FXDD Review 2024

Trust

FXDD Regulations

FXDD operates under 2 entities:

• Triton Capital Markets Ltd is regulated by the Malta Financial Services Authority (MFSA). We rate MFSA as a Tier-2 regulator.
• FXDD Mauritius Ltd is regulated by the Financial Services Commission (FSC). We rate FSC as a Tier-3 regulator.

Why is it Important to Know Where Your Broker’s Subsidiary Is Regulated?

Each regulator sets distinct requirements for brokers, covering critical aspects such as leverage levels and specific investor protections. These protections often include negative balance protection, segregated accounts, and access to investor compensation funds. Understanding the nuances of these regulations is crucial for traders to determine if a broker meets their needs.

FXDD is managed under two entities: Triton Capital Markets Ltd, regulated by the MFSA (a Tier 2 regulator), and FXDD Mauritius Ltd, regulated by the FSC (a Tier 3 regulator).

Both entities ensure client funds are held in segregated accounts. This means the clients’ capital is not utilized for the broker’s operational expenses, enhancing the safety of these funds should the broker face financial difficulties.

Furthermore, the broker provides negative balance protection, ensuring clients cannot lose more money than what is available in their accounts.

Specifically, the MFSA-regulated entity is a participant in the Investor Compensation Scheme. This affiliation offers FXDD’s clients eligibility for compensation up to 90% of their investment, with a maximum limit of 20,000 Euros, in the event the broker encounters financial issues.

I have summarized key aspects of the brokers’ entities in terms of regulation and safety in the table below:

Is FXDD Safe to Trade With?

FXDD is considered safe for trading, as it operates under the oversight of recognized regulatory bodies, including the MFSA and the FSC, which enforce strict financial standards and investor protections.

The broker ensures client funds are held in segregated accounts and provides negative balance protection, along with eligibility for compensation through the Investor Compensation Scheme for its MFSA-regulated entity, further enhancing the safety of client investments.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on how long the broker’s longevity is, the size of the company, and the transparency in terms of information being readily available.

Founded in 2002, FXDD is not publicly traded and does not have a bank parent, which is common for a broker.

Traders can find regulatory details in the Regulation and License section of the website. Clients can also find Key Information Documents, Best Execution Policy, AML Policy, and other important documents.

Account Types page reveals the details of the account offering, while the Deposits & Withdrawal Options page provides information on the available funding options.

In summary, my research shows that FXDD can be regarded as having a solid level of trust and stability due to the following factors:

• Regulated by Tier-2 and Tier-3 regulators.
• All entities provide negative balance protection and segregated accounts.
• More than 22 years in business.
• Easy access to important information on the company’s website.

Fees

FXDD Trading Fees

For this review, I tested the FXDD Standard Account, where the broker charges spreads and swap/rollover fees and does not charge any commissions. Spreads are variable and depend on the liquidity situation for each instrument at a certain point in time.

FXDD Spreads

I tested the spread on the FXDD Standard Account during the London open and after the US open. These are the most actively traded hours.

I summarized my findings in the table below:

My analysis showed that FXDD offered low spreads for Gold, Apple, and Tesla. Spreads for Dow Jones and Bitcoin were medium, while spreads for major currencies, WTI Oil, and DAX were high.

Swap Fees

My research showed that EUR/USD swap fees were moderate, while GBP/JPY swap fees were high.

Non-Trading Fees

FXDD applies an inactivity fee of $30 per month if the account is inactive for three months. This is a high fee compared to the industry average.

Are FXDD Trading Fees Competitive?

FXDD provides attractive fees for Gold, Apple, and Tesla at its Standard Account. The spreads for the other instruments I tested were either moderate or high compared to the industry average. Overall, I found that FXDD fees exceeded the industry benchmark.

Platforms and Tools

Brokers often use MetaTrader platforms for their extensive technical analysis tools and algorithmic trading support. Many traders are already familiar with either MT4 or MT5, eliminating the need to spend time acquainting themselves with the platform’s features.

While MetaTrader platforms are robust, their design can seem outdated. Consequently, some brokers opt to develop their platforms, aiming for a more beginner-friendly interface. In the case of FXDD, the broker provides FXDD WebTrader and FXDD Mobile, both of which feature a modern appearance.

FXDD Desktop and Web Platforms

In this review, I tested the MetaTrader 4 platform which is available via desktop, web, and mobile. I analyzed charts, indicators, drawing tools, orders, and the general ease of use of the platform.

General Ease of Use

MetaTrader 4 is a highly popular trading platform used by several generations of traders.

The platform is designed for advanced traders, so beginners might need to invest some effort to become familiar with it.

There is a wealth of information on MT4 available online, in both text and video formats, ensuring that those eager to learn trading will encounter no significant issues with MT4.

Charts

MT4 offers:

• 51 indicators
• 31 drawing tools
• 9 timeframes

Both beginner and advanced traders will find ample options to develop their trading strategies.

Indicators include:

• Trend indicators
• Oscillators
• Volumes
• Bill Williams
• Custom indicators

The available timeframes are 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, daily, weekly, and monthly. While some platforms may offer a broader range of timeframes, MT4’s selection is more than adequate for most trading purposes.

MT4 also supports various objects:

• Lines
• Channels
• Gann Tools
• Fibonacci Tools
• Shapes
• Arrows

It’s important to note that MT4 does not include Elliott Waves, a crucial indicator for many advanced traders. However, this indicator can be purchased from third-party providers.

Charts can be displayed as bar, candlestick, or line charts. Candlestick charts are especially popular among traders due to the wide variety of patterns that can be used for trading decisions, though other chart types also have their proponents.

In general, MetaTrader 4 charts are user-friendly and can be easily configured by novice traders with some initial preparation. They also offer sufficient customization options for advanced traders, who have the option to download and install additional indicators if needed.

Orders

MT4 provides access to the main order types essential for trading:

• Market Order: This order type is used to buy or sell an instrument at the current market price. It is favored by traders looking to quickly enter a position, especially when the instrument’s price starts moving rapidly. The primary risk associated with this order is the spread—the difference between the bid and ask prices.
• Limit Order: Used to buy or sell an instrument at a specified price or better. Traders use this order when they aim to enter the market at a particular price level, unwilling to pay the current market price. Limit orders are a strategic way to manage risk by controlling the entry price. In scenarios of rapid price movements, a limit order can act as an “enhanced” market order if the limit price is set above the current market price.
• Stop Loss Order: This order type is designed to limit a trader’s loss by exiting a position when the market moves unfavorably. It is activated once the price hits a predetermined level.
• Trailing Stop Order: Allows traders to set a stop order that adjusts itself as the market moves in a favorable direction. This order is instrumental in safeguarding profits should the market direction change unexpectedly.

My Key Takeaways After Testing Desktop Platform

MetaTrader 4 is a proven trading platform, which I have been using for years. Beginner traders should note that the platform takes some time to master, but it’s a good investment of time. For advanced traders, the absence of Elliott Waves is probably the biggest downside of MT4, which was corrected in its successor, MetaTrader 5.

Mobile App

In this review, I have tested the FXDD MetaTrader 4 Mobile App for Android.

General Ease of Use

The MT4 mobile app is rather easy to use. It provides charts, quotes, account balance info, economic calendar, news, and other tools to provide traders with an opportunity to make informed trading decisions.

Charts

MT4 mobile app offers:

• 30 technical indicators
• 24 drawing tools
• 9 timeframes
• 3 chart types

Typically, the mobile app is used when the trader does not have access to the desktop platform but needs to monitor the market and open positions. MT4’s selection of options is more than sufficient for mobile-based trading.

While the app is useful in certain circumstances, it cannot beat the speed of work that could be achieved using the desktop platform, which is the main solution for active trading.

Orders

In an MT4 mobile app, you can set market orders, limit orders, and stop orders. Trailing stops are not available on mobile trading terminals.

My Key Takeaways After Testing Mobile App

MetaTrader 4 mobile app is a useful solution for trading on the go. However, you should not expect that the app will have the full power of the desktop platform for technical analysis.

MetaTrader 1-Minute Data

FXDD provides an opportunity to install 1-minute history data for popular trading pairs. History data is important for those who want to backtest their trading strategies.

FXDD WebTrader And Mobile App

FXDD has developed in-house trading platforms for web and mobile use. These platforms boast a user-friendly interface that ensures fast access to trading features, including one-click trading. Their comprehensive charts are equipped with multiple indicators, drawing tools, and a variety of timeframes, making them feature-rich and versatile for traders.

The WebTrader platform also fully supports Expert Advisors and is exclusively available with ECN pricing (commissions-based), while the mobile platform allows standard pricing (spread-based).

In my opinion, FXDD has introduced a commendable platform likely to appeal to users in search of more modern charting options than those available on MetaTrader 4 or MetaTrader 5.

FXDD VPS

FXDD offers access to VPS hosting, available 24/6 on the MetaTrader 4 platform. Prices begin at $30 for a basic configuration and go up to $85 for the highest configuration, which includes 4.1 GB of memory and 4 virtual processors.

Although this might not be the most budget-friendly VPS option available, traders should consider that the reliability of VPS services often outweighs the cost. Those requiring VPS should evaluate the services in a real trading environment before making a final decision.

Tradable Instruments

The number of available commodities and indices is high, the selection of forex pairs is moderate, while the assortment of stocks and cryptocurrencies is limited.

What are CFDs?

CFDs (Contracts for Differences) are financial instruments that allow traders to bet on asset prices without actually holding the respective assets. The key advantage of CFDs is the access to significant leverage, which is typically not available when trading other instruments. Hence, CFDs are very popular in short-term trading.

My Key Takeaways After Exploring FXDD Tradable Instruments

FXDD offers access to the most popular instruments across each asset class, presenting a well-rounded selection that is likely to satisfy beginner traders. However, the overall number of available instruments is somewhat limited, potentially posing a challenge for more experienced traders seeking a broader range.

Customer Support

FXDD Customer Support Test

FXDD clients can contact the customer support team 24/5 via email, phone, and online chat. The support is provided in 11 languages.

During my tests, I posed various questions to the customer support team through the online chat. I asked simple questions, wondering about available leverage or account types, as well as more challenging ones, like the key differences between account types and platforms.

The answers I received were professional but not always quick. The chat provides an opportunity to leave an email for the response, which means that the broker knows that its customer support team may be overwhelmed from time to time.

Deposit and Withdrawal

FXDD Deposits

FXDD Withdrawals

Account Types and Terms

FXDD Account Types

What is CFD Leverage?

CFD leverage allows traders to hold a position without paying the full value. Instead, you pay a deposit, which is called a margin, while borrowing the rest.

In the FXDD case, clients of the Malta-regulated entity have access to moderate leverage of up to 1:30 which is determined by the MFSA regulator. Professional traders may have access to leverage of up to 1:100 if they meet certain criteria.

Offshore entities offer high levels of leverage compared to top-tier regulated entities. For instance, clients of the Mauritius-regulated entity have access to leverage of up to 1:500. This is a high level of leverage, so traders should use appropriate risk management techniques.

Maximum Leverage by Asset Class

FXDD Account Opening Process

To open an account with FXDD, visit the broker’s website and click on “Start Trading.” Traders can choose between Premium and Standard accounts and open an Individual, Corporate, or Demo account.

Setting up an Individual Account takes more time as you must provide more detailed information, including your personal data, proof of your identity, and information about your trading experience.

Demo Account

FXDD offers a demo account that allows you to test the broker’s services and your trading skills without risking your money.

Please note that your trading experience will differ when you use a demo account compared to a real-money account due to psychological factors, as traders find themselves under pressure when real money is at stake.

Islamic Account

FXDD offers Islamic Account options for both Standard and Premium Accounts. Islamic Account provides Muslim traders with an opportunity to trade according to Sharia law. Such accounts do not have swap/rollover fees.

Restricted Countries

FXDD does not accept clients from the following countries: Iran, North Korea, Japan, the United Kingdom, Russia, Ukraine, the United States, American Samoa, the Virgin Islands US, Guam, Puerto Rico, and the Northern Mariana Islands.

Research

FXDD provides access to the popular Autochartist tool, which employs advanced algorithms to identify potential trading opportunities—a tool many traders are already familiar with.

The broker also offers daily analysis by TraderMade on its website. These insights discuss popular instruments and include pivot points for certain forex pairs.

Like most brokers, FXDD features an economic calendar that highlights market-moving economic reports. Traders also have access to a forex calculator, useful for calculating pip values, margin requirements, profit/loss, spread costs, and more.

Key Takeaways After Testing FXDD Research Tools

FXDD offers two third-party research tools: Autochartist and daily analysis by TraderMade. The Authochartist tool, which is used by many traders, is a valuable addition to the research set. The TraderMade analysis form is somewhat outdated in its design, but some traders may find it useful, although it lacks depth. The broker has no proprietary research tools as it primarily relies on third-party tools.

Education

FXDD offers a concise glossary featuring basic trading terms. There’s also a blog, which contains articles on general trading topics like forex signals or trading strategies.

Traders can also find answers to basic questions on platforms, accounts, deposits, and other important things in the Help Center.

FXDD has a YouTube channel, but it has not been updated for three years. Searching the playlists, traders can find MetaTrader 4 tutorials or watch industry interviews.

The Bottom Line

FXDD, established in 2002 and based in Malta, serves a global clientele with a focus on forex and CFD trading. The broker provides a selection of popular instruments across various asset classes, including forex, commodities, indices, stocks, and cryptocurrencies.

Traders have access to MetaTrader 4 and 5 platforms, as well as FXDD’s proprietary WebTrader and mobile app. Additional tools like Autochartist and VPS hosting are also available.

FXDD is characterized by its comprehensive platform options, 20-year operational history, and a selection of popular trading instruments. While it offers competitive features for beginners and access to advanced tools like Autochartist and VPS hosting for more seasoned traders, the broker’s fee structure and limited educational resources might not meet the needs of all traders.

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