Going offshore to escape the CFTC

Hello Clint, I can’t appreciate enough as to how easily you can simplify most complex of the topics :slight_smile:

For the members of this thread, who have interest in bitcoins, I will share my research again by the end of this week.

Cheers

Yes, PLEASE EDIT THE OP POST. I spent 5 minutes trying to find the misspelled brokerage.

hyperscalper

THIS IS A BITCOIN FUNDED BROKERAGE.
Evolve Markets - Trade Forex, CFDs, Commodities, Indices and Crypto with Bitcoin

(disclaimer: not advertising, and I am not an affiliate)

Update on Evolve.Markets Pricing for major
Forex Pairs, with focus on Bid/
Ask spread. Note
that this is during the U.S. session so it
will reflect wider spreads than during the
London session, of course. :slight_smile:

Order Operations elapsed times are
under 300 milliseconds. (Includes Ping times from
my Amsterdam VPS server to their server
is 77 milliseconds.) So 300 - 77 = 223 milliseconds…

hyperscalper



Evolve.Markets (BitCoin funded)
    Major Forex Spread Observations
GMT 19:15 Thursday May 25

symbol min , avg , max spread pips
AUDCAD, 0.4 , 1.0 , 1.4 #
AUDCHF, 0.4 , 0.7 , 0.9 #
AUDJPY, 0.7 , 1.0 , 1.2 #
AUDNZD, 0.4 , 0.9 , 1.3 #
AUDUSD, 0.2 , 0.3 , 0.6 
CADCHF, 0.6 , 0.9 , 1.2 #
CADJPY, 0.6 , 1.1 , 1.3 #
CHFJPY, 0.9 , 1.2 , 1.3 #
EURAUD, 1.0 , 1.2 , 1.6 #
EURCAD, 1.1 , 1.5 , 1.9 #
EURCHF, 0.3 , 0.5 , 0.8 #
EURGBP, 0.1 , 0.3 , 0.4 
EURJPY, 0.1 , 0.3 , 0.6 
EURNZD, 1.3 , 1.8 , 2.2 ##
EURUSD, 0.1 , 0.1 , 0.2 
GBPAUD, 2.7 , 3.5 , 3.9 ####
GBPCAD, 0.7 , 1.7 , 2.3 ##
GBPCHF, 1.8 , 2.2 , 2.6 ##
GBPJPY, 1.2 , 1.4 , 1.8 #
GBPNZD, 3.6 , 4.1 , 4.6 ####
GBPUSD, 0.4 , 0.6 , 0.8 #
NZDCAD, 0.6 , 1.3 , 1.8 #
NZDCHF, 1.1 , 1.4 , 1.6 #
NZDJPY, 0.7 , 1.1 , 1.3 #
NZDUSD, 0.6 , 0.7 , 0.8 #
USDCAD, 0.4 , 0.7 , 1.0 #
USDCHF, 0.1 , 0.2 , 0.4 
USDJPY, 0.1 , 0.2 , 0.1 

LOL, sorry about that, didn’t realize misspell it, it’s fix now

Also i edit my review about their withdrawal fee, on their sites, it said that withdrawal on pro accoount is free, so i thought that when it arrives it got deducted $30 fee, and it’s from my bank, turn out, my bank later on charge me $16, so when they said it’s free, it’s not free for withdrawal, in fact more expensive than FXChoice

I have been trying out LMFX for about 20 days and thus far I must say there are NO problems. I will be requesting my first withdrawal tomorrow and will let you know how that experience goes.

Positives: Can trade ETFs and Stocks as well as Indices’s and forex. Low margins. Flawless execution.
Negatives: Can only withdraw via Bank transfer

Bonus: They advertise free VPS. When I queried customer support I learned that it is not set up yet and they referred me to fozzy.com which is in the Netherlands and they say is the closest to their data. Fozzy is the cheapest VPS I have encountered and I will be giving them a try. Support informed me if certain conditions are met they will refund VPS fees.

I will let you know my vote for preferred status at the end of next week.

Free VPS is almost never a good deal IMHO. This is not a VPS thread, but it depends how
much “horsepower/speed” you really need. In my case, I’ve said before I’m using
SeedVPS - Linux & Windows VPS Hosting in The Netherlands which gives you “dedicated” CPU and Memory resources, and
is situated in Amsterdam. The problem I find with VPS’s is the lack of Memory. That’s
where SeedVPS really seems to shine.

I use a 4 Xeon CPU system with 8gb Dedicated
resources for $38 / month; and a 3 Xeon CPU with 6gb Dedicated for $28 / month.
Now, these are Windows 2008 R2 DataCenter boxes, which are usually way more
costly than a Linux box. So I think this is a great deal.

But, again, this is for very high performance; which almost seems like you have
a Dedicated machine. I code in Java and measure the latencies when a Thread wants
to run, until it runs; and I haven’t seen more than a 10msec latency. You just don’t
get high performance with some VPS providers; and you certainly don’t usually get
like 6 or 8 GB memory to play with either ! I run dozens of processes, and crank
the CPU utilization to 90% and its consistent. Just my 2 cents, that not all VPS
services give you anywhere near the same “bank for your buck”.

OKAY, this isn’t a VPS thread. Sorry.

hyperscalper

Just to give credit to Joe Carney at TradersWay.com who took note of this video showing the “pause”
in the pricing feed. They had a serious meeting with their technical team, now that they have a bit
more info from the video comparison; and pledge to resolve the “pause” issue to generally improve
their service.

I won’t post the contents of the message; just to say that they are constantly working to improve
their service. They are appreciative of the hard data comparison, so that they can work with their
server technical teams to offer the best service possible.

I continue to keep TradersWay.com as one of my Trusted brokerages; and I can assure you that
if you do have any issues, they are very willing to help and resolve them. As you can imagine,
these offshore brokerages are under Tremendous Pressure with the CFTC “war” against them, and
that they are employees who have their own jobs and livelihoods at stake, tied to the reputation
and the long term success of their brokerage business !!

TradersWay has always shown me that they hold Customer Satisfaction very high on their
list of priorities, and so I think they deserve consideration. This is a lower-cost brokerage, so
we need to consider value for money; and if you do have any issues, as with any
brokerage, don’t hesitate to contact them and see whether they will work with you
to resolve.

Too often, we just “bail out” and go to another brokerage, hoping things
will be better. Just my opinion. “Brokerage hopping” is not the way to establish
a strong relationship. Who knows? If you commit to a brokerage, you may be
able to negotiate certain terms appropriate to a longer term relationship. :slight_smile:

hyperscalper

1 Like

I agree hyperscalper, TW still remains my main broker of choice and am very satisfied with them.

Thoughts on LMFX

First of all, I would like to sincerely thank Clint and all the other contributors here for the incredibly valuable information in this thread. I’m only a couple hours deep into it, but I feel it has already saved me a lifetime of frustration.

I am a newbie here and also relatively new to FOREX despite being involved for about 2 years - I’ve just never really gotten that deep into it. I wanted to give a few thoughts on LMFX and felt that my credentials (or severe lack thereof) should be put out there first.

My original account was with Tallinex, but I was always looking for other possibilities with the difficulties/cost of wiring funds back and forth into my account. I set another account up with LMFX to run alongside my Tallinex one, but with the recent ejection of all US clients, LMFX is my sole broker for now (I just registered with FinPro today).

All of my interactions with LMFX have been great up to this point. I’ve only ever contacted their online chat, but each interaction has been satisfactory and prompt. Others can/have commented on their speed and spreads which don’t seem to be too out of norm either way, but of particular note to me was their proactive approach to fees. My original fundings were international wire transfers from my bank, and LMFX reimbursed me the $30 wire fees that my bank charged each time. All I had to do was forward them the wire receipt showing the charge, and $30 showed up in my trading account a few hours later. They also recently enabled credit card deposits, and I tried several of those. Each time the transaction was fast and free of any fees. My credit card (Chase Visa) also did not charge me any additional cash advance fees. It just showed up as a regular transaction, so I got some airline miles out of the deal as well.

At the time I signed up, they didn’t have their ‘free’ VPS system set up yet, so they recommended Fozzy.com. They offered to reimburse my VPS fees, whether I went with Fozzy or not. Since I don’t have any experience with VPS, I went with the recommendation. My setup with Fozzy is a Windows server with 2 cores and 2GB RAM at $37.40. I’m not sure if this is a great deal or not, but it serves my needs. Also, I send that monthly paid invoice to LMFX, and they credit that amount into my trading account. All in all, it’s a tidy, fee-free account.

Hello, 5ninefish, welcome to the forum, and welcome to this thread.

Thanks for your comments on LMFX.

If you are running accounts at LMFX and Finpro Trading side by side, let us know how you think they stack up against each other.

Also, regarding VPS, check out HyperScalper’s post #4210 above. He mentions a 3-core VPS with more memory (at SeedVPS in Amsterdam), for less cost than the one you mentioned.

Cheers.

BTW, what should we call you? — fish?

.

I’ll repeat my offer on a limited basis, to evaluate free any LIVE MT4 ECN variable spread
plus commission type brokerage account.

Best if you have limited funds, trust me to do the testing, and then change your brokerage
password when the testing is completed. I will make every effort NOT to fill any orders,
unless you request a minimal Market order fill, for purposes of establishing fill latencies.

Your account number will be kept confidential.

Without filling any orders, I can test the Pending Order placement latencies, as well as
the 28 major Forex pairs Bid/Ask spreads statistics. I can also give you an idea of the
tick rates on the 28 Forex pairs.

I can’t test anything other than the 28 Forex pairs. No accounts where commission is
included in the spread and no DEMO accounts, sorry.

AS FOR VPS, if you are just running one or two copies of MetaTrader, then you’re
really not pushing the machine. My interest in performance is because I run custom
multi-threaded Java software with dozens of threads, lots of interprocess communication
and “pools” of MT4 terminal.exe processes. A brokerage-supplied VPS is OK for
just running the MT4 trading platform in a non-high-performance, non-CPU-intensive
situation, as most people would have.

Brokers usually require too much volume, in order to qualify for the VPS they are
offering; but clearly it’s a “mine field” out there with VPS providers, so you really
need to know the basics of system management, unless somebody’s gonna do it
for you.

MY NIGHTMARE: For example, I recently nearly soiled my pants when my 4-Core VPS
was completely CPU-SATURATED !!! No way I can figure out how it happened, but
malware called MinerGate-Service.exe a system service was MAXing out every
CPU cycle I had !!! Believe it or not, it was mining BitCoin using my CPU !!!
Ironic, but completely unrelated to the fact that I recently started dabbling in
BitCoin with Evolve.Markets. A complete coincidence, but quite a ROFLMAO after
I was able to get my heart rate back down again :slight_smile:

Using Sophos, I removed that malware, but managing a VPS
is not for the uninitiated, I can tell you !!! :slight_smile: LOL but, seriously, security is
so important !! Windows VPS is probably the most common, but perhaps the
least secure; and Linux I just love, but so difficult to manage for beginners.

One more tip: If you have a Windows Server, specify that it should be Windows
2008 R2 and do NOT work with Windows 2012 or the latest “fancy” OS’s .
The reason is very important. Your 2 GB of memory can largely be “gobbled
up” just by the OS itself, so stay with the “old” Windows 2008 R2 !!! Most
MT4 traders will be using Windows, and not Linux.

hyperscalper

Haha, well… my username refers to the size and type of surfboard that I normally use as my daily ride - a 5’9" fish. I changed the spelling a bit, so now ‘Five’ should be fine.

I’ll let you know my thoughts regarding FinPro vs LMFX when I get things up and running at FinPro.

As far as VPS at Fozzy, I’m currently only running 4 copies of Metatrader at the moment, and the dual core seems to be handling with zero hiccups so far. It looks like I’m pegged at 50% usage. If things get more complicated, I’ve bookmarked SeedVPS that Hyper recommended and will definitely check them out. I also happened to pick Windows 2008 R2, so looks like I picked well.

Hyperscalper, I can forward you the info to a live trading account, but I think I picked the wrong kind of account. I have the LMFX ‘premium’, and I [I]think [/I] commission is included in the spread. I know, I really should pay closer attention to these kinds of things. My focus on FOREX as part of my investment portfolio is lacking, but I’m working on changing that since I’ve recently allocated so much capital towards it.

[B]Bitcoin[/B]
As far as bitcoin, my experience has been mixed. I got into that a couple of years ago mainly for long term holding with some minor trading. Eventually I switched to margin lending both BTC and USD using bots at Poloniex and Bitfinex due to the decent, steady rate of return offered, but I got bit hard when BFX was hacked last year. I’ve mostly gotten out of bitcoin since then. BFX at the time seemed like a safe, stable exchange, and that hack rocked my confidence in them and in bitcoin in general. Unfortunately that means I liquidated most of my bitcoin right before this recent rocket to the moon. I doubled my money, but the potential to 5x was there if I was a little more patient. BFX has since paid back every penny lost in the hack, so I’ve put more money back in that account for some lending. Rates recently have been ridiculously good due to the BTC race to the top - about 0.2% daily. Unfortunately Circle - my preferred method of buying and selling bitcoin - ceased those operations. Coinbase - my second option for buying and selling btc - ceased operations in Hawaii due to our recently hostile environment towards virtual currencies. Gemini hasn’t come here yet and now they probably never will. I’m going to give bitstamp a try, but I’m not holding my breath. Living in the US is difficult enough with all the regulation, and peanut-brained politicians in Hawaii add an additional level of frustration to the situation.

1 Like

[quote=“MarcinFX, post:4201, topic:35612, full:true”]
You are talking about 700ms, I am saying 7-10sec or longer freezes. When you pull a 1 min chart, you can see gaps.
The last US UNEMPLOYMENT NUMBER, Fxchoice froze for over 10 sec or longer.
I wish I recorded a video. I have never seen it that bad.

With TradersWay we get around 10ms ping, end everything works great.[/quote]

There is another video which shows blatant broker manipulation:

The full article is on the FPA forum. This broker has threatened to sue at least 1 major FX blog for publishing material that made them look bad to get them to remove their article.

$25k you can stay in USA with Oanda’s raw spread acct or even negotiate something with Gain Capital. But if you still want a little bit more leverage, then go with Prime of Prime broker like Lmax and a few others [see below].

Anyway, too bad there are ZERO prime of primes accepting US residents [openly]. I spoke about this earlier and that many of these offshore brokers here are mostly shaky. Can you really trust that they will not trade against you? Can they provide post trade reports showing that there was no conflict of interest?

But more importantly, this running around jumping from one broker to another hoping they will not eventually succumb to CFTC pressure is a fool’s errand. Why not establish residency offshore and then open account that way? A little more up-front effort, but much more permanent approach so you can focus on actual trading and system development. It might be true that CFTC is being an ass, but it is also true that there isn’t much we can do about it. Numerous other legitimate brokers from late 2010 all the way until now have determined that it was not worth the risk. I like the spirit of the thread, but from a practical standpoint you are fighting an uphill battle. It was the same with online poker gambling.

As you can see as of 30 May 2017, CFTC is officially targeting Tallinex. That might have been one of the few offshore retail brokers worth considering (there are only a handful).

and if you are going to go ahead and establish residency offshore, then you may as well just go all the way and register a private foreign equity fund instead, then you can focus on get a few decent LP’s then you are all set.

The issue of being a U.S. person is independent of country of residency.

The U.S. taxes citizens on worldwide income.

hyperscalper

P.S. and while I am at it, may I say how awful the website upgrade is… I
have sent feedback (when I could find the feedback link) and I hate
the “infinite scrolling” and so… change is good but GRAY text on a
WHITE background is only the start of the issues; navigation for forum
topics is, it seems to me, just broken; as compared to the “old site"
for forums. Sorry for putting this complaint here.
[edit] The panel for entering this reply was literally JUMPING UP AND DOWN
in Forefox… After I entered the text, I hesitated to click the Reply icon since
’would I be generating a reply to my own reply? before I even entered
my own reply?” I asked myself ?? awful. What happened to “Submit”?
[end of edit]

2 Likes

Personally, I started my trading with Forex brokers not long ago. At the very beginning, it was a little scary as I didnt know whether I should trust these people and if it would really work. After checking all the information on [URL blocked] I stopped cherishing a hope and took a chance. Now Im sure that there work reliable and competent people. Thanks to the guys.
Check it out and share what you think

[quote=“4evermaat, post:4456, topic:35612, full:true”]

… As you can see as of 30 May 2017, CFTC is officially targeting Tallinex. That might have been one of the few offshore retail brokers worth considering (there are only a handful).[/quote]

Thanks for posting that link.

The CFTC has finally gotten around to announcing their attack on Tallinex —

CFTC Charges Estonian Company Tallinex with Fraud and Failure to Register as a Retail Foreign Exchange Dealer and Nevada Company General Trader Fulfillment with Failure to Register as an Introducing Broker

I’ve been hoping that Christopher Giancarlo might bring the CFTC to heel, and stop their bullying of offshore brokers. But, I guess that hope was naive. It looks as if the only thing that’s changed at the CFTC is the name on the Chairman’s door.

In a sane world, Tallinex would just tell the CFTC to piss-off.

“CFTC Charges Estonian Company Tallinex with Fraud and Failure to Register as a Retail Foreign Exchange Dealer and Nevada Company General Trader Fulfillment with Failure to Register as an Introducing Broker”

I was saddened to get this announce, since I am also on the CFTC enforcement mailing list; but my question is really what is “fraudulent” about Tallinex’s or any other broker’s operation? Who is being misled? Just wondering…

hyperscalper

(couldn’t figure out how to quote, so I just cut 'n pasted and put some “” marks around it…)
Then I “replied” to my own “reply” and so it was submitted, under this new “regime” :slight_smile:

Hi,

I think I stumbled across a broker which will accept U.S. persons.
Apologies if this has already been covered previously…

GBE Brokers

As described in the below link,
using MT4 id 10008 and the server GBEbrokers-Live
which is easily looked up by server name, using "Open an Account"
and then “+ add new broker…” to select the server, in your MT4 platform…
(the 10007 account mentioned did not function for me)

https://gbebrokers.com/en/account/account-types/

We can observe the feed and spreads, which appear quite reasonable.

“Server location
The trading server of GBE brokers Ltd is located in Equinix LD4 data center, which is used by all leading banks, liquidity providers and prime brokers in the FX industry. GBE brokers Ltd works with a direct, cross cable high-fiber connections to all liquidity providers to easily offer our customers the lowest execution speed (latency), which is physically possible.”

taken from here:
https://gbebrokers.com/en/company/why-gbebrokers/

I do not have an account there, so can’t tell you about scalping latencies, or
any further details on this broker candidate. There was NO OBVIOUS
disclaimer concerning exclusion of any client based upon country;
that’s all I know right now.

[EDIT] I see Clint has GBE Brokers on the list which does not accept U.S.
clients, so apologies if this is still true…

[EDIT2] I chatted with their rep, who will check with their compliance department
about U.S. persons, and get back to me…

[EDIT final] further down is my post confirming they DO NOT ACCEPT U.S. Persons
at GBE Trading. Sorry.

hyperscalper

1 Like

Hi all,

I want to first begin by thanking Clint and Hyper for all the tremendous work and research they have put into this forum. I have saved hours, and it has been ever-so helpful!
I’m new here, but not totally to the FX world. I’m well into my 3rd year trading overall and almost a year into FX. I’m a resident of the U.S. and had been using TradersWay, with no issues, for the past 7+ months, until they just recently notified me (6/17) that they could no longer service my states’ (MO) residents in the U.S. This comes as a surprise to me, as I have stated, I haven’t had any issues with TW and the customer responsiveness was always on point.
As of this week, with some thorough browsing of this list, I’ve concluded to give FXChoice a try. Just awaiting the verification process now and should be good to go. Will update*

Pj