JFD Brokers has been around for some time now, but the company has largely remained under the radar because of its much less than aggressive marketing. The firm has been quietly building up trust and attracting a substantial following in some EU countries via its unique offering.
The brokerage is executing client trades via a full straight-through processing (STP) MetaTrader 4+ custom solution.
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Recently the company revamped its offering by adding negative balance protection and cutting default leverage to 1:50. JFD Brokers thereby over-delivered on the requirements which its regulator, the Cyprus Securities and Exchange Commission (CySEC ), outlined.
Earlier this month the company launched a redesigned website to outline the latest changes and commit to further expansion.
Transparency Efforts
JFD Brokers has committed to ensuring that its clients are receiving true-STP execution. The company is offering that every client sees the details of every order as it is executed through the platforms components.
“JFD’s unique report, provided to any customer upon request, clearly displays the structure of the entire execution process (extracts from server log files and tickets), Liquidity aggregators / providers (executing counter-parties), the exact time of order matching and execution, the speed of order matching and execution, real slippage (positive or negative), and execution price,” highlights the company’s CEO Lars Gottwick.
JFD Brokers order details, Source: JFD Brokers
A Good Example in Difficult Times for the Industry
The commitment of JFD Brokers to over-deliver to its clients services that are not required by its regulator per se is the most sound way for the industry to tackle increased regulatory pressure. But the regulators also need to play their part in clearing the industry from brokers that are employing practices that are harming the interests of clients.
JFD Brokers is licensed exclusively as a ‘matched principal’ broker. Under the terms of its operating license, the company is not allowed to place trades against its clients and doesn't have the authorization to act as a market maker.
Example of order execution details offered by JFD Brokers, Source: JFD Brokers
Gottwick explains why the company has undertaken the effort: “As a trader, it is important to know your rights, and you have the right to know how and by whom your orders are executed. Unless your broker is hiding something, there is no reason why they should not be able to disclose such information.”
“If you request it and are denied, then you can consider it an alert that your broker is trading against you, and that you may be exposed to bad practices like stop hunting, forced slippage, delayed execution and re-quoting. This is why post-trade transparency is so important; a fully transparent broker will earn only from commissions charged on the traded volume, not from a trader’s losses,” the broker’s CEO concludes.
