FXDD Say No Hedging Doom and Gloom Highly Exaggerated

As we reported back in May, FXDD still allow "hedging" on their MetaTrader 4 accounts. Presumably they feel able to do this because their application to become a member of the NFA is still pending. The announcement that we linked to in our May article was removed from their website some time ago, but yesterday a new take on the NFA hedging ban appeared in its place:

The ‘No-Hedging’ rule has been in effect for over a month now and as many of you can attest most of the statements of “doom and gloom” have been highly exaggerated.

Amongst other things FXDD put forward the view that moving your cash offshore is not necessarily a great idea:

Some dealers have decided to use the rule changes as a selling point for their offshore service centers. They try to amplify the uncertainty and to play on the customers’ fears. It is unclear if they are well equipped to maintain a properly operating MT4 platform in these jurisdictions. Most of them have very little history of operating one. It is certain though that it would be costly and inconvenient to close everything and move an account to an untested firm.

FXDD are also unhappy about what they call "wide speculation among user groups":

Our advice is not to make hasty assumptions based on the loose talk from people who spread rumors. If we are to make any further changes to our platforms we will make sure you are informed well in advance and you are given all possible options to consider.

This is still undoubtedly "an interesting situation to keep an eye on" and we have contacted FXDD to try and get further details, but so far we've been unable to speak to the right person. We'll keep you posted as and when we discover anything further.