Good news for non-US accounts under FXDD. we're being moved to FXDD
Malta, which means we're not being regulated under those new CTFC and NFA rulings. Here are the email i received from our broker, which was landed in my junk mail. another good thing is that we wont be receiving those awful daily statement which is so hard to read w.e.f tomorrow, MT4 statements is a lot more better.
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Dear FXDD Customer,
We would like to welcome you to FXDD Malta and assist with any questions you may have with your account transfer. FXDD Malta hopes that you will enjoy trading with the same confidence that you have always placed in FXDD and assures you that you will have the same first class service and support you have become accustomed to.
Under the guidelines set forth by the NFA, your FXDD New York account will be transferred to FXDD Malta at the close of trading on Friday, February 19th, 2010. The standard trading session will resume on February 21st, 2010 at 23:00 CET. Transferred accounts will have the same balance, equity and open positions that were carried by FXDD New York.
The transition to FXDD Malta will be seamless for you and offers many advantages including:
- Higher leverage options
- Opportunity to employ “hedging” strategies in MT4
- Ability to choose ticket based trading (no FIFO)
- Segregated accounts – offering added safety of funds
- Funds can remain with JP Morgan Chase NY
GENERAL QUESTIONS AND ANSWERS:
Q: Why is my account being moved to FXDD Malta?
A: FXDD is moving its non-U.S. accounts to Malta in response to questions that have come up in the past regarding the protection of customer funds in the event of a default by FXDD and in response to questions regarding CFTC and NFA mandated changes in the ways that customers can trade with U.S. registered firms.
Q: What is the maximum leverage that FXDD Malta will provide?
A: Customarily 1:200. Higher leverage may be offered in select cases.
Q: Will FXDD Malta allow hedging?
A: Yes. You will have an opportunity to exercise a "hedging" strrategy to the extent availalbe within MetaTrader
Q: Will FXDD Malta operate based on the FIFO rule?
A: You will be able to close all open positions in any order without regard to FIFO.
Q: Will FXDD Malta offer the same spreads?
A: The spreads will be identical to what FXDD New York is offering.
Q: Are deposits and withdrawals going to be handled in Euros?
A: No, in USD.
Q: Who are FXDD Malta’s liquidity providers?
A: Liquidity provided exclusively by FXDD New York.
Q: What will be the official statement of record?
A: Your official statement of record for all trading accounts will be MetaTrader4 Platform.
Q: Should I download a new version of MetaTrader in order to generate reports?
A: Yes, if you would like to generate printable MetaTrader statements. Download the new enhanced MetaTrader4 Platform here: http://global.fxdd.com/software/malta/mt4malta.exe.
Q: Where will my funds be held?
A: The majority of your funds will be held in a segregated customer account at JP Morgan Chase bank in New York, just as they are now.
Q: Will I be able to use my EAs if I trade through Malta?
A: YES
Q: Is FXDD Malta regulated?
A: Yes. FXDD Malta has received a category 3 license issued by the Malta Financial Services Authority (MFSA). The MFSA is the equivalent of the SEC and the CFTC in the United States or the FSA in England. The MFSA is a very strict regulatory agency and its guidelines for operation are equal to those in other jurisdictions.
Q: What else can you tell me about why you chose Malta.
A: Since joining the European Union in 2004, the government of Malta has actively promoted the Republic’s development as a prime international business and financial center. All Financial Services businesses have been regulated by the Malta Financial Services Authority (MFSA)(www.mfsa.com.mt) since 2004, and subsequently under the Markets in Financial Instruments Directive (MiFID). The combination of these regulatory structures has created a harmonized regulatory regime for investment services throughout the European Economic Area in which Malta is included.. Malta also has double taxation agreements with 46 countries worldwide and another 15 are pending. As a member of the EU, Malta also cooperates with international organizations such as the Organization for Economic Co-operation and Development (OECD). As a result, Malta enjoys an excellent reputation and track record as a forward looking international business jurisdiction. Malta was recognized in the third edition of the Global Financial Centers Index (GFCI) report published in March 2008 by the City of London Corporation as one of the top three financial centers worldwide likely to increase in importance over the next two to three years. FXDD intends to be a part of that growth.
In addition to its excellent regulatory structure, Malta also offers a unique combination of Mediterranean Europe’s life and culture. Coupled with is cosmopolitan attitude toward global business, good location and temperate climate, Malta’s consistent constitutional based legal system, world class banking structure, leading edge technology infrastructure and highly educated multi lingual citizenry have made it a prime jurisdiction for many international companies. The vast majority of Malta’s citizens are at home in English and Maltese, and Italian, French and German are widely spoken. Malta was fortunate to have fared well in the recent economic downturn and enjoys a high credit rating among global credit rating agency agencies. Financial World Online noted that:
“Malta has weathered the global market turmoil and economic downturn better than most... In the World Economic Forum Competitiveness Index for 2008-09, Malta was judged to have the 10th soundest banking system among 134 countries, and came 18th for financial market sophistication.”
In 2009, Standard and Poor's maintained its stable outlook for Malta reaffirming its A/A1 credit rating, Fitch reaffirmed it’s A.
