The broker FXDD claims to provide its services in Malta and Mauritius. Both places have different regulators, one of which was under close investigation by the European banking authority. Its previous CEO had links to a murder charge. This is just what we know about the regulatory authorities. Let’s discuss the broker more clearly below:
The broker claims that it has been in the game since 2002, at the same time restricting the tradable asset class to just six. A broker that old should cover a lot of markets than FXDD. The broker also does not mention the use of crypto or the sale and purchase of it. It seems to be more inclined towards forex and energy trading. The broker fails to give a decent introduction to its history and keeps the reader engaged to be converted to a trader from a potential lead.
FXDD account types
The broker offers two types of accounts, Standard and ECN. FXDD does not mention whether it is an STP or ECN or NDD broker but offers an ECN account. We do not know a better example of hypocrisy.
The spreads asked by the broker are large, and the commission-based trades co-exist in the same loop. The broker does not seem to care about its viewers who are now to the website. Since the UI id thought to be sincere, very less detailing is done. This leaves the first-time visitor confused. The “offerings” in the malta account is lower than that of the Mauritius account. There is no information on the minimum requirement for balance in both accounts.
Education and resources
The broker provides certain irrelevant articles on its resources tab, and they are not even articles, just mere pdf documents. That can be ignored. Still, they are backdated to more than a year and a half from the current market situation. That is not providing education; it is just serving the visitors an idea of a safe broker and then maybe scamming them in the future.
None of the information is peer-reviewed and is written by some employees of the company. The trading-related information has to be reviewed a lot since the market moves every day and probably more than that.
The broker keeps its education material restricted to pre-subscribers. We call them subscribers and not registered traders because that is what the broker thinks of them. This can be verified because the broker first asks its traders to provide it with money, and then it provides them back with “information”, supposedly. We could go to the action where the news for a visitor has displayed, and it was backdated. We could totally understand the helpless situation an already registered broker with FXDD would be in.
The broker claims to be regulated by authorities in new york and malta. When we dug up a little more, we could see that the malta regulating authority has been under close observation by the EDA. The previous CEO of the regulating firm had involvement with people charged with murder. Maybe that is the reason behind the sudden involvement of a new face in the CEO chair.
This has to be more than enough for a trader to understand that the broker is risky and deserves no economic involvement.
The broker claims to be regulated, which means that the authority has to abide by law and order first, but such information makes us rethink our choices.
FXDD tradable assets
The broker claims to have been in the market for a very long time, and since those claims shall be true for a statement, the broker has not evolved at all. FXDD does not allow cryptocurrency as a tradable asset and does not mention anything about such a hot stock right now.
FXDD makes it look like it wants the trader to invest in forex and energies. These two markets are volatile and also comprise most of the big players in the market. Novice traders seldom have a chance against such people.
The liquidity game
Brokers having more than one liquidity provider or even one liquidity provider will start acting as a personal broker to the same provider sooner.
There is a whole different process involved when money moves and the brokers make it look big by adding liquidity providers. Nevertheless, the whole process is big enough, and there is a fee involved for the same, too. Guess where that money comes out from? From the trader’s pocket.
Liquidity providers ensure that none of the novice traders makes profitable moves for the broker and the money itself.
Commission and spreads
Apart from spreads charged as the market moves, the broker also asks for commission-based spreads. In particular, day traders will have a problem with such a scheme because day traders earn more under volumetric trading. The number of traders is higher, but the profits are low. With already low profits and the broker asking for commission-based trades, there is no guarantee that there will be any countable money left for the trader to enjoy in the end.
The amount of commission that the broker asks is way much higher than the price quotes in the market, in general.
Deposit and funds
The broker asks for additional for depositing and withdrawing the balance from the trader’s account. Apart from this, all the options to make a deposit or a withdrawal are limited. The incoming money is said to have a lower execution time, and the outgoing money takes more time. This is a scheme to keep the trader in a loop. By the time they decide to take it out, the broker makes sure that the money is retained.
The broker forces MetaTrader4 onto its users, even though MT5 is already rolled out in the market. A platform or any application for that fact is updated because the previous version has some incapabilities. The same is the case for MT5 and MT4. The platform has had some restrictions which were overcome by MT5. The broker does not seem to care about this fact.
The broker provides no information about the minimum balance that has to be maintained in an account, or the minimum balance required to open an account.
Since the account maintenance information is missing, the broker can create margin calls at its wish and make the trader uncomfortable.
Wherever the trader needs online tech support, they are redirected to a number called and looked upon. Surprisingly, when the trader is looking for support, the trade he wants to acknowledge is already far gone and what’s left is the loss that can not be made back into a profit.
The broker FXDD has all the characteristics of being a scam broker, and we do not advise our traders to put their money in such a firm. A broker that old has to have a lot of experience and the lack of Cryptos as a tradable asset shows that the broker has not evolved. A potential trader should look out for more versatile and responsible brokers, like HFtrading for example. The broker TradeATF is also another good example of a responsible enough trading firm.