If the CFTC does this, say goodbye to retail forex in the USA

[cowmadagan]

OK...getting political is supposed to be beyond the scope of this site.

That said liggy, what's more socialist than the debt that the United States has to (present and future tense) pay for? I think Greenspan was around long before Obama.

As someone who lives outside the states it really makes me laugh that people think that paying for healthcare that everyone, rich or poor, can use is socialism where trillion dollar bailouts of banks by everyone, including people working multiple part-time jobs who couldn't have access to healthcare, is (capitalism)/good. Sure, a medical degree takes over a decade of post-secondary education, but does an inheritance of trust funds and education rather than talent make you worth the M.D.'s time?
Meh.....your vote.

 

[liggy002]

Ok, you're right, I was going too deep into the politics. But, you have to wonder... don't you find it a little disturbing that the government is cutting into a capatilistic operation like forex? I'm usually not one to get political.... but when politics starts to interfere with my life, my dreams, and my ventures, I would say that it is my sovereign right to speak up about it. I am also not one to just sit around and take it up the proverbial wind pipe. Capatalism is dying in this country, that is a political issue as well as an issue that is now affecting the forex markets, I'd say that when politics intertwines with forex that such a discussion is appropriate.

Just think about what i'm saying for a minute, before this new administration came to office, forex was not that regulated. Maybe I'm wrong about this being the result of the administration but I strongly believe that the regulations are a result of the U.S. government, which, contrary to what they believe, are acting in their best interest and not ours. I will say no more on politics since people find it too sensitive a subject. I will only say to keep an open mind about the subject and do everything you can to fight this. Because not fighting injustice is insanity in my opinion and that is exactly what this is.

 

[MereChase]

Here's what I think is driving the new rules. 10% of traders make money in forex. 90% lose money. There's no way the goverment is going to allow me and others to keep losing money to the forex scam. There's no way anyone can tell me that the markets aren't being manipulated. They do hunt stops. and I believe they manipulate prices to take money. I've lost consitently trade after trade and have hit the targets perfectly only to see the price action go dead for 2 minutes while someone changes the computer program so prices reverse. Online poker just got caught doing this same thing. I've asked numurous brokers to help me get some one on one to check my trade style and all of them refused. Based on that, I'm so pissed off at the forex dealers that I hope the goverment shuts it down. This leverage ratio of 10 to 1 is as close as they can get. The forex industry win/loss ratio is about 90/10 in favor of the broker. If it was more inline with Las Vegas 52/48 then it would be considered legal. What is happening in the forex markets is illegal and is theft and needs to stop. I have warned a couple of forex brokers to change coarse before this day came. But the greed caused them hearing loss. There's no way are economy can afford the massive losses in the forex industry to continue. So I'm going to issue the warning again. Either get the win/loss ratio to about 52/48 or shut it down. If the cftc doesn't do it then congress or the white house will. Here's what some of you can do to help. Start helping the traders losing money to start making money. NOW, before it's to late.

Dude, I really hate you're in the 90% group (if such exists), but I'm here to tell you there are many ways to make money trading retail forex with a US Broker, starting with very little. I've done it, and it is my right to keep doing it! It just takes a little bit of intelligence and effort. I take it you have neither of these, since you depend on the government to take care of you.

What's next? Are our driving privileges going to all be taken because of the idiot drunk drivers on the road???

If you can't take the heat, get out of the kitchen. But don't tell me what I can or cant' do, and quit lobbying with my tax dollars.

 

[Stony]

Here's what I think is driving the new rules. 10% of traders make money in forex. 90% lose money. There's no way the goverment is going to allow me and others to keep losing money to the forex scam. There's no way anyone can tell me that the markets aren't being manipulated. They do hunt stops. and I believe they manipulate prices to take money. I've lost consitently trade after trade and have hit the targets perfectly only to see the price action go dead for 2 minutes while someone changes the computer program so prices reverse. Online poker just got caught doing this same thing. I've asked numurous brokers to help me get some one on one to check my trade style and all of them refused. Based on that, I'm so pissed off at the forex dealers that I hope the goverment shuts it down. This leverage ratio of 10 to 1 is as close as they can get. The forex industry win/loss ratio is about 90/10 in favor of the broker. If it was more inline with Las Vegas 52/48 then it would be considered legal. What is happening in the forex markets is illegal and is theft and needs to stop. I have warned a couple of forex brokers to change coarse before this day came. But the greed caused them hearing loss. There's no way are economy can afford the massive losses in the forex industry to continue. So I'm going to issue the warning again. Either get the win/loss ratio to about 52/48 or shut it down. If the cftc doesn't do it then congress or the white house will. Here's what some of you can do to help. Start helping the traders losing money to start making money. NOW, before it's to late.

Wrong! If I decide to take the risk of forex trading, or of being scammed by a bad broker, the government must allow me to get broke, as well as it must allow me to get rich from forex. It is not the task of any government to allow or to forbid me activities which concern only my person, be it financial ruin or suicide, as long it does not hurt other people!

 

[Ricex]

I will say no more on politics since people find it too sensitive a subject

I hope we can talk calmly about such things, it seems to be very pertinent to forex at the moment.
I'm sorry I do find it amusing that a lot of Americans put socialism pretty much side by side with communism, they really are worlds apart and the Bush years seem to have inextricably linked any form of social equality ideas with soft lefty thinking. It's ok to help people less fortunate than yourself, it's called compassion. You do not have a socialist president anymore than Tony Blair was a socialist leader for the UK, so don't panic.

If anyone is surprised by goverment acting for their best interests and not fulfilling election promises...... 1 question...... where have you been for the last 40 years?

 

[^eagle^]

Spreading the word

Dear sirs:

Quote:
Your proposal of regulation of Retail Forex has many potential problems. I realize you may think you are protecting retail traders interest but by limiting leverage to 10:1 you are forcing retail traders off shore. Just like The FIFO rule did. This will be an even bigger blow to the forex market. Your actions if this is implemented will drive American brokers either out of business or off shore. That is less money for America's economy. Is that what you really want?. More unemployment and less money legitimately flowing into the economy.

While I agree that some regulation is needed, There comes a time to let the free market be free. I have already moved my money to the UK and will continue to do so if these policies are implemented. You won't stop the corruption you are just moving it off shore making it even harder to catch. Please end this game of "whack a mole"

Thank you for your time.

I wrote this letter to the email link in the post above. I suggest everyone take some time and do the same. This is not good for America. I's a sad day indeed when I have to do business in the UK, who we fought for independence, because my freedoms are being infringed upon in the US.

 

[clem699]

I get the feeling that our "government" wants to kill American Forex in order to force American investors back into the stock market? What next? Regulate how I wipe my arse? I am fast becoming a Forex militant. I have fired off 3-4 emails to Larry DICKMAN of the NFA asking for clarification( I was very polite too) and my emails were deleted without being read. I gave up asking. If you TELL me I MUST do "this"- I automatically want to do the "other". I dont need to be coddled by anyone. I will fail or succeed at my own pace and highly resent anyone forcing their will on my options. Of course those in power could care less. Does anyone know where I might by a pound of enriched Uranium? LOL. BTW-nice work Pharaoh.

Although i am not sure about this but i feel you are right because in my country,a lot of people are moving their funds away from the stock market to more profitable investment options and retail forex is becoming more popular everyday.I will send a mail and hope it would be treated since i do not reside in the US.I pray that the authorities have a rethink on this issue.

 

[Jason Rogers]

Pharaoh, thanks for posting the information about the proposal.

It's very important that anyone sending comments to the CFTC by email put "Regulation of Retail Forex" in the subject heading.

In further discussion of the original post, FXCM and the forex brokers agree that the good parts are good for the industry. In fact, only two of the points outlined in the CFTC's proposal are actually new. The NFA already instituted a higher capital requirement of $20 million for US regulated forex brokers, and forex brokers have been required to register as an FCM since the passage of the Commodity Futures Modernization Act was passed in 2000. FXDD was the last major forex broker to complete registration.

What is new in the proposal is the requirement for introducing brokers and money managers to be registered with the regulators. This requirement will be important to crack down on the ponzi schemes and fraud in the forex market which take advantage of investors looking for get rich quick schemes and promises of unrealistic returns.

Where FXCM and the forex brokers object is with the proposal to limit leverage to 10 to 1. It will cause traders to move their accounts overseas to brokers offering more flexible leverage. The CFTC and NFA has ZERO regulatory oversight on foreign brokers not registered in the US which will leave many traders exposed to fraud.

While 10:1 leverage from a philosophical point of view may be better in reducing the risk to a trader, the point is that traders are going to make a logical decision whether they want to add more capital to their account or move the account overseas.

Pharaoh stated it best when he said "...the really good rules closing registration loopholes won't matter so much if there aren't any US forex businesses left to register."

The Forex Dealer Coalitions statement against the proposal can be found here http://blogs.fxstreet.com/francesc/files/2010/01/competitiveness_summary.pdf

 

[Bill Halliday]

My message to the CFTC

Hello,

I read an article about the proposed changes to the Farm Bill at New CFTC margin limit proposal in US 10:1 - Pip Cop - Forex Robot Reviews with regards to the Forex Market.

This article is very interesting. It says that the registering of "agents" (my term) is a good thing and should remove most of the fraud being perpetrated on traders.

He thinks that the capital requirements are too stiff and should be increased gradually to that $20,000,000. I agree with his conclusion that a minimum requirement of $20,000,000 will force all but the wealthiest brokers out of the country; taking their money and clients with them.

He then goes on to state that a low leverage rate on 10:1 WILL drive traders out of the U.S. markets. If this is what you are intending, I think it will work. Do you want to drive traders and their money out of the U.S.?

A Forex trader,

 

[briansnj]

My letter to the CFTC

Below is a copy and paste of my exact letter BUT not the only one. I will be writing them many more times. DO NOT JUST WRITE or call one time folks! You need to make the effort and keep after these guys!

Thanks, of course to Pharaoh, as always keeping us well informed!


**************
In SUBJECT BOX - Regulation of Retail Forex

To David Stawick, Secretary, Commodity Futures Trading Commission

Dear Sir,

I am writing to protest the changes that are being contemplated for retail Forex.

Currently being considered is to set the maximum leverage for US retail Forex to 10:1.

OUTRAGEOUS!!!!

You will kill a golden cow for new and small investors alike.

I am a small, active and successful part-time retail Forex trader. If this rule goes into effect, you will render my ability to trade safely null and make it harder than before for me to profit on safe, solid trading behavior! This, in turn, will force me to either take GREATER RISKS to make up for lost profits OR make me move my trading account off shore to the more friendly and sanely regulated European market to gain reasonable leverage options, e.g. - 100:1.

If the true intention is to protect American investors, you need to provide and enforce EDUCATION and TRANSPARENCY by all BROKERS. Punishing or restricting grown adults and treating them as children is not the way. I took the time to educate myself, I reviewed all information related to my broker, leverage, risk, how retail Forex works, etc. and made MY OWN INFORMED decision to open an account and trade Forex.

My broker offers a RANGE of leverage options - from 100:1 down to 10:1. The option to adjust leverage as needed is available at any time to all account holders to adjust/lower their leverage, if they VOLUNTARILY CHOOSE to, down to 10:1. I FREELY choose to maintain mine at 100:1. I do not want it to be forced onto me. If I had wanted no option but 10:1, I would have chosen a broker that only offered that! They are out there!

What you need to do is enforce a rule that guarantees that brokers are free to offer a wide range of leverage ratios BUT must offer leverage as low as 10:1, as an OPTION...a CHOICE for clients. This should not be forced onto traders!

Forcing 10:1 leverage onto traders will only drive many small brokers out of business, move money and JOBS offshore and guarantee further economic decline and dissatisfaction in this country. Please ensure CHOICE and competition for traders!


Thank you for your time and attention