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Attachments: Forex 4 u- Large loss caused by feed spike
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Forex 4 u- Large loss caused by feed spike

  • Post #1
  • Quote
  • First Post: Oct 26, 2009 6:10pm Oct 26, 2009 6:10pm
Hi chaps. I've been trading Live with Forex 4 u since 7th July of this year and have been mostly pleased with the service, the execution can be slow but suits my trading.

I came home today to see that 3k had been wiped off my trading account due to a margin Call.

Close examination of the statement showed a feed spike on the gbpaud trade I had open which took the price from 1.7623 (ish) to 5789.0506! This immediatly put me $72 million into drawdown and resuted in a margin call that closed out the trades at a loss, eek!

My trading style is to trade currency baskets a la Steve hopwood KG EA, a basket of trades is opened, will go into drawdown , and then over hours, sometimers weeks close in profit or breakeven. The moment of the spike caught the account in a chunk of drawdown hence the losses. I've sent a complaint to their dealing section and will let you know the outcome good or bad. I've attached a screen shot of the trades!


Note - the amounts on the right are in cents, so divide by 100 for the dollar amount, I haven't got a mahoosive account!

I've also sent them a copy of this so they know the forums eyes are on them so to speak, as there are prospective clients in this forum and people who use them who I've recommended. Let's see what happens!

I'll let you know the outcome!

Cheers,

Cal
Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_08 Oct. 26 22.11.jpg Size: 126 KB
Yea this was not a feed spike... this was a move in the market. It occured on my brokers platform too.

You said your account was 3k and that your trades P/L's were in cents... depending on your broker you should be able to have them fix the issue if you had a stop placed and got slipped all the way down to the bottom end of the spike.

My broker has fixed situations exactly like this because I don't trade with tens of millions worth in lots and I place stops.

I can't imagine how many traders went broke today due to that spike though. If you're trading in large volumes a broker will just tell you tough luck regardless of a highly slipped stop loss.
I would take some convincing that a spike from 1.7623 (ish) to 5789.0506 is anything other than a blatant attempt by a criminal broker to steal money.

I assume that Forex 4 u are not actually criminals, that this is a computer error and look forward to reading that this situation has been resolved.

If this does not happen, then Forex 4 u are not tradeable brokers.

I have another identical but smaller account with them - no such spike was seen on that one. I believe it was a technical error on their part, it certainly wasnt a market move!

The issue now is how they deal with their error, I'll keep the thread updated as I hear from them.

Cheers,

Cal
Quoting corpralj
Yea this was not a feed spike... this was a move in the market. It occured on my brokers platform too.
There is no way this was a market move. From 1.7623 (ish) to 5789.0506?
C'mon! Look where the decimal points are. The market didn't move 5788 big figures.
Quoting currymonster
I have another identical but smaller account with them - no such spike was seen on that one. I believe it was a technical error on their part, it certainly wasnt a market move!

The issue now is how they deal with their error, I'll keep the thread updated as I hear from them.

Cheers,

Cal
Yes, I didn't get the spike and it is becoming clear that others did not as well. Looking forward to seeing both what and how quickly they repair your account.

  • Post #7
  • Quote
  • Edited 9:19pm Oct 26, 2009 8:23pm | Edited 9:19pm
what amazes me is that if you by any chance of luck was on a positive side of that spike, then your account would have been "fixed" instantly and all the profits would have been taken out before you even had a chance to notice them. Yet when you loose as in most cases this would be the case it takes enormous amount of effort on traders part to get this resolved.

Honestly there is no way market could ever move that much that quickly and anyone with half a brain would understand it.
Quoting corpralj
Yea this was not a feed spike... this was a move in the market. It occured on my brokers platform too.

You said your account was 3k and that your trades P/L's were in cents... depending on your broker you should be able to have them fix the issue if you had a stop placed and got slipped all the way down to the bottom end of the spike.

My broker has fixed situations exactly like this because I don't trade with tens of millions worth in lots and I place stops.

I can't imagine how many traders went broke today due to that spike though. If you're...
So what you are saying is that if you had a take profit and it got slipped to +$72 million you would have walked away with that profit
Call your broker and post what they are saying here or forexpeacearmy.com
don't worry..they have to correct that spike and your accout should be restored. if they don't fix it then post what they said and we will stamp them as SCAM broker.

But they will fix it..since this is pure price feed error.
normaly Broker have more than one server so it may happen that client who are connected to that server experiance spike and those who are on different sever did not saw such spike.
Thanks for the support chaps. I'll let you know what reply I get from them after work tonight .


Cal
Quoting Ervichov
So what you are saying is that if you had a take profit and it got slipped to +$72 million you would have walked away with that profit
Call your broker and post what they are saying here or forexpeacearmy.com
No, that's not what I'm saying. I'm saying that if you got slipped to -$X due to that spike you would of had to walk away with your broke account and fix it with your broker. You are never slipped into more profit, always into more loss.

If you had a limit order that would of gain you $1000 with 1 lot in that move you would not be slipped beyond your limit. If you placed a stop that would net you -$1000 with a standard lot in that move you would be slipped down to the end of that spike guaranteed, and you would lose your entire account. Like I said, I can't believe how many traders went broke yesterday and are now having to work with their broker to fix it. I can guarantee you that some traders out there won't be fixing their 6-figure accounts. Nobody walked away with the profit of that spike because it was instantaneous. You would of been slipped with a stop or ended up back to the beginning of the spike before you could of made a move.

And this spike is now gone from my brokers platform today. Fact is if it occured on multiple brokers platforms then it's not just a single broker trying to do a scam-job. Something beyond that occured for this to happen on multiple platforms.
Poor service, I haven't heard from them today at all, not impressed! I'll email them again, sent two emails this time yesterday, hmm!

Cal
Quoting currymonster
Poor service, I haven't heard from them today at all, not impressed! I'll email them again, sent two emails this time yesterday, hmm!

Cal
I do not for the life of me understand why brokers don't have insurance for these types of situations. Unless they are the cause and clients loss is an intended effect. In this case i wish you luck getting your money back and I would suggest filing an official complaint with their regulatory body, what ever it may be as I'm not familiar with this broker.
Quoting corpralj
No, that's not what I'm saying. I'm saying that if you got slipped to -$X due to that spike you would of had to walk away with your broke account and fix it with your broker. You are never slipped into more profit, always into more loss.

If you had a limit order that would of gain you $1000 with 1 lot in that move you would not be slipped beyond your limit. If you placed a stop that would net you -$1000 with a standard lot in that move you would be slipped down to the end of that spike guaranteed, and you would lose your entire account. Like...
Lol and if you did not have a set take profit, just a trailing stop then what ? Would you get closed out -50 pips from the peak of that nonsense?
sorry to ask, could you not have opened an account at a reputable borker and saved yourself all this headache ??? what happened to due diligence? isnt this a case of "so reapeth, so soweth" ...
Quoting bravester
sorry to ask, could you not have opened an account at a reputable borker and saved yourself all this headache ??? what happened to due diligence? isnt this a case of "so reapeth, so soweth" ...
The term 'reputable broker' is an oxymoron.

I think your comments are uncalled for. The OP is posting a warning here. If eglobal fail to respond to this situation, then more of us will be aware that they are crooks than if the poster had not started this thread. I think criticising him is unhelpful.

Perhaps you could post more usefully and tell the rest of us how you exercise due dilligence when opening an account with a broker. We would all appreciate your insights.

Thanks for the constuctive comments Bravestar. As Steve said the thread is started to show other members, some of who might be future Forex 4 u customers what is ther outcome of the situation.

At the end of the day the same spike pretty much any broker would be difficult to resolve if they don't respond to calls or emails!

I demo traded Forex 4 u for several Months with my robot, asked them questions etc. I guess I forgot to ask the ' so your definitely not going to shaft me, huh?' question? lol.

Anyway, back on point -

No contact from them whatsoever. I've tried ringing the phone number listed for the uk which rings out with an international dial tone, connects to an automated message asking which extension do I want. When I choose an extension it rings for about 4 minutes before cutting me off.

Does anyone have any ideas about how I should proceed. I might contact Forex peace army and see if they have any suggestions.

It's looking more and more like my 3k might be dissapearing without return grrr!

Cal
In the absence of a useful reply from bravester, anybody else got any suggested methods for protecting ourselves from shyster crooks prepared to blatantly rob their 'clients'?

In other words, how do we exercise bravester's 'due diligence'?

All Officers of theses so called "Brokerages" should disclose their exact home address/with current mapquest. Of course ,there is no real course of action if/when your Broker decides they are "DepositOnly" business model. Email them 10000000000 times a day-its something at least?
FF = Forex Faggots
Quoting 8fingers
All Officers of theses so called "Brokerages" should disclose their exact home address/with current mapquest. Of course ,there is no real course of action if/when your Broker decides they are "DepositOnly" business model. Email them 10000000000 times a day-its something at least?
Anybody got software that will do this for the user? Send the same message every minute?

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