Question:What's the fine charged on FXDD by CFTC? Is FXDD a safe and trustworthy broker?
FXDD has paid $2.74 million of fine to the regulatory authority, CFTC in USA in 2013.
According to CFTC’s announcement, the fine was charged because FXDD has used “asymmetrical slippage parameter” to let the system execute the orders in favor of FXDD.
This program has made the system favored FXDD in slippage situations.
The detail is as below.
When slippage occurs in favor of traders which is 2 pips or more, on FXDD’s trading platforms, the system automatically rejected the trades.
On the other hand, if the slippage occurred in favor of FXDD(but against the traders’ orders), the system accepted the orders to be executed.
In this way, FXDD had succeeded to deprive nearly 2 million USD from retail clients within 2 years.
The official statement shows as below.
For the Official Announcement regarding to this case by CFTC, you can download the PDF below.
CFTC Orders FXDirectDealer, LLC to Pay $2.74 Million for Supervision Failures Relating to Trading Platform
For more information, you may contact support team of FXDD from the official website.
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