Forum transfer: Submitted by K_Matrix on April 13, 2009 - 20:31.
I'm new to live forex trading. I'm a little confused about introducing brokers. I registered with Fastbrokers.com, they are introducing brokers to FXDD.com. So when I opened an account with FXDD, I saw this in the customer agreement:
15. INTRODUCING BROKERS RESPONSIBILITY TO FXDD AND TO THEIR CLIENTS
Introducing Brokers have certain responsibilities to their introduced clients and to FXDD with respect to their introduced accounts, including, without limitation: (1) communicating with their introduced clients regarding their respective investment objectives and investment opportunities given those objectives; (2) complying with all legal requirements, rules and regulations applicable to the introducing broker; (3) complying with all legal requirements, rules and regulations applicable to their introduced clients; and (4) determining any commission structure and communicating the structure to the introduced clients.
The Introducing Broker will not be responsible for: (1) Opening the introduced client's Account including, but not limiting to approving, servicing and monitoring Customer's Accounts(s) and obtaining and verifying account information as is required by the law and regulation, (2) Collecting funds from the clients for the purpose of facilitating margin Foreign Exchange trading or satisfying margin requirements; (3). Executing transactions or accepting orders for the Customer's Account(s), or performing any action that would cause or appear to cause a change in Customer's position or Account Value, including but not limited to rolling over spot positions, liquidating positions, paying interest, requiring margin, or accepting additional funds or paying out funds to the Customer; (4) Providing any account statements to the Customers; (5) Responding to complaints or inquiries.
But at fastbrokers, there is a service there to withdraw or fund my account. Isn't that against what is stated in the customer agreement with FXDD?
I'm not sure if i misunderstood the responsibilities of an IB, or did I just registered with a scam broker.
I hope someone can help,
thanks in advance to Edward and the team, this website has been my learning ground for the last 1 year.