USA Government Regulations of Forex Trading, 10:1 Leverage Proposed

[Mike]

Just got an email from a member, Ray A., I don't know how I missed this news, but its pretty big and affects all U.S.A. traders negatively. It appears the CFTC is looking to further impose regulations on the amount of leverage brokers can provide for us small and larger traders alike.

Currently the CFTC is accepting comments in regards to various proposasals. The leverage change is the most critical to U.S. based brokerages and traders as it will greatly limit the trader's options.

All traders foreign and domestic should get involved. There is nothing stipulating that foreign traders can't voice their opinion. These rules should not be meant to kill and industry. A foreign participant can state their reasons for not opening an account with a U.S. based broker as a reason for giving a comment as this supports the reason why all U.S. based brokers have opened or are in the process of opening off-shore brokerages.

Additional points can be made in regard to the recent NFA changes as well and to further comment that these changes stiffle competition causing U.S. based businesses to go off-shore.

If foreign traders aren't willing to place their trading dollars in a U.S. based broker then the rules they are implementing to protect do the exact opposite becase the trader runs to a jurisdiction that has less protections in place than what the NFA oversight provides.

The more people that get involved and send in comments the better chance we have at defeating these stupid leverage rules the CFTC is proposing.

Everyone has the chance right now to complain and be heard. In another 57 days your chance to complain is still there, but you will not be heard. You will be the one left to turn out the lights.

The directions for response to the CFTC proposal is below:

email to: [email protected]. gov with "Regulation of Retail Forex" in the subect header.

or FAX it to (202) 418-5521

or snail mail:

David Stawick, Secretary
Commodity Futures Trading Commission
1155 21st Street, N.W.
Washington, DC 20581

for further infomation: http://www.cftc.gov/newsroom/general...pr5772-10.html

Thank you in advance for all your efforts of getting the word out.

[DickP]

Thankyou Mr. President.

Seriously, anybody but Obama in 2012. I'd vote for Britney Spears at this point instead

[Defariak]

anyone who is pro oboma needs to be shot in the face.
Glad i trade with a UK account heh.

[Forexman21]

HAHA, i would definitely trade outside of US untill a normal president steps in
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oh yeah and it has nothing to do with his appearance. I'm not racist

[Hicks]

This would be disastrous for US based brokers, billions more in liquidity will be going overseas,.... thanks Obama Change we can believe in..............to Fork up the country.

[Piza]

That would be disastrous for the USA Forex industry, disastrous. Surefire way to send billions overseas.

[DickP]

sorry to let my emotions get in the way before, but 10:1 leverage traders would be in the streets with pitchforks. Billions in tax revenue to the government going to other governments when every serious broker moves off seas and stops offering FX Retail services to anyone in the USA.

[TopTrader]

You guys can't blame Obama for this, lol, do you realize how many people pull this man's strings? He's no puppeteer.

[sniper012]

I agree. I don't know why everyone is blaming Obama. I didn't vote for him but I don't think he is behind this foolishness. We need to look a little deeper. Hey, if they want to put US based brokers out of business, then this will be the thing that does exactly that. I'd go directly overseas with my money. Leverage is what makes forex vaible for small traders like us.

You guys can't blame Obama for this, lol, do you realize how many people pull this man's strings? He's no puppeteer.

[Mike]

People always look for the closest thing to blame, and presidents are always lightning rods for that blame when new regulations come about from the government, Congress is most likely behind most of what happens to you and your personal or professional relationship with the government. So before we go off on President Obama, lets look into who runs the CFTC and NFA not that they are bad people at all, I just want to understand the mentality behind possible 10:1 leverage not just for Forex traders but nearly all types of traders when other regulatory bodies (brokers and institutions in other countries) allow 1000:1 leverage or more, not that a tremendous amount of leverage is wise or even needed, but it just goes to show that less and less Americans can trade forex even if they knew about it in the first place when they believe traders in other countries have them at an advantage in this regard, but inevitably I'd argue to all of you that you are not at a disadvantage if you are a consistently profitable trader, but 10:1 would make a big big difference in the way a losing trade affects your margin.

[Johnni]

For $10,000 equity, even if 1 pip cost only $1, the 10:1 margin will do a lot of damage to the account if the market moves negatively again the trade.

I hope I am right.

[sniper012]

Offshore broker, here I come!!

[Kikendahl]

Scores of american traders are now being out-leveraged by foreign traders. 1:10 leverage would bring TRADERS to their knees, not the industry, the industry will survive, but many new traders, existing traders and some professionals will not.

At that point I would see an increase of "pros" giving out tips or mentoring for a fee just to survive themselves.

[Jones]

Well you can all trade with me in my spanish villa on the Mediterranean when you make it out here, of course I expect a portion of your trading proceeds, this isn't a charity house.

[YouTradeOur$]

There is a legal way around all that. These new CFTC regulations apply to U. S. Citizens trading their own money. But it does not apply to U. S. citizens trading as proprietary traders for non U. S. entities. That is what we do. We recruit new and experienced Forex traders to trade up to $3,000,000 USD of our firm's money. The firm absorbs losses. Traders are paid up to 95% of profits. All perfectly legal. All perfectly legitimate. If you would like more info contact me!

[DickP]

is this we go I've never heard of this message before

[Terry4x]

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[UpTrader]

Well, I'm happy I don't have to care about US regulation as I live in Europe
At least this would lead to lower losses of those traders who are not successful...

[OhZone]

hehe 10:1 leverage sucks to be an American

[TotalPippage]

10:1 will never happen