Is FXDD Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with FXDD try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether FXDD is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker FXDD
The FXDD (pronounced "Efex-didi") brokerage is an STP broker that has been providing services since 2002. The company offers trading in 6 asset classes — currency pairs, cryptocurrencies, and contracts for difference (CFDs). It has offices in Malta and New York. The broker's services are used by more than 400 thousand clients around the world. The regulators are the MFSA (Malta Financial Services Authority, C48817) and the FSC (Mauritius Financial Services Commission, C117017252).
| 💰 Account currency: | USD, EUR, GBP, JPY |
|---|---|
| 🚀 Minimum deposit: | Starting from $1 |
| ⚖️ Leverage: | Up to 1:30 (for retail), up to 1:100 (for professional traders) |
| 💱 Spread: | From 1.9 points (Standard), from 0.4 points (ECN) |
| 🔧 Instruments: | Currency pairs (67), CFDs on stocks (20), indices (13), metals (7), energy resources (4), cryptocurrencies |
| 💹 Margin Call / Stop Out: | 100%/50% |
Pros and cons of FXDD
👍 Advantages of trading with FXDD:
•The only minimum deposit requirement is $1 or more in your account.
•The desktop and mobile platforms are MetaTrader 4 and MetaTrader 5, as well as a web terminal.
•Availability of PAMM and MAM accounts for passive investment.
👎 Disadvantages of FXDD:
•High spreads on standard accounts - from 1.9 pips on the EUR/USD pair.
•No cent (micro) accounts.
•Complex and lengthy procedure for opening a trading account.
•Limited choice of payment systems for depositing and withdrawing funds.
•There is no Russian-language website and support.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is FXDD Regulated? Broker’s license
Security (Protection for Investors)
The FXDD has two representative offices, each of which operates under the requirements of the regulators of the country of its jurisdiction.
Triton Capital Markets Ltd. operates under the license of the Malta Financial Services Authority (MFSA) under number 48817. Under the EU Markets in Financial Instruments Directive (MiFID II), the company is allowed to provide brokerage services in the European Economic Area. The FXDD Mauritius Ltd. division is authorized and regulated by the FSC, Mauritius Financial Services Commission, license number C117017252.
👍 Advantages
- Customer funds are separated from FXDD capital and held in segregated bank accounts
- Negative balance protection is in effect
- If the broker violates the obligations specified in the offer, the client can file a complaint with the regulator
👎 Disadvantages
- To create an account, you must provide detailed financial information
- You cannot make a deposit and withdraw funds without passing verification
- Limited choice of electronic payment systems for making money deposit and withdrawal operations
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by FXDD, which you can see below.
The experts at Traders Union conducted an analysis of the trading and non-trading fees of the FXDD broker. On standard accounts, the spread is retained as a brokerage commission. ECN accounts are charged an additional fee per lot, ranging from $2.99 to $4.99, depending on the asset. Non-trading fees: for the first withdrawal of funds per month - $0; and from the second payment - $40 per transaction + $25 for withdrawals of less than $100. The broker does not charge commissions for depositing funds.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $19 | Exists |
| ECN | From $4 | Exists |
Brokers that are similar to FXDD
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of FXDD conditions with its closest competitors.
Comparison of FXDD with other Brokers
| FXDD | RoboForex | Pocket Option | Exness | Eightcap | IC Markets | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MT5 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT4, cTrader, MT5, TradingView |
Min deposit |
$1 |
$10 |
$5 |
$10 |
$100 |
$200 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 1.9 point |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
FXDD is a broker for professional trading and investing with a focus on clients from the Eurozone countries.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. Some solutions, like Capitalise.ai, have no constructive counterparts. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
IC Markets Trading Company is a great broker for scalping enthusiasts, automated trading lovers, and beginner traders.
Conclusions
FXDD cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.