Resolved FXDD will not process withdrawal.

chitak

Sergeant
Messages
135
I've had an account with FXDD for over a year(FXDD MT). I recently received an email that the account will be closed and all profits wiped, copy of email below:

Dear Sir

Your account captioned above was selected for a detailed review by Compliance. After analyzing all records related to your account, FXDD has determined that you have violated the terms and conditions of your customer agreement, specifically the provision set forth below. As a result of your off market trading activity, FXDD will return your deposited funds to you upon your written request and disable your account. Any profits attributed to off market trading will be withdrawn from your account and you will be prohibited from trading with the firm in the future.

Should have any questions regarding our actions, you may write to the Chief Compliance Officer accordingly.



System Manipulation

It is expressly prohibited to directly or indirectly use any device, software program, script or other artifice to manipulate, alter, interfere with or in any way attempt to manipulate, alter, or interfere with the normal functioning of any electronic trading system, platform, data feed, price feed, software program, connection speed or other interface, device, platform or software program of any type or kind made available to you, the customer, by FXDD in connection with trading on a trading platform made available by FXDD. Such prohibition extends to, but is not limited to, efforts to buy at the bid, sell at the offer, buy or sell between the published spread or otherwise trade on off market prices by taking any action, directly or indirectly, that interferes with, jeopardizes, compromises, slows down, accelerates, impedes or interrupts or in any way, attempts to interfere with the normal functioning of any FXDD operational and/or dealing activity, system, platform, execution or pricing function. Should FXDD determine, in its sole judgment, that a prohibited activity has taken place, FXDD reserves the right to immediately cancel all trades in the account, close or otherwise disable the account, terminate the customer agreement, report the activity to an appropriate law enforcement agency and/or regulatory agency and reverse all gains shown in the account resulting from, related to our touching upon the prohibited activity. Customers are liable for all expert advisers, scripts, software programs, algorithms or other artifices, technology or devices used in connection with trading on any platform made available to you, the customer, by FXDD.


Regards


I immediately replied and informed the compliance officer that I do not agree with this and would like to withdraw the full amount in my account which is $4577.79. I initially deposited $3000.

I never received a reply from the compliance officer. I thought I'd try and request a withdrawal the regular way, that also did not work, and I never got any reply to that withdrawal request.
Summary of events:
Aug 2nd - received email from Compliance officer
Aug 2nd - replied to email from Compliance officer
Aug 6th - I emailed a withdrawal request
Aug 7th - Sent email to request a status on my withdrawal request
Aug 7th - Received a reply from FXDD:
Dear Client,

Your withdrawal inquiry was forwarded to our Accounting Department, please allow up to 24 business hours for further clarification.

If you have any questions please do not hesitate to contact us.

Kind regards,

Aug 9th - I emailed withdrawal request yet again
Aug 11th - I emailed withdrawal request again, informing FXDD to process ASAP and if anything is wrong to call me ASAP.

I have not received any other correspondence from FXDD since Aug 7th, nor have I received any money. I have now submitted complaints with NFA and MFSA.

Will keep everyone posted on my progress/if any.
 

Siddharth

Private, 1st Class
Messages
75
If they can prove you was doing arbitrage trading then it might be extremely difficult for you to get your money back. Its always advisable to tell authorities about the incident. I have seen almost same case a year ago in which fxdd threatened to lawsuit client. Anyways keep on trying.
 

Vincenzo De Camillis

Private, 1st Class
Messages
42
Se c'è stato arbitraggio, il deposito iniziale deve essere comunque restituito.
Diversamente noi dobbiamo pensare ad un tentativo di truffa.
 

chitak

Sergeant
Messages
135
If they can prove you was doing arbitrage trading then it might be extremely difficult for you to get your money back. Its always advisable to tell authorities about the incident. I have seen almost same case a year ago in which fxdd threatened to lawsuit client. Anyways keep on trying.

The whole thing is fishy, they can't say 100% of my trades were arbitrage. If they see some trades as off market perhaps adjust them but calling the whole profit arbitrage is very very fishy. Reminds me of back in 2006 when stuff like this was common practice.

Will see how it goes. The main problem now is that they are not replying to my emails, so I don't know what the issue is, a legitimate business will tell me what is going on. I will post my statement when I get a chance, it is pretty long so it will take me some time to figure out in what format to post it.
 

Pharaoh

Brigadier General
Messages
20,231
Was this FXDD in the USA? If so, they have very tight time limits. There is already an open NFA case against them. One item in that case is for FXDD breaking the trade cancellation time limit rules.

Case Summary

If it was FXDD in the US, contact the NFA immediately!
 

Master Yoda

Captain
Messages
2,929
That sounds serious, you should listen to Pharaoh and contact the NFA.
If it's a MiFid regulated one contact the regulation wherever the company is regulated
 

chitak

Sergeant
Messages
135
Was this FXDD in the USA? If so, they have very tight time limits. There is already an open NFA case against them. One item in that case is for FXDD breaking the trade cancellation time limit rules.

Case Summary

If it was FXDD in the US, contact the NFA immediately!

As I mentioned in my first post, I have submitted a complaint with the NFA and the MFSA. It is technically FXDD Malta as I am not an american resident, I wasn't given a choice where the account to be placed but I think by default it is Malta.

The regulators will take a very long time to get anything done. I'm hoping through the FPA I might get some response from FXDD and get a positive resolution.
 

Pharaoh

Brigadier General
Messages
20,231
FXDD Malta. So much for NFA protection. :(

Go ahead and send an invite to every address you can find for FXDD. Include a link to this thread. Let them know that everyone is waiting to see an explanation for these actions.
 

chitak

Sergeant
Messages
135
FXDD Malta. So much for NFA protection. :(

Go ahead and send an invite to every address you can find for FXDD. Include a link to this thread. Let them know that everyone is waiting to see an explanation for these actions.

I was just coming to post that I sent emails to all addresses I have and I could find for FXDD, you beat me to it Pharaoh :)

I am not so sure that the NFA is powerless as they regulate FXDD, which wholly owns FXDD malta, and interestingly enough in the T&C of FXDD malta, it says that FXDD NY is the sole liquidity provider. So the companies are very intertwined and if they claim the liquidity provider cancelled these trades well we know who that is and then the NFA should have something to say about that.
 

Pharaoh

Brigadier General
Messages
20,231
Intriguing argument - can a US broker serving as an LP be held accountable to NFA rules for trades with an offshore brokerage owned by the same company or not?

You may want to call the NFA directly and discuss this with them.
 
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