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

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I sent 2 different replies, as I was approached by 2 different entities asking that a message be sent. Reply #2:

Dear sir or madam,

Making the Forex trading margin a mandatory 10:1 really does not make any sense, and could only have been proposed by someone who does not completely understand the system.

Please do not implement a mandatory 10:1 margin for Forex trading.

Thank you,
Christina Fortunato
Flushing, NY
 

Manfred Bartz

Recruit
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2
Letter to CFTC

Dear Mr. Stawick,

I am concerned about the CFTC's proposal to limit Forex leverage to 10:1.
While this may be well intentioned, aiming to limit risk to a trader, it may have some unintended consequences.

1. For example, brokerages limit damage to the size of the account, so if a trader for some reason looses the ability to close his position, at worst it can wipe out the account. At high leverage, only a relatively small account is needed to control a reasonable amount of currency. Limiting leverage as proposed may lead some traders to increase their account significantly, possibly with money borrowed elsewhere, and thus exposing themselves to greater risk than before.

2. Another, obvious consequence of reduced leverage would of course be that traders will move their accounts off-shore, e.g. to the UK.

3. There may also be other unintended consequences, e.g. an erosion of the US's standing as the world's 2nd biggest Forex market.

Please consider not only the concerns raised by traders but also the possible cascade of unintended consequences the proposed leverage limit may have.

Sincerely
--
Manfred Bartz
 

SharCuda

Recruit
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2
FX SOULTIONS: CFTC new rules proposal

Dear FX Solutions Customer,

Recently, the U.S. Commodity Futures Trading Commission (CFTC) announced that it is seeking public comment on proposed regulations concerning Forex trading. In part, the proposed regulations states:

“to collect security deposits in a minimum amount in order to prudentially limit the leverage available to their retail customers on such transactions at 10 to 1”

This means that leverage limits will be reduced from current limits of 100:1 to 10:1 for all Forex trading in the U.S. Below is an example of how the proposed leverage reduction would affect your Forex trading account.



FX Solutions is a proud registrant of the CFTC and member of the NFA and we will continue to cooperate with the CFTC and NFA in their efforts to eliminate fraud and deception within the Forex Market. However, we believe that you should be given the freedom to choose the appropriate amount of leverage for your individual trading style and risk tolerance.

If you feel strongly about the proposal, we urge you to submit your comments directly to the CFTC. In order to ensure that your voice is heard, please send your comments to the CFTC by March 22, 2010 and be sure to include “Regulation of Retail Forex” in the subject line and identification number RIN 3038-AC61 in the body of your message.

You can contact the CFTC through any of the following methods:

Email: secretary@www.cftc.gov
Fax: (202) 418-5521
Mail: David Stawick,
Secretary, Commodity Futures Trading Commission,
1155 21st Street, NW,
Washington, DC 20581
Web: Federal eRulemaking Portal

FX Solutions is currently reviewing these proposed rules and along with the U.S. Forex Dealer Coalition will publish our opinion in the coming days. For more details on the proposed regulation visit the CFTC.

FX Solutions is a global Forex company which is committed to providing our clients with the utmost in transparency and client service. Our clients have the option to open accounts in either the UK or Australia which offer flexible leverage and are not impacted by CFTC rules. For information about FX Solutions regulated outside the United States, please visit Trading with Higher Leverage or contact Customer Service.


Sincerely,
FX Solutions
 
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guspapa

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Here is what I received from my broker, coincidence? I don't think so.

Dear Client
FINAL Reminder for closing your Trading Account(s) at the end of 29 January 2010

I can't post the email as it is protected by a client confidentiality clause at the end of the email. They are closing all US Resident Client accounts and give the reason that they are focusing on their European client base.

I really liked this Broker but think they are being pressured by our Patriot Act maggots to keep us contained here in the good ol' US.

I hate the ScumBags in DC. Vote them all out in 2010!

FXPro is the Broker BTW based in Cyprus, I really like this Broker but apparently our Government doesn't think we should be doing business with an outside the CFTC blanket Broker, I am pissed...

I don't think that I can accommodate much more protection by my Government
 

tabata

Recruit
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Letter to the secretary

This was the email I sent:

That is unfair and very discriminative!!!
Like that, only wealthy people will be able to trade Forex, which it's how it used to be years ago. It's a step backward and I'm voicing my opinion, even if the decision, hopefully, will not directly affect me, because I strongly believe that it's WRONG !!!!
People should have the right to choose the margin they prefer to use, it shouldn't be imposed by the government as a 1 only option, and 10:1 is an exaggerate change from the 400:1 many traders were used to. We are all adults, why don't you go and close all the Casinos around the world as well then?
What is the reason for these continuos changes for the worst that keep happening lately?
If you make this change, only Banks and big players will be able to afford to keep trading and you'll kill many Forex brokerage businesses, if not all of them.
You might as well change it to 1:1, as it won't make much difference anyhow. I thought 100:1 was bad enough, but 10:1 is ridiculous!!!! Why do you want to do that for?
Which are the PROS and CONS behind this proposal? I can think of plenty of cons, but I couldn't find a single pro. Maybe you can help me.
Thanks a lot for your attention, I hope to hear from you soon.Have a great day!!!

I hope we can fight this.

Tabata
 

elraroroger

Recruit
Messages
1
elraro

Stop it. Things are doing quite well as they are. Barry O sought to "change" America. Why? It's the best working plan in the world. So far, the FX system is working well -- LEAVE IT ALONE!!!
 

buju357

Recruit
Messages
10
Regulation of Retail Forex

----- Original Message -----
From: Desmond Wright
To: secretary@www.cftc.gov
Sent: Saturday, January 23, 2010 7:06 AM
Subject: Regulation of Retail Forex


The new regulations will be a definite disadvantage to forex traders and brokers , they will cause funds to be transfers out of the US , jobs will be lost and peoples livelihood will be at stake, the US can hardly afford this right now , I oppose these new regulations in the strongest possible terms.


Regards

Desmond

If freedom is outlawed , only outlaws will have freedom.
 
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believe77

Private
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13
No to 10:1 Leverage for ForexRetail

from me
to secretary@www.cftc.gov
date Sat, Jan 23, 2010 at 12:07 PM
subject Regulation of Retail Forex
mailed-by gmail.com

RIN 3038-AC61

Dear Secretary,

my name is Bernard Sugiarta. I am Indonesian and live in my country
I have several Forex accounts in United States of America.
The account I have in the U.S.A. is held by IBFX (Interbank FX) and FXDD.
The balance is not much, but the profit i got can help my cost of living.

I have learned that it is the FTC´s intention to change the maximum leverage for Forex Retail Services to 10:1 and it is for this reason that I am sending this message.

My trading strategy requires a leverage of at least 100:1, which means that if this initiative gets approved I will no longer be able to trade using the same strategy with IBFX, and I will move my funds to another country.
I assume many traders will do the same thing if the initiative becomes law.
With HUGE subsequent impacts on the economy and the creation of jobs within the U.S.
Many American broker will collapse and Very much become unemployed.

So I strongly say NO to 10:1 Leverage for Forex Retail.

I want to thank you in advance for the attention paid to this messge.

Please feel free to contact me via email if you have any questions or comments.

Best Regards,

Bernard Sugiarta
 
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mechtech63

Corporal
Messages
123
Here's what I sent:

to David Stawick:


I lost my job awhile back and before that I was studying forex investing in case of a job loss.

As it happens, I did lose my job, but have been diligently working my forex account to a profitable level.

Now, I can support my family and have a future. It took quite a bit of struggle and learning, but like anything, if you stick with it and don't give up, you can do it.

However, after all my work, I hear that there are proposals to change my profitability. I cannot believe you want to put training wheels on forex investing. So you want to make it safe for everyone by reducing the leverage to 10:1? How will that benefit anyone? How can you inflict financial damage onto American families that work so hard to make forex investing work for them?

If this is to protect new investors, then they should practice before making a risk. There are plenty of disclosures warning people of these risk. You cannot dumb down the market to meet new investor needs.

If these regulations take effect, there will be a mass exodus of investors for US brokerages. The damage to their families and the economy is going to be huge.

You need to leave people to make or break their own future. Their is to much government involvement here. It is getting to the point of destroying our American way of life.

If there are hidden agendas here, you need to dig down deep and ask yourself if you can live with the guilt of what you are doing to American investors. This economy has forced us to re-invent ourselves. With struggle and determination we have achieved that. Now you want to take the dream away? This is not what this country is about.

Sincerely,
Keith Adams
(a new and successful forex investor)
 
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