Broker Warning – FXDD Charged by NFA
It seems that FXDD have been charged by the NFA:
You can find the NFA Case details HERE.
Here’s some screen grabs of the charges.
A pretty poor effort by this broker.
This is why regulation is just essential when choosing a forex broker.
I have an account there, so this issue is a concern to me.
I decided to have a look at their latest financial situation:
http://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata0412.pdf
http://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata0312.pdf
Seems that in April 2012 FXDD’s net capital is 23.6 mill, and their excess capital was only 2.1 mill. In March their excess capital was 4.7 mill.
So looking at those numbers they are in fact a small broker, and their financial situation is worsening for some reason.
Are you going to pull your account with them?
I’m considering it.
This is even worse => http://www.guardian.co.uk/business/2012/jul/10/pfgbest-founder-200m-accounts
I’ve been following that story. I used to have trading accounts at that broker. Fortunately I closed them last year.
PFG were well regulated but it seems their auditing process was “questionable”.
There’s a big thread over at EliteTrader following the story.
Wow, I didn’t catch this about FXDD. I, too, have an account with them. Has anyone had any trouble getting money out? Richard, are you still with them?
John
Hi John,
Yes I still have an account with FXDD, but it’s only small.
I closed my FXDD account. I’ve been with them for 3 years and I’ve had no problem, but with all the brokers that are screwing their clients, I’m not taking any chances. Now I have to find a new broker…
I think these NFA reports are very informative because they are actual findings from their investigative team sent to the broker’s offices.
It’s amazing what some of them get up to. Forex.com and FXCM have been charged numerous times by the NFA, and have been fined and/or forced to reimburse their customers. Perhaps the NFA should start permanently banning brokers who breach the regulations more than 2-3 times.