[quote=UFO Engineer;1877255]
This is part of what the "beat the forex dealer" book is talking about.... even though news time is volatile in the market, its not as volatile as the brokers would have you believe. Several minutes after a news release, you can place a normal order with normal spreads on most ECNs. The liquidity is there. These MT4 brokers are stop-hunting trades because they can see the stops collect around certain numbers. They can make their own prices move up to those stops (by placing large orders) to take them out, and then reverse the price with opposite orders without anyone questioning them simply "because that's what happens during new releases" or because "the market was really thin at that time." This becomes easy to spot when we sometimes see wild price swings for news events that are not that important to the overall market.
The same approach can be taken by the broker during periods of low liquidity, a news release is not required. The point I'm making is that by being able to see all their customer's stops, they can easily place opposite orders just outside those stops, and make a killing.
There may be brokers out there that act like ECNs - but I'm willing to bet that they will never use Metatrader's systems. And those that suddenly start offering MT as a platform (FXCM, Rosenthal Collins Group) should be scrutinized carefully.
DislikedA mysterious spike is the only way I could see a dealer ripping anyone off, and that can easily be proven with chart comparisons or data feeds from other sources. Can you give us some specific examples of how dealers rip off their clients in other ways, without leaving evidence?
Yes,will give you one of them from my experience.
I'm an active trader but I don't trade news.
So it's news time.Spreads goes to the sky (ECN and ''plug-in brokers'')20-30-...pips
But let's say after 1min the ECN's spread will go back to normal('cose the BID and ASK force that),guess about ''plug-in brokers''?They will keep the spread hight 10 times longer.WHY?They will say ''no liquidity''.This is big B Of SH....Look at ECN ,they have liquidity,look at futures at CME,they have liquidity....
So I have to wait until I see a normal spread.And I wait...First entry is burn...and I wait becose the spread still to big....the second entry is burn....third gone...start to became
impatience....and so on.Guess what happened when the spread return to normal.I trade the first move impulsively.And I am sooooo sure that this is true for many traders(if someone ,somewhere in his mind discover that I'm right,try to find a real broker,where the BID and ASK are made by the market.SAVE YOUR MONEY!The answer is not in studying more about market,finding another system.)
Watch out,the ''plugin'' is behind you :Ignored
This is part of what the "beat the forex dealer" book is talking about.... even though news time is volatile in the market, its not as volatile as the brokers would have you believe. Several minutes after a news release, you can place a normal order with normal spreads on most ECNs. The liquidity is there. These MT4 brokers are stop-hunting trades because they can see the stops collect around certain numbers. They can make their own prices move up to those stops (by placing large orders) to take them out, and then reverse the price with opposite orders without anyone questioning them simply "because that's what happens during new releases" or because "the market was really thin at that time." This becomes easy to spot when we sometimes see wild price swings for news events that are not that important to the overall market.
The same approach can be taken by the broker during periods of low liquidity, a news release is not required. The point I'm making is that by being able to see all their customer's stops, they can easily place opposite orders just outside those stops, and make a killing.
There may be brokers out there that act like ECNs - but I'm willing to bet that they will never use Metatrader's systems. And those that suddenly start offering MT as a platform (FXCM, Rosenthal Collins Group) should be scrutinized carefully.
Disregard all prognostications.