http://www.dbfx.com/ Any thoughts on using Deutsche Bank's dbFX as a broker? Legitimate option? Or just a bucket shop with a fancy name?
Well, It appears as though they are using a White Label solution from FXCM. The trading platform is exactly the same as FXCMs with a different skin. And, if you go into the actual Open Account area, you are redirected to a secure server run by FXCM. I don't know which company is actually filling the trades. But, DB is a multibillion $$ organization. It looks as though they have a $10,000 minimum to open an account . So, are they a bucket shop? I guess that may depend on what one thinks of FXCM.
I read on another forum that some guy who trades with dbfx contacted them to ask them if they were connected with fxcm, but dbfx said they have nothing to do with fxcm, they just use the same software developer. In other words, the prices come directly from Deutsche Bank, not from FXCM. This sounds good, because you're getting prices directly from an interbank market maker. Supposedly the fills are good too.
It is hard for me to believe that a big time player like Deutsche Bank would mess around with a scam artist like FXCM. But then again, my experiences in the world of FX have taught me that what is hard to believe is often what is true. I sure hope dbFX is not affiliated with FXCM because I would like to have a non bucket shop alternative to Interactive Brokers so that I can trade more than the limited set of pairs that Interactive Brokers offers. Here is a link with some info I found, got to love the web address! http://www.forexbastards.com/dbfx.shtml And from DB's web site: http://www.deutsche-bank.de/presse/...ationen_2006_2883.htm?month=4&dbiquery=2:dbfx Deutsche Bank launches Online Margin FX System London, May 15, 2006 Deutsche Bank today announced the launch of dbFX - an online margin foreign exchange service. The market for online FX trading is growing significantly as all clients demand streamlined access to capital market products. The foreign exchange markets trade actively on a continuous basis 24 hours a day, 6 days a week, providing unlimited opportunities to engage in an actively moving market. dbFX provides 24 hour online margin foreign exchange trading services to clients around the world. Clients will have the benefits of trading on streaming quotes on competitive spreads in 24 currency pairs. dbFX is an execution only service made available primarily to an individual client base with customer support in 9 languages. Jim Turley, Global Head of Currencies and Commodities at Deutsche Bank, said "When you trade with dbFX, you receive privileged access to the world's foreign exchange market. In the institutional space, through research, technology and liquidity provision, we have led the way for the market as a whole to grow. We believe that the entry of a mainstream bank to the online margin industry, will benefit all participants by deepening the use of FX as an asset class, and establishing best practice." Zar Amrolia, Global Head of Foreign Exchange Sales at Deutsche Bank, commented "As the leading provider of foreign exchange services, we are constantly at the forefront of growing the market for everyone. We do this by developing new products, technology or services that we offer to participants such as pension funds, banks and funds of funds. We are focused on being the No1 client service provider and today with the launch of dbFX, we can now offer individual investors these services." The product can be accessed at www.dbfx.com. Deutsche Bank is ranked the No 1 Foreign Exchange Bank by Euromoney Magazine for the second year running. For further information, please call: Deutsche Bank Stephanie Smart +44 20 7545 2908 Region Europe Michele Allison +1 212 250 4864 Region Americas Jason Collins +65 6423 8418 Region Asia (non Japan)
It seems pretty obvious that dbfx has nothing to do with FXCM. Apart from the inherent unlikelihood of the world's number one fx bank acting as a white label for a shitty little bucket shop like fxcm, there is plenty on the dbfx website to indicate that dbfx is a serious player: "Deutsche Bank AG is the number one bank in the world's foreign exchange market.* When you trade through dbFX, you receive privileged access to the world's foreign exchange market. dbFX is as close to the inter-bank market as a private trader can be, to gain access." That would be false and misleading advertising and a trade descriptions offence if dbfx was just a fxcm white label. Anyway, it only takes an email or phone call to dbfx to confirm.
Its just that with the resources that Deutsche Bank has, why would they use a software developers generic platform that is offered to a competitor?..Why wouldn't UBS use it, if it were such a great platform? Maybe Deutsche Bank doesn't want to commit resources to Retail...??? who knows? (The CME/Reuters deal is just around the corner) This all seems strange to me...
Here's a chat I had with a dbFX rep: "Me: Is dbFX in any way linked to FXCM? dbFX Sales and Client Services: not to my knowledge dbFX Sales and Client Services: your dealing with DB AG dbFX Sales and Client Services: your trading with DB, your funds are held at DB dbFX Sales and Client Services: and the execution is DB" Hopefully that nasty little internet rumour can now be laid to rest.
It doesn't mater whether it's DB, SocGen, UBS, YOUR ORDERS ARE BEING BUCKETED! Hopefully everyone knows the difference between access to a dealer vs. a market. Do you think if you're sitting on the 127.73 offer in EUR and one of DB's customers ala' Daimler Benz pays 73 on 20m that DB is going to parcel out a piece of that trade (like 200k) to you? Dream on. Now I would hope DB doesn't use typical bucket shop tactics i.e. stopping out positions at prices that didn't trade any where else in the world, but to think that you're order is being filled FIFO or competitively is a BIG misnomer.