FXDD...can we trust this broker?

K

kesura

Hi,

Idea of FX-Auto is fine, but why you choose to trade with FXDD ? I didn't found any records about this company (FXDirectDealer, LLC) in NFA site (http://www.nfa.futures.org/basicnet/), what means that this company is not a member of NFA and according to NFA:
"BUSINESS WITH INDIVIDUALS OR FIRMS WHO ARE NOT CFTC REGISTRANTS AND NOT NFA MEMBERS COULD CAUSE YOU PROBLEMS.
Virtually all individuals and firms who conduct futures-related business with the public must be registered with the CFTC and be NFA Members. Under most circumstances, it is unlawful for firms or individuals, who are not CFTC registrants and are not NFA Members, to conduct futures business with public customers."

Also, I noticed that FXDD is even not listed among brokers in this site too. It looks strange and suspicious to me.

So I would like to hear any comments or facts why we should trust or not FXDD?

And one more question to FX-Auto:

Do you have plans to implement more brokers in your platform and to allow customers to choose broker he trust?
 
Hi,
You are correct, FXDD is not a member of NFA and does not require to be so for FX operations.
NFA registration does not mean the client is safeguarded in any case, look back a few years ago.

There may be more brokers coming in the future.



Hi,

Idea of FX-Auto is fine, but why you choose to trade with FXDD ? I didn't found any records about this company (FXDirectDealer, LLC) in NFA site (http://www.nfa.futures.org/basicnet/), what means that this company is not a member of NFA and according to NFA:
"BUSINESS WITH INDIVIDUALS OR FIRMS WHO ARE NOT CFTC REGISTRANTS AND NOT NFA MEMBERS COULD CAUSE YOU PROBLEMS.
Virtually all individuals and firms who conduct futures-related business with the public must be registered with the CFTC and be NFA Members. Under most circumstances, it is unlawful for firms or individuals, who are not CFTC registrants and are not NFA Members, to conduct futures business with public customers."

Also, I noticed that FXDD is even not listed among brokers in this site too. It looks strange and suspicious to me.

So I would like to hear any comments or facts why we should trust or not FXDD?

And one more question to FX-Auto:

Do you have plans to implement more brokers in your platform and to allow customers to choose broker he trust?
 
registered or not, it won't safeguard against the dealing practices(stop running,shading,platform freezing,etc...) of those bucket shops.
 
They seem to be registered under their corporate name Tradition. FXDD is listed as a subsidiary of Tradition in the following list:

http://tradition.ch/company/presentgroup.asp

The NFA registration is here:
http://www.nfa.futures.org/BasicNet/Details.aspx?entityid=0271289

Nevertheless, in the Forex world the fact that a broker is registered with the NFA only means that there is a certain level of supervision over that company.

In the event of an unforeseen financial event - such as Refco's collapse - Forex accounts in general do not enjoy the level of protection that stocks and futures accounts have. Refco's demise proved this since their Forex customers are only recovering 40% or less of the value of their accounts.

Diversification - maintaining one's money at several Forex brokers - is in the meantime the most sensible policy until regulations afford Forex customers the same level of protection as stocks and futures accounts.
 
Also I understand that they, FXDD are now with the NFA and have surpassed the NFA requirements by a large amount. The minimum capital requirement is $20 million. FXDD has over $44 million. :D
 
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