You simply don’t mess with CFTC! The most recent offshore Forex broker Tallinex CFTC lawsuit details is a sound example of why.
2 June, AtoZForex – The key US financial regulator, the US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against offshore MT4 Forex broker Tallinex. The regulator has stated that the broker has been accepting clients from the US, which is against the legislative standards. Worth mentioning that Tallinex CFTC lawsuit comes almost a year after CFTC Tallinex warning.
Offshore Forex broker Tallinex CFTC lawsuit details
Under the CFTC regulatory framework, any non US based Forex broker should not and can not accept any client from the US. However, often brokers take the opportunity to attract US traders. In case of Tallinex CFTC lawsuit, Tallinex appears not to have followed the CFTC customer on-boarding limitations according to the US financial watchdog. The CFTC has filed a lawsuit stating that the offshore broker Tallinex has been accepting clients from the US for some period using a referrer.
Moreover, the regulator lists a number of claims. According to the CFTC lawsuit claims Tallinex has collected over $1.5 million in deposits from various Forex traders in the US. The regulator has provided a specific list of these activities for a long period – from September 2012 to at least September 2016.
Tallinex is an Offshore Forex broker
Visiting Tallinex’s official website, one can easily find out that Tallinex is an offshore MT4 Forex broker operating in the jurisdiction of St. Vincent and the Grenadines. Meanwhile, Tallinex claims to offer a true ECN/STP brokerage with a PrimeXM Forex bridge to Integral’s Forex Grid system. Furthermore, the Tallinex is a MetaTrade 4 Forex broker which offers trading platform in 32 languages, Metaquotes default.
Just a side note, if you are not familiar with the difference between ECN, STP and market maker broker types you should make more research as a trader.
Tallinex does not operate in… or does it?
The footer section of Tallinex’s official website states:
“Tallinex does not operate within the United States of America or Canada, nor does it solicit residents of those countries, nor of Puerto Rico, Guam, American Samoa, Northern Mariana Islands, Virgin Islands (US), United States Minor Outlying Islands, Finland, Estonia or St Vincent and the Grenadines in relation to the provision of retail Forex services.”
Despite this warning notice, the broker appeared to solicit to the US residents, according to the CFTC announcement. In addition, the regulator has also mentioned the name of the US introducing broker of Tallinex, General Trader Fulfillment LLC.
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