For traders and investors to invest with a broker, they need to trust the broker’s services and functioning. Therefore, a broker needs to focus ardently on regulations, traders and clients’ security, be highly trustworthy and reliable. At the same time, to be a broker of utmost choice for traders and investors, it must advance with time and technology and keep its service up to date. Sadly, that is not the case with FXDD. It has been in the market for more than 19 years, and one cannot see much of the efforts.
It is very crucial for traders to pursue thorough research before investing their money with any brokers or financial service provider.
This review will discuss each aspect of FXDD and why you should not go with it.
Summary of FXDD
FXDD is a second-tier regulated broker headquartered in the United States of America. The minimum deposit requirement for opening an account with the broker is 100 dollars. The additional charges include high commissions, spreads, swap charges, and withdrawal fees. Only two account types are offered by the broker (standard and ECN). There are minimal instruments and assets provided by the broker for reading. Overall, only 97 assets are there, spread across the categories of instruments.
FXDD Scam or safe?
FXDD is regulated by a second-tier regulation called MFSA – Malta Financial Services Authority. There are other brokers with a less minimum deposit which are regulated by first-tier regulatory authorities. Yes, it is safe to trade with FXDD, but why not go for a broker with better regulations that can be highly reliable.
FXDD offers only two kinds of accounts; Standard and ECN account.
- The standard account seems to have minimal functionalities with high mark up costs. And in the ECN account, the commission seems pretty high.
- Unlike other reputable brokers like T1 Markets or TradeATF, FXDD does not offer its clients raw spreads. The spreads can go up to 5 dollars per lot on many currencies.
- The mark up for EUR/USD is as high as 0.4 pips, which is not acceptable on an ECN account. This is utterly confusing. What we can conclude from this is that either FXDD does not have righteous ECN trading conditions or relies on interbank rates and then charges up a commission from clients. We do not think any of this situation is possible for sound or sensible trading.
The user interface of FXDD seems to be a problem. The whole mobile application seems pretty cluttered and spread about without any purpose. There are multiple tabs stacked one after the other without any structure on the place. Many beginners and traders can find it challenging to get accustomed to such an interface.
The account opening process with FXDD seems quite lengthy and hefty. One has to go through multiple steps and fill up questionnaires. The verification of documents can take up to hours. The whole process of document verification with FXDD is very cumbersome and time-consuming. The instant account opening is not an advantage that FXDD can offer.
Products for trading
The instruments and assets under each category of the instrument are pretty limited with FXDD. The broker offers only 50 currency pairs to trade which is quite less comparing it to other brokers in the forex category. At the same time, there are cryptocurrencies offered for trade. There are only ten stocks CFDs, 12 indexes available to invest in with the broker.
Overall, just 97 assets are offered fro trade by FXDD across all the categories of instruments. This number is extremely low, looking at the basic trading standards. This number leaves traders with the leat opportunities to make good profits and diversify the portfolio and trade in its entirety.
Fees, spreads, and commission
- FXDD takes into account a system with high spreads. The spreads start from 1.9 pips and can range up to 5 dollars per lot for many currency pairs.
- High markups are witnessed in the standard account. ECN account offer trading with low mark up but commissions are high. And even spreads remain high too.
- There are swap charges incurred on overnight trading positions.
- There is one withdrawal free of charge each month for clients. But additional withdrawal will cost you an amount as high as 40 dollars. Additionally, the bank transfers will incur a charge of 25 dollars if the amount is less than $ 100.
- An inactivity fee of 30 dollars is implied with the account is mot used for more than 90 days by the trader.
- FXDD also earns from the traders’ and investors’ losses as it is a direct counterparty to the trades.
Overall, the fee structure of FXDD remains quite expansive and high.
Deposit and withdrawal
- For deposit and withdrawal, FXDD only accepts bank transfers and cheques. It seems the broker still relies on conventional and old methods of money transfer. Why not go with an online transfer like Skrill, Neteller, PayPal or more? FXDD does not even facilitate fund transfers via credit cards. It is a major drawback in such a technologically advanced time.
- Only one free withdrawal is permitted per month, and additional withdrawal will cost 40 dollars each. This amount is so much more than average.
- Also, bank transfers will incur a charge of 25 dollars if the amount is less than 100 dollars.
Research and educational tools
For research purposes, there are some blogs regarding market movements and daily news. But that is all. There are no calculators or calendars or any other advanced tools for research.
There is no education section on the website of FXDD. This just says that the broker does not care about educating their traders and investors.
Customer support and service
FXDD claims to offer customer support 24/5 through email and live chats. One can also request a call by filling in details on the website. But when tested practically, none of this works! There are no callbacks or answers to emails. This is a major drawback as FXDD does not care about answering the queries or solving clients’ and traders’ problems.
Why one should not go with FXDD
Here is a summary of everything that compels us to say that FXDD is not worth it.
- Second-tier regulation
- High spreads and commissions
- High withdrawal and inactivity fees
- Limited instruments and assets
- Poor user interface
- No educational tools
- Only two variations in types of accounts
- Does not allow hedging
- Poor customer service
- FCA does not regulate it.
- Cumbersome account opening process
FXDD is not a worthy broker to trade with. Even though the deposit is 100 dollars, the commissions, spread, and other charges are pretty high. Conducting the research about the working and functioning of FXDD, all we could find were loopholes in each category. Many well-regulated brokers are offering much more profitable and reliable trade. We would recommend our readers to think twice before investing their hard-earned money with FXDD and try hands in 101investing, PrimeFin, TradedWell, and other reputed brokers.
Does FXDD provide educational material?
No, the broker does not provide education material for traders and clients.
What is the minimum deposit for FXDD?
The broker’s minimum deposit is as high as $ 100 with the commission that is charged per trade.
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