FXDD is a trading name of FXDD Malta Limited that holds an Investment Service Category 3 License and is regulated by the Malta Financial Services Authority (MFSA) under reference number IS/48817. There is another company – FXDD Mauritius Ltd, which has an offshore license and will not be subject to this review.
Customers can trade over 67 currency pairs, 7 metals (including palladium and platinum), Oil, Brent, Natural Gas, more than 10 indices and 10 US shares.
FXDD provides two trading accounts – Standard and ECN. The Standard account offers zero slippage, no commission, and a Fill-or-Kill model of order execution. The ECN account provides raw spreads, without any additional markups at the expense of some commission. The company claims that 99% of the ECN orders are executed at the requested price. Both accounts are accessible on the MetaTrader platform, while the WebTrader terminal provides an ECN account only. There is no minimum deposit amount required.
Traders can deal through two of the most popular terminals in the world – MetaTrader 4 and MetaTrader 5. The MT4 platform dominates the market because it has a set of advanced charting and of trader tools. It is preferred by both traders who trade manually and by automated orders. The MT5 is a newer version that has improved charting tools, more pending orders, financial events directly in the charts, and an easier-to-use language for automated trading. In addition, the WebTrader is the company’s proprietary web-based trading platform accessible anywhere. A quick comparison between MetaTrader and WebTrader platforms shows that you may be re-quoted if you deal through MT4 and MT5 and the volatility is high, while there are no re-quotes with the WebTrader. Although the company claims orders are filled very quickly, slippage can occur for both types of execution models.
The company offers a variety of deposit methods at no extra charge, including credit or debit cards, wire transfer and Neteller. The things are not the same when you want to withdraw funds. The fees are not so small and for example if you withdraw less than USD100 by bank transfer, you must pay an extra USD25. Any additional withdrawal for the calendar month will be charged USD40. Moreover, there is an inactivity fee of USD30 per month if you do not have open positions within 90 days.
A lot of useful things are available in the ‘Resources’ section on the website, including daily analysis, webinars, online tools, and a third-party economical calendar.
If we look at the legal documents, we’ll find out that FXDD offers negative balance protection to retail customers. So, if there is a significant “market gap” and thus makes it possible to reach a negative balance during trading, FXDD fully offsets this negative balance. The ‘Best Execution Policy’ document shows that FXDD deals as principal acting as a counterparty to most of client trades, or FXDD is a market maker. Although this places a trust on the company to offer better execution to its clients, it leads to a conflict of interest because FXDD earns money while you lose it. The company says: ‘Although there is a general conflict of interest when FXDD acts as the principal counterparty or execution venue for its clients, FXDD does not compromise on its commitment to its clients to provide the best execution.’
Overall, FXDD has a European license and must comply with strict regulatory requirements. It offers the most traded instruments at competitive average spreads and with negative balance protection built in. Be careful if you withdraw more than once a month because there will be charges.