User 339040

Proposed 0.25% Trading Fee Per Transaction - A Bad Idea

It depends if it's a fee based on the total proceeds of a transaction.
Let's look at leveraged futures contracts:
For example, a S&P 500 emini fufutes contract is worth about $40k per side or a total of $80k for a round trip with the 50 miltiplier. So 0.25% fee for the total transaction is $200.
No trader would ever trade this vehicle again .... NEVER.
It's the most popular contract in history and the CME, NYMEX and others would be wiped out overnight.
If this is indeed the proposal, NO trader can "adjust their strategy" to counter this and 200,000 traders are gone from the USA overnight.
This would crash the entire financial system, and would make the Bank and Real Estate problem look like a picnic.
Again, if it is indeed a fee based on proceeds then it must have taken a real moron to ever conceive, let alone consider this rediculous notion.
I would like to see the Gov't ruin a 4 trillion dlooar (a day) industry with something as rediculous as this.