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

[ron1122]

i have also had some issues with fxdd.
often i raise concerns to them and they do not respond in many cases.

i trade with them as little as possible now.

one concern i had with them is being stopped out of a trade when the price of the stop exceeded their range for the day.

how is this possible. does my trade not count?

how is it possible that my position was closed out at 1.33081,
when the system shows the highest trade of the day and month to be only 1.3307?

2012-12-21_1642 - ronres's library

 

[elkhorn]

Could not happen to a nicer bunch. Got rid of them about a year ago. Found them very hard to deal with. The last straw was when I asked for an additional account to transfer some of my funds to trade a new EA and they wanted me to justify it with a page of questions to answer and then said no , I couldn't have it. Found them generally an arrogant bunch.

Opened IRA LLCs with Blue Diamond Documents (2 weeks and $400) and then about a year ago opened accounts with 7 foreign brokers with our LLC bank accounts - easy. There are some really good ones out there - ForexFS, FinFX, Profiforex, Varchev, SmartTrade, TradersWay, and recently added Tallinex with PAMM account. HotForex was good too but they caved to Fed pressure and dropped US clients. As you see we spread the funds around - not all eggs in one basket. Most of these are used and promoted by some notable gurus too. And no oppressive, unfair US restrictions on leverage and hedging.

 

[Pharaoh]

A pip here, a pip there, and sooner or later, you're talking about 1.8 million dollars.

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

The USA branch is regulated by the NFA. That's why it's so amazing that they pulled stunts like this.

 

[ajay_gandhi]

Thanks FPA. This is one of the great achievement. Thanks once again.

 

[navyseal]

Could not happen to a nicer bunch. Got rid of them about a year ago. Found them very hard to deal with. The last straw was when I asked for an additional account to transfer some of my funds to trade a new EA and they wanted me to justify it with a page of questions to answer and then said no , I couldn't have it. Found them generally an arrogant bunch.

Opened IRA LLCs with Blue Diamond Documents (2 weeks and $400) and then about a year ago opened accounts with 7 foreign brokers with our LLC bank accounts - easy. There are some really good ones out there - ForexFS, FinFX, Profiforex, Varchev, SmartTrade, TradersWay, and recently added Tallinex with PAMM account. HotForex was good too but they caved to Fed pressure and dropped US clients. As you see we spread the funds around - not all eggs in one basket. Most of these are used and promoted by some notable gurus too. And no oppressive, unfair US restrictions on leverage and hedging.

I don't know why some brokers restricted US client? Can someone help explaining this?

 

[NetWoofer]

A great outcome, especially for the innocent victims. Justice is served.

 

[PipStar]

I can report that FXDD has started the restitution process and some traders have already received a nice refund credit to their accounts.
Well, when you add up the asymmetrical slippage over nearly 2 years it is a tidy amount per account.
It may take some time though before they pay out the 1.8 M to may be thousands of traders.

 

[Laurie Gold]

I had an account with FXDD and closed it because of the slippage issues. I got an e-mail the other day Stating:

Dear Valued Client,

FXDD has recently reached a settlement with the National Futures Association and the Commodity Futures Trading Commission (the “CFTC”) regarding unfavorable asymmetrical price slippage parameters experienced as a result of FXDD’s “limit-fill-or-kill” policy from December 10, 2009 until June 29, 2011. As a result, your account will be credited. This credit will be issued directly to your FXDD account on or before September 24, 2013. No fees, penalties, charges, or restrictions will be imposed on the credits you receive or for the withdrawal of the funds credited to your account.



Pursuant to the CFTC’s Order, any credits that remain in inactive accounts on March 18, 2015 will no longer be considered restitution due and payable to customers; instead, FXDD is required to remit such unclaimed credits to the CFTC. Accordingly, if you wish to claim the credits in your account, you may do so by:

(1) withdrawing the credits in your account by completing a redemption form

(2) depositing additional funds in your account; or

(3) executing a trade in your account.

We believe the settlement is in the best interest of our customers, and we look forward to continuing to provide you with the best trading experience possible. If you have any questions about this notice or the procedure for claiming your credits, please contact us at 866.367.3933.

I will wait till September 24 to access my account and see what happens. I will do a follow-up post at that time

 

[Laurie Gold]

Ok quick update, I received an end of day statement from FXDD, indicating an $80.00 credit. I submitted a restitution redemption form (since I previously had withdrawn my funds and still have no desire to use them as a broker) for the $80.00. will update again when the funds are received.

 

[Modestus]

I've had dealings with FXDD for a few years now, and have encountered slippage issues, platform freezing at critical times, poor response to communiques, arrogant and circular reasoning answers; all kinds of difficulties. Nevertheless, continued with them even subsequent to our accounts being transferred to FXDD Malta due to US of A's restrictive and self defeating legislations of late. Recently had issues with one account which they acceded to and adjusted; but for same incident another account was refused adjustment. All in all, they are a difficult broker to relate to! But we decided to close one account this week and requested for funds withdrawal, which was attended to expeditiously. So, I would suspect that given the calibre of Brokers as a whole, they will remain in the running for now. But keep a sharp look out for the 'Games' brokers play. We record and compare the tick by tick data for several brokers through the MT4 stations we use, as well as keep ping charts for the servers we use. JIC some silly excuse is trotted out for covering up shady practices....Let the Buyer Beware...!