I have enough confidence in Tallinex to wire them that much money, pjjenson, if for some reason I felt compelled to open an account with that much money. A real human really does answer their New York telephone number, which would come in handy to close a trade if your computer suddenly malfunctions. Apparently you have enough self confidence in yourself to make consistent profits, overall, trading currencies or metals, from prior trading experience. So congratulations on that. I’ve never tried managed accounts or automated trading, though, in case one of those is your approach to trading.
As for myself, I’d normally first send $25,000 to Tallinex, then within days withdraw about $24,000 to see how well they return your money. If all goes well , then I would deposit the rest of the money.
Anyone have any resources or knowledge on how possible it is to use an international business company registered offshore to trade with offshore brokers that do not accept US residents?
It wasn’t a typo - the minimum lot size for managed accounts is 0.000001 - it isn’t available for standard accounts, which is why you can’t see it on the website.
Thanks for the support, Compounder - much appreciated. I’d only state that we really don’t like to see this “wire $x then request a withdrawal within a few days” advice for two reasons:
it’s a completely pointless exercise - if there were really any withdrawal issues then this thread would be lighting up like a Christmas tree (as would FPA and other forums)
wiring money in then almost immediately requesting a withdrawal is a red light in terms of anti-money laundering legislation, and Tallinex is obliged to report any “red light” events to the authorities who will then decide whether to investigate further.
In terms of AML, companies are not given license to decide whether a transaction is a possible laundering attempt - they are simply required to report any transaction that has certain characteristics, and “wire in then wire out” is right up near the top of the list.
Using an offshore company in order to trade with a brokerage otherwise unable to accept US residents is certainly possible, but it depends on how strict the broker’s regulator is. Since the shareholder(s) and director(s) must be disclosed, a broker may still refuse to open an account for the company if their compliance team considers it a regulatory risk and/or may involve a FATCA disclosure.
Unless there’s an absolute need to trade with a particular broker, it’s much easier and significantly less hassle to open an account with a broker able to accept US residents… Tallinex, FxChoice and TradersWay are all “Trusted broker” options for that.
For now that is true we do have a few good options however, I am concerned about when the few left also succumb to regulatory pressure perhaps even as soon as 2016 or even payment systems themselves all abandon US customers as some (okpay, webmoney, perfect money and others) that already have
It’s always possible that certain jurisdictions may change their stance regarding Spot Forex. Finland and Estonia both did, but that was more driven by a need to comply with an EU view than by US pressure.
The fact of the matter is this: when there are only a few offshore brokers accepting US residents, those brokers have a very significant interest in being able to retain that business, so they will take whatever steps are possible i.e. relocating, should the need arise… and there are still several jurisdictions that don’t consider Spot Forex a securities product.
That means options will be open for some time to come.
As to the issue of payment systems, although various regulatory reasons are generally blamed for withdrawal of services to US residents, the primary reason is actually fraud.
Since the majority of online payment systems are initially funded via cards, they simply don’t want the aggravation of dealing with the excessively high volume of fraudulent disputes that result from dealing with US clients.
It’s now reached the point where individual US banks are being blacklisted by payment service providers because they fail to do any form of due diligence before proceeding with disputes, meaning that no card issued by that bank will be accepted - no matter which of that bank’s clients tries to use it with a given PSP.
From a PSP’s perspective, each disputed transaction requires several hours of documentary work to defend but, more importantly, each dispute (whether upheld or not) moves them one step closer to appearing on the Visa / Mastercard network blacklist and each upheld dispute (whether warranted or not) moves them one step closer to being dropped by their acquiring bank(s).
The same issue poses a huge problem for brokers who accept card deposits. Regardless of how many terms and conditions a client is required to accept before being allowed to make a card deposit, a growing number still take the view that they can recover their trading losses by filing a fraudulent dispute with their card provider.
Overall, it’s a massive problem and another area where the US leads the world!
Ultimately, card transactions by US residents will become almost impossible because there are simply not enough checks to prove the card holder actually initiated a transaction, so banks generally take the view that their client is telling the truth until the vendor is able to prove otherwise.
When that time comes (probably not too long now!) then wire transfers will be the only option.
Makes sense. Been researching Bitcoin, Once you authorize payment no going back, from what I understand. Starting to see debit card and bank wallet transfer services for them.
Nothing concrete right now - offering additional categories of instruments may leave us requiring securities regulation which would mean no more US residents.
We aren’t - the smallest trade possible on the master PAMM account is 0.1 (for Pro PAMMs) and 0.01 (for Micro PAMMs) - once placed into the market, that minimum trade can be allocated proportionally between the PAMM clients to 6 decimal places which means the smallest position that can appear in a client’s account is 0.000001 lots.
No set criteria exists
Yes - there are many other situations / circumstances that might result in an AML notification
As of this afternoon, Tallinex is able to accept deposits via Neteller
To minimise the potential for fraud, only fully-verified Neteller accounts can be used.
If a non-verified Neteller account is used then the deposit will be held until verification is complete.
If that has not occurred after 21 days then the funds will be returned to Neteller.
Whatever your investment may be, I’d always recommend spreading it amongst multiple brokers. While very rare, you could lose all your money at a broker whether or not it be due to a something shady by the broker or something out of their control. If you were to have your investments spread amongst 2-5 brokers it would drastically reduce the loss if one ever went under.
I currently invest with Tallinex, Tradersway, & FxChoice.
Well, there are 2 ways to look at it. Yes, if you spread your investment among several brokers then you would reduce the loss if one of the brokers went under. HOWEVER, due to the fact that you now have money with several brokers, the risk drastically goes up that you could now lose money that you would not have ordinarily lost. Having money in several brokers versus having money in only ONE broker … it’s just a mathematical fact.
I have my main money in only one account - in Tallinex (though, I do have a tiny micro-account in Oanda. I trade that account just for fun basically). I like my odds better with only one broker vs several brokers.
