FXDD fined $2 million and has to pay $1.8 million to traders for asymmetric slippage

[AsstModerator]

Over a year ago, FXDD unilaterally removed profits from client accounts based on the accusation the customers had somehow "manipulated" FXDD's trading system by executing trades at "off-market" prices. FXDD long after the NFA limits on trade price adjustments. In what appeared to be a method to pressure traders who had this happen to them to not complain to the NFA, FXDD filed lawsuits against their own clients for damaging FXDD's servers. Most either settled by surrendering their profits or failed to reply. I am proud to say that FPA member Raimundas defended himself and managed to get a much more equitable settlement in his case.

The NFA still found out about this. On July 29th, 2012, the NFA filed a list of complaints against FXDD. The adjusted trades were one item. Others included the use of asymmetric slippage to cheat clients, failure to implement an adequate AML program, and more.

Since then, I have been checking the NFA page at least once per day to see the final decision. On July 24, 2013, FXDD employee James Green was fined $75,000 for his part in FXDD's problems. The final decision for FXDD came on September 18th. Forex Magnates caught it before I did and FPA Member PipStar posted about it at the FPA.

FXDD is now the one taking a settlement, without admitting or denying the charges.

FCDD has agreed to pay $1,828,261 to clients who were subjected to differential slippage.

FXDD agrees that no fees or withdrawal restrictions will be placed on these funds.

FXDD also has to pay a $1,095,119 fine to the NFA and a $914,131 penalty to the CFTC.

I am surprised at one thing. I don't see anything regarding the issue of client profits being removed in violation of NFA deadlines on the time permitted to adjust trades.

I hope that $1.8 million in restitution and $2 million in fines is enough to push FXDD onto a better path.

FPA Article on original NFA Charges

Original complaint by Raimundas

Forex Magnates article on FXDD case

NFA Page including the complaints, answers, and decisions

CFTC Press Release on FXDD

 

[dude12]

FCDD has agreed to pay $1,828,261 to clients who were subjected to differential slippage .

which is this broker
fxdd or fcdd!
sorry if spell mistake you did or i misunderstand

 

[AsstModerator]

Over a dozen uses of FXDD, a large, well-known broker.
Links to multiple pages all about FXDD, including ones at the CFTC and NFA.
One use of FCDD.

Can you guess which name is the one where I slipped on my keyboard?

 

[Max]

Nice to hear this information! Scam-broker .... get out of this business!

 

[Red Herring]

Nice to hear this information! Scam-broker .... get out of this business!

Never expected this from FXDD!

 

[madondotjp72]

This should be a lesson to all, brokers and traders alike. Stick with a regulated broker not a fly by night. If they scam you the regulator will have your back. VIVA FPA VIVA!

 

[haigo]

This should be a lesson to all, brokers and traders alike. Stick with a regulated broker not a fly by night. If they scam you the regulator will have your back. VIVA FPA VIVA!

Isn't FXDD a regulated broker? I didn't expect that scam from them either. I have my trading accounts with FXDD in Malta.

 

[Onyebuchim C. Obike]

I am shocked to my bones. FXDD really messed up. They are just too big for a mess like this

 

[Onyebuchim C. Obike]

Isn't FXDD a regulated broker? I didn't expect that scam from them either. I have my trading accounts with FXDD in Malta.

I too am surprised at this findings. I use to have an account with them long before they opened the Malta Office. I noticed some inconsistencies and i had to pull out.

 

[prosperity2013]

Great work FPA. Sure hope it will be a lesson to others who try to scam their clients of their hard earned money.