dbfx Forex Broker Review

Year Founded: 2006
Location: London
Average Spread: 2 pips
Minimum Account Size: $5,000 USD
Leverage: 100:1
Accepts US Clients: Yes
Regulated By: UKFSA, BaFin
Dealing Desk: Yes

Broker Overview

Deutsche Bank was founded in Frankfurt, Germany in 1870. In 2006, it launched dbfx in order to meet the increasing demands for streamlined access to global currency exchange markets. Now, dbfx trades in more than 82 countries from its London headquarters, claiming the title as the world’s largest FX liquidity provider with a 21% share of the global FX market.

Deutsche Bank has a “Passion to Perform,” which has included providing superior foreign exchange services for individuals, corporations, mutual funds and banks. The dbfx service has the advantage of being backed by the massive financial strength of Deutsche Bank, one of the leading global investment banks in the world. In a “Euromoney” FX poll, Deutsche Bank was named as the #1 favorite “FX Bank for Institutional Markets” for five years in a row (2005 – 2009). In 2009, the “Profit and Loss Digital FX Awards” stated that dbfx had the best retail platform.

Trading Conditions

The dbfx service uses Deutsche Bank’s dealing desk for its foreign exchange; spreads are as low as 1.5 pips, with decimalized pricing for increased profit potential. Clients can trade in 34 currency pairs with typical leverage of 100:1. Either individual or corporate accounts are available, with a minimum balance requirement of $5,000 USD to open. There are no commissions; fees are charged based primarily on the bid/ask spread. Margin trading requirements are based on trading experience. Deutsche Bank provides precise, accurate, real-time foreign currency market information that is reliable due to its time-honored reputation and experience in financial circles. There is an uncomplicated listing procedure for dbfx that makes trades easy-to-complete. Also, managed accounts are available so that customers can link into Deutsche Bank’s superior financial experience.

The different vehicles offered for trading include Web-based, API-based (Order to Go, standard FIX or Java) or platform-based, so that customers can engage in 24-hour trading. The dbfx Web site has special sections for individual traders, introducing brokers, money managers and API developers. There is a free demo trial account with $50,000 USD in virtual money. Customers can deposit money into their dbfx accounts using wire or online transfer. One drawback is the absence of mini accounts. With state-of-the art technology, quality execution, one-click trading, sophisticated forex charts and trading hedges, dbfx offers solid foreign exchange services. Automated trading is also available – charting packages discover key points, the technology bridge links trader to the network and the trade is executed when the conditions are satisfied. Another option is commission-based for high-volume traders. A software development kit is available for API developers.

Education

Online video tutorials are available for new customers who want to learn about foreign currency exchange trading. There are detailed user guides discussing forex basics. Commentary from Thomson’s IFR Forex Watch is also readily available. Select customizable forex charts to better detail market changes. Daily, weekly and monthly research publications keep you on top of the latest market news. Award-winning Deutsche Bank research provides expert analysis on foreign currency exchange, fixed income and commodity markets.

Customer Support

During market hours, there is 24-hour customer support via phone, e-mail and instant messenger in the following languages – Arabic, Chinese, English, French, German, Italian, Japanese, Russian and Spanish. The phone number for customer service is 1-212-710-9000. The e-mail contact is “info@dbfx.com”. The dbfx software is most attuned to benefit large institutional clients with direct lines of credit from Deutsche Bank; small investors might feel like they are being squeezed out.

Safety

Because of its financial backing by Deutsche Bank, which manages the back-end of trades, the dbfx service is considered one of the safest foreign exchange companies. Deutsche Bank gives traders a lot of flexibility, liquidity and safety. Investors can rest assured that their finds will be safe at dbfx with the EUR 1 Billion per depositor guarantee by the Deposit Protection Fund of the Association of German Banks. In 2009, Deutsche Bank had net income of 4,958,000,000 EUR; on December 31, 2009, it had total assets of 1,501,000,000,000 EUR. It employs more than 81,000 people in 76 countries. Its long-term credit rating is very good: Fitch (AA-), Moody’s (Aa1) and Standard & Poor’s (A+). The Deutsche Bank stock is listed on the Frankfurt, London and New York stock exchanges.

The dbfx subsidiary is authorized under German Banking Law and regulated by the following government regulatory agencies:

  • UK Financial Services Authority (FSA)
  • German Federal Financial Supervisory Authority (BaFin)

The registered United Kingdom address:

Winchester House
1 Great Winchester Street
London EC2N 2DB

The German headquarters address:

Taunusanlage
12 60325
Frankfurt am Main, Germany.