The CFTC (Commodity Futures Trading Commission) is turning to the public asking their opinion whether or not they should propose regulatory changes in Forex trading. It seems to me they are looking for things to regulate even if they don't make sense or seem fair.
This is complete non-sense to me, and will affect me personally and my investing in currencies. Once again, they want to make forex trading only available for the wealthy (so they can become, you guessed it, more wealthier) and leave micro accounts to be something from the past.
The proposed idea? To change the leverage policy to a 10 to 1 limitation. What stands now at 1:100 change it to 1:10. Which means your margin requirement would be $10,000 instead of $1,000. In other words, how $1 was to control $100, now your $1 will only control $10 in Forex, making it almost impossible to make a nice return unless you have a lot of money to put in.
|Maximum Leverage under |
|Maximum Leverage under |
|1 lot (100,000)||1 lot (100,000)|
|100:1 leverage (1 %)||10:1 leverage (10 %)|
|Margin requirement: $1,000||Margin requirement: $10,000|
This is a proposal, which you can comment on until the deadline March 22, 2010.
Help me stop this rediculous proposal by sending an email to: firstname.lastname@example.org. Make sure you include 'Regulation of Retail Forex' in the subject line of your email and the following identification number in email message itself: RIN 3038-AC61. Tell them you strongly oppose the new proposed policy changes. If you have a Forex micro account and the proposed regulations go though, this will seriously affect you.
You can also submit your comments by any of the following methods (include above ID number):
- Fax: (202) 418-5521
- Mail: David Stawick, Secretary
Commodity Futures Trading Commission
1155 21st Street, N.W.,
Washington, DC 20581
- Courier: Use the same address as mail above.
I don't see why they don't require Forex brokers to let their clients choose how much leverage they want to use, like when you put in an order you can choose how many lots AND the amount of leverage you would like to use, like 1:10, 1:50 or 1:100. It doesn't make any sense to me why it has to be drawn in such extremes, wiping out a whole group of people that count for 300 Billion in trades (according to FXCM Micro). For me if the regulations go through I quit Forex trading and will do stock and stock option trading, because that leverage requirement is just simply not feasible for me, (and not profitable!).
I also think it will not be fair, there are tons of people that got rich forex trading with micro accounts, what about the people that want that same chance?
Find something else to regulate!