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FXDD Introduces FDIC Insurance to Protect Client Funds

Apr 10 2013
To many people, Forex trading seems like too much risk, with far too high a chance to lose all your money and never see a cent of profit. I must admit, that is a very likely scenario and we have all seen it happen at one time or another. But what if I told you there is a way to secure your funds so that you only ever need worry about the profitability of your trades?
Well, unfortunately, I cannot say anything like that, at least for now. However, I can say that Forex broker FXDD has taken steps to further secure client funds, at least against some of the risks of trading. This is made possible with the introduction of the Federal Deposit Insurance Corporation (FDIC) insurance for large depositors. FXDD has just announced it is setting up a special deposit program in collaboration with the fifth largest bank in the United States, U.S. Bank, which will allow clients holding deposits of over $50,000 with the broker to benefit from full insurance of their investment. This is a standard insurance product U.S. Bank provides for all deposits it holds, like checking and savings accounts. It covers losses of up to $,250,000 per each account.
Of course, the insurance only works against specific types of loss and theft; nothing can protect you from your own bad trading choices. Broker insolvency is also not covered by FDIC insurance, so if either you or FXDD ends up bankrupt, paying your debts is your own responsibility (same as just about everything else in life and Forex). I know it doesn't sound like all that much, especially if you are not among the FXDD clients with deposits over $50,000, but the broker assures us the program will be extended to smaller accounts as soon as possible, too. And, however slim the protection of this insurance policy may seem, I guess it is as good as it gets, at least for now. As Lubomir Kaneti, chief operating officer at FXDD says, "Amid a time of global financial uncertainty, FXDD is dedicated to ensuring that our clients receive the greatest protection available. We feel the FDIC pass-through insurance adds an unprecedented additional layer of security for our clients."
Though I agree with Mr. Kaneti that there is always need for better protection of funds, I would hesitate to call the introduction of the FDIC insurance unprecedented. After all, Panama-based broker FBS does also offer its clients the option of insuring their deposits, though under different conditions. The broker allows traders to insure between 10% and 100% of their deposits and promises to pay back lost funds if a certain number of lots is traded. It is true, however, that what FXDD is offering definitely adds another layer of security to the Forex trading environment, especially since the insurance will be provided by a well-respected banking institution with a long history of satisfactory service. All in all, not a bad choice for FXDD clients. 

About FXDD

FXDD, a Foreign Exchange Dealer registered with the CFTC and a member of the National Futures Association (NFA), is headquartered in New York City's 7 World Trade Center.  FXDD is a leader in online Forex trading dedicated to providing superior customer service, powerful trading technology, and reliable streaming liquidity. FXDD provides services to individual and institutional traders, hedge funds, commercial entities, brokerage firms and money managers around the world. FXDD offers 24-hour Forex trading by way of its trading platforms, which include: MetaTrader, PowerTrader, Mirror Trader, and FXDDTrader. The Company's services currently provide competitive interbank pricing, no-interest accounts, and fully-automated execution. FXDD also provides 50:1 leverage in the US, as well as competitive bid-to-ask spreads.
TAGS: fxdd  fdic  insurance  fdic insurance  forex  forex insurance 

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