I agree with someone who said that they want to shutdown this industry for good. And the reason for this is that, more and more people are making money from this industry, and clearly the rich are feeling threatened. They always find some excuse and they always tend to win. Capitalism, it's either you or them. There is no 'between'.
The leverage change in the US gives forex traders less flexibility.
Also, traders from both the US and abroad may look more to stocks and pair options, as these trading vehicles may provide investors with the opportunity to make large profits without the leverage factor.
Last edited by Trader Pro; 04-20-2011 at 03:51 AM.
Without wanting to offend anybody: Thank God I am not a US citizen.
Over the last 20 years US Governments, no matter whether Republican or Democrat, have shown a regrettable tendency to regulate (not to say supervise or control) every single tiny aspect of their citizens' daily life. America just isn't fun anymore; and (sorry to say it) America just isn't FREE anymore.
I can understand the Government's desire to protect its citizens from harm ... that is a Government's 'job', after all.
But there is a difference between taking measures to ensure a fair and secure environment for everybody and regulating every single thing.
The CFTC seems to think that the average US citizen is too dumb to make sound financial decisions.
Granted, many laymen have lost their money trading forex; but instead of educating them how to go about it properly, rules which are harming the whole retail industry are being introduced. And a weakened or wiped-out retail industry means less revenue for the Government as well.
In conclusion, the measures already taken and those proposed hurt everybody, without achieving anything positive.
My suggestion would be:
Let the CFTC create a simple webpage where people interested in trading forex retail have to pass a test, making sure they fully understand the concepts of leverage, margin and whatever the regulators feel is vital for safe and fair trading.
This would help traders (they can trade properly), brokers (they can earn money) and the Treasury (they increase tax revenue).
I think a 'Retail Trader's License' would be simple to introduce and beneficial to all sides involved.
Glad I'm in LA. Will move to San Diego and apply for Mexican residency (Tijuana, Tecate or Ensenada). Have many addresses where I can register a utility bill (required to obtain an offshore forex account). I'll 'commute' between both my residencies.
In Texas you couldn't get 'an equity' loan on your house, -Texas protecting it's IGNORANT citizens? -It was THE ONLY state in the nation with such IDIOTIC 'rules.'
Of course THE IDIOTS saw the light and now you can borrow on your 'homestead.'
I don't like this 'FIFO,' no hedging IDIOCITY and stupid LOW leverages!
Those freaking 'fat asses' (law makers?) don't have anything to do but raise hell for the rest of us.
Still beating the dead horse years later? Move forward and adapt, find loopholes, be creative...or maybe pick up some different investment activities like a real investor and not some bum FX speculator/gambler.