NFA and CFTC fined FXDD for order Manipulation

[ProTrader]

FXDD has been getting complain around for cancel trade profits of customers and claim that customers manipulated the FXDD trading system.

Complains are finally heard by NFA and CFTC - FXDD regulatory body. NFA filed complained against FXDD on July 29, 2012 and the investigation has been going on since then.

On September 18, 2013, final decision for FXDD case come out, the result was favored for traders:

- FXDD was ordered to pay a $1,095,119 fine, of which $914,131 is attributable to FXDD's unfavorable price slippage practices.
- FXDD was also ordered to pay $1,828,261 in restitution to FXDD customers who experienced unfavorable price slippage on "limit-fill-or-kill" trades placed in their accounts from December 10, 2009 until June 29, 2011.

Many traders expected to get money back on their account.

Read more:
Case Summary

CFTC Orders FXDirectDealer, LLC to Pay $2.74 Million for Supervision Failures Relating to Trading Platform
Pay Up, Says Uncle Sam! FXDD Ordered To Pay Penalties As Case Draws To A Close | Forex Magnates

 

[jackcm]

FXDD has been getting complain around for cancel trade profits of customers and claim that customers manipulated the FXDD trading system.

Complains are finally heard by NFA and CFTC - FXDD regulatory body. NFA filed complained against FXDD on July 29, 2012 and the investigation has been going on since then.

On September 18, 2013, final decision for FXDD case come out, the result was favored for traders:

- FXDD was ordered to pay a $1,095,119 fine, of which $914,131 is attributable to FXDD's unfavorable price slippage practices.
- FXDD was also ordered to pay $1,828,261 in restitution to FXDD customers who experienced unfavorable price slippage on "limit-fill-or-kill" trades placed in their accounts from December 10, 2009 until June 29, 2011.

Many traders expected to get money back on their account.

Read more:
Case Summary

CFTC Orders FXDirectDealer, LLC to Pay $2.74 Million for Supervision Failures Relating to Trading Platform
Pay Up, Says Uncle Sam! FXDD Ordered To Pay Penalties As Case Draws To A Close | Forex Magnates

Well, FXDD "Most trusted broker Europe 2012" by Global Banking and Finance. I used to believe in such awards but now those awards are more like jokes.

This is quite weird as FXDD is not regulated by CFTC and NFA, why was it fined by those organizations?

 

[ProTrader]

FXDD is regulated by NFA/CFTC to be able to active in US - FXDD Reviews | FXDD Forex Broker Rating and Information

Award is a way to attract clients but to most traders, it has no meaning!

 

[jackcm]

FXDD is regulated by NFA/CFTC to be able to active in US - FXDD Reviews | FXDD Forex Broker Rating and Information

Award is a way to attract clients but to most traders, it has no meaning!

I don't get that information from DCP, I mean here: About FXDD - Globally Regulated. FXDD is not regulated by CFTC and NFA, and by the way, its headquarters is in Malta (EU), not New York (US), you can read it here: About FXDD - About Us

In the past, I actually didn't care awards from any organization except World Finance and Global Banking and Finance. Anyways, I will never trust such awards anymore as they seem completely useless.

 

[ProTrader]

The company has both an international and US division. I'm not from USA so I don't know which version the site will show for US visitors!

When admin post a listing, I'm sure he carefully researched so I mainly get information from DCP listing.

 

[jackcm]

The company has both an international and US division. I'm not from USA so I don't know which version the site will show for US visitors!

When admin post a listing, I'm sure he carefully researched so I mainly get information from DCP listing.

I'm sorry as you were right. If you want US version, it's fxdd.com/us(instead fxdd.com/mt), of course its headquarter is in NY (US) and therefore regulated by NFA and CTFC.

By the way,

According to the CFTC Order, FXDD used asymmetrical slippage parameters on its principal trading platform, meaning that the system favored FXDD over its customers in slippage situations. Based on these parameters, FXDD rejected a customer’s order when the price slipped more than 2 pips in the customer’s favor (and instead re-quoted the customer the new, less favorable price), but filled a customer’s order at the original price if the price slipped in FXDD’s favor by more than 2 pips. As a result, FXDD benefited from slippage of more than 2 pips in its favor between order placement and order execution, but did not allow its customers to benefit from similar price changes in their favor. The CFTC Order further finds that had FXDD employed an adequate supervisory system and diligently supervised its personnel, FXDD would have discovered these problems with the integrity of trades on the platform and would have had the opportunity to correct them before more than 24,900 customer accounts were deprived of $1,828,261.

It's just only 2 pips . I always encountered this situation when I traded in InstaForex.

This could be the reason why most brokers (dealers) stay away from US.

 

[karunafx]

I'm sorry as you were right. If you want US version, it's fxdd.com/us(instead fxdd.com/mt), of course its headquarter is in NY (US) and therefore regulated by NFA and CTFC.

By the way,

It's just only 2 pips . I always encountered this situation when I traded in InstaForex.

This could be the reason why most brokers (dealers) stay away from US.

Totally right guys, JUST STAY AWAY FROM US broker...
Let's LEARN from Liberty Reserve, E-Gold, and many others. Totally they stealing customers fund to make it for war in middle east.

Russian is better than them. I trade in Liteforex, Insta, FBS, and some others. its good.