1:10 Leverage Regulation – Updates Jan 31
The proposed regulation of 1:10 leverage in forex is continuing to move the forex industry. 10 US forex brokers are united against this proposal and more new sites are out there. But not everybody is against it…
The Forex Dealers Coalition (FXDC) has a new official website which explains the cause and calls for action. This simple and straightforward site is now backed by 10 brokers: Alpari US, CMS Forex, FX Solutions, FXCM, FXDD, GFT, Gain Capital, IBFX, Oanda, and PFG Best.
Two trader’s site are up: Traders Alliance by Amdrei Pehar and CFTCFightBack by an unknown man.
The strongest opposition that I hear from comes from Michael Greenberg which dives into all aspects of the proposal, and from Fransesc Riverola, CEO of FXStreet, which covers the 1:10 leverage proposal from all directions.
Through Fransesc, I reached this different opinion from Dirk Du Toit:
So my view is that on this one you should probably be thanking the regulator, not excoriating him.
And finally I’ll say this: LEVERAGE KILLED MANY FUTURE FOREX STARS. People like you maybe? People who can make it big if you just keep the leverage small!
What do you think?
Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.
See what other traders are doing in real forex accounts. Check out Currensee. It's free..
i hope the US will not impose the 1:10 law. Let the traders decide which leverage is best for them.
Regulator want to make rich richer and poor man poorer. They don’t want poor men in forex, who has smaller equity and bigger brains.
The more rich USA is getting, the more socialist and more protectionist it is becoming to protect the greedy wealth, because they fear Asians who has more brains.
If CFTC and NFA had any brains and we can all clearly see that that don’t; they would rather mandate ECN Straight Through Processing and non-dealer desk system from the brokerage firms rather than tinker with the very inherent nature of the finance market and in this instance the forex market. Stop messing with the very nature of the market while pretending to care about the retail investors. If they cared about the investors, they would make all margins options available and make it upto the investor to make the decision themselves. It is far better to mandate ECN Straight Through Processing and non-dealer desk from all brokerage firms then mess with meaningless crap like margin and leverage on the RETAIL END!!! Clearly, the regulators are all piss poor dumb and short-sighted as hell. No question there.