptcy creditors - no segregation of client investment funds
The CFTC Webinar

FSA Segregation of Funds regulations
see Spread Betting Providers and Segregation of Client Funds

All the reasons not to do Forex in the US
Forex Segregated Account
About FXCM
FXCM Holdings, LLC: News Release
FXCM Offers Segregated Forex Accounts Through FXCM LTD

New York, July 25, 2007 (Revised on November 9, 2009)—The FXCM Group announced that accounts with Forex Capital Markets, LTD (FXCM UK) are segregated in accordance with FSA Client money rules. FXCM UK accepts accounts from the United States and over 100 countries.

In the unlikely event of FXCM UK's bankruptcy, clients of FXCM UK would be considered secured creditors and receive priority in bankruptcy proceedings.

FXCM Holdings, LLC is offering this option through FXCM UK because funds held by US-registered Forex Dealer Members are not segregated. If a Forex Dealer Member becomes insolvent, clients do not automatically receive priority status in bankruptcy proceedings.

Recently, a U.S.-registered forex broker went into receivership due to undercapitalization. For a period of time, clients of the broker were unable to access their funds and faced the possibility of financial losses. This situation may recur because current capital requirements for US-registered forex brokers are minimal.

FXCM is financially strong, with reserves that far exceed regulatory requirements. The FXCM Group has over $120,000,000 in firm capital (assets minus liabilities).*

Drew Niv, Chief Executive Officer of the global currency trading firm, pointed out several features of the FXCM UK segregated account:

* Forex regulations in the UK differ from the ones in the United States;
* FXCM UK is now accepting accounts from over 100 countries, including the United States;
* The Financial Services Authority (FSA), one of the world's most respected financial regulatory bodies, administers these regulations;
* Opening an account is quick and easy: Applications may be submitted online.

Drew Niv stated, "FXCM is offering segregated funds through FXCM LTD as an additional value to our clients. While FXCM is one of the largest U.S.-registered Forex Dealer Members, we still want to provide our clients with additional legal protections for those who want their funds segregated."

"Many forex firms are teetering on the brink of bankruptcy; FXCM is strong. We believe that it is vitally important that all currency trading clients have complete and verified information on the financial strength of forex trading firms. That is why FXCM has taken the major step of making our balance sheet public, and challenged other firms in the industry to follow our lead," said Niv.
 

marjiemiller

Private, 1st Class
Messages
35
My Last Words on the Last Day...Malta here I come...

My Last Words on the Last Day...Malta here I come...:p

from Marjorie Miller <marjiemiller@gmail.com>
to secretary@www.cftc.gov
cc President Barack Obama <president@messages.whitehouse.gov>,
AmericanVoices@mail.house.gov,
contact@wexlerforcongress.com,
info@barackobama.com,
info@hillaryclinton.com,
info@kucinich.us,
lloyd.doggett@mail.house.gov,
Rep.Paul@mail.house.gov,
SenateWebmail@cornyn.senate.gov,
sf.nancy@mail.house.gov,
Kay@email.texansforkay.com,
Rep Michael McCaul <tx10ima@mail.house.gov>,
cftcfeedback@fxdd.com
bcc Marjorie Miller <marjiemiller@gmail.com>
date Mon, Mar 22, 2010 at 12:14 PM
subject When and why do you plan to put the small investors into a margin call? How does this help the economy?
mailed-by gmail.com

hide details Mar 22 (4 days ago)

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Re: RIN 3038-AC61

Mr Chairman,

One more question before the comment deadline today: exactly how do you plan to do this margin/leverage change? Will you immediately just send everyone into a margin call? Isn't that like giving someone a car loan at one price and then raising the monthly payment after the contract is signed? How is this supposed to help the economy? How about the run on brokers and them going out of business as everyone flees to the UK brokers?

Marjorie Miller
 
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euroforex

Private
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Filed complaints listing

CFTC on the record: http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/frcomment/10-001c114.pdf
 
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