One often wonders what planet Bureaucrats inhabit, there is no way it can be the ‘third rock from the sun’, because if they did they would not arrive at such idiotic ideas as this latest hair brained scheme. Or maybe they want to crush the retail Forex Broker industry in the US, because that is the guaranteed result.
How could anyone imagine that retail trading Forex on a 10:1 leverage could ever be viable?
Keeping things simple, let’s say you have a $10k account and took a 1 lot trade ($100k) trade ( forget risk management for the moment), a couple of pips adverse movement and your’e on a margin call… mind numbing! If the trade went your way and you progressively locked in your profit, there is no way you could open even a mini lot to scale your trade!
Surely the CFTC has better things to regulate that this, or maybe they are too dim to realise that all this will do is send the industry offshore and depending on where retail brokers set up, the retail traders could be faced with even more risk due to a total lack of regulatory monitoring in some overseas arenas. Sure… countries like England, Switzerland and Australia, to name a few, are well regulated, but others are not so pretty.
So what to do? Try emailing David Stanwick at firstname.lastname@example.org but remember any comments go public (including your personal info), so no rants, simply intelligent comments about the potential impact of this daft idea if it goes through.
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