About us

Regulations and Licenses

JFD Brokers is committed to keeping its Clients’ money safe and operates under strict European regulations.

JFD Brokers is authorised and regulated as a Matched Principal Broker (i.e. 100% Agency Model), which may not hold any proprietary positions, has no exposure, and is therefore only acting as an intermediary between its Clients, Liquidity Providers and major Exchanges. In other words, we have no rights to hold a “B Book” (i.e. Make the Market), hence have no conflict with our clients and are in business to protect their interests.

JFD Brokers Ltd. is a Limassol-headquartered financial services company authorised and regulated to conduct Portfolio Management and Agency Only execution activities by CySEC in Cyprus (License number: 150/11), is registered with BaFin in Germany (Registration number: 126399), and the FCA in the UK (Registration number: 580193), the ACPR - French Autorite de Controle Prudentiel et de Résolution Banque de France (Registration number 74013), is a Member of ICF (the Investor Compensation Fund), and is MiFID compliant in Europe under the Investment Services and Regulated Market Law of 2007 (Law No. 144(I)/2007).

Under MiFID, JFD Brokers can offer authorised and regulated cross-border services to all Member States, including to the following jurisdictions: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lichtenstein, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, the Netherlands, the United Kingdom.

Our annual financial reports are audited by a leading Cypriot financial auditor, and our regulatory status gives our clients assurance that we will never take the opposite side of their trades, that any funds held with us are secure and that our resources are adequately managed at all times.

100% DMA/STP Agency Model

Unlike Market Makers (including those promoting Non-Dealing-Desks - NDD, Straight Trough Processing - STP, or Electronic Currency Network - ECN models) JFD Brokers does NOT run any dedicated dealing desks to constantly monitor its financial position and set appropriate risk limits.

In effect, any Broker claiming an STP/NDD/DMA/PRO offering, may nevertheless “Make the Market” even if only partially (i.e. STP 50% of clients’ orders and make the market on the other 50%). In theory, there is nothing wrong with this configuration as long as the Broker runs an ethical business. In practice, Regulators such as the NFA and the FCA have both demonstrated condemnable practices conducted against clients’ interests by brokers claiming STP/NDD operations. The temptations to manipulate pricing and execution to the sole interest of the broker’s bottom line remain systematic.

Full or partial Market Making Brokers are systematically exposed to risk, as if a larger proportion of their clients are in profit, they may not be able to meet their financial obligation to pay all clients which may possibly lead them to bankruptcy. This is precisely why Regulators do systematically require Market Makers for high capital requirement and greater control in order to cover the risks inherent to such business models. This is also why Regulators are constantly monitoring retail clients’ interests against all possible deviations such as stop hunting, price manipulation or execution manipulations operated by Market Makers.

We at JFD refuse to operate under such terms.

It is important to note that unlike the vast majority of Retail CFDs and FX Brokers, JFD Brokers deliberately chose NOT to be authorised to conduct the following activity: “dealing on own account”. The activity of “dealing on own account” authorises Retail Brokers to Make the Market by taking the opposite side of their clients’ trades, hence creating a systematic conflict of interest.

Both CySEC and FCA Registers present the different levels of license/permissions held by Retail Brokers.

As an example, all of the companies listed hereby offer ECN Accounts, or PRO Accounts, yet have the permission to Make the Market in order to generate profits on client losses: Alpari FS, Alpari (UK), Etoro, Easy Forex, FXPRO, FX Sol (company of City Index), FXCM Securities Limited, ODL Securities, FXDD Malta Limited, Tadawul (now Liquid Markets), Windsor Brokers, etc.

A clear and straightforward regulatory status is probably one of the most important factor to look for whenever considering Transparency, Broker’s Integrity and Safety of Client Funds.

100% MiFID Compliant Post-Trade Transparency

Every single one of our Clients’ orders are systematically Straight Through Processed to our Liquidity Providers on a "Fill or Fill" basis (i.e. no requotes) with both positive and negative Slippage enabled (i.e. no broker intervention). We pride ourselves for being able to provide upon Clients’ requests all relevant Post-Trade Execution Reports presenting Execution Times (often averaging sub 2 milliseconds) and naming which Liquidity Providers filled our Clients’ orders.

Post-Trade Transparency is also one of the most important factor to look for whenever considering Transparency, Broker’s Integrity and Safety of Client Funds.

Segregation of Clients Funds

All client funds, without any exceptions, are fully segregated into a special client account and kept separate from JFD Brokers’ company funds. Segregation ensures that client funds will not be used to pay back creditors in the unlikely event of JFD Brokers’ default or insolvency. All funds, whether they are classified as company funds or client funds, are kept without any exceptions in world class financial European and Middle Eastern institutions, amongst the safest in their category.

Investor Compensation Fund (ICF)

Our clients may be eligible to put a claim into the Investor Compensation Fund (ICF) in the event JFD Brokers is unable to meet its financial obligations. Eligibility depends on the status and the nature of the claim.

Custom Risk Management – Airbag and Lower Leverage Setup

JFD Brokers’ automated risk management system, also called the Airbag, coupled with lower leveraged client trading accounts is designed to reduce the risk of your trading account being depleted to zero or turning negative. This is especially useful to prevent negative impacts generated by weekend Market Gaps.

Supervision by the Regulators

The Cyprus Securities and Exchange Commission (CySEC), a mature world-class regulator, has long-term experience in the CFDs and Forex industry, allows passporting to other European territories’ jurisdictions and is viewed as a leading regulatory authority in Europe.

All firms regulated by CySEC have to meet strict financial standards, including capital adequacy requirements. Companies are required to submit financial reports to the regulator on a regular basis and CySEC has the right to fine companies and/or terminate a company’s regulatory status for violations.

JFD Brokers’ Internal Auditors, External Auditors, Compliance and Legal Teams provide a comprehensive Audit, Special Investigations and Compliance set of solutions (to CySEC, FCA, BaFin and MiFID). Our duly certified Auditors and experienced Compliance Officers are continuously trained and supported by one of the largest team of experts in the EU to deliver the highest levels of services to our clients.

The new directive MiFID was officially adopted on 30 March 2004 and brought a variety of changes for investment service providers. MiFID was transposed into Cypriot legislation with the New Law 144(I) of 2007 (Law which provides for the Provision of Investment Services, the Exercise of Investment Activities, and the Operation of Regulated Markets).
JFD Brokers’ Auditors and Legal Department pride themselves to be the top experts in this field, works closely with the Financial Services Advisory Team.

Prime Brokerage Model

JFD Brokers’ best execution commitment is tied to the prime brokerage model. This model enables JFD Brokers to offer accurate and ultra-low latency execution on aggregated multibank liquidity, with the added bonus of lower costs (i.e. Core Spreads with a 0.1pip average on the EUR/USD London Session). Our technology coupled with our business model gives us the opportunity to deliver an absolute trading environment to the retail trading community.

Established in Cyprus

In the last few years many brokers have appeared on the CFDs and Forex marketplace operating from Cyprus which offers one of the lowest tax systems (e.g. 10% on taxable profits) in the European Union (Cyprus joined the EU in 2003) along with the local availability of highly skilled yet more affordable professionals. Finally, under CySEC, retail customers benefit from up to EUR 20,000 coverage in case of broker default, a cover provided by the Investor Compensation Fund (ICF) of which JFD Brokers is a member. Lower operational costs and high degrees of client protections is what Cyprus has to offer, and why JFD Brokers established its headquarters there.

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Risk Warning:

Trading Foreign Exchange and Contracts for Difference (CFDs) is highly speculative and may not be suitable for all investors. JFD Brokers offers trading on margin. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Only invest with money you can afford to lose and ensure that you fully understand the risks involved. Seek independent advice if necessary and review our Risk Disclosure and Privacy Disclosure before opening an account. Copyright © 2012 JFD Brokers Ltd.
 
JFD Brokers Ltd. is authorised and regulated by the Cyprus Securities and Exchange Commission - CySEC (Licence number: 150/11) and is a Member of the Investor Compensation Fund (ICF). JFD Brokers Ltd. is registered with the German Federal Financial Supervisory Authority - BaFin (Registration number: 126399), the British Financial Conduct Authority - FCA (Registration number: 580193), the French Autorité de Contrôle Prudentiel et de Résolution - ACPR (Registration number 74013) and is MiFID compliant under the Investment Services and Regulated Market Law of 2007 (Law number: 144(I)/2007). JFD Brokers Ltd. is licenced to provide the investment services of Agency Only Execution (i.e. reception and transmission of orders, execution of orders on behalf of clients) and Portfolio Management in relation to Transferable Securities, Options, Futures, SWAPS, Forward Rate Agreements, Financial Contracts for Differences (CFD) and other Derivatives. JFD Brokers Ltd. is also licenced to provide the ancillary service of Safekeeping and Administration of Financial Instruments.
www.jfdbrokers.com is owned and operated by JFD Brokers Ltd., Cyprus.
 
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