U.S. Forex Traders - Write The CFTC And Tell Them NO On Capping Leverage At 10:1

I just learned about this today. If you are a U.S. based retail Forex trader, you need to write the Commodities Futures Trading Commission (CFTC) now and tell them "no" to this proposal:

"Release: 5772-10
For Release: January 13, 2010

CFTC Seeks Public Comment on Proposed Regulations Regarding Retail FOREX Transactions

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the publication in the Federal Register of proposed regulations concerning off-exchange retail foreign currency transactions. The proposed rules follow the passage of the Food, Conservation, and Energy Act of 2008, Pub. L. No. 110-246, 122 Stat. 1651, 2189-2204 (2008), also known as the “Farm Bill,” which amended the Commodity Exchange Act in several significant ways. In particular, the Farm Bill:

• clarified the scope of the CFTC’s anti-fraud authority with respect to retail off-exchange foreign currency transactions;

• provided the CFTC with the authority to register entities wishing to serve as counterparties to retail forex transactions as well as those who solicit orders, exercise discretionary trading authority and operate pools with respect to retail off-exchange foreign currency transactions; and

• mandated minimum capital requirements for entities serving as counterparties to such transactions.

“These proposed rules for retail foreign exchange trading are important steps in implementing the additional consumer protections authorized in the 2008 Farm Bill,” CFTC Chairman Gary Gensler said. “The Commission looks forward to receiving and considering the public’s comments on this important issue.”

It doesn't sound so bad at first - protecting consumers from fraud is a good thing, right? Yes, but then there's this part, which has ZERO to do with fraud:

"Leverage in retail forex customer accounts would be subject to a 10-to-1 limitation.

What does the amount of leverage one uses have to do with fraud?! Fraud is what occurs when fake retail Forex brokers steal people's money. VOLUNTARILY USING LEVERAGE ABOVE 10:1 IN YOUR OWN ACCOUNT IS NOT FRAUD!

All this will do is price people like me, relatively small traders, out of the market. If you're like me, a small trader, you're witnessing elites attempting to slam yet another door in your face. Faceless bureaucrats are trying to take your tools away from you yet again and leave you scrambling for scraps. They already have theirs, and they have no problem taking away your freedom and the tools that would allow you to get yours.

My head is spinning. I am foaming at the mouth angry. If this passes, all of the things I have been building successfully in my Forex accounts will be ruined. My income will be impacted to a point where I will either have to stop paying some bills or find another job. I have been convinced that much more today that the U.S. is not my home anymore and that I will have no future unless I eventually leave it. Every time I turn around here anymore I spot another individual or agency that just wants to chain me down and prevent me from getting ahead.

I urge you to write the CFTC today and tell them to back off. Send an email to secretary@cftc.gov with the subject line, "regulation of retail forex," and the identification number RIN 3038-AC61 in the body of the email. The public comment period stays open for 60 days, but don't delay, and tell other traders!