Going offshore to escape the CFTC

Broker Discussion Forex Brokers
2705

Update with Tallinex I sent them 2 emails this morning I will keep you update with any news from Tallinex

Hi Tallinex
I was wondering how long is it going to take to receive my credentials for my back office it’s been 4 days since I was transferred from fin FX. I’m still waiting Hope to hear from you soon thank you.

Hi Tallinex
Partnership agreement IB to Tallinex. I signed the proper forms and FinFX send them to you all my existing customers were moved to Tallinex I have not receive credit for my existing customers I’m still waiting Hope to hear from you soon thank you.

2706

Updated. Tallinex reply to one of my emails

Back-office credentials will be sent out within next 12 hours. Maybe even less. Apologies for the delay.
Best regards,
Tallinex Customer Support

2707

I spoke with livechat at 245am pacific time and was told back office credentials will be sent within the next 12 hours~ hope this helps those who are waiting~

2708

Updated. Tallinex
I have received back office credentials as promise. :slight_smile:

2709

Someone has posted a puff-piece about an Australian broker called SynergyFX, in the Forex Broker forum. That post may (or may not) be deemed to be advertising by the forum moderators, and may (or may not) be removed accordingly.

In the meantime, however, I have confirmed that [B]SynergyFX (Australia)[/B] — like all other Australian brokers — [B]will not[/B] accept U.S. clients. So, I have added them to Group 2 of our List.

2710

Updated. Tallinex

Quote Withdrawals CANNOT be processed if there are open positions on the account.

The first issue that I am having with the new brokerage Tallinex, is a restriction with my withdrawals. I have traded with other brokerage and they have not put restrictions on my withdrawals, as long as my funds are available. It seems to me that they are dictating the way I should trade when it comes to withdrawals. My nightmare is becoming a reality transferring from Fin FX to the new brokerage Tallinex.

2711

Leoneverlose- I’ve never had that problem with other brokers. One of them had a cap on the percentage of free margin you could withdraw. Something like 50%- I don’t recall the exact number, but I’ve never heard of that type of withdrawal restriction before. Did they provide an explanation or have a plan to work around it in the future? I don’t want to have to close every position to make a withdrawal?!? I’m going to check that number I mentioned and let you know what it is. Sounds like Tallinex has some work to do on their back office systems!

2712

Leon… it you’re going to make accusations then please take the time and trouble to be factual and not just a drama queen!

We provide all clients with a completely automatic “requests” system for inter-account and account-wallet transfers, and to make withdrawal requests.

That system cannot know what strategy might be traded on a particular account, and therefore cannot know if it’s safe to move funds out of an account while there are open positions.

If you know better then the requests system does include a comments field where confirmation can be provided. In addition, confirmation can be given to our live-chat and/or ticket support staff, who will then override the safety mechanism.

So, not only are we NOT dictating how you trade, we are actually trying to PROTECT your funds.

2713

Hi, Ace

As explained in the reply to Leon, the system cannot know what strategy is being traded and/or how much margin might suddenly be required, so it errs on the side of caution and waits for a manual override or for the account to go flat - whichever occurs first.

I guess we could look at implementing some kind of minimum free-margin assessment, but that would just open a new can of worms - ultimately, whatever we try to implement will result in someone being unhappy… but better that than a margin call or stop-out following the automatic approval of a transfer / withdrawal.

2714

Tallinex- Thanks for the reply. Your policy is sound, if it’s understood beforehand.

I checked with four brokers and all answered that withdrawals will be processed above 100% free margin. One broker stipulated 80% FM.

2715

Hi Tallinex,

Thank you for being so professional and calling me names. When I went to the back office it clearly states withdrawals cannot be made with open positions. Please give me a simple answer, let’s say I have $5,000 in the account and I have $1,000 of open positions, can I withdrawal $1,500 directly from my back office without having to make special arrangements with anyone? Yes or no is my question. Also, I do not need you to protect my funds nor dictate the way I trade. That is one of the reasons why I am trading outside of the USA.

2716

They still have not answwered my email, so I went ahead and had a live chat with them instead. I am still confused regarding the withdrawals. Tell me what you make of this.

Click on the link below for the transcript.

Print Chat Transcript.pdf (87.1 KB)

2717

I have wired $1,200 to [B]Sensus Capital[/B] and will give a full account of my experience with them. So far they mentioned that their maximum leverage is now 1:200 for the time being following the Swiss announcement (1:20 on CHF pairs). Despite their various payment methods listed, only credit cards and wire transfers are available. However, as they comply with US regulations, only wires are allowed for US clients. I also had to fill out and submit a W9.

When I asked the very nice account manager, Lucas, about whether or not I would be allowed to use an account with hedging, no FIFO and leverage above 1:50, he assured me that this would be the case - no restrictions.

I then inquired about the high volume discount on the website and was told my commissions would drop from $10 per lot round turn to $7 if I trade $500M volume per month. On a $1,200 account I don’t see myself trading 250 lots.

From my CNS VPS located in NY4, my latency to the server is 0.75 to 0.90 ms. I will let you know my execution times for actual orders after the account is funded. I like how they provide you with an investor password to a live account right on their website for you to test latency or throw a pending order onto the server. Although I have a live account number, they said they will provide the password after receiving my funds.

From my bank (TD Bank) which has an international office, it seems that my wire to their German bank will pass through a correspondent bank somewhere which will cost me an additional $18.00.

The customer service is good depending on who you get on chat (I liked Dennis as he was very helpful). As mentioned, Lucas the account manager was very nice and tried calling me yesterday while I was at work. He seems very personable and open about the company.

Anyway, while the commissions are high, the spreads are very low. Apparently they are regulated under the Category II License in Malta which prevents b-booking entirely. Likely this is why their minimum deposit is $1,000 and their commissions are a bit higher. I don’t mind at all as long as they will be good. I asked Lucas about any trading restrictions whatsoever and was told there are absolutely none. He has a client who trades 200 trades per minute at times and it is fine. I am assuming that if one sustained such activity for hours at a time they would kindly be asked to stop flooding the server with orders.

Anyway, it has been my experience in the past that the pre-funding experience is very good and then the problems begin thereafter. I hope this won’t be the case.

Will inform everyone as I progress through the process. Hopefully I will be able to withdraw more than I deposit :slight_smile:

2718

Actually, Leon, I didn’t call you names - I commented on your actions… you left a scare-mongering post in a public forum about a non-issue that could have been explained without any drama if you had simply asked our live-chat team about it.

Anyway, to answer your question… for the reasons stated, no - if you have any open positions then the automated system will not process the withdrawal. However, if you include a note in the details field that you are aware of the open positions and still wish to proceed then your request gets flagged for our accounts team who will release it.

This is really no different to submitting a withdrawal request wit other brokers - we simply try to make the process a bit faster for the majority of clients.

Although there doesn’t seem to be a sensible minimum equity / balance / free margin assessment that would work for everyone, this conversation has made me think that an “I accept responsibility for possible stop-out following this withdrawal” checkbox might be a good way of pleasing everybody.

2719

It’s pretty simple and just depends on whether you have open trades or not. In any case, you would create a withdrawal request from the Requests option of the Funding menu in your back-office.

I have NO open trades

Within 60 seconds, the request is processed - the requested amount (up to the balance of the account) is removed from the MT4 account and queued for processing by the accounts department.

I have SOME open trades and I added a note that I’m aware of the open trades

The request will be flagged for our accounts team who will check whether the requested amount (up to the balance of the account) would likely result in imminent stop-out. If not, the withdrawal is released and processed as for “no open trades”. If it is considered that the request may cause a stop-out then the accounts department will contact you to discuss the situation.

I have SOME open trades and I did NOT add a note that I’m aware of the open trades

The system will check the account every 60 seconds until no open trades are found. While that is happening, you are free to contact us to confirm that you want the withdrawal processed, in which case our team will release the request and it will be processed as if there are no open trades.

Hopefully that clarifies the situation.

As a point of note, over the year that we have operated this system, a number of clients have been saved from accidental account stop-out, so I believe the approach has merit, but I will still request that an “I know what I’m doing” option is added.

2720

Hi, Ace

To be sure that we’re comparing apples with apples, could you just confirm whether these 4 brokers provide a fully-automated withdrawal system, or just a web form to request a withdrawal?

2721

Yes you did!!!

I stand by my action. On your back office it clearly states “Withdrawals CANNOT be processed if there are open positions on the account.”

If you’re going to put in place this restriction the least you could do is mention it on your back office. For example, if you have open trades and you what to proceed with your withdrawal you have to make special arrangement with our account team. Right now as it stands in your back office you don’t mention anything about the option of still proceeding with your withdrawal if you make special arrangements.

If that is the case, these clients shouldn’t be trading at all if they cannot complete a simple task that takes no skill only money management and need help from Tallinex team to advice whether he gets stop out or not if he goes forward with the withdrawal. If that is the case it’s outrageous and they should have no business trading the Forex Market. Just my opinion.

That is a great idea. Like I said, if I cannot manage my own account whether or not I could make a safe withdrawal and not get a margin call once my withdrawal is complete I should not be trading the Forex Market.
Having said that, Tallinex I want you to succeed I think you are going to get a lot of business your way. I think you need to fix the little problems like the withdrawal issues. Your platform performs well, your spreads are compatible with the competition, and your life-chat team is very helpful. I wish you the best. I will continue trading with you and that the withdrawal issue gets resolved and I don’t need anyone to tell me whether I could make a withdrawal or not. I am capable of managing my own account and I think that everyone else that trades the Forex is capable as well.

2722

I’ll be interested to hear about your experience with Sensus, Tom. I also opened a live account with them (along with FX Choice), but I stopped pursuing Sensus after they requested the W9 (it’s the principle behind the matter for me). Also, I noticed their spreads were a bit higher than FX Choice’s. Since I work for an large investment firm here in the States, I liked that Sensus Capital Markets was also going to be utilized in house by their asset management leg of the business for global equity/bond trading (we do the same at my company).

I did some digging on FX Choice (incorp/domiciled in Belize) when I received their BIC to send a wire, and the funds are received by a well known bank in Latvia (LTB Bank - now known as Expobank). Surprisingly, this bank actually executes FX transactions as part of their daily ops on top of the standard banking transactions (i.e. deposits, transfers, credit/debt, etc). Financials look good for the bank itself - high capital adequacy/liquidity ratios.

So far, I’ve been impressed with FX Choice’s executions, as I’m a high frequency trader. Based upon my actual fills, I agree they are a true ECN. That became evident during the CHF debacle.

The only complaint I have so far with them is the client rep I spoke with the other night. She literally left right in the middle of our conversation. I’m guessing a bathroom break couldn’t wait?

2723

I want to weigh in here and just say a few things, I think that if customers such as myself who have been forced to find brokers outside of our own country following rules that every trader knows to be the most reasonable, that we have to to some degree accept that “beggars can’t be choosers” and make do with the way companies such as Tallinex do business. I personally am so incredibly grateful for the opportunity to participate in the FX market the way it is most surely meant to be traded that i will gladly close all open positions before making any hypothetical withdrawal requests, not withstanding the concessions obviously made in good faith by Tallinex here in this thread. Final thought…My experience has shown that in any off-setting position environment :51: one trades strictly for equity and not necessarily for account balance, and that being said, closing open positions prior to making withdrawal requests is no burden at all.:smiley:

2724

i second gpcode1’s proposal, risk waiver solves restores my rights as an intelligent economist.