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Be careful with forex brokers

Discussion in 'Making Money' started by romeo216, Feb 9, 2010.

  1. romeo216

    romeo216 BANNED BANNED

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    I had an account with igmarkets. I opened the account about 3 months ago. I invested about 7k. I'm very disappointed with the way they operate to say the least. I left a trade open over a weekend. When I logged back into my account, I found that there was a 77 pip slippage on a trade where I put in a stop. The trade went 77 pips beyond my stop. Needless to say, I lost a ton of cash on that trade. I logged into my metatrader platform shortly after logging into igmarkets. I found that the actual price had not even reached their price. They manipulated a trade with a false price. Scam scam scam. I called them up and they had no logical explanation. I never heard from them again regarding that situation.

    In the event of something like this, I wonder if my bank would protect me? Because that was clearly fraud on their behalf.
     
  2. romeo216

    romeo216 BANNED BANNED

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    there's gotta be something I can do in this case. I've never seen a 77 pip slippage in my life...especially when the price had not even actually reached that point yet. It magically reached that point only in their platform.
     
  3. kriminal

    kriminal Registered Member

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    Forex brokers are the worst. I Have never left a trade on over the weekend.
    Posted via Mobile Device
     
  4. j0b0123

    j0b0123 Regular Member

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    Forex cash market is largely unregulated. Brokers can quote any spread they want, pretty much screw public over. Of course this does not mean all do that type of action.

    I have heard in the next 90 days the SEC/CFTC are going to regulate forex cash markets. The proposed level of leverge is going to be lowered from 400:1 in some areas, 100:1 in others down to 10:1 everywhere. This seems a bit harsh, but I read this in an article talking about the proposed regulations.

    What a lot of people don't know is the quote you trade at IS NOT where its actually trading a lot of the times. Or they will not fill a limit order until it moves through your price.

    Example:

    bid 1.3700
    ask: 1.3702

    You are bidding 1.3700, but they will not fill you until the ask moves to that price, meaning there is a low risk way for them to take the other side of your trade at that point.

    Additionally it is common for the quote to be 1.3700 x 1.3704 or some bs like that when the real market is 01 x 03 - again free money for them if you trade. Its not always cut and dry like that, but that stuff goes on all the time. Once its regulated, that will stop and it will put a ton of brokers out of business if that is their only model. Well - any broker that lets you trade for free is playing this model, so free trading will most likely be gone. Businesses cost money to operate, generating no revenue per trade is not a viable model (once they take away the ability to steal using bid/ask bs )

    I do not know for sure when they are supposed to do something, I am only relaying what I heard. As with all political/regulation stuff, it probably gets put off a few months as people complain etc.
     
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  5. j0b0123

    j0b0123 Regular Member

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    There is no central market for forex trading, so they can do whatever they want. Your order is held on their cue, if it gets close to your stop, they can use their own account to trade it there - should be illegal but its not regulated. Now the 77 tick stop you can probably nail them on. There is no excuse for that unless it was because of halted trading - forex does not trade over weekend, so if you have a stop at 1.62 on GBP and its closed on friday, if it opens on Sunday night at 1.63, your stop would fill you on the open at 1.63 - or .01 slippage.

    Also, have you not heard of the multitude of complaints about NYSE specialists running orders down to stops on purpose, cleaning stock, then moving it back up - same game. Does not happen as much anymore because of penny spreads, but used to be common place.
     
  6. romeo216

    romeo216 BANNED BANNED

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    Well, I'm heading to my bank in the morning to see if I can file a chargeback. Not only did they manipulate that trade. They locked me out of my account several times while my trades were open. I've just had an extremely horrible experience with igmarkets. I urge everyone to stay away. I'm going to trade again but I'm going to look into some ecn brokers this time.
     
  7. mollah

    mollah Power Member

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    You got stop hunted.

    Happens all the time since Forex is unregulated.

    Trade currency futures instead if you like currencies. The futures market is regulated like a mofo and you won't get scammed.

    btw, sorry it happened. Close your account and sue the company for bullshit if you can.
     
  8. majestry

    majestry Junior Member

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    Well, you get punished for being stupid. You NEVER EVER EVER EVER leave a trade open over the weekend. The market doesn't open at the same price it closes at. If you're not in an extremely long term trade, you can't leave your trades open.
     
  9. pipwaves

    pipwaves Newbie

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    I used to work for Go Markets.

    Forex Brokers make money from you loosing money. 90% of traders loose money. It's a good business to be in, if you are a broker... or an EA developer ;-)
     
  10. imcool2121

    imcool2121 Elite Member

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    Thats a laughy story. Me too feel bad for that guy.
     
  11. helgeschneider

    helgeschneider Registered Member

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    Good catch! Depends also pretty much on which currency pair he was trading. It's not rare that there happen huge gaps when the market opens again. Also before investing sums like 7k you should do a really good research to find a good and regulated broker.

    Forex is pretty simple imho. This is the place I learned proper money management which now my whole life is based on.
     
  12. cracker

    cracker Registered Member

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    roflmao......
     
  13. zverr

    zverr Regular Member

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    You should review their terms because most brokers clearly state that they will not fullfil stop orders during weekend. Trades start in the early sunday afternoon when tokyo opens but NY an London brokers don't operate during that time. Usually they start at monday 00.00 GMT so you could easily get very large slippage. But you broke one of the most fundamental rule of trading: Never Never Never leave a position oppened during the weekend. It is all your fault don't blame the broker. If they accepted orders during weekend you could easily make millions just have to watch tokyo which opens earlier then open position at London broker which hasn't updated their quotes and you make easy 100 pips. That's whay they do not accept any orders during weekend.