Warning broker cheats and plays games during big news! | Forex Factory

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Warning broker cheats and plays games during big news!

  • #1
  • First Post: Edited 4:01pm Aug 3, 2011 3:24pm | Edited 4:01pm
I'd like to give a warning to all traders that IBFX cheats and plays games during news.

Today IBFX disconnected from me as soon as NFP news hits. Nothing wrong with my connection can still surf the web and such. I was not in a trade and caught by it, but it pisses me off that they are regularly playing these games.

My connection to them can be up for literally days or weeks, but as soon as something like NFP (big red news) hits, magically theire connection to me is down.

I've documented this happening 5 times this year with video on my computer.

One time they caught me and I lost $500 or so dollars because of it, when I told them I had it on video and I would report them they credited back my loss, but only a, "one time thing." And magically my client only came back on after I contacted tech support through chat and complained.

There only response was that, "it's a tech issue and there having their IT guy look into and try and resolve the issue." (Just so happens to go down consistently at an exact time that would benefit IBFX vs the traders who they trade against)

So, if you currently trade with them beware of news time, they love to disconnect you before you can benefit from any sort of news spike. They'll let you in just before, then disconnect you.

If you dont currently trade with them consider putting them on the bucket shop list. I'm still positive with my trading overall, but am seriously considering telling them to go fuck off and find a broker who doesn't play games.

P.S. Can a mod please sticky this so it stays at the top. For a few reasons: 1. To protect traders and give them a heads up. 2. So, IBFX gets wind of this and the fact that traders are wise to their Bullshit. 3. Maybe the NFA will get wind of it and investigate them. Let them do something for once to actually protect traders instead of taking away their leverage!

P.P.S. Forex factory should take them off the preferred broker list as they are playing games, if FF keeps them on the list they are just aiding a bucketshop as it stands now.

*****************Beware the mods, they changed my title from "IBFX," to "Broker" (I guess you can see where there bread is buttered, they care more about getting kickbacks from IBFX for being a preferred broker rather than helping traders here.

WARNING IBFX cheats and plays games during big news!!!!!!!!!!
  • #2
  • Aug 3, 2011 7:28pm Aug 3, 2011 7:28pm
as you can see I don't participate that much in FF but now I feel it is time to write and thank you because
I was about to open an account with IBFX because of their possibility to fund throw credit card, but now I won't touch them.
  • #3
  • Aug 4, 2011 11:24pm Aug 4, 2011 11:24pm
Are you surprised?

IBFX is a market maker. Of course they are going to delay execution, disconnect and do whatever else it takes to protect their dealing desk position during market volatility.

Go ECN. Market Makers are dead.
  • #4
  • Aug 8, 2011 12:27pm Aug 8, 2011 12:27pm
Quoting jafar00
Are you surprised?

IBFX is a market maker. Of course they are going to delay execution, disconnect and do whatever else it takes to protect their dealing desk position during market volatility.

Go ECN. Market Makers are dead.
I've never had a problem with executions and getting in and out. The only funny busness is what i've stated above.

I'd like to go ECN, but I'm not sure it would be any better since you'd have to beat the spread AND pay commission.
  • #5
  • Aug 8, 2011 12:45pm Aug 8, 2011 12:45pm
Quoting KumoDragon
I'd like to go ECN, but I'm not sure it would be any better since you'd have to beat the spread AND pay commission.
but... isn't the point that you go ecn once you start pushing enough volume, and being ecn the spread is smaller due to the broker no-longer padding their fees into the perceived spread and instead you just pay a flat fee per trade? therefore, the bigger the volume you push per trade the LESS the overall charge becomes?
Congratulations ScalaFX for coming out of the closet!
  • #6
  • Aug 8, 2011 7:55pm Aug 8, 2011 7:55pm
IBFX and the Interbank FX group does not manipulate prices, delay execution or intervene in our customers trades in any way. We are a highly regulated firm by both NFA in the US and ASIC in Australia.

Please send a message to: help at IBFX.com attn: Drew Izzo with your account # so we can investigate your issues and try to determine what has happened.
  • #7
  • Aug 13, 2011 11:08am Aug 13, 2011 11:08am
Quoting AlexD
IBFX and the Interbank FX group does not manipulate prices, delay execution or intervene in our customers trades in any way. We are a highly regulated firm by both NFA in the US and ASIC in Australia.

Please send a message to: help at IBFX.com attn: Drew Izzo with your account # so we can investigate your issues and try to determine what has happened.
dude, you got issue of undersanding the issue. KumoDragon is saying IBFX disconnecting us from the server during news time
  • #8
  • Aug 13, 2011 1:55pm Aug 13, 2011 1:55pm
Quoting AlexD
IBFX and the Interbank FX group does not manipulate prices, delay execution or intervene in our customers trades in any way. We are a highly regulated firm by both NFA in the US and ASIC in Australia.

Please send a message to: help at IBFX.com attn: Drew Izzo with your account # so we can investigate your issues and try to determine what has happened.
Nice try at trying to look like you give a phuck.

Already sent e-mails (no response) and talked with chat online. The only response I got every time was that it's a tech issue and they are working on it.

I've also called.

And It's not MY issue. It's IBFX. They are disconnecting as news hits. It's like clockwork every time a big news event hits.

My internet connection is up every time.
  • #9
  • Aug 13, 2011 2:01pm Aug 13, 2011 2:01pm
Quoting nubcake
but... isn't the point that you go ecn once you start pushing enough volume, and being ecn the spread is smaller due to the broker no-longer padding their fees into the perceived spread and instead you just pay a flat fee per trade? therefore, the bigger the volume you push per trade the LESS the overall charge becomes?
No not really. The point of an ECN, in theory. Is that as a trader you think an ECN, isn't going to play games like stop hunt you and trade against you and or delay price to fake you out.

With an ECN you still pay the spread, which you have to beat to be in profit and pay their commision wether you win or lose the trade. So, effectively it ups the spread you have to beat before profit by whatever their commission is.

With an ECN. You have a spread AND pay commsion.
  • #10
  • Aug 13, 2011 2:24pm Aug 13, 2011 2:24pm
Quoting KumoDragon
No not really. The point of an ECN, in theory. Is that as a trader you think an ECN, isn't going to play games like stop hunt you and trade against you and or delay price to fake you out.

With an ECN you still pay the spread, which you have to beat to be in profit and pay their commision wether you win or lose the trade. So, effectively it ups the spread you have to beat before profit by whatever their commission is.

With an ECN. You have a spread AND pay commsion.
Trade futures. And you will see how much cheaper the commission cost structure is. Sometimes you pay no spread at all.. "Whaaa!!"
  • #11
  • Aug 13, 2011 2:45pm Aug 13, 2011 2:45pm
Quoting KumoDragon
No not really. The point of an ECN, in theory. Is that as a trader you think an ECN, isn't going to play games like stop hunt you and trade against you and or delay price to fake you out.

With an ECN you still pay the spread, which you have to beat to be in profit and pay their commision wether you win or lose the trade. So, effectively it ups the spread you have to beat before profit by whatever their commission is.

With an ECN. You have a spread AND pay commsion.
oh geez. i can see where this is going but i will bite anyway....

of course you have to beat the spread if you are dropping at market orders. but when you take into consideration that the spread is usually SMALLER than what you get at a bucket shop, then the extra little fee attached to every order you send through means little when you are pushing through LARGE volume.

bucket shops pad their spreads... always! that little bit of padding of the spread is where they make their bread and butter. that IS their commission. the difference is that as you push larger and larger volume, that little extra piece of added spread starts to equate to larger and larger commissions you are inherently paying to the bucket shop. just because it's pre-baked into the spread doesn't mean it's not a commission. the fact that it's pre-baked into the spread means people like you don't see that you are paying larger and larger commissions as you push higher and higher lots through to the bucket shop.

so, you can trade through an ECN who has a SMALLER spread than a bucket shop and who also has a SPECIFIC commission that doesn't change no matter how large or small the volume size you trade at is. therefore, it's in your own best interest to be swinging some serious lot sizes to ensure the commission is nothing but a speck of dust in the wind in comparison to the profit moving in and out per trade. ECN's aren't for mr penny account to toy in. they are meant for serious traders moving serious money.

plus, with an ECN you can buy on the bid and sell on the ask instead of passing all types of orders off as @ market which is not right if you are using limit orders. in this way you aren't even paying the spread and have the potential to scalp in the literal sense. in this way you become a micro market maker and have potential to gain the spread if you get filled.

so, why is paying a set commission such a bad thing again?
Congratulations ScalaFX for coming out of the closet!
  • #12
  • Aug 13, 2011 4:33pm Aug 13, 2011 4:33pm
Quoting orderphlow
Trade futures. And you will see how much cheaper the commission cost structure is. Sometimes you pay no spread at all.. "Whaaa!!"
I've been trading forex for over a 7 years now, not switching to something else at this point. That is until they make it illegal to small time traders.
  • #13
  • Aug 13, 2011 4:49pm Aug 13, 2011 4:49pm
Quoting nubcake
oh geez. i can see where this is going but i will bite anyway....

of course you have to beat the spread if you are dropping at market orders. but when you take into consideration that the spread is usually SMALLER than what you get at a bucket shop, then the extra little fee attached to every order you send through means little when you are pushing through LARGE volume.

bucket shops pad their spreads... always! that little bit of padding of the spread is where they make their bread and butter. that IS their commission. the difference is that...
Ya, ya, ya, I've heard that argument before. End of the day simple math will tell you spread + commision = you pay more for your trade to the broker, than just having to beat the spread.

Why is paying a commission a bad thing?

1. you pay the spread + commission with an ECN.
2. I havn't found any ECN in the US that has a spread of less than the 2 pips (on EU) I've currently got with my borker IBFX.
3. MB trading ( the ECN I would go with if I went that route), effective commission is about 1 pip per trade. It scales with the lot size it's a percentage. So if you are trading a larger lot size, it IS like adding to the spread.
I can't see any ECN giving you a flat rate of commission no matter your volume/slash lot size it wouldn't be in their interest.
5. I'm not trading, "serious lot sizes," I'm doing appropriate % risk per my account. I'm not changing that to beat the commission/spread.

6. When you just have to beat a spread on a winning trade, nothing comes out of your account. When you have to beat the spread and pay commission on a winning trade something is still deducted from your account.

P.S. I was considering MB ECN, but I tried their mt4 demo several times and it wouldn't accept any of my orders no matter the order type or if I tried to put an order in when price was standing still. So, all the BS about being able to buy inside the spread sounds great but is pretty much useless if the orders won't even go in when you see a set up.

P.P.S. But, this isn't the point of this thread anyways so lets just drop it or start another thread, this thread is to point out how IBFX disconnects during the news and does it with regularity.
  • #14
  • Aug 13, 2011 5:05pm Aug 13, 2011 5:05pm
that's fine. you are wrong on at least a couple of points. but i'm happy for you to stay wrong.
Congratulations ScalaFX for coming out of the closet!
  • #15
  • Aug 13, 2011 5:08pm Aug 13, 2011 5:08pm
Quoting KumoDragon
I've been trading forex for over a 7 years now, not switching to something else at this point. That is until they make it illegal to small time traders.
Fair enough, to each his own.

Seven years of trading experience is pretty good, unfortunate though that you are still with a broker that does this kind of bucketshop bs..
  • #16
  • Aug 13, 2011 9:32pm Aug 13, 2011 9:32pm
Welcome to ignore, cause it's obvious both of you don't have anything of worth to share.
  • #17
  • Sep 15, 2011 10:30am Sep 15, 2011 10:30am
Ok back on topicI noticed to that ibfx aus disconect server during news for about 30 seconds and with that reali interupts with my trading,I usuali hedge my position with difrent lotsize.So sometimes triger my trade then disconects and reopen 50 pips on counter direction.So the question is can somine recommend some reliable broker with hedge capb. and high leverige and similar spred on eurusd.Sorry for speling mistakes.
  • #18
  • Sep 18, 2011 1:36am Sep 18, 2011 1:36am
Quoting jafar00
Are you surprised?

IBFX is a market maker. Of course they are going to delay execution, disconnect and do whatever else it takes to protect their dealing desk position during market volatility.

Go ECN. Market Makers are dead.
True that!

Im sorry to hear that IBFX are playing these games STILL.. ( My first broker was ibfx in 2008 and it was a nightmare.

1.) Requotes, when scalping.
2.) I could never close a profitable position
3.) Execution was slow

Most likely caused all by the Virtual Dealer Plugin , HOWEVER, things do change. IF MDP is working on IBFX, they're no longer using the VDP however, sure they can disconnect their clients to prevent news trading. Most MM do this from time to time.
  • #19
  • Dec 21, 2011 11:42am Dec 21, 2011 11:42am
I've been with IBFX and Oanda since 2008 and I don't have anything negative to say about them. I don't know if they're really that bad or people tend to exaggerate a bit. IBFX has some re-quotes during high volatility but I don't scalp and I trade higher time-frames so I don't mind 1-2pip difference, if it occurs, because there's no way any market maker can make me lose trades. They're professional and very helpful and I'll continue trading with them but I'll also be opening a live account next year with an ECN broker to see what's it like to trade with a NDD.

I don't know why do people keep complaining, you know what you're getting yourself into. You always have alternatives. If you don't like market makers, switch over to STP/ECNs or trade ETF currencies or spread betting.
  • #20
  • Last Post: Dec 22, 2011 8:41am Dec 22, 2011 8:41am
Startling how everyne appears to know whos MM and who's not. Why not make a big list?
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