I am in the U.S., and I agree with your thought process. However, I see a large problem with getting this to happen any time soon. And you can thank the Nanny-State progressives who feel they know better than us what is best for us. I believe that this particular problem is only a symptom of a much larger problem. I have a sneaking suspicion that their mindset had a large part to do with the CFTC enacting all these laws, and their (the progressives) intent to worm their way into as much of our lives as they can get away with.
I know that tallinex starts a trader out with 200 level margin. My question is how long does it take before I can request 500 to 1 leverage. I am trying to decide between tallinex and tradersway. I have heard good things about both brokerages. My style of trading is daytrading [currently day trading eurfx and emini sp on the cme globex exchange [where I get reduced day trading margins]. So I am wanting to trade forex eur/usd using the same day trading methods. I am always flat and the end of the day and NEVER carry a position over night. So based on this how long would it be before I could get the 500 - 1 leverage
With Tradersway you can choose the leverage you want to use simply by selecting how much you want up to 1:1000. Even profi-forex 1:500, right off the bat. And with either of those If you want 1:200 then just select it in your personal or private profile. I personally like choice and control at least while we have it.
I am currently looking for some assistance researching the legality of certain matters and I know many people in this thread are knowledgeable so hopefully I can get some help with this. Also in the second half of my post I have some feedback on the brokers listed in this thread to help others. I can create another thread if it ends up becoming necessary but I wanted to grab the attention of some of the people that view this thread regularly and for their expertise.
Iâm am looking on information regarding the legal issues in managing other peopleâs money when you are a US resident and they are as well.
-To my knowledge soliciting(aka reaching out for investors) US residents is not allowed. So if you were the manage someone elseâs money it would have been them having an idea about what you do and asking you for your expertise?
Commodity Trading Advisor (CTA) Link for reference
-Trading and managing someone elseâs money could require you to be registered with the NFA though there may be certain times in which you are not required
âSuch as managing fewer than 15 peopleâs money or if a sense if their are friends/family. If not you would then be required to register as a CTA
âIf you were to use a PAMM software, due to the legality of it, you would then be required instead to be registered as a CPO since using PAMM is viewed the same as a commodity pool since all the money is pooled together to place one large order each time.
âWith that being said, this is simply me asking for others thoughts, I would believe if you had access to someones trade account directly and only managed a few peopleâs money at best and tailored the trades individually to their account and received a % performance fee compensation that it would be legal? Or possibly using a MAM software, which unlike PAMM you can tailor trades to each account and the money isnt actually pooled all together like a PAMM
-Also I have no idea how taxing would work on the money in which you are paid from a performance fee though I would believe greentradertax would be knowledgeable in this area when filing your tax return/payment.
As for the second part of my post here is my feedback on some of the brokers currently on the list.
-I have accounts with Tradersway, FxChoice, and Tallinex. I believe once you start to trade in a serious manner and are limited by who will accept you(US residents) you should keep your money in 3 - 4 brokers incase something were to ever happen to your money you would only lose 25-33% of your money.
I personally recommend all 3 of the current trusted brokers to anyone looking to open accounts. On a purely spread/commission based review I believe tradesway edge out fxchoice by a hair and tallinex being in last place.
Swap rates, Tallinex has fair swaps and FxChoiceâs swaps are almost like trading on a swap free account as they are tiny no matter what pair/direction. Tradersways swaps though seem to be quite bad.
All these 3 brokers allow wires going in and out and tradersway and tallinex offer credit card deposits.
Iâve had an execution issue once with Tallinex and a incorrect fill once but after support looked into it, it was taken care of appropriately. Iâve also noticed they have a great support staff in place especially thru their simple live chat.
I am still trying to find a 4th broker but canât seem to find one I like yet. Here are some things I noticed on other brokers in why I wont invest with them.
The brokers below I have never had an account with and you will read why
-AssetsFX, 100:1 leverage after $2,000 account equity. *Pointless
-Profiforex, no wire transfers available, you are at the mercy of what I consider the shady, come n go electronic based companies that one week are available and another week are not. *Pointless
-Sensus capital, I began to look into them to then realize they no longer took US clients
-ForexBrokerInc, They seem to bounce locations excessively, high commissions. Of all the brokers on the list Iâve read the most about them being a market maker and betting against clients, and when a client makes any sort of money they would deny payment and take all of their money citing some irrelevant arbitrage clause. *Pretty close to Pointless
-FxGlory, still need more research on them but I read after signing up your number could be given out to solicitors/spammers. Quite frustrating.
[QUOTE=Em3;713267]
"-Profiforex, no wire transfers available, you are at the mercy of what I consider the shady, come n go electronic based companies that one week are available and another week are not. *Pointless"
They do allow withdrawals of profit funds to credit cards. I deposited $50 and placed a request for a $250 withdrawal to the credit card without a problem. However, u must deposit using cc in order to withdraw that way. If you deposit using moneybookers you must withdraw using moneybookers. However, web money, perfect money, okpay and most others have stopped servicing US customers but still do business with most other countries.
Our system profiles your last 30 calendar days of trading, so itâs basically a month to get the maximum permitted leverage via the automated system. If youâre in a rush and can confirm âsafeâ money management then we can offer a manual uplift to 1:300 on Pro and 1:600 on Micro while you build your initial history.
That is not quite correct. A PAMM (as Tallinex operates them) is not a âpooled accountâ i.e. all the money is in one single account where only the manager has some inkling of the relative shareholding. The PAMMs that Tallinex offers are âvirtualâ master accounts that reflect the total deposits of all connected slave accounts being managed. At no time are any client funds pooled together.
Think I read somewhere that then you are locked into the 1:300. So guess I would have to wait the 30 days as I want 1:500 leverage. Perhaps I will open 2 accounts with each broker. Thanks for your reply to my request
You should not consider any âadviceâ you get from this thread as totally concrete without first checking with an expert who works in the field you want to know about and who is also legally able to operate in that capacity where necessary. If you want to know your countryâs laws on a specific topic, talk to a lawyer in your country that works in the specific area you are curious about. If you have financial questions, talk to someone who is competent to do so, so you do not run afoul of your governmentâs legal and financial rules and regulations.
Youâre only locked at 1:300 until you asked to be unlocked. If youâre trying for higher leverage then itâs a good way of getting a temporary boost while you build up enough history to be profiled.
Does your service offer futures?
No - only spot Forex, metals and Bitcoin.
[quote=âBabypipsrocks,post:3204,topic:35612â]
From Profiforex âYou can withdraw the amount between $35 and $250â for creditcards.
What am I to do on a $5000 withdraw? Process 20 withdraws? Seems ridiculous. Not even getting into the 3.1% withdraw fee lol.
Problem is the NFA views this as a pooled account in a sense requiring CPO registration.
âThe placement of trades based on the âmasterâ accountâs equity, as opposed to individual account equity, arguably treats the individual customer accounts as if they were all part of a single pooled fund, while avoiding the required CPO registration.â from a website I found though it is dated.
[quote=âEm3,post:3212,topic:35612â]
You can use moneybookers. Which allows you outgoing limits of $9,000 every 90 days. No option for wire transfer is horrible though. I have been looking into creating an offshore company which would allow the use of any broker you wish but with all the new regulatory demands and conflicting info on the web, having an attorney set everything up seems like a must if you want peace of mind.
The relevant section appears to be this:
According to NFA, below are a few highlighted reasons as to why PAMM models, most notably the aggregator model, do not always result in the âfair and non-preferential allocationâ of regularly offered and tradable sized lots/contracts to each customerâs individual forex account as required under NFA Compliance Rule 2-10:
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Many CTAs are determining the quantity of lots/contracts for a bunched order based on the âmasterâ accountâs equity, as opposed to the amount of lots/contracts that would be allowed based on the margin equity of an individual account. This is a problem in NFAâs opinion because the available equity in some individual accounts might be too low to place a trade for a regularly offered lot/contract size.
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The placement of trades based on the âmasterâ accountâs equity, as opposed to individual account equity, arguably treats the individual customer accounts as if they were all part of a single pooled fund, while avoiding the required CPO registration.
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Increased restrictions are imposed on individual account holdersâ ability to withdraw funds due to issues in offsetting large positions of the âmasterâ account.
The arguments against the NFA are as follows:
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the PAMM system offered by Tallinex does not âbunch ordersâ - a single order is executed (based on the balance / equity of the master account) and is then proportionally distributed between the slave accounts
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unlike aggregating systems, Tallinex PAMMs allocate trades to client accounts using a granularity of 6 decimal places i.e. the smallest trade size possible is 0.000001 lots
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the same withdrawal requirements apply to PAMM slave accounts as to personally traded accounts and/or accounts connected to trade copiers and trading signals services
The combination of the above features means that each slave account is effectively traded individually insofar as proper account is taken of the balance / equity of each slave account when proportionally distributing orders, and no increased restrictions are imposed on withdrawals from client accounts.
Since none of the detrimental aspects identified by the NFA apply, and since each client account is effectively being traded individually, there seems no requirement to register as a CPO.
[quote=âBabypipsrocks,post:3214,topic:35612â]
Also, you can contact them by phone and ask them to raise your limits even higher if you explain what you are doing. They may ask you for more documentation but they raised my limits to over $40k outgoing for any rolling 3 month period! Not that I will ever use anywhere near that 
Okay, my question⌠Do any of the members on this thread feel confident enough in these brokers to wire them $100,00?? If the sender is no then as a U.S. Based trader what option do I have for setting up a large account like this?
Iâm a bit confused by this statement. Could you clarify? This is my understanding of a standard lot at most brokerages.
1.0 lots = 100,000 units of currency
0.1 lots = 10,000
0.01 lots = 1,000
0.001 lots = 100
0.0001 lots = 10
0.00001 lots = 1
There are exceptions in a few cases, so not sure how you got 6 decimal places, unless it was a typo. 5 decimal places is 1 unit of currency
Are you saying that you offer these trading sizes? 1 unit of currency as minimum tradable lot sizes on mt4? Which accounts allow you to do this? I cannot see it on your website.