Platform is from FXCM, same deal as with FXCM/RefcoFX. http://dbfx.fxcorporate.com/DBFX/DBFXTS2Install.EXE ( see http://fxcorporate.com/FXCM/FXTS2Install.EXE )
I assumed it was AB for the retail client. Bad assumption on my part. I don't know what DB is thinking.
Is this just another example of a major bank buying in a product to sell on to retail customers because the retail volume is too small to be worth handling in house? I have seen a few instances like this. For example all Barclays retail CFD trading goes through to CityIndex.
I guess so. I know I wouldn't even look at a trade less than 1 mio when I was trading interbank. I see they are still taking the old mentality that retail traders should consider themselves lucky to get get even a 3 pip spread in EUR. And 4 pips in JPY?? Not for me.
If it is in-house trading, sure. By definition it makes it a bucket shop regardless of the name on the front of the door. So far it looks like it is the same model as bucket shops, but with a fancy name. The game is the same.
The game reamins the same only the names will change. Almost reminds me of a line from that Bon Jovi song.
More not-so-good news: Just received a reply from dbFX: credit interest is not paid on client funds... Can it be a sensible idea to make a free loan to DB to trade FX?
not bad at all for a top-tier bank... not long ago they were still charging their retail custies around 100 pips a side and Citi still does... DB retail spreads are where retail brokers were not even 2 years ago... and only 1-2 pips away from today's competition... difference being they are a top-tier bank, rather unlikely to do a refco... am sure they'll attract tons of accts and quickly build up some fairly decent volume! and that UBS, Citi etc now have no choice but to follow in their steps... that will also squeeze a lot of dodgy bucket-shop type players out of the market... not a bad thing...