I see FXDD are the latest retail forex broker to be taken to court. The paperwork makes for interesting reading, all the usual stuff about slippage, fake price spikes, altering margin requirements.
http://demod19.webzonedemo.com/fore...v.-FXDD-Executed-Complaint-2-10-11-doc-68.pdf
I've used FXDD since 2006 and still use them today.
I won't say that FXDD is above any of the accusations. The entire industry is shady so it's reasonable to assume FXDD employed it's share of unfair practices. Indeed, from my own experiences some of the accusations appear to have merit but difficult to prove.
A few things I noted about the lawsuit after reading it through:
- 55 pages and no where does it offer any proof of what happened. Only accusations.
- Most of the accusations stem from the fact that demo accounts do not operate the same as live accounts. This is repeated many times.
- FXDD has several platforms. The lawsuit does't say which platform(s) it applies to or even whether or not it applies to all of them.
- What may be most damaging to FXDD is the accusation that they do not operate as advertised or as stated in their Terms of Service.
From my OWN experiences with FXDD:
- I had 2 instances where I thought there was a serious enough issue to warrant a call to customer service and complain, in a professional manner, of course. Both times the issues was resolved quickly and to my satisfaction.
- In January of this year FXDD switched to 5 digit pricing. Traders with accounts opened prior to that were offered a chance to continue with 4 digit pricing if they opted-in. I took that offer and continued with 4 digit pricing. Spreads widened so much that I almost closed my account. Apparently, enough people complained and this was resolved.
- From page 8: "... dishonest trade execution practices are designed to cause a customer to lose money no matter how skillful the customer may be in executing trades." This is the only statement in 55 pages that I will refute. If you know what you are doing you CAN make money. For nearly a year and a half I have posted trades and have overall profited from them in the FX live calls thread here on t2w.
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The difference in my time with FXDD may result from my being an experienced trader, not crying over a lost pip or 2, and having an above average sized account which is why customer service may have reacted so promptly.
Peter