As many of you are aware, the CFTC published proposed rules for the retail Forex market on January 13, 2010. These rules relate to the final proposal from the CFTC relating to the FARM Bill that passed in 2008, and would limit leverage that US firms are able to offer customers to 10:1, among other things.
The CFTC has proven to be a premier regulator in the Forex industry. However, the new leverage requirements will undoubtedly negatively affect our customers trading abilities and force a great majority of Forex business overseas. If this proposed regulation passes, our biggest concern is that U.S. Forex customers would not be protected by the CFTC.
Interbank FX has joined forces with other FDM’s to speak with one voice, working diligently to lobby against the passing of these rules. As we fight for fairness in Congress and with the CFTC, we’d like to encourage customers to submit their comments directly to those agencies as well.
We invite you to voice your concern for or against the proposal. Contact the CFTC by sending an email to <[email protected]> with “Regulation of Retail Forex” in the subject line.
Keep checking our Interbank FX web site for updates, and also keep your eye out on word from the Forex Dealer Coalition—the coalition formed by all US FDM’s.
as it will reduce BROKER profits and it will further protect retail traders/especially novice traders from blowing there savings (look at the statistics and dont be fooled that it isnt the reality)
What better place to post such comments than at a forex beginner website - LOL!
these brokers arent stupid!
[B]You are not helping.[/B] Yes, you can trade with 10:1 leverage if you are any kind of decent trader, even on a 1K account, and still make decent money.
But, I for one would still like to have AT LEAST 100:1 available leverage so that I don’t have to hold as much aside for margin, and have margin still available for other trades. Also, when a really good trade comes along I’d like the ability to be able to reallly capitolize and ratchet up my leverage. I don’t want some regulatory agency assuming I’m too stupid to use leverage correctly, just because some noobs don’t know how to use it.
[B]It is you who are being fooled.[/B] You don’t understand what is really going on. Trying to cut leverage down has nothing to do, in reality, with “protecting,” traders. It is all about trying to push traders out of forex and into other markets, that the agencies proposing the rules have a direct interest in and benefit from.
They already took it down to 100:1 and shortly later attempt more, and have even proposed much less than 10:1. They aren’t trying to protect traders they are trying to ruin and or cut into ALL U.S. brokers smaller and mid size client base.
