FXDD - nice honest outfit

rsh01

rsh01

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NFA hits FXDD with multiple charges including asymmetric slippage, fine will cost it over $3.5m | Forex Magnates

"If, after the customer entered his/her order, the market moved in the customer’s favor (“positive slippage”) by no*more than two pips, then FXDD would fill the customer at the tagged price. On the other hand, after the customer entered his/her trade, the market moved in the customer’s favor by more than two pips, then FXDD would reject the order. However, FXDD did not follow this same practice if the market moved in FXDD’s favor."
 
rsh01 said:
NFA hits FXDD with multiple charges including asymmetric slippage, fine will cost it over $3.5m | Forex Magnates

"If, after the customer entered his/her order, the market moved in the customer’s favor (“positive slippage”) by no*more than two pips, then FXDD would fill the customer at the tagged price. On the other hand, after the customer entered his/her trade, the market moved in the customer’s favor by more than two pips, then FXDD would reject the order. However, FXDD did not follow this same practice if the market moved in FXDD’s favor."
Click to expand...

Same as what FXCM were doing, I'd be more surprised if you told me there was a forex broker NOT doing this.

So that's both of T2Ws forex rebate partners fined for dishonest slippage practices. Still, they weren't to know.
 
I believe this applies to their MT4 accounts only and not to the ECN accounts on Power Trader or Viking Trader although I don't see where it says this specifically. I have significantly reduced the size of my account since they could lose NFA registration as a possible penalty. It's a shame though since my dealings with them have been a cut or 2 above all of the other forex brokers I've tried.

Peter
 
pboyles said:
I'd be more surprised if you told me there was a forex broker NOT doing this.
Click to expand...

So it seems for everyone else with the attention this thread got......til WP turned up.

Need to find more info about MT4 bit of it I guess, but it all sounds back end to me so I cannot see how this wld make much difference re what the front end is.
 
rsh01 said:
So it seems for everyone else with the attention this thread got......til WP turned up.

Need to find more info about MT4 bit of it I guess, but it all sounds back end to me so I cannot see how this wld make much difference re what the front end is.
Click to expand...

MT4 makes it easy for the broker to screw around with accounts (also the plug-in, Virtual Dealer) because functionality to do so is built right in. The ECNs are more 3rd party operated and .FXDD is not a principal to the transactions AS FAR AS I KNOW.

Peter
 
rsh01 said:
So it seems for everyone else with the attention this thread got......til WP turned up.

Need to find more info about MT4 bit of it I guess, but it all sounds back end to me so I cannot see how this wld make much difference re what the front end is.
Click to expand...

If you google 'virtual dealer plugin' you'll see what he's talking about. Metatrader are trying desperately hard to suppress information about it but you can still find quite a lot, though the insider videos have been deleted from multiple sites.
 
wackypete2 said:
I believe this applies to their MT4 accounts only and not to the ECN accounts on Power Trader or Viking Trader although I don't see where it says this specifically. I have significantly reduced the size of my account since they could lose NFA registration as a possible penalty. It's a shame though since my dealings with them have been a cut or 2 above all of the other forex brokers I've tried.

Peter
Click to expand...

The article states that 99% of customers used MT4. However this isn't just about slippage, they also removed $280,000 from customer accounts.

This all seems to be the result of the audits that are currently being carried out at various FX firms, like I said previously I'll be surprised if any of them were not acting dishonestly.
 
I had read the MT4 thread here prev, was shocked as its bandied around as the industry standard.

The first google return is forexpeacearmy and it says "MT4....is a nasty piece of software" so metatrader haven't done a very good job. Used by 150 brokers - jeez.

Virtual Dealer Plugin
 
rsh01 said:
I had read the MT4 thread here prev, was shocked as its bandied around as the industry standard.

The first google return is forexpeacearmy and it says "MT4....is a nasty piece of software" so metatrader haven't done a very good job. Used by 150 brokers - jeez.

Virtual Dealer Plugin
Click to expand...

There was a series of videos published by someone with broker access to the plug in showing exactly how slippage could be controlled, prices could be changed after the event and trades cancelled etc. It was all good stuff but it was deleted from all the trading forums and Facebook, Youtube etc very quickly. This is definitely a sensitive issue for the entire industry as it shows just how corrupt and abusive they are.
 
I hope the fine is a high multiple of what they have gained by scamming.

100x + should do it.
 
Strange isn't it, particularly in the litigious US, that no-one seems to have taken the damn thing to the courts. I suppose it's a faint hope from the authorities, but one would have thought a criminal prosecution for "incitement to defraud" or some such should be possible. And/or a damages 'class action' type suit from disgruntled clients, particularly where the authorities have fined brokers for the practice.

Or has there?
 
barjon said:
Strange isn't it, particularly in the litigious US, that no-one seems to have taken the damn thing to the courts. I suppose it's a faint hope from the authorities, but one would have thought a criminal prosecution for "incitement to defraud" or some such should be possible. And/or a damages 'class action' type suit from disgruntled clients, particularly where the authorities have fined brokers for the practice.

Or has there?
Click to expand...

I'm only aware of the CFTC/SEC/NFA actions against several brokers, Gain, FXCM and another one, plus of course FXDD now. There was some talk of a class action against FXCM but Jason was boasting recently of how it had been withdrawn or they had won it, I cant recall.

Even stranger is the fact that FXCM were only required to compensate US based clients, they got to keep what they had obtained from clients from other countries.
 
pboyles said:
Even stranger is the fact that FXCM were only required to compensate US based clients, they got to keep what they had obtained from clients from other countries.
Click to expand...

How out of order is that! Its ok to stitch up foreigners?!
 
rsh01 said:
How out of order is that! Its ok to stitch up foreigners?!
Click to expand...

US regulators have no authority over non-US accounts. It's as simple as that. Now if the NFA/CFTC are talking with the FSA, etc. there could be follow-on action for non-US accounts - depending on local regulations, of course.
 
Rhody Trader said:
US regulators have no authority over non-US accounts. It's as simple as that. Now if the NFA/CFTC are talking with the FSA, etc. there could be follow-on action for non-US accounts - depending on local regulations, of course.
Click to expand...

Ah right. PBs post states they got to keep the money they ripped off from foreign clients, this implies that either noone complained to their countries reg body - which seems unlikely, or that the talks between the US and other countries reg bodies didn't come to anything.
 
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