Updated on March 22, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding Tallinex due to the issues we've identified.
Is Tallinex Scam or Legit Broker? ▲
Engaging in trading activities with Tallinex is NOT SAFE. The entity known as Tallinex Limited finds its registration and operational base in the offshore jurisdiction of St. Vincent and the Grenadines, despite its roots being in Estonia. The regulatory landscape of St. Vincent & the Grenadines is notably lenient regarding the obligations imposed on its financially registered firms. This lack of stringent regulation poses a significant risk to investors, especially when the firm in question operates solely within this jurisdiction.
About Tallinex
Registered in: St. Vincent and the Grenadines
Type of License: Offshore License
Is Tallinex safe to trade: No
Recommended Licenses: FCA in the UK & ASIC in Australia
Tallinex operates under the registered trademark or service mark of Tallinex Limited, with its registration and operational hub in St. Vincent and the Grenadines and its origins tracing back to Estonia. The brokerage claims to offer swift and reliable transmission of trades to the world's leading banks via a PrimeXM FX bridge connected to Integral's FX Grid system, specifically optimized for Forex trading. This setup supposedly allows clients to leverage better ECN/STP technology and trade the Forex markets with confidence through Tallinex's platform. Nonetheless, the regulatory framework in St. Vincent and the Grenadines falls short of imposing the rigorous standards expected of financial service firms.
Moreover, recent penalties imposed by reputable authorities such as the CFTC in the US and warnings from EU regulators have cast a shadow over Tallinex's operations. The brokerage was found guilty of functioning as an unregistered foreign exchange dealer, targeting retail customers in the US and EU for leveraged forex transactions, and acting as the counterparty in these contracts. Additionally, it was determined that Tallinex engaged in fraudulent activities by either knowingly or recklessly misrepresenting or omitting crucial facts to its customers. As a result, Tallinex Ltd. was mandated to pay restitution nearing $10.3 million to its defrauded customers alongside civil monetary penalties amounting to over $760,000 in July 2018, as per a ruling by the CFTC in the USA.
To summarize our findings, we strongly advise against engaging in trading activities with Tallinex. The lack of stringent regulatory oversight and the significant risks associated with investing in firms based in offshore jurisdictions such as St. Vincent and the Grenadines are major red flags. Investors are encouraged to opt for trading with brokers that are well-regulated and authorized by reputable regulatory bodies, such as the FCA in the UK or ASIC in Australia.
Tallinex Update
Despite our exhaustive research into the broker's offerings, it has come to our attention that the Tallinex website is currently inactive. This indicates that the brokerage has ceased its trading operations. However, we continue to recommend caution and advise traders to stay alert to any proposals that may emerge from this broker in the future.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
Tallinex Review 2024
