Leverage up to 1:1000…?
Bummer…! I have a Tallinex micro account and get only 1:400. :50: Not that I “need” 1:1000.
Actually if you contact Tallinex support they can increase your leverage to 1:1000 on micro account.
Actually, they can’t - leverage above 1:400 on micro accounts (1:200 on Pro) is solely based on on-going assessment by the risk profiling system.
Oh ok I saw on the Tallinex website about the max leverage of 1:1000 and contacted live support and they said I would need to contact email support to raise my leverage to 1:1000 but I never tried it yet so I am a bit confused at this point …
You may have chatted with a new team member who was unaware of the situation (it was previously possible to get leverage manually increased to 1:600), but the current position is as I stated previously because the process is now totally automated and no manual adjustments are possible. Assessment is continuous and based on the most recent 30 days… I know that a number of clients have 1:1000 so it’s quite possible to achieve if your trading is ‘sensible’.
Thanks for the detailed explanation in your last couple of posts in regards to why your sever time is the way it is. I have to admit that I previously thought your company didn’t put much thought into choosing the server time that you currently have. But, now I see there was a reason why you have the server time as you have it now. However, the 5:00pm EST New York close is a key part of my trading system and I have no other choice but to use another broker with my trading system (maybe I will now use TradersWay). I still will keep my Tallinex account and at some point in the future I may use it again, IF I happen to change to a different trading system in which the server time doesn’t matter.
If Tallinex ever decides to have their MT4 with a Daily candle open at 5pm EST, then I will certainly use it with my current trading system.
As I mentioned, we ARE looking at options that will allow clients to run on NY time if they wish, and we hope to have at least one option over the next couple of weeks that resolves the situation.
Hello all,
I am hoping someone out there can help me. I spent the last 9 months working my butt off to create an EA with my developer in Romania, and now it looks like it works very well and will be quite profitable. I am a US resident, this EA utilizes hedging as a part of its strategy… furthermore, I depend on a large amount of leverage from the broker.
I created an LLC this week all ready to start my trading business, and I met with a US tax attorney to ensure I was setting things up properly and in the most tax efficient manner. He informed me that the offshore broker that I am using is illegal to use as a US resident, and recommended that I close the account down immediately. I then looked into US brokerages and quickly learned that due to restrictions like no hedging and small leverage, I would not be able to use my EA I worked so hard to build.
After reading this thread and others on the topic of US residents having trading via offshore brokerage accounts, I am not convinced that it is actually illegal for me to trade in non US based brokerage. From what I have read, the restrictions seem to be targeting the institutions, many of whom have either shut down their US arm of operations or simply stopped accepting US clients altogether.
I happen to trader with an offshore brokerage which accepts US clients. Am I within my rights to do so? Will I have trouble come tax time? If it’s a problem for me to trade as a US citizen in this offshore brokerage, what options do I have. I have certainly worked too hard to create this thing to stop here. I want have no interest in tax evasion or anything like that… I just want to trade! Any help would be greatly appreciated.
Oh, and if any of you know of tax attorneys who could be helpful in this manner I would love to get their information. Thanks!!
1 post and you are posting this. You must have some bot, trading is one aspect, the broker is the other. How trustworthy are they really? What about the so called liquidity providers? From what I understand Forex is not a regulated market. If it is, it’s in the country of the broker, are you going to go to that country and fight it out with them if there is a problem? Go offshore presents a different risk.
I am new to this board, but not new to trading. Furthermore, I believe it should be my choice as a US citizen to determine if i want to take those so called risks or not. BTW,many large corporations are headquartered offshore. Anyway, i am looking for someone to help answer my question regarding the legality of me doing so as a us based retail forex trader.
You are correct: It is [B]not[/B] illegal for you — as a U.S. resident — to trade offshore.
You got false information and bad advice from that tax attorney. More on that at the bottom of this post.
Here are 3 posts addressing your specific issues. They are somewhat repetitive on certain points, but I think you will benefit from reading all of them.
http://forums.babypips.com/forex-brokers/36221-going-offshore-escape-cftc-post711796.html#post711796
http://forums.babypips.com/forex-brokers/36221-going-offshore-escape-cftc-post643933.html#post643933
http://forums.babypips.com/forex-brokers/36221-going-offshore-escape-cftc-post692867.html#post692867
Regarding bad legal advice from tax attorneys:
You may have been talking to the same tax professional which I previously recommended in this thread. As the [I]Edit[/I] in the second link above explains, I no longer consider that person/firm to be a reliable source of information on [B]taxes applicable to offshore trading by U.S. residents.[/B] On taxes applicable to trading with U.S. brokers, he is very knowledgeable.
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Hi Clint,
tough call there. On one side I find it great that finally we might have a potential new broker on the list, especially that two of their member - including the CEO - came to take action so they become a trusted broker. This is something very positive.
On the other side it seems like we have no members who have traded with them and in that case it is hard to put someone in a trusted broker spot without having enough experience with the brokerage. Maybe we should wait a little until people start writing about them.
One comment: these are usually the times when “new members” usually register and start writing what a wonderful broker they found :-)))
I wish you a great Sunday,
FE
Agreed. — There is no rush here.
As regular participants in this thread log in over the next week, or so, I hope that we will get some useful comments and opinions.
I will be on the lookout for interlopers attempting to pad the voting results.
Happy Sunday to you, as well, FE.
As regards the “legality” of the offshore broker, it is not illegal, and you’re getting very good advice from Clint and others on that issue.
I’m more interested in your EA strategy, as you want to scale up to a serious trading business, so I’ll just comment on that. MAYBE IT’S BEST to move that discussion to another thread? Anyway, here are my questions and concerns. None of this is to “snoop” and steal your strategy but just to get some basis for evaluating, and giving some advice.
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Is this a scalping strategy? Can you provide some more details of the approach. I can imagine that you might want “hedging” so that you could “attack” the market with Limit orders from either side buy/sell, and then when one or the other is “hit”, you could cancel opposite side orders, and take a small scalping targets profit on retracement. If it’s similar to that, then I could see why hedging (or the ability to take opposite side orders simultaneously in same symbol on brokerage) would make sense. Otherwise, intra-instrument hedging is just the same as exposure modulation, and it’s not necessary.
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Very high leverage. Why do you want high leverages? Of course, if you have a legitimate reason for that, then you’ll be killed by the U.S. 50:1 limitations. But I’d like to know exactly why you need high leverage, as you pointed out. Also, does your intended trading strategy require a Small, Medium or Large account funding to operate efficiently?
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A legitimate concern for a business would be limitations on offshore brokerage money transfer arrangements, so when you choose your offshore broker (perfectly LEGAL) you’ll want to have an in-depth PRIVATE discussion about transfer arrangements, and other things such as funds security; SOME OF WHICH should remain confidential with your broker, to fend off CFTC pressures should the methods be widely discoverable… 'nuff said. It’s a war anyway, between the U.S. agencies and the rest of the world, which is the rationale for this Amazing thread.
So if you want to put in a pointer to another thread to discuss the Strategy, and building a trading business in general, then that’s probably a good idea; leaving this CFTC thread to discuss purely the brokerage and business aspects, and availability of quality brokers for U.S. persons (or beneficiaries of your corporate entity).
Depending on your Strategy, you may be interested in the following topics, and I may be able to assist you in some of them: 1) Bid/Ask spreads (vary widely, as well as account types), 2) direct connection versus through a “service bureau” for your MT4 EA , etc. So if you need any advice on such issues, feel free to ask.
hyperscalper
Wow, this is awesome! So helpful… thanks Clint/Hyperscale. Not used to people being so willing to help I guess.
Hyperscale, you raise very good points, and as you guessed, my EA utilizes a hedging strategy for risk mitigation. The reason for needing leverage is simply to grow quicker :-). If I had to go with 50:1, my EA would still work… it simply would not give me the returns I have come accustomed to in my forward testing over the past months. Money Transfer arrangements are a concern… I believe with my current brokerage, I can deposit/withdraw $10k via credit card at most in one day, so when my profits grow, it could be an issue. I certainly would be interested in knowing how others deal with this. Also, I would love to hear your thoughts on bid/ask spreads and direction connection versus going through a service bureau. I would try to message you directly, but it seems that I need to have more posts on the board to have the authority to do so. Could you message me?
Can’t tell you how thankful I am for the help…
I have a live account with LMFX, been a little over a month. I started with a very small account and have been growing it steadily. Execution of trades has been quick. No requotes or lags. Opening the account and verification of documents was very quick, Instant 1:1000 leverage. Funding via credit card took about an hour to show up in wallet from which you have to transfer into the live account using funds management. I have not withdrawn any money from them yet. Overall, I have no complaints so far and vote for LMFX to be a trusted broker and if I do come across any problems I will report and update the thread promptly. Thank you to everyone that continues to contribute to this thread, it’s very easy to take the work of others for granted, and special thanks to Clint for managing the thread in a truly professional manner.
Thanks, Mindoverbull. Please stay in touch, and keep us updated.
[B]Some general thoughts on what “trusted broker” means:[/B]
In my opinion, a trusted broker is one who has demonstrated honesty and transparency in (1) advertising their services, (2) handling the funds of their clients, (3) executing the trades of their clients, and (4) complying with the laws and regulations of the country in which they are domiciled.
In my opinion, “trusted broker” [I][U]does not mean[/U][/I] low spreads, high leverage, sign-up bonuses, trading platforms with bells and whistles, or slick websites.
A broker who offers disappointingly high spreads and low leverage — but, nevertheless, adheres to the highest ethical standards in the conduct of their business — is a prime candidate for the [B]trusted broker[/B] designation.
On the other hand, a broker who offers rock-bottom spreads, sky-high leverage, sign-up bonuses, contests, and lots of other fun stuff — but, subjects clients to re-quotes, slippage, non-responsive customer service, and withdrawal delays — deserves to be identified as an [B]un-trusted broker.[/B]
You might have a different point of view on what it means to be a trusted broker, and your comments and opinions are welcome here. Please join in.
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1 Like
TRADERSWAY and FINPROTRADING pricing.
I promised some Bid/Ask (pricing) spreads earlier, and so here’s
a preliminary result. Firstly, let’s put this into context. The Bid/Ask
spread is not the only factor in choosing a brokerage partner.
If you are a scalper, sensitive to costs, then the spread could be a
significant factor in your decisions.
The brokerage business is a tough one, no doubt, with fairly thin
margins so it’s understandable if a broker may use the spread as
an additional, but “hidden” cost of doing business which is
paid by the trader, just as traders pay commission.
My personal advice to traders is not to use account types which
build commissions into the spread. Get a VARIABLE spread account,
with Commissions for your best pricing. Accordingly, the tables
that follow show an Average, Minimum and Maximum Bid/Ask
spread in PIPs for each of 28 major Forex symbols. The spread
is expected to be “variable”, and that should be the choice of
serious traders.
This data is from LIVE MT4 ECN variable spread accounts at
Tradersway.com and FinProTrading.com and we’ll
just let the data speak for itself. Data is from a sample of
150 successive recent price ticks, taken on the hour.
Both of these brokerages have excellent pricing.
I can provide data 24 hours per day, but this is preliminary.
I don’t want to get into the business of doing this, but if anyone
needs an evaluation and has a standard MT4 brokerage, then I
could run that data, by special arrangement. I use the NJ4X.com
framework which handles almost any MT4 brokerage. The key is
whether Generic MT4 can be used on your brokerage, and this
excludes most U.S. MT4 brokerages, but includes most offshore
brokerages.
These brokerages have “tenths of a pip” pricing resolution and
also offer very small 0.01 (1000 Currency Units) lot sizes as well,
which is not usually associated with a narrow spread, but much
appreciated by smaller traders.
SUMMARY: As you won’t want to comb through this data, here
is a representative summary of certain common Forex pairs.
A sample for all the pairs, for the same time of day, will be
posted below. As retail spreads go, these are fairly tight, and
they are my two current favorite brokerages because of the
excellent retail pricing.
NOTE: 1.0 is one PIP. These spreads are fractional PIPs.
The timestamp is GMT or UTC time.
MINIMUM AVERAGE MAXIMUM PIPS
TRADERSWAY
EUR/USD 0.1 0.3 0.5
USD/JPY 0.2 0.5 0.7
AUD/USD 0.3 0.7 0.9
FINPROTRADING
EUR/USD 0.1 0.3 0.5
USD/JPY 0.1 0.3 0.6
AUD/USD 0.2 0.6 0.9
TRADERSWAY DATA:
timestamp,2016-03-21 13:00:28,1458565228429, symbol min|avg|max spread pips
AUDCAD,1.1,1.5,1.8
AUDCHF,1.6,1.9,2.2
AUDJPY,1.0,1.2,1.4
AUDNZD,2.2,2.6,3.0
AUDUSD,0.3,0.7,0.9
CADCHF,1.5,1.8,2.0
CADJPY,0.7,1.2,1.4
CHFJPY,1.1,1.4,1.7
EURAUD,1.2,1.7,2.2
EURCAD,1.6,2.0,2.4
EURCHF,0.8,1.0,1.5
EURGBP,0.6,0.8,1.0
EURJPY,0.8,1.1,1.3
EURNZD,2.3,3.0,3.5
EURUSD,0.1,0.3,0.5
GBPAUD,1.5,2.4,2.8
GBPCAD,2.5,3.3,3.8
GBPCHF,1.2,1.9,2.4
GBPJPY,0.9,1.4,1.8
GBPNZD,5.9,6.5,7.2
GBPUSD,0.6,0.8,1.2
NZDCAD,3.4,3.7,4.0
NZDCHF,2.7,3.2,3.4
NZDJPY,1.9,2.4,2.7
NZDUSD,0.8,1.2,1.5
USDCAD,0.7,1.0,1.3
USDCHF,0.5,0.8,1.2
USDJPY,0.2,0.5,0.7
FINPRO DATA:
timestamp,2016-03-21 13:00:22,1458565222969, symbol min|avg|max spread pips
AUDCAD,0.4,1.2,1.6
AUDCHF,0.6,1.0,1.2
AUDJPY,0.4,0.9,1.1
AUDUSD,0.2,0.6,0.9
CADCHF,0.8,1.3,1.8
CADJPY,0.5,1.1,1.2
CHFJPY,0.3,1.2,1.4
EURAUD,0.8,1.4,1.8
EURCAD,0.6,1.4,1.8
EURCHF,0.3,0.6,1.1
EURGBP,0.3,0.6,0.8
EURJPY,0.6,0.8,1.1
EURNZD,1.7,3.0,3.7
EURUSD,0.1,0.3,0.5
GBPAUD,1.3,2.3,3.1
GBPCAD,1.1,2.2,2.8
GBPCHF,1.2,2.1,2.6
GBPJPY,0.6,1.4,1.7
GBPNZD,1.0,3.2,4.2
GBPUSD,0.2,1.0,1.4
NZDCAD,0.3,1.1,1.7
NZDCHF,0.6,1.0,1.4
NZDJPY,0.8,1.3,1.5
NZDUSD,0.2,0.8,1.0
USDCAD,0.4,0.7,1.0
USDCHF,0.5,0.7,1.0
USDJPY,0.1,0.3,0.6
Good Trading !
hyperscalper
Hi Clint/Others thanks so much for all the help.
Is there a “trusted offshore tax attorney” list somewhere too that I can access? I tried looking through the thread a bit and searched the board, but could not find anyone. Not sure if it’s an issue to list names on the thread, but if that’s the case if someone could send me a message with info, that would be great too. Thx!
I’m not sure why you need anyone with offshore specialization… After all, revenues
are simply reported to the IRS and once you set up your “corporate entity”, depending
upon its status… then wouldn’t the focus be on properly setting up a "trading entity status"
for that, for tax advantage ?? I just don’t see how there’s any relevance to the fact that some or all
of your brokerages might (or might not) be offshore… I could be wrong. Just my 2 cents.
When are you quitting your “day job” ?? 
hyperscalper