de | cn | ru

Brokers News

NFA Takes Emergency Enforcement Action Against FXDD

Dec 10 2012
By
Forexbrokerz.com
Earlier this year the US forex broker FXDD found itself under scrutiny by one its two regulators - the National Futures Association (NFA). The NFA accused the broker of breaking the regulatory body’s on a number of different plains, including bookkeeping, anti-money laundering procedures, and asymmetrical slippage. 
 
The accusations resulted in an audit, which concluded with a 27-page report that showed some disturbing findings about the broker’s operations. According to NFA’s investigation, FXDD showed some serious deficiencies in record keeping, it failed to educate and train its staff in anti-money laundering procedures and exercised slippage practices that harmed its customers
 
And that wasn’t all. FXDD seized over $280,000 from nine customers, claiming that they were trading off the market. When the traders stroke back, the broker pressed legal charges against them but failed to produce evidence of market abuse, therefore the NFA instructed the broker to return the seized money to the customers (the civil suit is still in process and unfortunately we don’t have any further information on the legal proceedings). 
 
While the battle between FXDD and the nine traders is yet to be decided, the NFA is taking measures on the rest of the accusations against the broker. On Friday, December 7, 2012, the regulator issued an emergency enforcement action against FXDD. The broker is now required to either post a bond, or place money in an escrow account to make sure that it can meet its obligations under any order, which might result out of a related disciplinary action issued by the NFA on the price slippage accusations against the company. If these are found to be justified, FXDD will be penalized with a customer restitution of $3.3 million - approximately 12% of the broker’s adjusted net capital (as per data from the CFTC)
 
NFA’s official press release on the matter states that historically similar claims have resulted with a penalty for the broker - which is bad news for FXDD. Only 12 brokers have remained servicing the US retail forex market after GFT’s recent withdrawal, and this will lead to a game of re-establishing positions and determining leaders - so it would be a really bad time for FXDD to be found guilty of cheating its customers. 
 
The NFA has given FXDD until December 14, 2012 to put the $3.3 million aside in an escrow account or post bond for this money, otherwise it will be forced to stop rendering services to traders. 
 
 

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  NFA  CFTC  forex trading  forex broker  forex slippage  GFT  retail forex 

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

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