Is FXDD Reliable? | Forex Factory

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Is FXDD Reliable?

  • #1
  • First Post: Mar 19, 2007 8:08am Mar 19, 2007 8:08am
Im not planning on scalping with this broker. My concern is long term reliability.

Is this broker honest?
Wont run away with your money?
Fast execution of orders (not during news but during slow trading hours)?


Thanks!
  • #2
  • Mar 19, 2007 8:17am Mar 19, 2007 8:17am
I had a decent experience with them...but I suppose it depends on the type of trading you're doing. They're spreads are so so, and variable. I did notice that 15-60 minutes before the swap that spreads on the JPY crosses widened a good bit...I'm sure they claimed lack of volatility, but my guess was to prevent users from getting a good price right before triple swaps. It never bothered me, but I did notice that some methods probably wouldn't have worked.

Other than that, I never felt cheated by them...but again, it will greatly depend on your trading style. If you're a "down-to-the-exact-pip" type of guy, then you'll probably turned off by most brokers. However, if you're longer-term (swings and carries) you'll probably be fine.

Quoting BurgerKing
Im not planning on scalping with this broker. My concern is long term reliability.

Is this broker honest?
Wont run away with your money?
Fast execution of orders (not during news but during slow trading hours)?


Thanks!
  • #3
  • Mar 19, 2007 8:48am Mar 19, 2007 8:48am
I'm watching the replies on FXDD with interest. I'm looking for a second MT4 broker. I did read about FXDD in this thread. Look at the last half.
Does anyone have an opinion about using CompassFX as and IB for FXDD for the reasons mentioned in post #65 of the referenced thread?
  • #4
  • Mar 19, 2007 9:15am Mar 19, 2007 9:15am
I'm using FXDD now and so far they're oke. During news times they occasionally had re-quotes thingie or slippages. But which retail broker that guarantees fills during news? I'm not a news trader anyway.
Spread-wise, 2 pips on EUR/USD, 3 pips on USD/JPY, 4 pips on GBP/USD during normal market, 4-5 pips on Euro and 6-7 pips on Cable during news like NFP or rate statement.
They're under Tradition Company which is based in Swiss and is listed in Swiss Stock Exchange (at least Tradition's website shows FXDD as their subsidiary). Reliable or not, it's your own judgement.
Tra-X
  • #5
  • Mar 19, 2007 12:11pm Mar 19, 2007 12:11pm
Can any of you list down the swap rates on live accounts for the following (long and short)

EURJPY
NZDJPY
GBPJPY
USDJPY
EURUSD
GBPUSD
NZDUSD

thanks!
  • #6
  • Mar 19, 2007 12:29pm Mar 19, 2007 12:29pm
Quoting BurgerKing
Can any of you list down the swap rates on live accounts for the following (long and short)

EURJPY 10.85 -12.89
NZDJPY
GBPJPY 24.08 -26.13
USDJPY 11.96 -13.83
EURUSD -6.45 4.40
GBPUSD -1.30 -1.00
NZDUSD 3.50 -5.70

thanks!
Overnight rate in USD per std lot (100k) trade.
Tra-X
  • #7
  • Mar 19, 2007 2:27pm Mar 19, 2007 2:27pm
just check their website...they post their swaps every day.

Quoting BurgerKing
Can any of you list down the swap rates on live accounts for the following (long and short)

EURJPY
NZDJPY
GBPJPY
USDJPY
EURUSD
GBPUSD
NZDUSD

thanks!
  • #8
  • Mar 19, 2007 2:50pm Mar 19, 2007 2:50pm
Here you go:

http://www.fxdd.com/rolloverrates.html
  • #9
  • Mar 19, 2007 5:43pm Mar 19, 2007 5:43pm
Quoting forexplayer
Here you go:

http://www.fxdd.com/rolloverrates.html
All "0.00".
  • #10
  • Mar 19, 2007 5:53pm Mar 19, 2007 5:53pm
Quoting BurgerKing
All "0.00".

They must be in the process of updating. I saw valid numbers there 2-3 hours ago.
  • #11
  • Mar 19, 2007 6:42pm Mar 19, 2007 6:42pm
Yes, usually, about 30 minutes after the swap, the rates go back to zero...those swap rates change daily...I kid you not...usually the variance is a few cents, but sometimes, depending on where the market is, it can be a drop or gain of 25 cents.

Incidentally...the rates there are the USD value you would receive...not the actual rates or pip values.

So, if the GBP/JPY says 22.50...they mean you'd receive $22.50 USD for the buy.

Quoting BurgerKing
All "0.00".
  • #12
  • Mar 19, 2007 10:40pm Mar 19, 2007 10:40pm
Quoting BurgerKing
Im not planning on scalping with this broker. My concern is long term reliability.

Is this broker honest?
Wont run away with your money?
Fast execution of orders (not during news but during slow trading hours)?


Thanks!
i used them for a while. they're as honest as most others. don't think they'd run away with your money. however, they weren't registered with the NFA last time i checked. their execution is a little better than most retail brokers i've tried - unless you arb them or trade during volatility you shouldn't have many problems (orders typically execute within 2 seconds). they have the occasional technical hiccup where orders won't execute at all (generally fixed within an hour). I lost money with them due to a technical failure (on their side) a couple of times and they reimbursed me. their rollover rates are generally quite reasonable.

btw, great work on the historic charts thread.
  • #13
  • Mar 19, 2007 11:05pm Mar 19, 2007 11:05pm
Quoting mrcooldude
i used them for a while. they're as honest as most others. don't think they'd run away with your money. however, they weren't registered with the NFA last time i checked. their execution is a little better than most retail brokers i've tried - unless you arb them or trade during volatility you shouldn't have many problems (orders typically execute within 2 seconds). they have the occasional technical hiccup where orders won't execute at all (generally fixed within an hour). I lost money with them due to a technical failure (on their side) a couple of times and they reimbursed me. their rollover rates are generally quite reasonable.

btw, great work on the historic charts thread.
That NFA unregistered thing bothered me last time. However, after I did some checks, it is said that their clearing/dealing parent company (Tradition North America (under Tradition Company in Swiss), which has same physical address as FXDD) is an NFA member. I don't know whether we can assume NFA membership based on parent company relationship tho. Anyway, NFA or not, there's not much difference I guess?
Tra-X
  • #14
  • Mar 20, 2007 11:23am Mar 20, 2007 11:23am
Quoting Traex
That NFA unregistered thing bothered me last time. However, after I did some checks, it is said that their clearing/dealing parent company (Tradition North America (under Tradition Company in Swiss), which has same physical address as FXDD) is an NFA member. I don't know whether we can assume NFA membership based on parent company relationship tho. Anyway, NFA or not, there's not much difference I guess?
i had an issue transferring funds to FXDD once from another US broker. they refused to transfer the funds to FXDD because FXDD is not a registered FCM. yet other brokers i'm with happily transferred funds to my FXDD account.
i think as a general rule it's better to go with NFA registered brokers, because they must meet certain requirements and you can see any cases against them. in the case of FXDD, because they're backed by Tradition and seem to have a reasonable reputation, non-registration with the NFA wouldn't bother me. unless of course i had huge amounts of capital with them.
  • #15
  • Mar 20, 2007 11:28am Mar 20, 2007 11:28am
I don't know if it's relevant, but FXDD allows to place 5-6 pip s/l or t/p as opposed to 10-12 pips with some other brokers.
  • #16
  • Mar 30, 2007 10:30am Mar 30, 2007 10:30am
Quoting Traex
That NFA unregistered thing bothered me last time. However, after I did some checks, it is said that their clearing/dealing parent company (Tradition North America (under Tradition Company in Swiss), which has same physical address as FXDD) is an NFA member. I don't know whether we can assume NFA membership based on parent company relationship tho. Anyway, NFA or not, there's not much difference I guess?

well, keep in mind...RefcoFX was an uregistered entity that was piggy-backing on the registeration of its parent company the Refco Group. and look what happened to those poor souls.

so i wouldn't necessarily say that just because the parent company is registered that it's okay. i always prefer to deal only with an actual registered company.
  • #17
  • Mar 30, 2007 10:59am Mar 30, 2007 10:59am
Quoting risktaker989
well, keep in mind...RefcoFX was an uregistered entity that was piggy-backing on the registeration of its parent company the Refco Group. and look what happened to those poor souls.

so i wouldn't necessarily say that just because the parent company is registered that it's okay. i always prefer to deal only with an actual registered company.
prime example ( cfg ) at least n.f.a step in when they saw this company was about to go under or had major problems at least they step in earlier where they can try to save customers funds, who's gonna step in if fxdd start to have problems? they or not register but there parent company is another refco waiting to happen, not saying this company is badly run but there is no one to step in and try to save your funds before you no it it's to late.
If I Go Broke Trying Then I Will die happy.
  • #18
  • Mar 30, 2007 12:34pm Mar 30, 2007 12:34pm
I was actually doing some due diligence on FXDD earlier this week and the NFA issue bugged me too.

A second concern I had was the very low excess net capital held by Tradition Securities & Futures (their parent company), which the CFTC records as being only $287,574 on January 31, 2007. Other FX brokers have substantially more, such as Oanda with 38 million and FX Solutions with 6 million. If Tradition is such a big financial company why is this figure so low?
  • #19
  • Mar 30, 2007 1:00pm Mar 30, 2007 1:00pm
Thanks for the figure. I didn't know about it before. Hmmm, looks like I'll have to start considering to move to my local broker (in Singapore), since the law here is far stricter than the US and I feel safer to put money in my own country. Brokers here start to have good spreads and no commission also lately. I'll think about it.
Tra-X
  • #20
  • Mar 30, 2007 1:34pm Mar 30, 2007 1:34pm
does Singapore's broker open to foreigner?
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