Broker Stop Hunting

Man, it's the first day I'm trading live with dbFX and soon noticed at least two stop huntings.

The first is on USDCHF, the second on AUDNZD. See charts.

First one looks like a glitch with the feed or app, stop hunts don't look like that.

You should contact db asap. Something is wrong... all the chf pairs have this problem.

Please advise what they say.

datafeed problem with first one

second one looks suspect

http://img337.imageshack.us/img337/3708/anz.gif

Just checked my IBfx acct and they have same/similar chf problem:

100% something is wrong with price feed. not stop hunting. it doesnt make situation any better thou..

I contacted them and they called me on the phone to clarify things.
Ragarding the problem on USDCHF, they said that was basically a platform problem, and the spikes were not executable, so no trades could have been made at those prices. They also said they are correcting the problem with their platform guys.

Regarding the apparent stop hunting on AUDNZD they said it was a market condition, and that they don't control what forex players do. They stated clearly the DB has been around for quite some time and that they absolutely don't need to play tricks with clients, their name is so much important that they would not risk their reputation for whatever reason.

Honestly I believe them, I don't see how they could profit from playing tricks. Their brand is their biggest asset.

Thanks for the follow up.

Somehow I doubt they are manipulating but I did live chat with them about 2 weeks ago as I was considering opening an account with them and has asked them 3 times the same question and 3 times they beat around the bush and would not answer it. That was enough for me to walk.

Forex Factory changed the name of this thread, removing the 'dbFX' part, and replacing it with a generic 'broker'. At least they didn't remove the thread, but I'm pissed off. This thread is specific about dbFX stop hunting.

I just played a bit more with dbFX charts, and it was easy to find other stop huntings. I don't know what to think. They're a market maker, they will go for stops without dubts, but I think the 'correct' way to do it is only when the broad market maker's market in general is going for the stops. This happens, and it is acceptable, and exploitable too.

But when it is only one market maker which goes for the stops, this is not acceptable. See this chart of today AUDCAD, compared with FxPro again. Please attach a chart of other broker's AUDCAD to compare, thank you.

http://www.forexfactory.com/attachme...1&d=1286394465
http://www.forexfactory.com/attachme...1&d=1286394465

Maybe this is the disadvantage of going directly with only one market maker (db). Maybe FxPro, by using multiple banks for his feed, is capable of showing a better price at any given moment. Banks are the tier 1 market makers.

dukascopy:
http://img4.imageshack.us/img4/4360/dukas.png

Uploaded with ImageShack.us

fxdd:

http://img31.imageshack.us/img31/1283/fxdd.png

Uploaded with ImageShack.us

It looks like more of the liquidity problem then stop loss hunting. It's pretty obvious where the trend is going and that there was no liquidity to buy so the price dropped more then else. You should look to see if there are more extremes in trends - if yes then it's sure liquidity.