Deutsche Bank FX – A Review

Online Forex Broker Rating: ★★★★★★★★☆☆

Deutsche Bank FX Basics

Deutsche Bank FX is the online foreign exchange trading service of Deutsche Bank AG. The service was developed and designed for individuals and small institutions. The bank itself was first founded in 1870, originally specializing in foreign trade for Berlin. DbFX was founded in May 2006 in response both to the rapidly growing global foreign exchange market and growing client demand for streamlined, easy access to the products of capital markets. In addition, the bank believed that an established institution entering into the foreign exchange market would benefit all participants by deepening the value of foreign exchange as an asset class.

DbFX is billed as the world’s preeminent provider of liquidity in the foreign exchange market. It is headquarted in London, operates in seventy-six countries, with over eighty thousand employees and an asset base of over two billion Euros. Deutsche Bank was named the number one foreign exchange house in the world by Euromoney for four consecutive years (2005-2008) and still holds the title of number one bank in foreign exchange. The daily foreign exchange notional trading volume of dbFX is larger than the value of the major US, European and Middle Eastern equity markets combined. Trading activity focuses on the major currency pairs (the dollar/euro being a prime example). The daily notional trading volume of the USD/Euro currency pair is greater than the volume of the New York Stock Exchange.

Most Popular Features

For clients, traders and speculators, dbFX is very attractive because the bank offers access to the forex market at a higher level than most brokers. Since the foreign exchange market is so decentralized, different markets offer access at different levels. Individuals at foreign countries are at the lowest level, and since their access to the market is through one or more intermediaries, they are likely to receive less favorable transaction prices. Corporations tend to have better access and better prices, but they also have to go through middlemen, in this case, banks. Small banks, in turn, must deal through larger banks. The large banks trade with each other and therefore have access to the best prices. Deutsche Bank is not only one of the largest banks in the world; it has been ranked as number one in the world’s foreign exchange markets for 2009 by Euromoney. This means that dbFX gives everyone access to the best prices at the highest level of the market.

Clients have twenty-four hour access to the service via dbFX’s online trading platform. Deutsche Bank AG clients have the extra advantage of trading on streaming quotes, helping to lower risk to individual traders. The spreads can be as low as two percentage points. DbFX also offers professional support in nine languages at all hours of the day or night.

Trading Tools

One prominent tool that dbFX offers is integrated real-time charts that are embedded into the trading platform. This allows traders to monitor and analyze trends, track positions and make trades all from a single screen. It also eliminates the need to toggle from chart to chart while simultaneously keeping track of open positions. Since the charts are integrated with your trading account, you can easily see open positions, entry orders, stops and limits. In addition, dbFX’s integrated charts are fully customizable, allowing traders to create a layout that suits their personal trading style best. The features include the ability to set time frames, change the color of size of any chart area, and change any setting for the different indicators of dimension, time, location or appearance.

Since dbFX is a margin trading platform, you can control a large position with a relatively modest-sized trading account. Margin trading lets you leverage your capital to a great degree, which means you could generate large profits relative to the original invested amount. There is a high risk involved, however. Margin trading also means that small market movements can result in huge losses. Since a highly leveraged account sets this risk, the dbFX Trading Platform has several features built in that helps reduce potential losses. It calculates margin requirements automatically and also monitors available funds before you are allowed to enter a new position. If the equity, the total floating market value, in the account falls below the minimum requirement a Margin Call will be issued immediately and all positions closed at once.

Education

DbFX holds regular scheduled live seminars and webinars for advanced traders seeking to add to their styles. These events provide the opportunity to hear from official Deutsche Bank traders and market experts with question-and-answer sessions in real time. DbFX also offers online free video tutorials about using the trading platform as well as free online video interviews with experts from the trading floor.

Regulation

Deutsche Bank AG is fully authorized under German banking law by the Federal Financial Supervisory Authority, an independent federal institution under the Federal Ministry of Finance. It is also regulated by the Financial Services Authority for its business operations in the UK. Deutsche Bank AG is listed on the London Stock Exchange and it is also a stock corporation in the Federal Republic of Germany.

The minimum amount required to open a trading account with dbFX is $5000.00 USD (or the foreign currency equivalent). Average spreads range from as low as 1.5 percentage points (EUR/USD under normal market conditions) to as high as sixty percentage points (USD/ZAR, again under normal market conditions). The maximum leverage offered by dbFX is 100:1. DbFX has a dealing desk.