FXdirekt Bank

Infobox_Company
company_name = FXdirekt Bank AG
company_
company_type = Public company
foundation = 2004
location = Oberhausen, Germany
num_employees = 90
industry = Banking / Online Trading
products = Online trading with forex, CFDs and FFDs
homepage = http://www.fxdirekt.com

The FXdirekt Bank is an independent company with around 90 employees. The company headquarters are located in Krefeld, Germany and the branch office is located in Oberhausen. The FXdirekt Bank is a member of the EdW ("Entschädigungseinrichtung der Wertpapierhandelsunternehmen"), which is an organisation created to secure investor claims and is also registered as a commercial bank with the BaFin (German Federal Institute for Financial Services Supervision).

Company History

The first German-language online trading platform FXdirekt was introduced onto the market in 2001 by the company ibas AG, which was closely associated with the FXdirekt Bank. The FXdirekt Bank was founded in 2004 and has steadily broadened its areas of competence in the forex market. The multimarket trading platform FEXtrader Pro was introduced in 2007. The bank now offers not only online trading with forex, stocks, indices, commodities and treasuries but also the complete technological settlement of the FX, CFD and FFD transactions.

Products

FX

Currencies or foreign exchange are traded on the foreign exchange (forex) market. The forex market functions decentrally and is therefore not bound to any particular stock exchange. A foreign currency transaction involves the simultaneous purchase and sale of two currencies. This leads to the formation of the rate of exchange. As with any other market, the price of the currency is determined by supply and demand. Worldwide a volume of 2,000 billion US-Dollars is traded each day. The FXdirekt Bank AG offers up to 200 currency pairs. As well as the major currency pairs such as EUR/USD the FEXtrader Pro trading platform allows clients to trade numerous exotics.

CFDs

A contract for difference (CFD) is an agreement to exchange the difference between the opening and closing price of a position and is a type of derivative financial instrument. Unlike trading shares, trading CFDs does not involve the purchase of an actual share in the company. CFD trading allows the investor to participate in the price movement for the given underlying, without having to physically own it. The price development for CFDs is therefore based on the prices of other financial products, such as shares. A significant advantage when trading CFDs is that the investor can not only trade on rising prices by going long, but can also trade on falling prices by going short. CFD trading also requires a lower amount of investment capital than share trading. The margin requirement is usually only a low percentage of the total value of the transaction, this creates the so-called leverage effect.

FFDs

FFDs (Futures for Difference) are also contracts for difference but are based on commodities, indices and bonds. Trading FFDs is similar to trading CFDs, however the price development of an FFD is based on standardized futures contracts, whereby the settlement date and the contract size are standardized. FFDs were developed by the FXdirekt Bank and are a registered trademark.

Awards

The FXdirekt Bank was voted Best Forex Broker in the German “Brokerwahl” broker awards in 2005, 2006, 2007 and 2008. In 2008 FXdirekt Bank also came third in the CFD Broker category in the Broker Awards. The broker awards are an independent poll of thousands of private investors who evaluate the services provided by numerous banks and brokers from a range of different segments.

Links

* http://www.fxdirekt.com