Sunday, June 2, 2013

Tallinex Review

Today we will look at a very new broker out of Estonia. Before you go ahead and dismiss this former Soviet republic it is worth pointing out that Estonia is part of the European Union and therefore obliges by the same rules as all other EU member countries. Estonia is actually one of the few bright spots in the EU which makes this an even more interesting forex broker.

Let’s take a quick look at Tallinex which surprisingly only offers ECN accounts according to their website. What raises concern is that they only offer the MT4 trading platform which is not an ECN capable platform without a bridge. MT4 is primarily used by market makers, but two bridges have been designed in order to enable ECN and STP trading directly from the MT4.

Tallinex does not mention the usage of an ECN bridge which makes their claim of being an ECN broker highly questionable. They offer an ECN-micro account with a minimum deposit of $100, leverage up to 1:400, minimum trading size of 0.01 lots and starting spread of 2.0 pips on popular pairs. Their margin call as well as stop-out levels are rather high in comparison to other brokers and stand at 150% and 100% respectively.

They also offer an ECN-pro account with a minimum deposit of $2,000, leverage up to 1:200, minimum trading size of 0.10 lots and starting spread of 0.5 pips on popular pairs. Again, their margin call as well as stop-out levels are 150% and 100% respectively which is another area of concern. Their commission of $6 per 100,000 currency units, also known as one standard lot, is quite acceptable.

It appears that everything is a bit odd when it comes to this Estonian forex broker. There is something about Tallinex which just strikes us as wrong. They do not charge a commission in their ECN-micro account which is somewhat unusual. True, they make it up with a much higher spread which means it is more of a market maker account than an ECN account. Having said that, it appears that Tallinex is making a wrong ECN statement about their ECN-micro account.

When it comes to their ECN-pro account they still only provide the MT4 platform and no bridge is mentioned, spreads are much lower and they charge a commission but ask for a much higher minimum deposit than true ECN brokers. Since they do not explain how they offer ECN trading on a market maker platform it raises concerns that they are ECN at all. True ECN brokers are transparent and do not keep traders guessing.

They do offer a Pro-Managed account which at first sight appears as a novel approach and something refreshing. The minimum deposit is $1,000 and they claim the accounts are managed by professionals. After giving it a closer look it is a simple PAMM account, but the managers could be handpicked by Tallinex or be employed directly by them. The lack of transparency keeps us guessing.

Conclusion

After initially approaching this forex broker with higher expectation than normal and after reading several mentions online The Last Bear has to admit that our high expectations were not met and we left the review being disappointed. Something struck us really odd about Tallinex and questions remain about their claim to be an ECN broker. There are better outlets available and when in doubt, stay away. We have to give this one two claws down, the Last Bear has roared.

UPDATE:

As you guys can follow in the comments below, the Last Bear made a mistake when it comes the bridge Tallinex offers on their MT4 for their ECN accounts. Thanks 'anonymous' for pointing it out and this shows that we all make mistakes and rather than just deleting the initial review the Last Bear opted for an update so everyone can see that nobody is perfect and why a community is essential to point out mistakes.

This also changes our conclusion to one claw up and one claw down with a positive outlook, the Last Bear roared for the second time and in favor of Tallinex which jumped in our ranking to above average.

15 comments:

Their PrimeFX bridge technology is superb - no slippage or execution whatsoever. I particularly like their managed account service. Great returns at low drawdowns.

They do mention their bridge on http://www.tallinex.com/about-us
Its Prime XM

Thanks for providing the link and pointing out that the bridge is indeed mentioned.

"Thanks for providing the link and pointing out that the bridge is indeed mentioned." - Apollo

Would that information lift the two downed claws (or at least one)and make another roar? :)

Hi Alli, yes it would and I have updated the broker review.

It is ECN with Integral liquidity.

Talinex was chosen by FinFx as a transfer station for US clients of FinFx as I was informed today. I am not sure why. FinFx has now chosen to not accept US clients anymore....so, how long will it take until Talinex abandons US clients as well?

I think Tallinex should not accept US clients at all and I am not sure that they do. The US has made sure to isolate itself and that is the price it has to pay. It is terrible for US traders, but no European or other brokerage should even bother with US traders anymore.

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.

Not sure what is going on, but without having more info I assume that a withdrawal would drop you below your margin requirement which means you need to close some positions first.

This comment has been removed by the author.

They are another MM. They are not true ECN. They rig the game and will work out your account to the ground. Be aware of this company.

First, (disclosure) I am a US Citizen. I read your review on Tallinex and it seems a heavy on the emotion side and light on the fact acquiring side. While I respect your right to your opinion it seems many of your conclusions are based on touchy-feely conclusions.
Why should no non-US broker not accept US clients. They either choose to comply with US regs, or no US clients. It is their business choice based on their business plan. They could be the best, or the shadiest. Let's just report the facts less the speculation. However, thanks for all you do.
Kind Regards:
Harvey G

Dear hgord, thank you for you comment. The reviews here are never based on emotions. You are right that Tallinex could in theory accept a US client, but if they get caught they would pay heavy penalties, lose their license and risk other penalties which would make it a highly unlikely event. They are obliged by EU regulations afterall.

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