FXDD Review 2023

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 Tie-3 regulator.

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

Each regulator has its own requirements for brokers, which may differ materially. Such requirements include leverage levels and specific protections offered to investors, such as negative balance protection, segregated accounts, and investor compensation funds. Traders must understand the differences between regulations to evaluate whether the broker suits their needs.

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

All entities hold clients’ funds in segregated accounts to ensure that the clients’ money is not used for the broker’s own business purposes. Using segregated accounts increases the safety of clients’ funds in case the broker faces financial problems. In the MFSA-regulated entity’s case, funds will be held in segregated EU banks’ accounts.

FXDD also provides negative balance protection in all entities, which means that clients cannot lose more money than they have in their accounts.

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

Is FXDD Safe to Trade With?

FXDD has entities regulated by Tier-2 and Tier-3 regulators. As usual, the Tier 3-regulated entity provides access to higher leverage, while the Tier-2 regulated entity limits leverage for retail clients at 1:30 (leverage of up to 1:100 is available for pro-level clients who meet certain criteria). All entities provide negative balance protection and hold their funds separately from the firm’s funds. The segregation of the clients’ funds ensures that the broker cannot use them for its own needs. Moreover, with negative balance protection, clients cannot lose more money than they have in their accounts.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focused on how long the broker has been in business, how big the company is, and how transparent it is in terms of information being readily available.

FXDD, established in 2006, is not publicly traded and does not have a bank parent, which is common for a broker. Clients can find the important documents in the Documents section of the company’s website, including the Individual/Joint Account Application Form, Account Agreement, Risk Disclosure and Trading Rules, and Additional Risk Disclosure Form.

Traders can find the details of the fee structure on the Account Types page of the FXDD website. Regulatory details are provided on a dedicated page of the broker’s website.

In summary, my research indicates 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 17 years in business.
• Easy access to important information on the company’s website.
• However, traders do not have access to any compensation schemes.

Fees

FXDD Trading Fees

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

FXDD Spreads

I tested the spread on the FXDD Standard Account during the London open at 8 a.m. UK time and shortly after the US open at 2.45 p.m. UK time. These are the most actively traded hours.

In its Standard Account, FXDD features competitive spreads for Apple and Tesla. The spreads for Gold and Dow Jones were moderate, while the spreads for EUR/USD, GBP/JPY, and DAX were high.

Swap Fees

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

Are FXDD Trading Fees Competitive?

FXDD provides attractive spreads for Apple and Tesla. The spreads for other instruments I tested were either moderate or high, compared to the industry average. Overall, I found FXDD’s fees to be above the industry benchmark, which we established through our extensive comparative research.

Non-Trading Fees

FXDD applies a rather high inactivity fee of $30 per month if the account is inactive for three months.

Platforms and Tools

MetaTrader platforms are often used by brokers as they provide a wide range of technical analysis tools and support algorithmic trading. Many traders have already used either MetaTrader 4 or MetaTrader 5, so they don’t have to spend time learning the features of the platform. MetaTrader platforms are powerful but have an outdated design, so some brokers develop their own platforms that are more beginner-friendly. In FXDD’s case, the broker invested in the development of the proprietary WebTrader platform, which has a user-friendly interface and visually attractive charts.

FXDD Desktop and Web Platforms

In this review, I tested the MetaTrader 5 platform, analyzing charts, indicators, drawing tools, orders, and the general ease of use of the platform.

General Ease of Use

MT5 is an advanced trading platform that could be tailored to traders’ needs. Its interface is rather intuitive, although some traders may want to search for tutorials to take a deep dive into MT5’s capabilities. In general, advanced traders would have no problems with MT5, while beginners may need to spend some time learning the fundamental features of the platform.

For beginner traders, it’s beneficial to familiarize yourselves with various chart options, indicators, drawing tools, and order types. You may need to learn how to create watchlists and manage your trading positions. Despite the initial time and effort required, traders who invest in this learning, ultimately gain a powerful tool that helps achieve better trading results. While the general look of the MetaTrader 5 platform may seem a bit outdated, I find the platform fairly intuitive and easy to learn. FXDD provides that standard MT5 offering, so those who have previously used the platform with other brokers will be ready to trade in a couple of minutes.

Charts

MT5 offers 97 indicators and 21 timeframes, which is more than enough to customize your charts and adjust them to your needs.

Trend indicators, oscillators, volumes, Bill Williams indicators, and custom indicators help to design the chart you need.

Available timeframes range from 1 minute to 1 month, providing the trader with an opportunity to observe short-term developments, as well as significant multi-month trends.

MT5 also supports:

• lines
• channels
• Gann tools
• Fibonacci tools
• Elliott tools
• shapes

These tools are commonly used for decision-making in trading, so their inclusion is a must for any reputable trading platform.

Each chart could be displayed as a bar, a candlestick, and a line. Candlesticks are generally the most popular among traders as they suggest plenty of various patterns that are used for making trading decisions. That said, other chart types also have their advocates.

MT5 charts are accessible even to novice traders. Nevertheless, they also offer enough options for experts.

Like most traders, I have my favorite indicators and drawing tools, which include RSI, moving averages, and channels. I use candlestick charts to benefit from the analysis of candlestick patterns. I find it easy to use and combine various indicators in MT5.

Orders

MT5 offers all main order types including:

• Market orders. This order allows you to buy or sell the instrument at the current market price. It is used when the trader needs to establish a position in the fastest possible way. The main downside of the market order is the necessity to pay a spread, which is a difference between the bid price and the ask price.
• Limit orders. This order is used to buy or sell the instrument at a pre-set price or better. Limit orders are suitable when the trader wants to get a specific entry point and is unwilling to pay the current market prices.
• Stop-loss orders. These orders are used to get you out of the position when the price is moving in the wrong way. The order is triggered when the price reaches a specified point.
• Stop-limit orders. This is a stop-loss order which puts a limit order instead of a market order, when triggered. This is a potentially risky way to close a position, and it should be used only by experienced traders.
• Trailing stop orders. This order allows you to set a stop order that will move if your open position trends favorably. It is used to protect your profits in case the market direction changes.

Different expiration types are available for all pending orders, including GTC (good-till-cancel), Today, Specified, and Specified Day.

Personally, I strongly prefer limit orders and use them for both entry and exit points. These orders are highly effective in risk management, particularly during significant market movements when market orders can result in prices that deviate greatly from your expectations.

FXDD Mobile App

In this review, I have tested the FXDD MetaTrader 5 Mobile App for Android.

General Ease of Use

The MT5 mobile app for Android is quite user-friendly. It provides charts, quotes, account balance info, an economic calendar, news, and other tools designed to help traders make informed decisions. As expected, traders have access to the standard features of the MT5 mobile app. If you’ve previously worked with the MT5 app, you’ll be able to begin trading in a short amount of time.

Charts

MT5 mobile app offers:

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

This selection of options is sufficient for mobile-based trading. 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. While the app is helpful in certain circumstances, it is not as efficient as the desktop platform, which remains the primary solution for traders who require fast and active trading capabilities.

Orders

The MT5 mobile app allows you to place market orders, limit orders, and stop orders. However, trailing stops are not available on mobile trading terminals.

FXDD WebTrader

FXDD has developed an in-house trading platform for web trading. The platform features a user-friendly interface that provides quick access to trading, including one-click trading. Its feature-rich charts include multiple indicators, drawing tools, and various timeframes. The WebTrader platform also fully supports Expert Advisors and is exclusively available with ECN pricing.

In my opinion, FXDD came up with a decent platform that is likely to attract users seeking more modern charting options than those offered by MetaTrader 4 or MetaTrader 5.

FXDD VPS

FXDD provides access to VPS hosting. The service is available 24/6 on MetaTrader 4 platform. Prices start at $30 for a basic configuration and reach up to $85 for the top configuration (4.1 GB memory, 4 virtual processors). While this may not be the most affordable VPS option on the market, traders should keep in mind that the reliability of VPS services is often more critical than the cost. It is advisable for those in need of VPS to test the services in a real trading environment before making a final decision.

Tradable Instruments

FXDD offers 56 forex pairs, 10 commodities, 13 indices, and 51 stocks. The number of available indices is high, forex pairs and commodities are moderate, while the number of available stocks is low.

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.

What Can You Trade with FXDD?

• 56 forex pairs. The list includes popular names like EUR/USD and USD/CAD, as well as more exotic options like TRY/JPY (Turkish Lira vs Japanese Yen) and USD/PLN (U.S. Dollar vs Polish Zloty).
• 10 commodities. Traders have access to the most popular commodities like Gold, Silver, and Platinum. Trades should note that the oil offering is limited to Brent Oil — the broker does not provide access to WTI oil, which is fairly unusual.
• 13 indices. FXDD provides access to major indices like Dow Jones, DAX, Hang Seng, and Nikkei.
• 51 stocks. The list includes the most popular stocks from the U.S. like Apple, Visa, Pfizer, and Procter & Gamble.

FXDD offers access to forex pairs, stocks, indices, and commodities. The forex offering aligns with the industry standards, so traders will likely find their preferred instruments. The range of indices covers the major ones from various countries. While the number of available commodities is moderate, traders should note that FXDD does not provide access to WTI oil. The stock offering is limited to the most popular U.S. names. Besides that, in the MT5 Standard Account, I reviewed, the broker does not provide access to cryptocurrencies.

Customer Support

FXDD Customer Support Test

FXDD clients can reach out to the customer support team 24/5 via email, phone, and online chat. The team provides assistance in 11 languages.

During my tests, I posed various questions to the service team through online chat. I began with basic inquiries about available leverage and ways to increase it. I sought details regarding the qualification for Pro status. Additionally, I asked a tricky question concerning the differences in total fees between the Standard and ECN accounts and received a prompt and professional response. The overall experience was undoubtedly above the industry average, which is crucial for traders who may require immediate solutions in unusual market situations.

Deposit and Withdrawal

FXDD Deposits

FXDD clients can deposit funds via Visa, Union Pay, Neteller, Skrill, Bank Wire, and TMI Trust company. The TMI Trust Company is an exotic option that has a minimum deposit amount requirement of $50,000.

FXDD Withdrawals

Traders should note that Union Pay is not available for withdrawals. As expected, withdrawals via Visa take more time to be processed in comparison to deposits, while e-wallets present the quickest option.

Account Types and Terms

FXDD clients can choose between Standard and ECN accounts. These accounts are available on MetaTrader 4 and MetaTrader 5 platforms. The in-house WebTrader platform comes with the ECN account.

The Standard account is spread-based, so traders pay the spread and swap/rollover fees. The ECN account comes with lower spreads, but traders will also have to pay commissions.

Why is Choosing the Right Account Type Important?

Choosing an account that aligns with your trading needs is crucial. Typically, the traders should consider factors such as base currency options, contract size, commission, fees, the number of pending orders/positions, and the minimum deposit size.

What Account Types Does FXDD Offer?

FXDD offers two types of accounts: Standard (spread-based) Account and ECN (commissions-based) Account. Both accounts offer leverage of up to 1:30 for retail clients.

FXDD also offers leverage of up to 1:100 for pro-level clients who satisfy certain criteria, including trading experience, investment portfolio size, and professional qualification in the financial sector.

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 margin, while borrowing the rest.

In the FXDD case, clients of the Malta-regulated entity have access to leverage of up to 1:30. This is a moderate level of leverage. Professional traders may have access to leverage of up to 1:100 if they meet certain criteria.

FXDD Account Opening Process

To open an account with FXDD, visit the broker’s website and click on “Start Trading”. You’ll be presented with a choice between the Malta-regulated entity and the Mauritius-regulated entity. Traders can open an Individual Account, a Demo Account, or a Corporate Account.

For this review, I tested the Malta-regulated entity, opting for both the Individual Account and the Demo Account. The Demo Account registration is swift — you’ll be able to log in to the platform of your choice within several minutes. All you need is a working email address and a phone number. In my opinion, you should first try the demo account to get a “feel” of the offering and determine whether it meets your needs. Note that you can test both the MetaTrader and the in-house WebTrader platforms. If you’re satisfied with the experience, you can proceed to set up an Individual Account.

Setting up an Individual Account takes more time since you have to provide more detailed information. As is standard, you’ll need to provide proof of your identity in order to deposit and withdraw funds. The documents required include a government-issued photo ID and a proof of address document that has been issued within the last 6 months.

What is a demo account?

A demo account is an 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.

It’s a good idea to use the demo account for practicing and learning the trading platform, but do not spend too much time on the demo.

Research

FXDD offers the highly popular Trading Central tool, which features automated chart pattern recognition software, daily fundamental analysis, daily webcasts, and other useful instruments. In my opinion, Trading Central provides significant research support for both beginner and advanced traders. Not surprisingly, FXDD research offering is primarily focused on this tool. The broker also offers daily analysis on its website, featuring commentary on popular instruments and pivot points for certain forex pairs. The daily analysis is mostly a filler for the website though, so traders will likely focus on Trading Central.

Education

FXDD provides limited educational support on its website. The broker offers a concise glossary featuring basic trading terms. Additionally, traders can find trading guides, which essentially offer overviews of currency pairs, XAU/USD, and XAG/USD. These guides include basic information such as the names of central banks, the percentage of average daily turnover, daily average movement in pips, and annual highs and lows. However, the data appears outdated, as the guides reference highs and lows from 2012.

I checked the broker’s Youtube channel and noticed that it has not been updated for more than 3 years. Despite this, many of the videos cover the basics of forex trading, which could still be beneficial for novice traders. It looks like FXDD decided to focus on its Trading Central offering, while the rest has been mostly abandoned.

The Bottom Line

FXDD offers a comprehensive selection of tradable instruments, including the most popular options across various categories: forex pairs, stocks, indices, and commodities. The broker provides access to the popular MetaTrader 4 and MetaTrader 5 platforms, as well as its in-house trading platform. FXDD clients can also utilize the robust Trading Central research. However, it’s important to note that the broker’s educational offering is somewhat limited.

FXDD operates under two entities: Triton Capital Markets Ltd (regulated by MFSA, a Tier-2 regulator) and FXDD Mauritius Ltd (regulated by FSC Mauritius, a Tier-3 regulator). Both entities guarantee negative balance protection and keep the firm’s money separate from the client’s funds.

FXDD clients have the option to select either spread-based or commission-based accounts. The broker offers multiple deposit and withdrawal methods, available in several currencies. During my testing, I found that FXDD spreads exceeded the industry average in the Standard Account. However, my research indicates that traders can find some compelling offers within the stock selection.

FAQ