FXDD - nice honest outfit

rsh01

Experienced member
1,184 299
NFA hits FXDD with multiple charges including asymmetric slippage, fine will cost it over $3.5m | Forex Magnates

"If, after the customer entered his/her order, the market moved in the customer’s favor (“positive slippage”) by no*more than two pips, then FXDD would fill the customer at the tagged price. On the other hand, after the customer entered his/her trade, the market moved in the customer’s favor by more than two pips, then FXDD would reject the order. However, FXDD did not follow this same practice if the market moved in FXDD’s favor."
 
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pboyles

Legendary member
8,072 1,301
NFA hits FXDD with multiple charges including asymmetric slippage, fine will cost it over $3.5m | Forex Magnates

"If, after the customer entered his/her order, the market moved in the customer’s favor (“positive slippage”) by no*more than two pips, then FXDD would fill the customer at the tagged price. On the other hand, after the customer entered his/her trade, the market moved in the customer’s favor by more than two pips, then FXDD would reject the order. However, FXDD did not follow this same practice if the market moved in FXDD’s favor."
Same as what FXCM were doing, I'd be more surprised if you told me there was a forex broker NOT doing this.

So that's both of T2Ws forex rebate partners fined for dishonest slippage practices. Still, they weren't to know.
 

wackypete2

Legendary member
10,202 2,044
I believe this applies to their MT4 accounts only and not to the ECN accounts on Power Trader or Viking Trader although I don't see where it says this specifically. I have significantly reduced the size of my account since they could lose NFA registration as a possible penalty. It's a shame though since my dealings with them have been a cut or 2 above all of the other forex brokers I've tried.

Peter
 

rsh01

Experienced member
1,184 299
I'd be more surprised if you told me there was a forex broker NOT doing this.
So it seems for everyone else with the attention this thread got......til WP turned up.

Need to find more info about MT4 bit of it I guess, but it all sounds back end to me so I cannot see how this wld make much difference re what the front end is.
 

wackypete2

Legendary member
10,202 2,044
So it seems for everyone else with the attention this thread got......til WP turned up.

Need to find more info about MT4 bit of it I guess, but it all sounds back end to me so I cannot see how this wld make much difference re what the front end is.
MT4 makes it easy for the broker to screw around with accounts (also the plug-in, Virtual Dealer) because functionality to do so is built right in. The ECNs are more 3rd party operated and .FXDD is not a principal to the transactions AS FAR AS I KNOW.

Peter
 
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pboyles

Legendary member
8,072 1,301
So it seems for everyone else with the attention this thread got......til WP turned up.

Need to find more info about MT4 bit of it I guess, but it all sounds back end to me so I cannot see how this wld make much difference re what the front end is.
If you google 'virtual dealer plugin' you'll see what he's talking about. Metatrader are trying desperately hard to suppress information about it but you can still find quite a lot, though the insider videos have been deleted from multiple sites.
 

pboyles

Legendary member
8,072 1,301
I believe this applies to their MT4 accounts only and not to the ECN accounts on Power Trader or Viking Trader although I don't see where it says this specifically. I have significantly reduced the size of my account since they could lose NFA registration as a possible penalty. It's a shame though since my dealings with them have been a cut or 2 above all of the other forex brokers I've tried.

Peter
The article states that 99% of customers used MT4. However this isn't just about slippage, they also removed $280,000 from customer accounts.

This all seems to be the result of the audits that are currently being carried out at various FX firms, like I said previously I'll be surprised if any of them were not acting dishonestly.
 

rsh01

Experienced member
1,184 299
I had read the MT4 thread here prev, was shocked as its bandied around as the industry standard.

The first google return is forexpeacearmy and it says "MT4....is a nasty piece of software" so metatrader haven't done a very good job. Used by 150 brokers - jeez.

Virtual Dealer Plugin
 

pboyles

Legendary member
8,072 1,301
I had read the MT4 thread here prev, was shocked as its bandied around as the industry standard.

The first google return is forexpeacearmy and it says "MT4....is a nasty piece of software" so metatrader haven't done a very good job. Used by 150 brokers - jeez.

Virtual Dealer Plugin
There was a series of videos published by someone with broker access to the plug in showing exactly how slippage could be controlled, prices could be changed after the event and trades cancelled etc. It was all good stuff but it was deleted from all the trading forums and Facebook, Youtube etc very quickly. This is definitely a sensitive issue for the entire industry as it shows just how corrupt and abusive they are.
 

barjon

Legendary member
10,311 1,566
Strange isn't it, particularly in the litigious US, that no-one seems to have taken the damn thing to the courts. I suppose it's a faint hope from the authorities, but one would have thought a criminal prosecution for "incitement to defraud" or some such should be possible. And/or a damages 'class action' type suit from disgruntled clients, particularly where the authorities have fined brokers for the practice.

Or has there?
 

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