Video Response: CFTC Proposed FOREX Leverage Change

[ezhilpa]

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[mahakuet]

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[flyingdutchmanhero]

glad i´m living and trading in germany ;P

[RandomShellAccount]

Here's a case in point.

I was going to use the LeverageFX software once I practiced more on trading. Wanted to give myself a few months before I jump in. By nature I'm conservative with money and only intended to minimize loss and play the market by the book.

BUT NOW, I find that leverage is only 50:1????

So I was thinking open my first account with $2,000. Nope, I would make PENNIES per pip with a conservative 2% investment on trades.

Guess this game is only for those with 20 GRAND now.

[ARTaken007]

Wayne, would you do a video response about recent changes 10/18/10 the CFTC has made to the retail FOREX industry.

[drfrankm]

Great commentary and I agree. This is what I have been telling people too. This is one of the reason when I started my forex brokerage firm that I opened it offshore.

[amillioncars]

Will the earthquake affect the nzd as of 9/4/2010

[gizmobozz]

Here in Japan some brokers offer a 50 to 1 for small accounts. I've seen brokers offering 1 dollar per pip mini accounts too. $stop loss is the secret to stay in the game $

[StephenStoryIsAScam]

DAMN YOU WAYNE! YOU MONEY GENERATING SWIMMING IN LIQUID CASH BASTARD! SITTING IN YOUR BAT cave all day with 50 monitors getting filthy rich, teach us how to make some damn money!!!!! Dammit wayne!

[TheDystopiaInside]

I spent some time demo trading and studying forex back in late 2008 - mid-2009 but never got in with real money.

In the meantime I've found other sources of income, but I may get back into it. The way I see it, I want to know what's going to happen with this CFTC thing, and also the market seemed hard to trade/long-term range-bound following the initial rise in the USD in late 2008.

Anyway, I don't think they should impose this limit, it would hurt many who already know the risk involved.

[advancedwarfighter07]

i wrote an email response to the CFTC stating the same thing. I think 1:1 - 1:100 should be the standard optionallevergae for any trader. This proposal will not have affect overseas and I know some great brokers over seas in europe, austrailia, UK, Canada, and Cyprus that would be more than glad to accept US clients. Thus, resulting in the US forex market being traded by brokers only, who would eventually have to shut down from lack of clients....

[mattisthegame08]

Im starting to wonder if this is the beginnings for this NWO thing and a Global Currency, i mean if they slowly make us traders lose interest in the Forex, and then they do this worldwide, they its easier for the powers to have more ppl agree with them on a Global Currency. idk but we live in interesting times.

[molidboy]

limiting leverage is not going to help but make fxtrading less-interesting.

[ILuvTrading]

Where is my video response? I left it twice this past week. Everybody- click on my user name and see my RESPONSE to the CFTC Ruling!!!

[fxbootcamp]

I don't know. We certainly didn't block it.

[ILuvTrading]

I just did the video response again. the message says it will be posted when the receiver approves this video response. Maybe its the youtube being buggy, not sure. Anyways- i have heard nothing but great things about fxbootcamp..cheers---Virgil

[Briannarose95]

@ILuvTrading that happened to me with a different video...I wonder why I can't see it.

[adamandalyssa]

I have been a forex trader for over 4 years. I also sell on eBay. Quite frankly, I have lost more money from doing business on eBay than I have from trading in the Forex markets. Government needs to get out of our lives and quit trying to control everything we do! I absolutely will go over seas to do my trading if the CFTC succeeds in foisting this government control on us. I'm upset that I can't have 200:1 any more. 10:1 only will be outrageous in my book. Back off CFTC and leave us alone!

[qualm43]

The good news is: we can just wire our money to the UK and trade from those brokerages. Not even a problem at all. Nice job USA at taking even more money OUT of the US economy.

[automatedtrading9000]

So if anyone DOES NOT WANT THEIR PREVIOUS LEVERAGE TO BE REDUCED A WHOPPING 97.5 PERCENT FROM A YEAR AGO, SO THAT EVERY FOREX TRADER OUTSIDE THE U.S. HAS 40 TIMES MORE LEVERAGE THAN YOU HAVE, PLEASE EMAIL THE CFTC AND TELL THEM THAT THIS IS WRONG; YOU HAVE THE RIGHT TO TRADE FOREX WITH 100 TO 1 LEVERAGE, THAT WAS ALREADY REDUCED LAST YEAR BY THEM.

[automatedtrading9000]

Forex is honestly not "dangerous" as they are making it out to be to the public. The times i lost money using maximum 100 to 1 leverage, i had to do well over 200 DIFFERENT TRADES WITH MAXIMUM 100 TO 1 LEVERAGE SO PEOPLE ARE WELL AWARE OF THE RISKS AND DO NOT LOSE THEIR MONEY IN A FEW TRADES, IT'S NOT HOW IT WORKS. YOU'RE MONEY IS LOCKED UP (PROTECTED) IN YOUR LEVERAGED POSITION. iF IT GOES AGAINST YOU YOU HAVE MONEY REMAINING TO DO OTHER TRADES. EVERY OTHER COUNTRY ALLOWS THIS.

[edmondublianda]

I hope the CFTC can sympathize to all retail fx traders who make money at home or while travelling..it is a great life to be self employed and I believe it's good for the economy of US

[mattisthegame08]

Yes it's getting to be BS. I have no problem leaving the US and going back to Europe if more stupid laws and regulations pass. All I can do Now is hope CFTC does not pass the leverage proposal the others I agree with but the leverage change is going to take away more jobs as some traders don't have the capital for 10:1. This just pisses me off

[automatedtrading9000]

If this passes it means that our rule makers are literally the lamest people on the entire planet, end of sentence.

[mattisthegame08]

Im praying this does not pass, as its gonna do alot of harm to people that make livings on trading in the U.S, i do this part time, but as a student with limited capital i dont have the 100,000 dollar account to trade with on 10:1 leverage thats why its nice to make steady incomes with a 5,000 dollar account, i can see getting rid of 400:1 and 200:1 leverage which they did, but 10:1 is overkill, and the brokers allow us choices anyways on our leverage so idk what CFTC is thinking, Dumbasses

[automatedtrading9000]

Exactly, Obama says he's trying to get people working and at the same time he's taking away jobs from traders currently employed. This is NOT THE AMERICAN WAY, PUTTING PEOPLE OUT OF THEIR OCCUPATIONS. HELLO SOMEONE IN CHARGE STOP THIS NONSENSE.

[mattisthegame08]

I guess if this passes and they do block us US traders from having offshore accounts, will be moving back to Germany as i was born and raised there anyways, and this country has become way to over regulated and controlled and i fear its only going to get worse in time. Hell Russian president has already shown the global currency, so who knows whats next for all of us.

[ILuvTrading]

Guys, under the proposal the CFTC states on page 11

"Under current practices, customer

positions are usually closed out once

the losses in an account exceed the

initial investment. However, if, for any

reason, the positions are not closed out

at a zero balance, the customer could be

liable for additional losses."

[automatedtrading9000]

That's got to be like a one in ten million or less chance; i've never heard of that happening to anyone; it never happened to me and i've done thousands of trades.

[automatedtrading9000]

I've never heard of that happening to anyone and i've been trading for over 3 years and i've done thousands of trades; i'm sure if any broker made that mistake they would i'm sure just take the loss to themselves and not the client; you're talking less than a one in ten million odds; basically nonexistent odds.

[xtgto]

Who made the CFTC above Congress, passing laws which restrict our liberties and right to the pursuit of happiness? It'd be nice to know who they are working for, because it is not for the traders. Their intention is clearly to limit our opportunities to make money.

[EwenMc]

I do NOT want this CFTC proposed change to limit leverage to 10:1. I believe that the NFA has done a credible job in protecting and educating the public to the risks while limiting the leverage to 100:1. "Mini" accounts of 10:1 are available to everyone now, anyway.

America has much to lose if the proposed changes become law. This will encourage Americans to go offshore where they may be less protected, thereby defeating the intent of the proposed changes. HANDS OFF !.

EwenMc. California.

[automatedtrading9000]

If this Obama's new chairman suggestion to provide less market player intervention, GET REAL, DO YOU THINK AMERICANS ARE THE ONLY FOREX PLAYERS, and DO YOU THINK WE SMALL INVESTORS ARE DICTATING A MULTI TRILLION DOLLAR MARKET, NO WAY!!!! AND AS I MENTIONED EARLIER THE FOREX IS SAFE, YOUR MONEY IS LOCKED UP IN YOUR LEVERAGED POSITION, SO THEY WANT TO TAKE AWAY FOREX, DON'T LET THEM.

[automatedtrading9000]

The next thing you know the government is going to be taking soda pop and french fries away from overweight customers at McDonalds because they might gain weight, experience possible health problems and cost them Medicare money.  At this rate i absolutely would not be suprised. Just because some people don't know how to swim, are you going to say everyone MUST WEAR A LIFEJACKET, i don't think so. BESIDES FOREX LEVERAGED POSITIONS ARE SAFE, YOUR MONEY IS LOCKED UP IN YOUR LEVERAGED POSITION!!

[krewsey]

There are so many other areas that the Government could be looking at to protect the public. This is the last thing they should be trying to change. I haven't seen any stories on TV lately about FX traders sleeping in their cars in car parks because they lost all their money. I have seen stories about people in the real estate market having to do so though as a result of their properties not being worth anything anymore .. and there are so many other examples .. Enron .. etc. Why choose this

[automatedtrading9000]

To lose your money in forex you have to literally do hundreds and hundreds of trades even with maximum leverage. And even then, if you're down a lot of money you can still find opportunities to make it back. On the flip side some times you double your money in just one day or two. In stocks you could probably lose it all with a single trade; with forex you would have to do hundreds of trades because your money is protected in your held leveraged position. If i'm a vegetarian they have to be?

[freeflyva]

This isn't about reducing leverage. It's about Obama and his crew getting retail traders out of the game. The same as DeFazio's proposal to put additional transaction fees on buying and selling; Unfortunately...these clowns don't understand..A) It's 2010 and you can easily trade foreign markets where you won't be penalized and B) The Symbiotic relationship between speculators...liquidity..and market action. They also fail to understand less people in the market means MORE easily manipulated.

[gbrooks799]

It's a JOKE! Another intrusion into our freedom as Americans...

[nooneyet]

The only effect achieved by such a change will be less tax money for the U.S. and less money within the american economy. Traders can always trade offshore and let foreign companies earn commission/spread revenues. (*Or in the case of the more common scenario, of a trader losing his money at a market-maker's place, it's not just commission/spread) - so keeping traders, both profitable ones and less responsible ones, at well-regulated, American-tax-money-paying companies, is good for America.

[Traviaso]

I vehemently oppose this crap... Isnt this supposed to be America "the land of the free" where is our freedom to choose here??? what are they thinking? oh wait, they arent. Big suprise : \

[automatedtrading9000]

So they think stock trading is safer than forex; i've never traded a stock in my whole life; i could be down fifty percent in forex and make my money back in one day; with stocks, i wouldn't stand a chance; and they think forex is too risky; you have a million opportunities in forex; new opportunities all the time. People are going to take this to the Supreme Court i imagine; they are taking away American's right to trade the market the same as everyone else; that MEANS YOU AND I WILL SUFFER.

[automatedtrading9000]

If they change the leverage i'm either going to bury my head in the sand or move to another country; how can they be that lame, it's just plain sad; extremely sad.

[haritashi]

I talked to someone from the UK and asked if they thought the government there would ever jack with their trading in the UK and they said no way because they love their trading there and trading is huge in the UK, so if they block us from having offshore accounts I will try to move to a more free country.

[haritashi]

That's a great point if they really want to protect the trader then protect our funds at the brokers etc and get harsh on stop hunting etc, but they really don't want to protect the individual - they want to kill forex so people will put their money back into futures and the stock market. You want real risk? Just go put your money in the stock market and see how you feel when you wake up the next day and that company's stock is zero because it went under.

[DojiSan]

plus stock brokers don't protect you from a margin call. they will let it keep going down into negative!! then they call you saying you owe them money...in forex you are protected against negative drawdown.

[automatedtrading9000]

People already have the opportunity to choose their own leverage anyways; if they are losing or making money faster than they prefer they can at any time change their leverage; it's a facet of all U.S. brokers, so really they are just taking away everyone's opportunity and insisting that no one regardless of expertise can become wealthy in less than about fifteen to twenty years. Some kind of land of opportunity.

[automatedtrading9000]

It's not like 100 to 1 leverage is that much anyways; most of your money is tied up in the leveraged position and you can't lose that money anyways. Besides even if you do lose a little money you have a thousand additonal opportunites to make it back and get a return; it is not a dangerous opportunity by any means; and that is not even counting being able to use a stop loss which you always can as well. This is so obsurd i don't think i can even comment anymore; they'll take away my dreams.

[automatedtrading9000]

The next thing you know the only way to make it rich will be buying a lottery ticket; one out of 9 million odds. And they have the audacity to print freedom on the dollar bill and say "land of opportunity" while opressing investors and taking away their right to trade like everywhere else in the world. A 98.5 percent reduction in forex leverage is taking it all away, it's not going to be worth the time unless you're already a millionaire and so they are oppressing poor investors.

[proglet1]

Agree, I'm against the change myself, even though I have already moved my accounts to the UK due the new leverage regulations implemented in the US in Nov. 2009. So, even though I will not be affected by it, this new proposal will only drive more financial activity to foreign competitors, forcing the brokerage houses in the US to reduce operations or shut down here in the US.

[haritashi]

I've heard you might not be as safe as you think as there is talk that they may try to block US citizens from having offshore accounts, so this will affect every trader in the US.

[pipnainteasy]

CFTC and NFA need to allow U.S. residents to trade CFDs and Spread bet. They want to control us and are afraid that they will not be able to collect their precious tax dollars. How does the CFTC and NFA really protect us anyhow??? My money is not protected at a Forex broker. IF they want to impose harsh regulation like the equities markets then we should have our money protected like in the equities markets.

[haritashi]

If a trader is too dumb to know how to control risk thru stops and lot size, then any crazy rule that the CFTC passes isn't really going to help them in the long run anyway. CFTC - it's not fair to punish people who know how to trade just to try to help idiots that are going to lose no matter what you do anyway. LET THE PEOPLE HAVE THE FREEDOM TO TRADE!!!!!!!!

[haritashi]

... You control risk thru your lot size and stops - that's it, but most people don't understand that. I've only met 1 person that actually understood leverage and that was Rob Booker. Also what most people don't understand is that the lower the leverage, the higher the chance of getting margined out unless you want to work hard and stay up late to just make 5 cents per trade, so the lower the leverage the more risk you actually have per trade.

[haritashi]

The funny thing is most people don't even know how leverage works. Higher leverage has nothing to do with risk. If you've blown your account it's because you're an idiot and you don't know how to trade, so don't lamely blame it on leverage.(con't)

[automatedtrading9000]

The way there going there going to drive speculative investors out of the protection of the NFA; instead of protecting investors they will inadvertently do the exact opposite, intentional or not and they will end up with a whole lot of problems on their hands.

[haritashi]

It's too bad that our senators and congressmen/women don't give a rats youknowwhat about the people otherwise we could get help from them. They are only interested in what affects their re-elections - and a big part of that is campaign money, and guess where that comes from - the likes of people from Wallstreet and the CFTC(Crazy Freakin Tardo Chimps), so guess who they're going listen to - not us!!!

[automatedtrading9000]

Well that's exactly what the CFTC is currently proposing; it would take everyones skills down the toilet and ensure that at best they could only get a 90 percent smaller return than they are currently able to.

[JerryLeeC1]

Ctd.

You can regulate trading, but you have no Constitutional authority suddenly to make it too expensive for most American now engaged in it.

The skills we have acquired with much learning, practice, and risk would suddenly become effectively worthless.

If so, I will file suit against you under my 7th Amendment Right.

[JerryLeeC1]

If you raised the horse racing minimum bet from $2 to $20, you would make it truly the Sport of Kings. Most tracks would shut down due to lost attendance and wagering. No more Seabiscuits to inspire the down and out of the present depression.

Lotteries became legal because of the blue collar vote. If you raised the ticket price ten-fold during the Obama administration, a lot of Democrat office holders would be fired by their core constituency.

[automatedtrading9000]

Well i certainly take a serious offense when they are literally taking all my hopes and dreams away from me as they currently exist.

[haritashi]

The CFTC(Crazy Freakin Tardo Chimps) would be up in arms if congress came in and severly restricted futures trading! It would be funny if they got a taste of their own medicine. If the shoe was on the other foot THEY certainly wouldn't like it.

[automatedtrading9000]

Unless it's a worldwide change everywhere THE US GOVERNMENT SHOULD HAVE NO BUSINESS TAKING AWAY AMERICANS RIGHT TO INVEST THEIR MONEY; THE FACT THAT THEY ARE IS A COMPLETE SHAME.

[automatedtrading9000]

Big land of freedom we live in where EVERY OTHER COUNTRY PEOPLE HAVE FAR GREATER TRADING OPPORTUNITIES THAN WE HAVE IN THE US. And now they want to reduce the leverage so much that they take it all away. It makes me sick.

[automatedtrading9000]

I think they would just rather take the easy approach and take away everyone's opportunities all together than thinking of anything more intelligent.

[forextrader43]

Behind you all the way Wayne!

100:1 Leverage should not be a problem at all.

The CFTC might want to design an educational test that anyone (in the USA) should be advised to take explaining what leverage is as well as other risks that are involved with trading in general.

Thanks for your time and energy !!

[haritashi]

I've already written the CFTC(Crazy Freakin Tardo Chimps) 2 emails and have sent a snail mail. I've also written our 2 Senators and our Congress rep here.

[MasterBlasterSteele]

I lived in the States for almost 8 years and if there is one thing I could never understand about the country is why there's always so much talk around the "freedom" topic. Considering a lot of different aspects of life, I wouldn't be so sure about it

[PortfolioManager1987]

I am a retail forex trader from and living in Australia. I believe CMS FX (major New York FX broker) has followed CFTC/NFA guidelines and reduced their offered leverage from 400:1 to 100:1, and even though I opened an account with them recently -- I have decided not to send my initial funds and I have also decided not to trade with CMS FX but rather look offshore to FX Pro, for example (European, 500:1).

This industry ought to be left alone. I strongly agree with this video. God help us.

[automatedtrading9000]

So they are trying to take away any chance of market trader intervention in terms of controlling the market; DO THEY REALLY NEED TO ELIMINATE 97.5 PERCENT OF THE PREVIOUS LEVERAGE IN ORDER TO DO THAT? I DON'T THINK SO, DO THEY REALLY NEED TO DO THAT TO PROTECT TRADERS, I DON'T THINK SO, DO THEY REALLY NEED TO TAKE AWAY AMERICANS FREEDOM TO INVEST. I DEFINITELY DON'T THINK SO.

[automatedtrading9000]

Wayne is speaking the truth; please everyone write the CFTC , it's easy it only takes a few minutes; please help save the Forex market.

[automatedtrading9000]

The bottom line is to go from the previous leverage which was 400 to 1 with all currency pairs in the U.S.; i know what it was before and change it to 10 to 1 ; that's not a adaptation that's a TOTAL OF 97.5 PERCENT REDUCTION!!!!! IN FACT EXACTLY , THAT'S BASICALLY A COMPLETE OBLITERATION OF FOREX. Besides being absurd, no one would have any of the current financial opportunities possible. To achieve what you could in 5 years would take you 15 to 20 years minimum.

[automatedtrading9000]

Everyone please email the CFTC and keep them from obliterating the forex market.

[automatedtrading9000]

Next thing you know they will not allow fat people to buy soda pop at McDonalds because they might gain some more weight; and not let anyone go swimming without a lifejacket. Where does this friggin nonsense end. They want everyone to have no opportunities and that makes me angry.

[haritashi]

Automated that's a great point!!!!

[automatedtrading9000]

I used to be proud to be an American, now i am disgusted at the politicians taking away American trader's opportunities all the way to the point where they have none at all. Options are the only other way to make money and they are too risky and complicated. If they start screwing with us they are going to have people trading their money in offshore unregulated accounts; people will not put up with this crap. What happened to the Constitution and people's rights, the government makes me sick!

[haritashi]

I feel exactly the same way!!!!

[automatedtrading9000]

Well there goes my whole life's hopes and dreams right down the toilet if this passes.

[haritashi]

The CFTC(Crazy Freakin Tardo Chimps) might even try to block us from getting offshore accounts so then we would have to move out of the country. Friggin' jerks.

[jeffreyshumaker]

Politicians trying to blame people actually making money, because they are incapable of doing their job properly. Hello UK

[haritashi]

Traders will also start losing more now because there will be a greater chance of getting margined out on each trade with only 10:1. The CFTC is only out to protect their own interests which is futures traders etc.

[automatedtrading9000]

I honestly believe that if the CFTC further reduces leverage to 10 to 1 people will end up doing much less researched trades and therefore more likely to lose money; if you have to gain ten times as many pips, where can you find the time to research that much; people will only do riskier trades that are less researched and end up losing more money. They would have to gain ten times more pips so i do honestly believe this would be the end result.

[ForexHead]

You are absolutely correct. I do not understand the motivation of the CFTC. It cannot really be to "protect" the retail trader, because limiting leverage will not do that. It will, as you suggest, drive the retail trader offshore or out of Forex trading. What is the REAL motivation of the CFTC? Whom are they really trying to protect? Certainly not the "average" American retail Forex trader.

[haritashi]

I've already emailed and mailed the CFTC and I will also write my state's senators and reps - maybe it will help.

[automatedtrading9000]

The government is happy as hell to use taxpayer money to bail out multi billion dollar banks with Gigantic bonuses to all it's employees and overpay all it's government employees and it wants to hurt the small investor trying to get ahead with the little money he can save from his job. This is absolutely absurd to FURTHER REDUCE leverage. They already reduced it last September for crying out loud.

[arjun12345a]

CFTC is governed by Idiots and dumb fools. We all traders use forex for living. I think they are not happy with this

[arjun12345a]

I did a superb job in the past by choosing brokers from UK. I am proud of myself. Plus, i will make sure now never to deal with any firm in America, because policies of American administration cannot be trusted

[arjun12345a]

We will leave Forex forever if they brought it down to 10. At the same time I will take it as personal responsibility to discourage every other person to enter forex market. Take it as a waring. Dont even dare to bring the leverage down

[automatedtrading9000]

If they take away our opportunities and prevent us from trading abroad i will be livid mad.

[haritashi]

Another problem is getting an overseas account might not help because I've heard they might block US residents from being able to get an overseas account and not let them keep their existing overseas account. Then the only way we could trade is to just leave the country, which I might do anyway since we seem to be losing our freedom here day by day anyway.

[arjun12345a]

haritashi-If wotever you are saying is right, then it will be better to leave united states

[FastPips]

I feel they are trying to "scare" us with this shocking recommendation, but will "settle" with 50 or 100:1 in the end as a "solution". This will still hurt those who use 200 or 400:1. That's why I never got registered with the US and only trade overseas. Nice video.

[automatedtrading9000]

It's already reduced to 100 to 1 and in other pairs 50 to 1 like with the EUR/US pair; that already happened last summer and now they want to guarantee that no one can ever make a decent annual return by reducing it to 10 to 1 leverage.

[fxbootcamp]

This is true. In the United States, the CFTC has already impossed a leverage limit of 100 to 1 on all major pairs and 25 to 1 on all other exotic pairs.

[Camilo2002xxx]

Very well said Wayne. This stupid measure will only promote US based traders to open accounts based somewhere else.

[gkaya]

Wayne,

While I agree with what you have said, one more thing could be added which is CFTC's decision may intend helping others, it also removes responsibility of OTC traders a lot. It sounds like its a reaction based decision instead of a a "sound" decision. Glad to be Canadian in this case.

[automatedtrading9000]

Tell me why is it that the government pays all it's workers exceedingly high wages and it has to buy new cars every year for no apparent reason; it does all this and at the same time wants to squash my trading potential with just a few hundred dollars in my account. This is the worst idea i have ever heard of in my entire life to reduce leverage to 10 to 1. If they don't cut government wages by 90 percent but they want to cut my trading potential by 90 percent; i'm so friggin tired of this.

[haritashi]

I've sent and email and a letter to the CFTC voicing my opinion about this and protesting this oppression. I don't know if we can really stop it though. They are highly motivated to get rid of forex to help their buddies with interests in futures so then they want people putting their money into futures and not forex. Wish there was a separate entity that only regulated forex so that it would be in that agencies interest to keep forex healthy - but that will never happed so we are hosed.

[automatedtrading9000]

Why don't they get rid of stock dividends, options trading, the futures market, and company bonuses too; if they don't want anyone to make any money they might as well get rid of everything. I will personally be irate if they make this change.

[automatedtrading9000]

I think the changes implemented in the forex last September to limit leverage to 100 to 1 have benefited my forex trading and studies in China have shown that traders benefit from that; however i STRONGLY DISAGREE with them reducing leverage to 10 to 1; that would be completely unnecessary and i would definitely look to get an account in another country. The U.S. is so backwards when it comes to giving citizens freedom to make money; you can't even have a good managed forex account anymore.

[sniperforextrader]

echshmidt said -"essentially destroying the retail market in the us"...I resume all those rules to that phrase...they are destroying the retail market and with it the dreams of many of us.

[haritashi]

You want risk? Try putting your money in the stock market - why don't they shut that down? What happened to this country? Every day we lose a little more freedom. Even communist countries let their people trade. This is insane. The founding fathers would be appalled at the loss of freedom this country has experienced in the past 10 years. LET THE PEOPLE TRADE!

[echschmidt]

wayne

great points

well presented

somehow the powers at be think that they are protecting forex traders by essentially destroying the retail market in the us

again thanks

[knoxxa]

Thank u

[jwfundsd]

Thank you Wayne for posting this video. I agree with you and already sent an e-mail complaining about this.

[Mattwomack]

JM 4X Thanks Wayne, I agree, does this get passed by Congress/ Are we still a Democracy?

[shider21]

Thanks wayne. Im just a very small trader who needs a good deal of leverage to make any kind of money. all this will do is as exactly as you said large accounts will just transfer there money off shore with little more than a trip to the bank and post office

if you read this please email the CTFG against reducing leverage

[denniscye]

Bye bye US brokers

[jlshotpost]

Perhaps the CTFC and the NFA should place more emphasis on clamping down on the rogue brokers and scams that are literally sucking this industry dry before they pass judgement on the rest of the trading industry who generally take a responsible approach to trading with leveraged accounts and who use and follow the conservative methodology actively promoted by companies such as FX Bootcamp.

[jlshotpost]

Two excellent points well made Wayne both if which I agree with. This is a very short term view by the CTFC and the NFA should do all they can to apose this decision as not only would it harm the retail trading community but the otherwise fragile US economy also.

[nirgle]

If these proposed changes are designed to decrease risk for the average retail forex trader, consider that in order to continue to make the same amount of money using 10:1 instead of 100:1, they will be required to have 10 times the amount of margin with their broker at any given time.

That would increase the risk of our money disappearing literally overnight in the event the company disappears, rather than disappearing slowly over time like it happens to 95% of us now.

[z978ady]

Dukas in Switzerland and Alpari in UK?

[SpacenJasset]

10:1 Leverage seems rather severe I hope the CTFC dont do this. I cant really see what material advantage there could be by a move. Along with the NFA changes it all seems to be quite a disaster. Lucily, I live in the UK and can utilise 500:1 leverage. That's irrelevant though, as my trading is always risk managed to between 1-3% and so I don't have to consider margin requirements. But 10:1 means you have to risk less per trade, even if you are more experienced.

[mutronium]

i agree... this law if passed will only make american traders less safe by driving them to juridictions that don't have cftc protection and it will destroy the retail forex market in the u.s.

[lilmurfer]

thanks

[steven2hearts]

Couldn't agree with you more! I moved my account off shore when they made the hedging restrictions. This new proposed rule will only hurt brokers and jobs here in the USA. They just don't get it - the government is not supposed to be our nanny. They'd better learn this lesson soon or 2010 will be a bloodbath for the dems. Get out of our lives and let the individule decide what risk they are willing to take or not. Pure and simple, it's none of the governments business!

[bluestar007]

It's not about them not understanding this, it's that it's very profitable for them to do that, since growing their bureaucracy grows the pockets of the select people who are in those roles. You are naive if you think the government will simply "understand" that they should not be interfering too much with people's affairs. It's all about the people - if the individuals, collectively, allow them to do that, they will take as much as they can.

[HeliFreak42]

I will absolutely move my money offshore if this passes.

The government has to stop these stupid and intrusive policies. I have the freedom to spend my money how I see fit.

[dtraindoes]

Did you write a letter to your Congressman?

[MsDawdawdaw]

10:1 leverage is enough!

[Scarlett1214]

NFA/CFTC is NOT interested in protecting the retail trader Not only are they going to push this down our throats but as of April 1 they are going to bully the offshore brokers to hand over the names of US traders just as they did in Switzerland last year They will harrass the offshore brokers to the point that brokers will close the accounts of US traders putting us virtually under house arrest

Read the account of FXCM and why they closed all of the accounts of traders in BC, Canada

[nihilistcat]

@Scarlett1214 oh my GOD, THIS IS CRIMIINAL HOW DO WE STOP THIS BULLSHIT? EVERYONE READ SCARLETS COMMENT

[rodelcarpi]

Thanks Wayne i hope they consider your opinion and forget about that.

[kendallco]

Yes Wayne... I agree with you on this one.

Fortunately my forex broker has an office in London and it is very simple to transfer my account..

To bad CFTC is not more responsive to constructive criticism from their paying customers!

[domg1955]

I'm going to transfer my account to the UK. The last change on margin req now 10-1? Let me lose MY $ my way. Thanks Wayne

[Dresden718]

Thank you for making this video. Keep up the good work. I love the work you and FXBootcamp do.

[Crantube44]

Very good video, this leverage adjustment is totally overboard and will actually drive tons of money away from the US. Don't like 100-1? Ok move it to 50-1 then. Anything beyond 50-1 will cause a mass exodus of US forex traders to foreign brokers for certain where novice traders will end up quite often with shady brokers to begin with. Dumb Dumb Dumb idea this is, it's so overboard it's comical.

[kirilpc]

tnx :) Im from Bulgaria and I trade with leverage 1:500

[fxbootcamp]

I recommend that you lower your leverage... just not to 10-to-1. But that is just my humble opinion. May the pips be with you. - Wayne McDonell

[Puma2113]

Cheers Wayne for sharing your voice. We agree with you 100%

[cliffvitale]

Thanks for speaking for us  .