Act Against the CFTC 1:10 Leverage Proposal
The absurd proposal by the CFTC to limit leverage in forex to 1:10 is causing anger. Here’s how you act to stop it!
The CFTC is beginning to regulate American forex trading. In their initial proposal, there’s an idea to limit leverage to 1:10. High leverage is one of the key characteristics of forex trading. If this proposal is implemented, it will practically kill the American forex industry, as traders will move their business elsewhere.
So, here’s what you can do. I’m quoting the information from a fresh blog post from FXStreet’s CEO, Fransesc Riverola. Thanks Fransesc!
If you disagree with the CFTC proposal to restrict leverage across the board to 10 to 1 leverage, you may submit your comments to
Include “Regulation of Retail Forex” in the subject line of the message and the identification number RIN 3038-AC61 in the body of the message.
Also, with the identification number RIN 3038-AC61, you can submit your comments by any of the
following methods:
- Fax: (202) 418-5521.
- Mail: Send to David Stawick, Secretary, Commodity Futures Trading Commission, 1155, 21st Street, N.W., Washington, DC 20581.
- Courier: Same as Mail above.
All comments received will be posted without change to http://www.cftc.gov, including any personal information provided.
Good luck to us all. Like this story? Vote for it on Forex Factory.
More:
- In a poll that I ran in March, the most popular leverage is 1:100.
- In the UK, the max leverage is 1:200.
- A nice analysis by Michael Greenberg on the subject.
- The FXDC (Foreign Exchange Dealers Coalition has also petitioned against this move.
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See what other traders are doing in real forex accounts. Check out Currensee. It's free..
As a forex trader I never exceed 10:1 leverage, to me anything over that is financial suicide. But those who want to take more of a risk should be able to.
Still more confusion. Leverage is not synonymous with risk. You can more than safely trade without even a shred of a risk of a margin call using 1:100 leverage just as anyone can blow up their account using 1:10 leverage. How is it that everywhere there still is massive confusion with LEVERAGE vs RISK??? Leverage has nothing to do with actual risk per trade or even overall risk.
@Jason
The NFA FIFO rule had someone voice my opinion and even more articulately than I. The NFA claimed that the pros outweighed the cons.
The questions I have are:
Do our opinions matter?
Does quantity of the same opinion matter?
DivisaFX doubts. But I intend to write the secretary.
The proposal is absurd. No question about it. Hopefully CFTC will have enough common sense to cancel it.
I see more comments in this page than on the CFTC page http://www.cftc.gov/lawandregulation/federalregister/federalregistercomments/2010/10-001.html. Ppl we must all send mail to secretary@cftc.gov. Irrespective of whether they would act upon the mails or not, we need our voices heard. Every mail received is posted as is on the page.
Please Join CFTC Fight Back…Don’t Let Bureaucrats Destroy Our Forex Market!http://cftcfightback.com/
We’ve created a website where you can discuss this issue with others. Come along and join!
People are mailing them irrespective of what you think is being posted here or not. More post on here? I think not. CFTC and NFA are clearly being flooded and now with the coalition formed by the brokers and dealers. But it is of no use. CFTC clearly have made up their mind and are leaning towards this new leverage requirement. They will always do what they propose out of sheer piggish retardedness. You can write them to death… it will do zero good. Just get ready to move to a UK firm.
You can go OS. Cyprus, Malta, Singapore, some English islands, some Caribbean islands, some continental European countries, maybe Australia and so on.