How do brokers get away with ripping off traders? | Forex Factory

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How do brokers get away with ripping off traders?

  • #1
  • First Post: Aug 31, 2018 4:47pm Aug 31, 2018 4:47pm
In the US, there are only a few brokers left, I believe. I'm using one of them right now and it seems clear that they are cheating me. They close trades before my SL is reached and don't close trades even if my TP is reached. How can they get away with this? Is there really no course of action? I called customer support and spoke to someone who sounded like the most cartoonish, New York sleaze bag type. I even asked him if he gets bonuses or something for not correcting mistakes and he let out this long sigh and made other noises like he was annoyed. I mean, his behavior was off the charts ridiculous. Like there is no oversight and he can just do whatever he wants. He kept telling me the trade closed correctly, but when I asked for the low price during my trade, he said he couldn't find it, but was sure the trade closed correctly after the fact, meaning once it was a losing trade. Basically, on this particular trade, the price went a pip past my TP, but didn't close the trade, then reversed and I lost the trade. I'm using MT4, and the guy also said it only shows sell prices and not buy prices, but I asked him which price determines when a TP or SL is executed if it's not the price shown on the MT4 chart, and he just rambled on. It really seems like this company, who is supposedly a market maker, just preys on new, gullible traders, but how do they get away with it?
  • #2
  • Aug 31, 2018 5:25pm Aug 31, 2018 5:25pm
Quoting m0b1us
In the US, there are only a few brokers left, I believe. I'm using one of them right now and it seems clear that they are cheating me. They close trades before my SL is reached and don't close trades even if my TP is reached. How can they get away with this? Is there really no course of action? I called customer support and spoke to someone who sounded like the most cartoonish, New York sleaze bag type. I even asked him if he gets bonuses or something for not correcting mistakes and he let out this long sigh and made other noises like he was annoyed....
You're speaking to typical customer service who makes $9/hour. Of course they don't give a shit about you. Unless of course you have 6 figure account with them..then maybe they'll care.
  • #3
  • Aug 31, 2018 5:47pm Aug 31, 2018 5:47pm
Shitty customer service aside, they could be right. If the price didn't reach the ask/bid price for whatever direction you were going, it didn't reach it. Take some time to study the concept of bid/ask. You may have to adjust your t/p a couple of pips to account for the difference. Also, there is a setting in mt4 that allows you to see both lines. Right click on chart > properties > "show ask line". Done.

Your broker should have a dispute department outside their normal customer service. Get a hold of them and have them check the price and explain it to you. If the price hit your t/p, they'll credit your account. Customer service doesn't have the juice to do that.
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Also, on the other issue.....you could be being taken out by the spread when it nears your s/l. Find an expert adviser that executes your stop as a market order. Search the market for "virtual stop loss".....
  • #4
  • Edited 6:07pm Aug 31, 2018 5:55pm | Edited 6:07pm
Quoting Pipfu
Shitty customer service aside, they could be right. If the price didn't reach the ask/bid price for whatever direction you were going, it didn't reach it. Take some time to study the concept of bid/ask. You may have to adjust your t/p a couple of pips to account for the difference. Also, there is a setting in mt4 that allows you to see both lines. Right click on chart > properties > "show ask line". Done. Your broker should have a dispute department outside their normal customer service. Get a hold of them and have them check the price and explain...
I appreciate that. I will keep a second chart open with the ask line, so I can compare whenever I think a trade doesn't close when it should. The thing that seems suspect to me is that these sorts of things never go in my favor. Never. Just a couple days ago, another trade closed before my SL was reached and that cost me some pips, as well.

As I asked in my first post, how do brokers get away with screwing traders? I mean, if you read the reviews for brokers, they are generally horrible. And people say things like the broker won't let them withdraw money or they close their account simply because they are too successful and the broker is a dealing desk and doesn't want big winners. Or, some reviews say the broker does things like I'm describing, where they close trades when they shouldn't be closed.
  • #5
  • Aug 31, 2018 5:59pm Aug 31, 2018 5:59pm
Quoting m0b1us
{quote} I appreciate that. I will keep a second chart open with the ask line, so I can compare whenever I think I trade doesn't close when it should. The thing that seems suspect to me is that these sorts of things never go in my favor. Never. Just a couple days ago, another trade closed before my SL was reached and that cost me some pips as well. But, as I asked in my first post, how do brokers get away with screwing traders? I mean, if you read the reviews for brokers, they are generally horrible. And people say things like the broker won't let...
They get away with it because they are the only game in town. I think we are down to just a few US regulated brokers. Sad really.
  • #6
  • Edited 7:25pm Aug 31, 2018 6:22pm | Edited 7:25pm
Quoting Pipfu
{quote} They get away with it because they are the only game in town. I think we are down to just a few US regulated brokers. Sad really.
So, what determines when your SL/TP are executed on MT4? Does it differ with a BUY and SELL? For instance, if you short a currency pair like USD/JPY, does the Bid price determine when your TP is executed? And the Ask price determines when a BUY's TP has been reached? What about the SL on a trade? Is it the same price i.e. Bid for a SELL and Ask for a BUY that determines when they are executed?
  • #7
  • Aug 31, 2018 6:41pm Aug 31, 2018 6:41pm
Quoting m0b1us
{quote} So, what determines when your SL/TP are executed on MT4? Does it differ with a BUY and SELL? For instance, if you short a currency pair like USD/JPY, does the Bid price determine when your TP is executed? And the Ask price determine when a BUY's TP has been reached? What about the SL on a trade? Is it the same price i.e. Bid for a SELL and Ask for a BUY that determines when they are executed?
Yes, yes, and yes. When you are short on a pair, you are buying it to get out of the trade so the ask price applies whether it is for t/p or s/l. Opposite for buying.
  • #8
  • Aug 31, 2018 7:52pm Aug 31, 2018 7:52pm
Quoting Pipfu
{quote} They get away with it because they are the only game in town. I think we are down to just a few US regulated brokers. Sad really.
forex.com is not a good broker
people leave, but this thread will go on for ever
  • #9
  • Aug 31, 2018 11:10pm Aug 31, 2018 11:10pm
[quote=Aussi;11431693]{quote} forex.com is not a good broker

Aussi , Which broker is the best , None of them , so i just stay with Exnees ,
  • #10
  • Sep 1, 2018 2:49am Sep 1, 2018 2:49am
[quote=terminator12;11431831]
Quoting Aussi
{quote} forex.com is not a good broker Aussi , Which broker is the best , None of them , so i just stay with Exnees ,
i have to agree with you regarding brokers mate , their not your friend
people leave, but this thread will go on for ever
  • #11
  • Sep 1, 2018 3:08am Sep 1, 2018 3:08am
Brokers arent developers, the results are at the mercy of the trading software they use and supply you. Anything /MT4 is dodgy from my experience. My broker offers it, but luckily they also had ctrader, so I use that.

That being said, if I have a live trade, Im never far away, checking price quite constantly, but when the trade is over I dont give a hoot. What are you doing watching your trade hit your take profit and not jumping in to nail the profit.

That sigh he made was him wondering why he is in this business.
  • #12
  • Sep 1, 2018 3:46am Sep 1, 2018 3:46am
Quoting terminator12
{quote} i have to agree with you regarding brokers mate , their not your friend
if you're at a regulated no dealing desk broker which profits from the commision, then there is no reason to harm you. If you're at a B-Book broker then you have to blame yourself.
  • #13
  • Sep 1, 2018 5:37am Sep 1, 2018 5:37am
I think it is not a matter of intentional broker action. The noise data factors when you are chasing SL or TP in the range of few pips are very unpredictable. And probably the broker server software always settle some parameters to go in their favour. If you really gonna make such high-speed trades you need a whole another tier of access to the market (Interbank, ECN) - but this is not offered to customers with accounts below couple million dollars, neither to typical retail platforms. Just trade with wider boundaries, use some progressive hedging etc...
  • #14
  • Sep 1, 2018 11:04am Sep 1, 2018 11:04am
Find a spread indicator, you should, hmmmm.

https://www.pointzero-trading.com/Pr...ew/PZTickChart

https://www.mql5.com/en/code/9492


What time of day did this occur? Brokers don't care about you're SL or you for that matter. Larger spreads happen because of low volume, simple. Hence everyday Spreads will jump to .05-.08 pips at market close.
Learn, a forex trader must, unlearn and relearn he will.
  • #15
  • Sep 1, 2018 7:33pm Sep 1, 2018 7:33pm
Quoting Upwave
{quote} if you're at a regulated no dealing desk broker which profits from the commision, then there is no reason to harm you. If you're at a B-Book broker then you have to blame yourself.
i trade with some good brokers some are b book and trade against me to their own detriment >>>> a regulated no dealing desk broker show me one


looking forward to your trade explorer i see you trade lots and lots of pairs
people leave, but this thread will go on for ever
  • #16
  • Last Post: Edited 11:57pm Sep 1, 2018 11:42pm | Edited 11:57pm
Honestly, I do not think that brokers close deals until stop-loss or take-profit. This is mainly due to the expansion of the spread. All brokers that are regulated in the US are very afraid of responsibility. I do not think they will do it. And as for brokers without regulation, this is your choice or trading on a fraudulent broker without a license or an adjustable broker.
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