Can a broker execute a market order 1 minute 11 seconds after one clicked the price?? | Forex Factory

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Can a broker execute a market order 1 minute 11 seconds after one clicked the price??

  • #1
  • First Post: Oct 24, 2007 11:39am Oct 24, 2007 11:39am
I have a really bad experience recently. My broker filled my market order 1 minute 11 seconds after I clicked to buy. Initially when after I clicked the price, the market moved in my favor, the broker didn't execute the market order and after 1 min 11 seconds, when the market reversed strongly they executed the trade resulting in an instantaneous loss of 60 pips! My question is can they hold my market order indefinitely and fill it when they have the opportunity to rip me off?
  • #2
  • Oct 24, 2007 11:50am Oct 24, 2007 11:50am
Quoting Saurabh_g
I have a really bad experience recently. My broker filled my market order 1 minute 11 seconds after I clicked to buy. Initially when after I clicked the price, the market moved in my favor, the broker didn't execute the market order and after 1 min 11 seconds, when the market reversed strongly they executed the trade resulting in an instantaneous loss of 60 pips! My question is can they hold my market order indefinitely and fill it when they have the opportunity to rip me off?
Which broker was that? As far as my experience goes, most bucketshop brokers do this. So you are not alone and you are not the first to experience this.
  • #3
  • Oct 24, 2007 12:39pm Oct 24, 2007 12:39pm
Quoting Saurabh_g
I have a really bad experience recently. My broker filled my market order 1 minute 11 seconds after I clicked to buy. Initially when after I clicked the price, the market moved in my favor, the broker didn't execute the market order and after 1 min 11 seconds, when the market reversed strongly they executed the trade resulting in an instantaneous loss of 60 pips! My question is can they hold my market order indefinitely and fill it when they have the opportunity to rip me off?
Did it happen during news or during a fast moving market? If that's the case you may want to read this post to answer your question:

http://www.forexfactory.com/showpost...7&postcount=11

Hope it helps.

Good luck.
"I say high, You say low, You say why, and I say I don't know..."
  • #4
  • Oct 24, 2007 1:33pm Oct 24, 2007 1:33pm
Yes this happened during a news release. The website of the broker says deals are confirmed typically within one second. My question is is it legitimate for them to hold my market order for 1 minute 11 seconds without giving me an opportunity to remove it and then fill it when they find the opportunity to rip me off?
  • #5
  • Oct 24, 2007 1:37pm Oct 24, 2007 1:37pm
I have been trading almost 2 years with 5 brokers. This is the first time I faced this problem. During extremely volatile news releases, I found FXCM sometimes holds your market order for a longtime, but they always give you chance to remove your order if you like.
  • #6
  • Oct 24, 2007 11:34pm Oct 24, 2007 11:34pm
Quoting Saurabh_g
Yes this happened during a news release. The website of the broker says deals are confirmed typically within one second. My question is is it legitimate for them to hold my market order for 1 minute 11 seconds without giving me an opportunity to remove it and then fill it when they find the opportunity to rip me off?
No; it's not legitimate for them to do that. I've seen it happen too at some MT4 firms. That's why we don't use any retail type broker to handle serious money anymore.

Are they in the US? If I were you, I would tell them if they don't reverse it, I'll report them to the NFA. I don't care what anyone says, confirmations must be instant. If they don't care, report them.
  • #7
  • Oct 25, 2007 2:16am Oct 25, 2007 2:16am
Quoting dominicanosrus
No; it's not legitimate for them to do that. I've seen it happen too at some MT4 firms. That's why we don't use any retail type broker to handle serious money anymore.

Are they in the US? If I were you, I would tell them if they don't reverse it, I'll report them to the NFA. I don't care what anyone says, confirmations must be instant. If they don't care, report them.
I plus this. 2-3 seconds is ok for the broker to compare his price and fill you with "his" best price but 1mn is like an eternity especially on news release.

You should have a requote warning instead of getting filled.

In any case, it's not a good idea to trade the news with a bucketshop anyway...

Last note, are you crazy going in a news with a market order ?
  • #8
  • Oct 25, 2007 2:16am Oct 25, 2007 2:16am
If your broker did that to you on news:
a) Get out of that broker as it is playing games on you.
b) Dont trade news with that broker.

The worst broker I have experience on such was GFT and RoyalFX. They made me wait "for as long as it takes" (quoted from GFT) - it did not take forever though - just 3+ minutes and when the market has reversed. They filled me at the worst price (top of the spike). It was a small lot for me but several people I know got wiped clean with what they did.

After some conversation, they claimed that a SINGLE HUMAN can execute thousands of orders faster than many computers and thus the need for "Dealing Desks".. WHAT BS! I closed my account.
  • #9
  • Oct 25, 2007 2:17am Oct 25, 2007 2:17am
I think they can do what they want if u signed their client agreement, read that carefully...
  • #10
  • Oct 25, 2007 5:21am Oct 25, 2007 5:21am
Quoting melpheos
Last note, are you crazy going in a news with a market order ?
Exactly. I can't believe people are still doing this. All orders during news time should be either Limit or FOK (plus a minus a slippage factor). In fact, market orders should never be used in my opinion. Why take the risk of having the market gap on you (or the broker screw you like they did here)?
  • #11
  • Oct 25, 2007 5:31am Oct 25, 2007 5:31am
Quoting Mike59
I think they can do what they want if u signed their client agreement, read that carefully...
For the most part, you're right - but even if they add "you agree to let us take minutes to confirm the trade and screw you without vaseline in the process," to the agreement, it makes it an unconscionable agreement. A firm cannot do whatever the heck it wants by just adding the terms to their agreement. Expose them with the NFA if they don't give you all your money back.
  • #12
  • Oct 25, 2007 8:12am Oct 25, 2007 8:12am
The Broker in question is a US based farm. I have already sent an e-mail with my complaint to them and they promised to look into it. That's why for the time being I am not revealing their name. They claim on their website that 'deals are confirmed within one second'. For my case they didn't slip my market order to buy. Rather they filled my order after an eternity i. e., after 1 minute 11 seconds at the price I clicked. During that time, initially the price moved in my favor and then it reversed. They filled my order on my clicked price only when they were convinced that the price will never move up again. I already challenged them to show that the price I clicked at 9:30:00 was the same as the price at 9:31:11 on their platform.
  • #13
  • Oct 25, 2007 8:21am Oct 25, 2007 8:21am
Quoting Saurabh_g
The Broker in question is a US based farm. I have already sent an e-mail with my complaint to them and they promised to look into it. That's why for the time being I am not revealing their name. They claim on their website that 'deals are confirmed within one second'. For my case they didn't slip my market order to buy. Rather they filled my order after an eternity i. e., after 1 minute 11 seconds at the price I clicked. During that time, initially the price moved in my favor and then it reversed. They filled my order on my clicked price only when they were convinced that the price will never move up again. I already challenged them to show that the price I clicked at 9:30:00 was the same as the price at 9:31:11 on their platform.
Good. Don't back down. After they credit your account, disclose their name. People should know about these scams and the NFA should be going after the REAL criminals in this business - the retail, dealing desk bucket shops. I can probably guess who they are, but I'll wait for you to reveal it.
  • #14
  • Oct 25, 2007 6:11pm Oct 25, 2007 6:11pm
Quoting Saurabh_g
My question is is it legitimate for them to hold my market order for 1 minute 11 seconds without giving me an opportunity to remove it and then fill it when they find the opportunity to rip me off?
yes its absolutely legitimate. when you toss out a market order during news, thats similar to spreading your buttcheecks in jail

learn the market mechanics!!!
Relax and be happy.
  • #15
  • Oct 25, 2007 6:14pm Oct 25, 2007 6:14pm
Quoting Saurabh_g
Yes this happened during a news release.
like i always say, 99% of broker complaints are about market orders during news:
Relax and be happy.
  • #16
  • Oct 25, 2007 6:18pm Oct 25, 2007 6:18pm
Quote
thats similar to spreading your buttcheecks in jail

  • #17
  • Oct 25, 2007 6:26pm Oct 25, 2007 6:26pm
Quoting merlin
yes its absolutely legitimate. when you toss out a market order during news, thats similar to spreading your buttcheecks in jail

learn the market mechanics!!!
Merlin,
You are too smart to know everything!!! If it were absolutely legitimate, the broker wouldn't refund me anything back. But this morning they refunded almost all the money (98%) that I lost on this trade. Yesterday I had a long chat with two of my other brokers (Gain and FXCM).
Gain told me that never will this happen on their platform (no holding of market order). And FXCM told it (holding the market order for a long time without executing the trade) rarely happens with them, but in all those cases they refund the money to their client.
  • #18
  • Oct 25, 2007 6:55pm Oct 25, 2007 6:55pm
Quoting merlin
thats similar to spreading your buttcheecks in jail
But you still have a chance to enjoy it. I mean, in jail :
  • #19
  • Oct 25, 2007 7:35pm Oct 25, 2007 7:35pm
Quoting Saurabh_g
Merlin,
You are too smart to know everything!!! If it were absolutely legitimate, the broker wouldn't refund me anything back. But this morning they refunded almost all the money (98%) that I lost on this trade. Yesterday I had a long chat with two of my other brokers (Gain and FXCM).
Gain told me that never will this happen on their platform (no holding of market order). And FXCM told it (holding the market order for a long time without executing the trade) rarely happens with them, but in all those cases they refund the money to their client.
I agree with you. It is definitely not legitimate. I knew they would issue a refund. Why? Because they don't need the NFA complaint. It doesn't matter if you news traded. If they don't want to fill you on news, then simply issue a requote or rejection in a TIMELY fashion.

I do agree with Merlin in that throwing a market order during news is a recipe for disaster, but this still does not justify the brokers convenient, delayed reporting practice.
  • #20
  • Oct 25, 2007 8:06pm Oct 25, 2007 8:06pm
Quoting Saurabh_g
Merlin,
You are too smart to know everything!!! If it were absolutely legitimate, the broker wouldn't refund me anything back. But this morning they refunded almost all the money (98%) that I lost on this trade. Yesterday I had a long chat with two of my other brokers (Gain and FXCM).
Gain told me that never will this happen on their platform (no holding of market order). And FXCM told it (holding the market order for a long time without executing the trade) rarely happens with them, but in all those cases they refund the money to their client.
Market orders are filled at market price, which can be anything at news time. I'm glad you got refunded but that's probably the exception rather than the rule. Even if your broker fills your market order instantaneously, it may be far from the price shown on your screen. You are not the only one watching that spike or the only person clicking your mouse in that instant. Placing market orders during a news event is sticking it out on the chopping block.
Always was and always will be.
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