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Any brokers guaranteeing stop loss protection?

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  • First Post: Jun 4, 2009 2:09pm Jun 4, 2009 2:09pm
My broker (FXCM) just dealt me a 135 pips loss per lot past my stop loss which was set to break even last night. They refuse to retract the charge of the loss saying that they cannot guarantee my manually set stop loss, nor trailing stop which is used to lock in profit.

I can understand slippage of 30-50 pips, but 135 pips slippage? It seems to me a broker has total control on what price they can close me out instead of my stop. Where is the security for a trader?

They seem to have changed from past practices. A few years back I had stop loss problem and they usually honored my stop but not now. Why?

Does anybody have any similar experience with this broker? I am one of those unlucky traders who have a day job and cannot watch the market 7/24. I cannot live with this kind of uncertainty from a broker.

Does anybody know of good brokers who can guarantee stop loss order, as I wish to close out my account with FXCM to go with one who can give me some sense of control and peace of mind when I set my stop and leave my PC.

Thanks
135 pip slippage on a stop loss .. eek.

Hmm, what was the currency pair and time? Did this sudden market move happen in other brokers?

Did anyone see a 135 pip slippage past their take profit last night?? Somehow I doubt it.
I traded GBPUSD, long at approximately 1.6310. Set the stop to break even when 40 pips in profit as most traders would do, and went to sleep. This morning, FXCM charged me the loss at 135 pips per lot (5 lots) below my stop and refused to retract it. Just so frustrating and disappointing. Just feel a sense of total loss of security on my trading in the future with this broker.

So does anybody know of good brokers who will faithfully guarantee your stop loss? I am looking for a new broker. I need peace of mind in knowing that my winning trade does not end up cleaning out my account even with a manual stop loss when I am not watching my trade. This should be a problem for those part-time traders who have to sleep and have a day job.

Thanks.
What time did they close the trade, so we can look it up on charts to make sure it was a legitimate market move and not an FXCM bug.

Nobody can guarantee a stop loss, except perhaps for a limited amount of money. That's just fundamentally impossible.

Maybe brokers should create 'stop loss' insurance. That would be interesting.
Let me guess, it was at 5am PST 8 AM EST during the big move there.

What caused that anyways? FOMC Dudley? Weird.

It was this I bet:

Thu Jun 04 2009 05:00:00 GMT-0700 (Pacific Daylight Time)
FX NOW! GBP, USD, Flows - Rumour that Gordon Brown has resigned, but no confirmation.

https://fx1.oanda.com/mod_perl/news/...e.pl?id=931016
It is probably the down spike this morning. But 135 pips slippage is unheard of. Nobody got assasinated, LOL.

I feel this lack of stop loss protection is totally against the meaning and practice of a stop loss. They may as well take out such feature instead misleading traders to think that they are safe with their trades. We are totally at the hand of the broker's computer or their trading practices in the interbank and have to take whatever price they think we should be closed out.

To me, to not guarantee stop loss and yet using the term 'stop loss' is really a case of false advertisement. Don't you think so?

Still in need of some recommendation of good brokers who honor the stops.
Quoting fxbillie
My broker (FXCM) just dealt me a 135 pips loss per lot past my stop loss which was set to break even last night. They refuse to retract the charge of the loss saying that they cannot guarantee my manually set stop loss, nor trailing stop which is used to lock in profit.

I can understand slippage of 30-50 pips, but 135 pips slippage? It seems to me a broker has total control on what price they can close me out instead of my stop. Where is the security for a trader?

They seem to have changed from past practices. A few years back I had stop loss...
God, 135 pips of slippage is criminal. I can't say I've had a similar experience... I never traded with FXCM.

A quick google search will give you a long list of brokers that offer no slippage. I traded around 5-6 lots with fxclub in the past 7 months and haven't gotten any slippage and all of my orders hit.

You have many options to choose from, though. Good luck and sorry to hear your situation.
Quoting sfx
God, 135 pips of slippage is criminal. I can't say I've had a similar experience... I never traded with FXCM.

A quick google search will give you a long list of brokers that offer no slippage. I traded around 5-6 lots with fxclub in the past 7 months and haven't gotten any slippage and all of my orders hit.

You have many options to choose from, though. Good luck and sorry to hear your situation.
I call bullsh*t.
Hi FXbillie,

If you e-mail me your full name and e-mail you use here with FXCM I can help investigate your issue and maybe clarify what happened here.

Jaclyn Sales
FXCM
[email protected]



Quoting fxbillie
My broker (FXCM) just dealt me a 135 pips loss per lot past my stop loss which was set to break even last night. They refuse to retract the charge of the loss saying that they cannot guarantee my manually set stop loss, nor trailing stop which is used to lock in profit.

I can understand slippage of 30-50 pips, but 135 pips slippage? It seems to me a broker has total control on what price they can close me out instead of my stop. Where is the security for a trader?

They seem to have changed from past practices. A few years back I had stop loss...
Quoting fxbillie

To me, to not guarantee stop loss and yet using the term 'stop loss' is really a case of false advertisement. Don't you think so?
You're right in a way because the wording on FXCM's website is slightly misleading "A stop-loss specifies the maximum loss that a trader is willing to accept on a given position.". A new and/or inexperienced trader could easily take that literally, there's no reason for them not to, perhaps there needs to be a footnote explaining the exclusions and risk so it's absolutely clear.

If you go on to read the page about 'Trading Execution Risks' you'll see they explain why it might not always be possible to fill your stop at the requested price, it's worth reading for future reference.

This isn't unique to FXCM though, with the exception of spreadbet firms I believe all brokers warn of possible slippage when executing orders, it's not actually their fault if price gaps due to extreme volatility like we saw this morning, even bucketshops who offer 'guaranteed' stops for a premium probably have an exclusion clause buried in the smallprint.

Don't take it personally, it's just one of those events that happens in the market. Look on the bright side, you could just as easily have had 135 pips slippage on a take profit order
Quoting pipmutt
Look on the bright side, you could just as easily have had 135 pips slippage on a take profit order
Unless the NFA enforces this by making brokers publish their slippages #s, it will not happen.

There is very little incentive for brokers not to attempt to profit from slippage against TP orders.
Quoting blazespinnaker
Unless the NFA enforces this by making brokers publish their slippages #s, it will not happen.

There is very little incentive for brokers not to attempt to profit from slippage against TP orders.
Well then maybe you could 'nedge', that would sort it, you like nedging don't you?

Quoting jsales
Hi FXbillie,

If you e-mail me your full name and e-mail you use here with FXCM I can help investigate your issue and maybe clarify what happened here.

Jaclyn Sales
FXCM
[email protected]
Hallo Jaclyn
Your message here is a refreshing change from the usual bluster and passive non co-operation from most brokers. Could you please us keep all up to speed as to how it happened so that we know that FXCM plays a straight bat and doesn't play silly buggers with traders accounts in the hope of getting away with some pips.
Unlike fxbillie, I am more interested in how it happened. Not in how you are going to help him. Like others here, I will be watching for your responses because I am searching for an additional broker. Here is your opportunity to get me as a customer.
Quoting pipmutt
Well then maybe you could 'nedge', that would sort it, you like nedging don't you?

That makes about as much sense as most of what you say.
Quoting fxtrader29
Hallo Jaclyn
Your message here is a refreshing change from the usual bluster and...
I agree .. a transparent answer to this problem would definitely go a long way to improving your reputation as a transparent and honest broker.
I have an account from FXCM too, and contacted them about the the massive slippage past my stop loss on multiple trades, one of which was supposed to be locked in with profits, but turned out to be a massive loss.
Their answer? The was a gap in the market during that time, and my stop was filled by the banks at the next best price...which happended to be 50 to 100 pips away. So there's nothing they can do as they don't guarantee stops since stops are turned into market orders once the price is reached. So much for next best price. I can understand gaps during weekends but this is crazy how banks and other traders can push the market so fast that stops orders are filled such bad prices.
What FXCM should do is tell us about all the orders they slipped into profit.
Bet this poster/thread get ether removed of swamped with reps defending FXCM ether way it's useless to complain in a bias environment as this. use other forums not infested with reps and you'll get much further.
I closed my account with FXCM some time ago due to slippage problem. Slippage on entry, slippage on exit, slippage on stop loss. They blame the banks but it's their own fault. It's just too tempting for them to collect these extra pips. Their NDD or STP is actually going to a dealing desk somewhere so in the end you are trading against a dealing desk.
FXCM is probably the biggest name as FX broker. I have been with them over 5 years and I have never seen such a slippage, nor have I seen them not willing to correct or redress it. This is quite a shock to me. Perhaps they have changed. Quite disappointed because I like to stick with a big and secure broker.

But without this sense of protection when you walk away from your computer, how can any trader feel secure to entrust your money to any broker? Yes, I wish they have a stop loss slippage insurance (perhaps charge .1 pip per trade) so that at least traders are left with some sense of control. Just my wish though.

So, anybody can recommend some dependable brokers who give 100% slippage guarantee? I don't want to leave FXCM, but may have no choice as I, like numerous traders, am part-time trader and have to sleep & keep a day job. Without some sense of protection, I may as well get out of this volatile Forex market and trade stocks or options.
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