de | cn | ru

Brokers News

FXDD Introduces FDIC Insurance to Protect Client Funds

Apr 10 2013
By
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 

More news about FXDD

Forex
Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Cyprus, SVG CySEC MT5, Web,
cTrader
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Hong Kong SFC MarketSpeed FX,
Trading Station
$1 Review

More Forex Brokers News

FC Barcelona and FBS Sign New Global Partnership Agreement

Jan 17 2020 13:05:55

Broker specializing in online trading becomes club’s Official Trading Partner for four years, through 30 June 2024. Read more

FP Markets adds Autochartist to its list of analytical tools

Jan 13 2020 17:56:25

FP Markets, one of the leading brokers in Australia and a trusted global Forex and CFD broker, has added yet another instrument to its long list of trading tools  - the Autochartist - an online technical analysis tool which scans the market to provide detailed breakdowns across a wide range of ... Read more

FBS clients grow to over 14 million in 2019

Jan 07 2020 18:15:13

FBS, one of the leading players in the forex industry, published its annual report for 2019, celebrating its 10th birthday and 14 millionth client in some 190 countries around the globe. Read more

#FBS2020: FBS Gives Away Lucky Gift Boxes In A New Year Promo

Dec 09 2019 14:36:59

As many companies out there, FBS broker finishes off its year with a New Year promotion for its clients. At the end of 2019, they are offered to create a fancy Thank You e-card for their loved ones and get a gift box full of nice surprises. Read more

Trip For Pip: FBS To Launch A Quest Game For A Trip To London, Tokyo, Or Dubai

Oct 29 2019 14:09:54

FBS broker starts its new marketing campaign, and it has already attracted many eyeballs on social media. The promotion is called “Trip for Pip,” and it is very engaging for several reasons:    a) it’s playable;  b) it features a dream trip for two as the main prize. Read more

HYCM tops the list of brokers with highest percentage of winning clients

Oct 23 2019 12:12:59

The importance of choosing a reliable broker is paramount to trading. Most traders have given a serious thought to the security of their investments and these concerns are increasingly common in this highly competitive market. Read more

FXCM expands its crypto offering with CryptoMajor baskets

Oct 14 2019 14:49:01

  Major forex broker FXCM Group enhances its CFD offering with the launch of CryptoMajor- cryptocurrency baskets, which will allow its clients to trade in to multiple digital assets in one go. Read more

FXTM Launches 30% Welcome Bonus

Aug 06 2019 13:38:53

  As part of FXTM’s mission to provide clients with an exceptional trading experience, the international broker has launched its latest offering – the 30% Welcome Bonus!   This promotion, available under Exinity Limited, boosts your account by an extra 30% when you deposit $100... Read more

XM parent actively prepares for the launch of its US brand Trading.com

Jul 03 2019 14:19:28

  Trading Point Group, the owner and operator of the XM brand, actively prepares for the future launch of its US brand Trading.com. Read more

FBS Invites 20 Best Partners To a VIP Party

Jul 02 2019 15:04:24

Partner parties is a great way to get to know company’s local promoters and celebrate loyalty, motivation, and cooperation. In 2019, FBS broker launches the FBS Stars contest with a round trip flight to Russia’s second largest city and a VIP party invitation as a prize. Read more

de | cn | ru