I partially trade with a US broker in order to have more access and freedom in my choice of investment vehicles. Making 'complex' funds only freely accessible to the elite and exorbitantly rich (like in the EU), whilst creating more and more hoops for regular people, will only limit opportunities for regular smaller investors. I should have the freedom to do with my own money as I wish, without facing discrimination based on socio-economic status. Why can we, without demonstrating financial literacy, sign for a credit card with a 16% interest rate? Or why is such a test not necessary for a pay-day loan? Now, I understand that there are issues with retail investors making bad financial decisions through a mix of poor understanding and choices. However, I know what I am trading as well as what risks I am taking. For instance, I fully avoid leveraging myself despite trading 'complex' funds and financial products. I believe that creating short, simple, easy to digest informative content for brokers to offer regarding, for instance, (inverse) leveraged ETFs could be very helpful in supporting a potentially new investor to understand the risk of the product they are buying. Especially since even the basic concepts are often not explained by people in an easily digested way. But, I implore you, do not limit my freedoms to trade in the financial product of my choice more than they already are. Lastly, retail investors which are seeking a higher risk-reward will more than likely opt for even riskier non-institutional 'investments' if 'complex' funds are limited or blocked to them. See the NFT mania going on right now; there are clear signs of many pyramid schemes taking in many millions of retail money through the promises of astronomical gains. By trying to protect the loose high risk retail-investor from themselves, you will merely doom them to seek even higher risks.
Anonymous Comment On Regulatory Notice 22-08
I partially trade with a US broker in order to have more access and freedom in my choice of investment vehicles. Making 'complex' funds only freely accessible to the elite and exorbitantly rich (like in the EU), whilst creating more and more hoops for regular people, will only limit opportunities for regular smaller investors. I should have the freedom to do with my own money as I wish, without facing discrimination based on socio-economic status. Why can we, without demonstrating financial literacy, sign for a credit card with a 16% interest rate? Or why is such a test not necessary for a pay-day loan? Now, I understand that there are issues with retail investors making bad financial decisions through a mix of poor understanding and choices. However, I know what I am trading as well as what risks I am taking. For instance, I fully avoid leveraging myself despite trading 'complex' funds and financial products. I believe that creating short, simple, easy to digest informative content for brokers to offer regarding, for instance, (inverse) leveraged ETFs could be very helpful in supporting a potentially new investor to understand the risk of the product they are buying. Especially since even the basic concepts are often not explained by people in an easily digested way. But, I implore you, do not limit my freedoms to trade in the financial product of my choice more than they already are. Lastly, retail investors which are seeking a higher risk-reward will more than likely opt for even riskier non-institutional 'investments' if 'complex' funds are limited or blocked to them. See the NFT mania going on right now; there are clear signs of many pyramid schemes taking in many millions of retail money through the promises of astronomical gains. By trying to protect the loose high risk retail-investor from themselves, you will merely doom them to seek even higher risks.