Interesting you are all going to put your money in a brand new forex company? I would rather move it to some known company listed by Clint. Brand new companies are often scams and Tallinex will not be responsible if you get scammed. They simply offered you an alternative since they were tired of US regulations and told me so in a chat. They told me they can open an account for me since I live overseas. But for you resident in US it’s not possible anymore.
Wish you all the best.
i hear ya, timAllen. i’m definitely a little bit nervous about it. but i’m considering it because it’s the broker i’m finding that gives me 1000:1, with .01 trade sizes, and 0% hedged margin. those conditions MAY give me a chance to scrape a couple pennies over time with room to not have everything stopped out or margin called. i dunno. new guy here, as mentioned.
that’s why i was asking if anybody had any concrete experience with being scammed. i realize it IS out there, but is it out there and commom.
Yeah, but “micro” accounts are a rip-off, although I haven’t seen their terms. Needs to be a variable spread ECN account plus commission to satisfy my preferences… If the micro account were like the “real” or “pro” ECN accounts, then it wouldn’t need to be called a “micro” account… LOL
EDIT: Yes, I see the “micro” accounts have a minimum of nearly 2 PIPs spread, with commission included in the spread. They do have a “minimum” funding for their “standard” accounts of $2,000 but that’s nonsense for testing and verification purposes, and everything is negotiable…
hyperscalper
hey hyper. i wanted to send you an email and not bug the thread for this, but it won’t let me until i post 17 more messages.
anyway, as a newbie, i was hoping you could post or email me some of your experience/reasons why i should avoid micro accounts. i really don’t know these things and getting nervous that maybe i’m not ready to start if i’m missing the obvious.
No problem. It’s just basically what I alluded to previously, and most “non-newbies” already know; which is just that, in this case, the spread is a minimum of 2 pips or so (usually that means EUR/USD which is always one of the tightest spreads), and if you’re looking at some less common Forex pairs, such as GBP/NZD you could well be looking at 10 pips or more (I have no real idea) with an arrangement like that. Consider that with a “real” variable spread account, with commission separately charged, that a single PIP can pay your commission fee. Therefore, you’re at such a huge pricing disadvantage in the Short Term. However, this disadvantage washes out if you’re doing medium to longer term trading where the Spread versus your Target distances ratio becomes vanishing small.
Micro accounts are for “newbies” who are probably doomed to stay in that category and wash out anyway. Brokerages offer this because some traders weirdly don’t like the idea of paying Commissions, but equally weirdly are happy that it is built into the spread. Cuckoo !!! With EUR/USD on a decent ECN like Tradersway, you’re looking sometimes at 0.3 pips spread or something like that, instead of 2.0 pips or more. As I said, with tighter pricing like that, if your Commission (round trip) works out to the equivalent of maybe 0.7 PIPs, then the market needs to move only 0.7 + 0.3 PIPs for you to pay your Commission from the Net profits. Remember, you Buy the Ask price, and Sell to the Bid price.
We were all “newbies” at one time !!! That’s what this forum is for !! Don’t stay a “newbie” for long, and “learn to trade”. BUT, let me point out that there’s no “learning to trade”; rather it’s a complex accumulation of experience, and maybe an edge, which is a learning curve that never stops…
You might say that any “real” trader is a humble trader; or he’s full of it !!! Trading profitably for a living is, IMHO, one of the most difficult businesses, but potentially one of the most lucrative as well for the select few who can systematically “figure it out”… 'Nuff said.
hyperscalper
thank you for your time and explanation. especially concerning the fees built into the spread vs. commission per trade. your time is much appreciated
I have visited the site but can’t seem to find any list of what CFD’s are offered? Does any one know if they offer indices? DAX? Bonds?
Thanks in advance.
hey dude. and happy springtime to a fellow chicago area resident.
i don’t know the answer to that. i find CCM’s website a little bit lacking also. i would try 2 things. open up a demo account and see what’s offered to trade. or email them. they have responded to several of my emails in very timely fashion.
in fact, i’m gonna quote one of their emails here in a second. i apologize, enochbenjamin, that it’s not concerning your question. but in reference to earlier discussions on this thread, i’m only pointing out that capital city market’s leverage computation system seems to be e-x-a-c-t-l-y like tallinex’s. when i emailed CCM asking if the advertised 1000:1 leverage applied to all account sizes, they responded:
"Hello,
Leverage options available are from 1:1 through to 1:1000 for Micro accounts (the default is 1:400) and from 1:1 through to 1:500 for Standard accounts (the default is 1:200).
You can find more information about our account types from our website Capital City Markets – Welcome to Forex under the “Accounts” tab. There you can choose an account that meets your needs.
In order to allow leverage above the default level, our system needs to assess your trading and determine how much of a financial risk it poses in the event of large weekend gaps, significant news events, etc. In order to reach a conclusion, things like your account balance, trading style, average floating P/L and whether positions are held over weekends are considered. The assessment is ongoing and reviews activity over the most recent 30 trading days. The maximum leverage available to you based on the latest assessment can be seen if you hover your mouse over the Leverage field in your profile. Please note that there is no option to request higher leverage than our system has allowed
Regards,
Support"
I did just what you said and got a response in about 10 minutes. If anyone else is interested, this was the reply:
Hello,
We offer:
AUS200s
SPX500s
US30s
FRA40s
GER30s
Regards,
Support
Hi All,
What do you guys think of Oanda’s new commission structure? I believe they just announced it in March.
I know they are frowned upon as they jack up their spreads all the time but I am really trying to avoid have to go thru the offshore hoops. Still up in the air about it.
Also looking at TD Ameritrade but have not check out their fees (I believe they are commission based as well?).
I’ve traded with OANDA using their micro accounts for years and am happy with them. You’ve already mentioned the biggest downside, which is that the spread on their micro accounts can get big during news announcements. On the positive side, you can open trades with as little as “1 unit”, which amounts to practically nothing. With this model, you can live trade and scale up gradually without incurring significant losses. This is really useful, because Demo accounts often do not represent actual pricing and execution. The ability to start small with a live account is quite nice.
Another place where they excel is in their API. They have a REST API, which makes it easy to code in practically any language you like without running a proprietary GUI.
The spreads don’t bother me much, since I have started concentrating on larger time frames. Scalpers would be more affected.
Spreads and leverage are going to be a lot better at the top offshore brokers listed here.
If you use MT4 and tight spreads are important, scroll back a few pages and read through Hyperscalper’s posts. Some of the foreign brokers here have excellent spreads, execution, and customer support. You really can’t beat their stats.
Thanks for the input Xana.
I like Oanda, mainly since I have been doing good with it in their demo. Need to check out their new commission structure to see if that would benefit me better though as I like to make several trades an hour. They are best for longer trades probably as you say.
Also looking into TradersWay…one of the two offshore left that seem to be trusted.
Those who are trading with Trader’s Way can sign up with paybackfx.com and get rebates on their commissions.
0.225 pips for currency pairs and 0.003% for other trading instruments.
18.75% of paid commissions for MT4.ECN.
Hi Clint! My existing broker is the one that I found from this list, thank you mate! I know US residents are not allowed trade retail FX outside of the US unless the broker is registered with the CFTC. What happens to the US resident/citizen who doesn’t adhere . I’m not sure about the implication. Just to be on a safe side, I have started trading via Bitcoins. . I read through this entire thread and US bitcoins brokers aren’t discussed much and are not on the list too. Am I missing something here? I think bitcoins are the best way to stay at safe distance from CFTC. Inputs and advice will be appreciated if you guys think otherwise. Thanks in advance
I’m glad that you found our little thread to be helpful.
The CFTC has jurisdiction over forex brokers, [I]not over their customers.[/I]
In other words, the CFTC can attack and prosecute any unregulated broker (either domestic or foreign) which (1) is operating within the U.S. (that is, has a so-called U.S. “presence”), or (2) is soliciting and/or accepting U.S. clients [I]while operating from a foreign country that cooperates with the CFTC. [/I]
Example: A broker domiciled in Switzerland would be sanctioned and possibly shut down for soliciting U.S. residents (via a website, print advertising, or other means). The Swiss broker would be attacked by the CFTC [I]in coordination with the Swiss regulatory authority,[/I] because Switzerland has entered into an agreement, called a Memorandum of Understanding, with the U.S, which essentially says that the Swiss will enforce U.S. regulations against Swiss brokers in cases involving U.S. clients.
And Switzerland is just one of a long list of countries that have entered into these Memorandum agreements with the U.S.
Nasty buggers, these regulators.
The U.S. residents who opened forex accounts with this Swiss broker (in our hypothetical example) would not be pursued, charged or prosecuted by either the CFTC or the Swiss regulator, because neither the U.S. nor the Swiss has any authority to do so.
Bottom line for U.S. forex traders: The only risks associated with opening an account and trading with an offshore broker which is not CFTC-regulated are (1) that the offshore broker will yield to threats and harassment from the authorities in the U.S. (or in their home country), and close the accounts of their U.S. customers, or (2) that [I]the CFTC’s ongoing attacks on money-transfer mechanisms[/I] will become so burdensome to the offshore broker and to their U.S. clients, that the broker or their clients will simply give up, and close the U.S. accounts.
When the broker/client relationship between an offshore broker and their U.S. clients breaks down, and the clients’ accounts are closed, it’s generally the case that prior notice is given to the clients, and arrangements are made to return deposited funds to the clients or (with the clients’ approval) to another offshore broker willing to accept these U.S. clients. (See, for example, the recent case of Tallinex closing all of their U.S. client accounts and offering transfer to Capital City Markets.)
Such an outcome is likely only if the offshore broker (Tallinex, in this case) is honest and reputable —
[B]— and finding such honest and reputable offshore brokers is what this thread is all about.[/B]
Bitcoin did not exist when this thread was started 6½ years ago. When Bitcoin was invented and became talked-about, it was viewed with suspicion by many people. Eventually, a number of threads on the subject of Bitcoin sprang up here on Babypips, authored by people enthusiatic about the new crypto-currency (as well as a few people with commercial interests in promoting Bitcoin). Discussion of Bitcoin on this thread came a little bit later, and has generally been subdued, but increasing.
As the CFTC continues to orchestrate U.S. government attacks on intermediary banks (and other money-transfer businesses) which facilitate the movement of money to and from offshore brokers, alternative forms of money and alternative methods of moving it around will become increasingly necessary and popular.
If you have found Bitcoin to be your best option at the present time for dealing with your present offshore broker, then by all means use it. But, don’t be shocked if, sometime in the future, you read that the CFTC is attempting to interfere with your Bitcoin deposits and withdrawals.
Our fight with the Nanny State is an ongoing fight.
Unless and until the U.S. Congress and the U.S. president take action to bring the CFTC to heel, we will continue to slide down the slippery slope that we are on. That slope is nothing less than the CFTC’s campaign to become the World Forex Police, and to destroy off-exchange forex trading.
That’s as deep into my rant as I feel like going at this particular time.
Good luck to you. Thanks for posting here. Keep us updated on your success with Bitcoin.
.
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capital city markets upadte: my account will be move from tallinex to this company on april 23 i also found out credit card and debit card funding will not be available for u.s. residents
Hello moe41,
I have experienced that as well. It seems that US regulators and CFTC is now going after banks who process credit cards and debit cards and they will ensure that brokers can not take money via the most easy method of payment. Leaving users essentially with Bank wire or other payment portals like paypal, skrill etc…
BUT beware, it wont be long before these payment wallets (who operate in US) will face the same fury of CFTC, leaving the US traders will the ONLY option of using bankwires 
Thank you Uncle Sam (read CFTC) for being so nosy about how we invest our money
Hello Clint,
Like always, this is amazing thread and 6.5 years is a long time to prove how consistently you have been fighting the “nanny state” issue. Kuddos to you for that.
I Think scalpingjack started a very good point.
I have been using bitcoins to transact for my forex account and it has been amazing. No restrictions, no costs, no waiting for bank to release the payments ABSOLUTELY nothing. There is a good reason why Bitcoins are becoming the currency of choice and has been picking up in value.
To clear the commotion about it. US can NOT control your bitcoin movements, because by design its just your bitcoin address (a has code in computer terms) that stores your bitcoins. You can move bitcoins from one exchange to another, or from one provider to another at the click of a mouse and its upto the network of millions of computers that process your request. IT CAN NOT be controlled by US. Infact US regulation has already recognized Bitcoins as a virtual asset.
The U.S. Treasury classified bitcoin as a convertible decentralized virtual currency in 2013.
The Commodity Futures Trading Commission, CFTC, classified bitcoin as a commodity in September 2015.
In September 2016, a federal judge ruled that “Bitcoins are funds within the plain meaning of that term”
So there is absolutely nothin to fear when using bitcoins as a US resident.
Here is a link from Wikipedia that will show you the legal status of Bitcoin by country
Hope my few cents help
And @Clint, I will highly recommend that you make a list of brokers who accept Bitcoins as a method of payment AND that we can trust and / or are worthy of your A List.
A lot of forum members have requested that in the past, and on public demand, I hope you will make the effort of At the very least highlighting the brokers in your A list that DO accept bitcoins.
Many thanks again for your efforts
Cheers !
tradesway still take credit/debit card deposits, they use a company in china who don’t give a damn about u.s. regulation
You were right about FinPro, great customer service so far… They don’t have an integrated processor for BTC deposits, but they do accept it via direct address and use coinbase for the conversion rate. The feed is fantastic up until 21:00 GMT, but this is also the case with the other ECN brokers on the list. Same here, no withdrawals yet, but so far my favorite broker on the list.