U.S. SEC warns small investors about retail forex

Yep, we heard this before; if somebody loses money somebody has to gain, right? So SEC is trying to protect who? SEC was entrusted to protect investors from Ponzi schemes like the one engineered by Bernard Lawrence "Bernie" Madoff but SEC workers were watching porn movies on their computers and kept their eyes out the market and now pretending to protect the little guy? Give me a break!

Exactly

What's this, to force everybody to buy stocks?

Another example of the "Idiots of Washington" making rules they know nothing about.

Wow. SEC really on the ball aren't they?

If the SEC says so, then it must be true....

It's funny, when you institutionalize something how quick it get corrupted.

UN was put there from the hearts and mind of people after WW2 in an effort to avoid more devastating wars, as a bridge for people to understand each other, and a possible venue to solve issues between nations.

Today it is populated by flyswatting socialists, clogging up Manhattan in "diplomatic" trafffic, that can't be tickeded...and they use it...corrupt people that publically can make deals, like oil for food, but behind the back do profit on it...

They pass non binding resolutions, make the US pay for most of it's activities, but opposes most anything US stands for.

OSHA, was institutionalized as an effort to enforce work safety laws in an effort to make work places safe. Now they raid small mines and workplaces and write tickets for 40-60-80.000 Dollars on petty things, for each visit, effectively killing off smaller businesses. We have a smaller mine in our community, the owner have already had a meeting with the miners, saying that they are doing good, the mine is working and the product is sellable, but if the mine goes under, it is not because of them, or what they produce, government endless tickets killed them.

US Forest service was institutionalized to protect our forest, so we would have a forest for our future. They have protected it so well, that it is almost impossble to use the forest, bars over the road, that opens up on a certain scedule, permits for camping, firepermit, can ony select predesignated camp sites, and you have to get a thick book of rules before you enter the forest...and you can not be in the forest more than 10 days.....your forest.

Everytime you institutionalize something...for our best...it will develop into it's own little animal, that takes over my thinking, doing and responsibility.

As can be seen from this article above, the growth of the government into my life is alive and well.

Well the warning is okay, though it needs to be applied on all avenues of trading, commodities and yes, stocks. I do question however, who it is that is giving the warning. The SEC doesn't have a stellar record when it comes to protecting anyone, let alone the little guy.

Puritan,

To warn is ok, I don't care how may stickers there are on my fold up aluminum ladder...last count is 18 I think....

It conduct electicity, don't stand on the last step, and ...well whatever....

It's when they have prohibited the use ladders, that they have gone overboard, and that is the exact progression of their activities.

It will not come as one sweeping law against using the ladder, it will come creeping up, one piece at a time, until it has reached the point when you can't use the ladder.

One piece here and one piece there.

First they will probably lower the leverage to 2:1...then they insist that anyone that want to trade have to register with them...then they claim that you have to hava a madatory 3 week education before you can trade...then they will enforce to brokers that they have to give them education...then they will issue photo ID cards that every trader have to scan before any transaction...on and on....

That is exactly how a government agency works, piece by piece, until it has reached the point where they protect your forest to such a degree that you can't use the forest anymore.

Jolly,

You have described in nice detail the process of institutionalization. Here is another thought for you. We accuse the current US federal government of being socialist. It is, but I think it becoming more serious. What we are beginning to see is National Socialism. If you want to read the philosophy go and read Mein Kampf. This is what the US is becoming and unless we do a 180 very soon, ...get you big leather boots and be ready to seig heil to his highness King Obama

Puritan,

I have read Mein Kampf, kind of confused book...Hitler should have choosen the medical field and wrote a book about muscle , tendance, and joint pain instead.

Mein Kramp.

Either way...thuse guys were socialists.

Funny in todays language, Nazis are assocciated with right wing activity..they were not, they were socialists....leftists.

Out of Socialism comes Nazism, Communism and all other -ism's.

In the US we are looking at Obama-ism.

Jolly,

Hopefully we can change things on a wholesale level next election, though once it is there it hangs around and becomes entrenched. I would really like to get rid of the Dodd-Frank bill so we can at least trade off shore without having to move there

US is known for its freedom, but i don't see it nomore...

I very much agree that leverage it’s a dangerous think especially if you go
to the unknown but leverage exist since the early days of trading.
Once a famous trader told me “ when you start make money reduce your leverage by ½ and then by ½ again “
But even though when your account is not that big or your broker don’t get less than 1:100 leverage you must use position size methods

Formula for position size:
(Account balance X Acceptable risk per trade %) / (Number of Pips stop loss away from presumed entry price) = ( value denominated in mini lot )

the following site provide an excellent position size calculator
http://www.earnforex.com/position-size-calculator

So protect your self’s .

And remember is not the entry that count but the exits

we the people need to vote and get these people out of office

Guys, hello…
Concentrate on trading, not on this destructive garbage!
They didn’t shut down forex yet, so make money while it is possible.
In this battle we always win, and that really irritates them.
Make them bleed.
Hooray

So why don't they wise-up and allow spread betting in the USA. Then they can't use the excuse that leverage is the big problem? Everyone will be happy then.

SEC is full of flyes! They want us on their back..!

man eat man society...all continue trading anyway...

The one we need to be worried about is the SEC. I think they're criminals of the worst kind. We all know most of what they said here is correct. They just said it to cloak their vampire teeth with nice dentures.

I count some forexbrokers on the above comments. People overreacted to the news

SEC may be true; guys watch out.

All investments have inherent risk. The farmer plants his seeds but does not know what the yield will be. The brokers should be well regulated so that our deposits are safe. Btw Jolly and Puritan it does not matter if Democrats or Republicans are in government. They all work for the money men. Obama-ism is the same -ism that has been going on since the creation of the fed, don't be fooled by them. Educate, educate, educate and be wise.

@ Jolly Roger. I doubt you would find a real socialist anywhere, to be fair to the economics behind Marxism (which incidentally has taught me a lot about capitalism, in the process making a better trader of me, ironically.) I have found that "leftists" are generally those who haven't the marbles to make it in the private sector but with cunning enough to get their hands on the public purse under the guise of caring. Of course, the more they "care", the more they earn, in the process giving them a leg up into a lifestyle where they then hob nob with those who are self made.

traider,

you are doing what very few does, ...read Mein Kampf or Karl Marx and know what they are talking about...

Reading Karl Marx you can find a lot that is practiced today in his teachings, that is today " common knowledge" or "just the way it is"...but are originally from Karl Marx, and Engels.

Lot of that stuff is practiced by many pepole that themselves don't consider them to be socialists.

One concept in particular that I see over and over is the X - amount of money theory.

This is pure karl Marx, it is false theory, economics doesn't work that way, but the idea that it does, is.

Country A is poor BECAUSE country B is rich.

Person A is poor BECAUSE person B is rich.

It assumes that there are only X amount of money, and if someone is rich and someone is poor, the rich stole it , cunned it, betrayed, or scamed the poor out of his share.

Economics doesn't work that way, never have, never will, but with this view, a social "fairness" program can be developed. Social values of fairness, equality and lesser income spread, can them be based on this. Spread the wealth.

It is pure Marx, but ask proponents about it, and they deny hard and firm that they are Marxists.

Many Chinese wish to immigrate to the west. When asked why, the first reason given is usually the quality of our social network, primarily welfare and medicare. The general consensus in China is that the West is much better at socialism than China ever was.

That said, a social network is a necessary evil. And that can only be accomplished by a wealth distribution scheme. One of Marx's main ideas was that Capitalism was caught in a boom/bust cycle. During the bust part of the cycle, that rather than starving the masses would rise up. Some empirical truth here, although history suggests that usually the staving masses lost their war. So we are better off feeding them than fighting them.

Thje boom and bust cycles are all controlled, and easily controlled to that, Marx lived in England at the time, and had probably experienced a couple of boom and bust cycles, and took notice and drew his own conclusions, Privately owned Central bank have been a mainstaple of England for two hundred years.

We are however getting into another subject of Central banking here, but all in all, booms and busts are controlled..easily , and they have their own agenda as to why.

Agreed we are getting pretty far afield, but I would honestly love to know how one controls the boom/bust cycle.

AaronWard,

I think I will direct you to some stuff you need to learn...ok I give a short synopsis on boom / bust, but very scetchy, you need to read up on this later, there is more to it, but in all essence.

Boomtimes...banks give freely credits, lot of money is now out in the economy.

Bust, call in or strangle the credit, and you get a bust economy.

Now...this works in a debt society, where the bank controls the liquidity.

In a society where companies, and individuals have reserve, savings or other easily exchangeable assets this is harder to accomplish.

So if you are a bank, you don't want the market to have their own reserves, you want them to depend on the liquidity the bank gives.

go to YouTube, and look at a series, it is called... :Money Debt and the Banking system.

Watch them all.

And you will get a pretty good idea of who the masters of this planet really are.

( Yes China also have a privately owned Central Bank)

good luck.

Sadly I am in China and youtube is blocked.

nothing wrong in warning people

recently Ive been trading stock options as well as forex.

"The SEC's investor bulletin comes roughly one week after the agency approved temporary new rules that would allow brokers to continue offering retail forex trading to investors until the agency can consider whether to implement more robust investor protection rules prescribed by the Dodd-Frank Act.

A failure to act would have prohibited securities brokers from selling retail forex contracts according to the Dodd-Frank law, which will celebrate its first birthday on Thursday."

Does this mean we cant trade Currency ETFs as well?

"Regulators also have been concerned about the risks posed by the use of leverage, which allows traders to deploy a smaller amount of money to buy currency that is worth more than an investor's capital. The use of leverage, however, can also magnify losses."

Nowdays even stocks offers almost the same amount of leverage, eg. Stock Options and CFDs.......so, whats the difference??

Problem, Reaction, Solution.

All governments work the same routine to get what they want and the public falls for it every time.

Create a problem = Terrorism
Public Reaction = Please Do Something To Stop It
Solution = OK. We Will Invade The Country That Protects The Terrorists

That's not the point. Drinking coke is not good for you, but still allowed. Government should not interfere or intervene (but I'm fine with warnings).
If you make a lousy entry, no exit will save you.

Does anyone know what became of the Dodd-Frank regulation abolishing gold trading? Clearly, it had no effect on most brokers, but is there a threat that this regulation will be resurrected?

Can anyone tell me if retail forex trading is on the verge of being abolished in the US?

AaronWard,

YouTube blocked in China...I'll be darn, didnt know that....why would...oh well...

hmm....

Is there a way where you can go to a server that will, or set it up in such a way that you can go to a place that will relay it to you??

I have heard that there are relly no way to fully block things, and that there are ways around, but I would not know in Chinas particular case, probably there is "know how" that is floating around.

It is probably verbal, and not posted, because then they would plug the hole, so you might want to ask discretely around in your communtiy how you get around it, I am sure there are ways.

All I can say, is good luck on it, me personally I don't have the knowledge, but knowing how they always get around it in other countries that also have censorship of the media, I am sure there are solutions.

Dodd-Frank is just another sham designed to take away your right to decide what is best for you the trader. Soon there will be no Forex for the retail trader & if it is it will require you to deposit a hugh amount with your broker of choice. Enjoy it while you can as the train will soon arrive at the station.
Good trades to you all.

AaronWard,

Seems pretty simple, you can set up a proxy server, and in that way be able to bypass. Go online and find out how to do it, it seems like it is not a bigger problem, and fairly easy to do. Google, Firefox and a lot of other servers can be set up that way.

Thanks Jolly, i will do so. They block YouTube and most international blogs because they fear dissidents might use them.