MT4 Brokers' Virtual Dealer Plug-In | Page 27 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Virtual Dealer Plugin - Brokers Please read 143 replies

IKON GM fined for using Virtual Dealer Plugin 12 replies

Virtual Dealer Plugin - How many seconds does your broker take to execute your trade? 20 replies

A Call to MT4 Brokers re VD Plug-in Issue 2 replies

Dealer Desk Vs Non Dealer Desk 9 replies

Attachments: MT4 Brokers' Virtual Dealer Plug-In
Exit Attachments

MT4 Brokers' Virtual Dealer Plug-In

  • #521
  • Jul 1, 2010 5:19pm Jul 1, 2010 5:19pm
Well if the NFA is not going to outlaw this Virtual Dealer Plug-In, at the very least they should require that any broker using it post in bold letter index page of the site that they broker is using it.

This plug-in allows the brokers to steal your money, why is it not prohibited? Where is Gensler when you need him to be a cop? If the CFTC wants to regulate forex, why in the hell is this thievery allowed?
  • #522
  • Jul 1, 2010 9:41pm Jul 1, 2010 9:41pm
Quoting wwwin
Well if the NFA is not going to outlaw this Virtual Dealer Plug-In, at the very least they should require that any broker using it post in bold letter index page of the site that they broker is using it.

This plug-in allows the brokers to steal your money, why is it not prohibited? Where is Gensler when you need him to be a cop? If the CFTC wants to regulate forex, why in the hell is this thievery allowed?
I think that this may just be the tip of the iceberg. I'm sure that now NFA has realised that brokers are using this virtual dealer plugin to rip off traders they will also audit the other brokers that have not been caught yet. It will be interesting to see who is next.

From my understanding in reading the charges against Forex.Com/Gain, NFA is saying that it is an unfair practice so I can't see how it will be allowed to continue.
  • #523
  • Jul 2, 2010 12:03am Jul 2, 2010 12:03am
Quoting PipStar
I think that this may just be the tip of the iceberg. I'm sure that now NFA has realised that brokers are using this virtual dealer plugin to rip off traders they will also audit the other brokers that have not been caught yet. It will be interesting to see who is next.

From my understanding in reading the charges against Forex.Com/Gain, NFA is saying that it is an unfair practice so I can't see how it will be allowed to continue.
I'm sure GAIN will try and say that since the MT4 virtual dealer plugin is now only used by the UK affiliate, that the NFA has no jurisdiction.
  • #524
  • Jul 2, 2010 2:40am Jul 2, 2010 2:40am
Quoting Chip4Pips
I'm sure GAIN will try and say that since the MT4 virtual dealer plugin is now only used by the UK affiliate, that the NFA has no jurisdiction.
correct
  • #525
  • Jul 2, 2010 7:53am Jul 2, 2010 7:53am
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting Chip4Pips
I'm sure GAIN will try and say that since the MT4 virtual dealer plugin is now only used by the UK affiliate, that the NFA has no jurisdiction.
In this case the FSA has to take over..
  • #526
  • Jul 2, 2010 9:25am Jul 2, 2010 9:25am
Quoting onu
In this case the FSA has to take over..
Hopefully, they will.
  • #527
  • Jul 2, 2010 9:30am Jul 2, 2010 9:30am
If you read the full NFA complaint - even though their MT4 is in UK - they mention that Gain has thousands of US clients who opened accounts in the UK - and thats why the NFA is getting involved.

Am I wrong to think the plugin isnt necessarily bad - its that they set it for 20 pips slippage when the trade moves against me, and 2 when it moves in my favor.

I think if the NFA regulated its use - which this looks like the start of an attempt to do - it could make MT4 much more friendly.
  • #528
  • Jul 2, 2010 10:46am Jul 2, 2010 10:46am
Quoting ForexSooth

Am I wrong to think the plugin isnt necessarily bad - its that they set it for 20 pips slippage when the trade moves against me, and 2 when it moves in my favor.

.
You should reread the complaint, especially the part about the plugin giving the dealer an unfair advantage.

What you are saying here is that it is ok for the broker to slip you 20 pips. Now does that really sound like a good idea?
  • #529
  • Jul 2, 2010 12:47pm Jul 2, 2010 12:47pm
Quoting ForexSooth

Am I wrong to think the plugin isnt necessarily bad - its that they set it for 20 pips slippage when the trade moves against me, and 2 when it moves in my favor.
The whole point of the plug in is that it's a tool designed to make it very easy for dealers to defeat traders. What were you thinking it's used for? Yes, it's bad unless you're the dealer.
  • #530
  • Jul 2, 2010 12:48pm Jul 2, 2010 12:48pm
I found this article on forexmagnates. It is a complainted filed by the NFA regaridng Gain Capital virtual Dealer plug on the MetaTrader 4. It does not matter if the MT4 is ECN or DD. They can still manipulate the prices.

Heres the compliant directly from the NFA site: http://www.nfa.futures.org/basicnet/...px?seqnum=2461

Is it time that the MT4 is banned for good?
  • #531
  • Jul 2, 2010 12:59pm Jul 2, 2010 12:59pm
Quoting XXTrader

Heres the compliant directly from the NFA site: http://www.nfa.futures.org/basicnet/...px?seqnum=2461

Is it time that the MT4 is banned for good?
Thanks, that is the same complaint we are talking about.

Why would they ban mt4? It isnt mt4 necessarily that is the problem, it is the separate virtual dealer plugin that dealers are using to trade against their clients. Getting rid of mt4 is like saying lets get rid of windows because there are too many holes in it. The dealers just need to stop cheating clients by using the virtual dealer plugin. And do you really think that all the brokers using mt4 would easily let it get banned?
  • #532
  • Jul 2, 2010 1:16pm Jul 2, 2010 1:16pm
Obviously the plugin can be used to hurt the trader - as Gain used it - and as is clearly outlined in the complaint. I know of some fx brokers that have their own internal rule that acceptable slippage must be equal in both directions.

Just because you can use the plugin for evil doesnt mean its bad on its own and all MT4 brokers should be villified.

Bad analogy, but if i killed you by smakcing you over the head with a frying pan, it doesnt mean no one should be able to use frying pans anymore.
  • #533
  • Jul 2, 2010 2:29pm Jul 2, 2010 2:29pm
Quoting ForexSooth
Just because you can use the plugin for evil doesnt mean its bad on its own and all MT4 brokers should be villified.

Bad analogy, but if i killed you by smakcing you over the head with a frying pan, it doesnt mean no one should be able to use frying pans anymore.
Your analogy is pointless. Show me the good in having an automated plug in slip you 2-20 pips. The virtual dealer plug in is used to screw you over and that is it. There is no good to it.

I dont get what is so difficult to understand about that.

http://www.forexfactory.com/showpost...&postcount=518
  • #534
  • Jul 2, 2010 2:30pm Jul 2, 2010 2:30pm
Quoting ForexSooth
Obviously the plugin can be used to hurt the trader - as Gain used it - and as is clearly outlined in the complaint. I know of some fx brokers that have their own internal rule that acceptable slippage must be equal in both directions.

Just because you can use the plugin for evil doesnt mean its bad on its own and all MT4 brokers should be villified.

Bad analogy, but if i killed you by smakcing you over the head with a frying pan, it doesnt mean no one should be able to use frying pans anymore.
Well, bad analogy, yes-you said it. A frying pan isn't specifically designed to hurt someone. The dealer plug-in is. It is specifically designed to hurt traders and assist dealers in doing so. Period.

I thought I would point that out to you gently earlier, as this is really common knowledge to most people here and has been for a while (look at the start date of this thread). Not really sure what you're getting at, but it doesn't really matter...
  • #535
  • Edited 5:52pm Jul 2, 2010 5:30pm | Edited 5:52pm
So I am wondering and thinking every Market Maker MT4 shop uses this software.


Slippage is a part of ECN trading. However is is not the dealer that is slipping you it is that no one may want the order you have set at that price, thus you get slippage, it will be taken at a better rate for the person on the other side.

An ECN makes it's money on commissions of your trading not on taking the other side, so essentially they do not care what the parameters are they it is not a win loss scenario.

MT4 was not designed to work with an ECN style broker either. THere were tons of modifications that had to be made and it does not offer you all the benefits of an ECN like Market Scope (view of other orders placed) thus it is essentially pointless.

I also wonder what the monetary relationship Boston Tech and the market makers using MT4 is besides liscensing is, if any.

Thus, Using Their software on an ECN is could create some issues if these same plugins can be used during the process of your trading.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #536
  • Jul 2, 2010 6:05pm Jul 2, 2010 6:05pm
Quoting XTrade
MT4 was not designed to work with an ECN style broker either.
True.
Quote
Thus, Using Their software on an ECN is could create some issues if these same plugins can be used during the process of your trading.
Not true. How can you setup a delay at ECN interbank liquidity?
  • #537
  • Jul 2, 2010 6:10pm Jul 2, 2010 6:10pm
In theory you could not do it legally.



Quoting Acrita
True.

Not true. How can you setup a delay at ECN interbank liquidity?
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #538
  • Edited 6:17pm Jul 2, 2010 6:17pm | Edited 6:17pm
Also in reference to the ECN slippage,

Stop losses and Take Profit orders are in not as I many (newer traders) may think.

A MM is supposed to Guarantee stops and TPs to whatever range is in the agreement. Or by a setting you may use.

So the trade hits the stop and you are out.

In the ECN environment and in truth Stops and TPs are really just other open "pending orders placed if you are long a stop and limit are both pending sell orders one Higher(TP) and one lower (sl) from entry. to close the initial buy.

Thus,

Slippage happens when There is no liquidity or other party to take your pending sell and flatten or "square up" the trade, that person may want to buy at 30 pips lower thus you are slipped 30 pips
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #539
  • Edited 9:31pm Jul 2, 2010 9:27pm | Edited 9:31pm
http://www.gaingtx.com/index.shtml?g...FYp95QodjXsjxA

Just read the headlines and note the difference in marketing ploy.
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #540
  • Jul 3, 2010 11:41am Jul 3, 2010 11:41am
And no one much questions why such a great program like MT4 is Given away for FREE...

It is like taxes, Corporations Do Not Pay Taxes,

People do.

If a broker pays to provide MT4 for their clients you can rest assured that they have a way to re-coop any cost and more... nothng really wrong with that in itself.. but..
Brokers are obviously allowed to manipulate the platform to their advantage, like stacking the deck in the houses favor ... call it what you want..

If a broker is taking the other side of any trade then you will not win with them in the long run. If a "Broker" takes the other side of a trade then (imo) they are no longer a "Broker" but a trading entity. And they are trading against you. They are no longer satisfied with making the spread, they want more of the pie so to speak. And they do hold most of the cards in their own hand. I don't even know why they are allowed to be called a "Broker".

What, they are going to let you get rich and bankrupt themselves ?

95% attempting to trade FX lose.... (so I have heard)

Just where does all that money go I wonder....

I think I would call it the almost perfect Organized Crime..
0 traders viewing now