Why brokers freeze the platform? | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Why different prices on different brokers' platform? 5 replies

Does anyone know a broker that doesn't freeze the MT4 platform 24 replies

Web Platform vs. Downloaded Platform 2 replies

Odl Platform Seem's to be freeze...??? 4 replies

Looking for brokers that like to REQUOTE/FREEZE their platform 1 reply

Why brokers freeze the platform?

  • #1
  • First Post: Oct 29, 2011 6:34pm Oct 29, 2011 6:34pm
The biggest offenders so far are FXCM, MBTrading and Oanda, so the million dollar question is why?

I do know its not account specific so why freeze all clients at once? (not that its right to do so to even 1).

I can also understand market makers doing this, but why would ECN/STP brokers do it?
  • #2
  • Oct 30, 2011 4:03am Oct 30, 2011 4:03am
I dont think they do do it on purpose.....
  • #3
  • Oct 30, 2011 5:07am Oct 30, 2011 5:07am
I think they just know the market and they feel that the maintenance of the platform soon will become unprofitable. BTW did they freeze their platforms without preannouncement?
  • #4
  • Oct 31, 2011 5:23am Oct 31, 2011 5:23am
Quoting Hedge212
I can also understand market makers doing this, but why would ECN/STP brokers do it?
That would be a big tell to show you that the claim of being ECN is a little bogus and that they are doing at least some market making behind the scenes.
  • #5
  • Oct 31, 2011 5:37am Oct 31, 2011 5:37am
It often happens due to your system configuration, or system overuse, never run another application in the system you are trading. Most platforms use java which needs more ram.
Then it might be due to the markets high pressure, if you are trading during peak time or during news release while the time taken by the platform will take take extratime in fetching data.
Last reason would be bugs both in the platform and in your computer.
  • #6
  • Oct 31, 2011 6:42am Oct 31, 2011 6:42am
Quoting paisakiller
It often happens due to your system configuration, or system overuse, never run another application in the system you are trading. Most platforms use java which needs more ram.
Then it might be due to the markets high pressure, if you are trading during peak time or during news release while the time taken by the platform will take take extratime in fetching data.
Last reason would be bugs both in the platform and in your computer.
exactly what I thought until I loaded the platform on another machine and asked a friend to do the same, then I called him when mine froze and at the same time his did too and so did my other machine, you can sometimes see a little break in the chart at that time also known as a candle jump

there is a reason stp brokers do this, I am still trying to figure it out
  • #7
  • Oct 31, 2011 9:30am Oct 31, 2011 9:30am
Quoting Hedge212
The biggest offenders so far are FXCM, MBTrading and Oanda, so the million dollar question is why?

I do know its not account specific so why freeze all clients at once? (not that its right to do so to even 1).

I can also understand market makers doing this, but why would ECN/STP brokers do it?
First of all, and most important fact behind the answer is are they real ECN/STP???

If those brokers are real ECN they will execute your order at the market price available at the venue of execution, cause if they are an ECN/STP that means there is a venue of execution.

Freezing platform could be a user specific problem too, i agree on that.

But trust me, i cannot call any broker an ECN, and especially STP before i know where my order is executed and with whom. All those

Regards,
Stream
  • #8
  • Nov 2, 2011 9:00am Nov 2, 2011 9:00am
Are you using an MT4 platform by any chance? If you look at the FXCM or Forex.com fines you'll see that in some cases they had a delay of up to five seconds programmed in, this was to facilitate some dodgy business with slippage. This was achieved using the virtual dealer plugin but other platforms could conceivably have something similar. I'd be surprised if FXCM were still doing it after they were fined nearly $20 million.
  • #9
  • Nov 2, 2011 12:54pm Nov 2, 2011 12:54pm
Quoting streamline
First of all, and most important fact behind the answer is are they real ECN/STP???

If those brokers are real ECN they will execute your order at the market price available at the venue of execution, cause if they are an ECN/STP that means there is a venue of execution.

Freezing platform could be a user specific problem too, i agree on that.

But trust me, i cannot call any broker an ECN, and especially STP before i know where my order is executed and with whom. All those

Regards,
Stream
Indeed. If the ECN is real, you can either get slipped, partial filled, or not filled at all at major news release times when liquidity can disappear.

Watch an ECN at NFP time for example. You will see spread on eur/usd for example spike up to 20 or 30 pips momentarily. A fixed spread market maker simply cannot fill over leveraged news "traders" with a 2 pip spread when the real spread is 20-30 pips and continue to operate as a broker for long. So, they disconnect, delay, requote or play other tricks in order to protect themselves. I don't buy the java takes more ram to run excuse. If you have a PC made after the year 2000, you will have more than enough power to run a simple java platform reliably.
  • #10
  • Nov 2, 2011 3:33pm Nov 2, 2011 3:33pm
Quoting jafar00
Indeed. If the ECN is real, you can either get slipped, partial filled, or not filled at all at major news release times when liquidity can disappear.

Watch an ECN at NFP time for example. You will see spread on eur/usd for example spike up to 20 or 30 pips momentarily. A fixed spread market maker simply cannot fill over leveraged news "traders" with a 2 pip spread when the real spread is 20-30 pips and continue to operate as a broker for long. So, they disconnect, delay, requote or play other tricks in order to protect themselves. I don't...

That is a WORD!
If it is an ecn you will get filled momentarily at the first price available, it could differ with figures even on major releases...

All shall make own conclusions about most of the MT4 ECN brokers.
  • #11
  • Nov 7, 2011 4:19am Nov 7, 2011 4:19am
Quoting jafar00

I don't buy the java takes more ram to run excuse. If you have a PC made after the year 2000, you will have more than enough power to run a simple java platform reliably.
You're right, its not a technology issue, platform delays and freezes are programmed in, that was proved when FXCM and forex.com got heavily fined. The MT4 virtual dealer plugin is designed to make this happen.

That's not to say every broker does the same thing but the excuse that IT systems cant keep up with prices is nonsense, just look at futures platforms, they seem to be able to keep up no problem.
  • #12
  • Nov 8, 2011 4:39am Nov 8, 2011 4:39am
Quoting Hedge212
The biggest offenders so far are FXCM, MBTrading and Oanda, so the million dollar question is why?

I do know its not account specific so why freeze all clients at once? (not that its right to do so to even 1).

I can also understand market makers doing this, but why would ECN/STP brokers do it?
MM brokers can and do freeze thier platforms on purpose from time to time. Why??? Simple. They need to reduce their risk. Most offer garenteed fills up to a cirtain amount (I think Oanda is about 20mill) on any price they are quoting (providing you are quick enough to hit the quote). If the market is going nuts, then it starts to get very hard for an MM to determine a good price to quote. They generally need to offset risk they take on with thier liquidity providers (their risk is all orders that are not matched in house), but sometimes their liquidity providers are all over the place or not even offering quotes at all. So they cannot offset their risk which could be detrimental to them. So they refuse to trade with thier clients for a short while by freezing thier platform. You will notice it will normally happen around major news events or when the market is going nuts for one reason or another. That is because this is when all the banks and large institutions and traders are pulling their orders out so as not to get caught in a freefall and cop some major slippage, so liquidity dries up.

This used to really annoy me when my broker/s did this, but I have since come to see thier side of the coin a little. They are a business and have the right to not deal with us if they see it as an unprofitable or potentially damaging situation. And hey, i'd rather see them taking measures like this than taking on excessive risk, going bust and taking my account with them
  • #13
  • Nov 8, 2011 5:35am Nov 8, 2011 5:35am
Quoting Agro
MM brokers can and do freeze thier platforms on purpose from time to time. Why??? Simple. They need to reduce their risk. Most offer garenteed fills up to a cirtain amount (I think Oanda is about 20mill) on any price they are quoting (providing you are quick enough to hit the quote). If the market is going nuts, then it starts to get very hard for an MM to determine a good price to quote. They generally need to offset risk they take on with thier liquidity providers (their risk is all orders that are not matched in house), but sometimes their...
let me reassure you that every broker playing games will go bust and take whatever money you have left with them, its pretty sad when you have to make up theories on why its ok to commit fraud, NEVER should you deal with a broker that executes your trade based on market conditions and you will learn one day that regardless what a broker says if they are market makers you are doomed to fail I dont care who you are
  • #14
  • Nov 8, 2011 6:24am Nov 8, 2011 6:24am
Quoting Hedge212
let me reassure you that every broker playing games will go bust and take whatever money you have left with them, its pretty sad when you have to make up theories on why its ok to commit fraud, NEVER should you deal with a broker that executes your trade based on market conditions and you will learn one day that regardless what a broker says if they are market makers you are doomed to fail I dont care who you are
Umm, hardly fraud buddy. They are totally within thier rights to not offer you quotes if they do not feel they can cover the risk elsewhere. And reputible market maker brokers are a legitimate option for any trader of any size. I hold very large accounts with Oanda and have traded with them for many years. Sure, there have been issues from time to time, as with all other brokers I have used, but I have been happy with most of the resolutions and am verry happy with the broker as a whole.

But keep on towing that 'all market makers are evil and out to steal your money' line if you want, it is your loss. None of the ECN brokers that I have tried that except accounts smaller than 50k have come even close to Oanda for my needs (intraday trader here), and I have been trading for 10 years (5+ years in forex).

ps I don't realy no what you mean by this, "NEVER should you deal with a broker that executes your trade based on market conditions". All brokers should be executing trades based on market conditions.
  • #15
  • Nov 8, 2011 7:45am Nov 8, 2011 7:45am
Quoting Agro
Umm, hardly fraud buddy. They are totally within thier rights to not offer you quotes if they do not feel they can cover the risk elsewhere. And reputible market maker brokers are a legitimate option for any trader of any size. I hold very large accounts with Oanda and have traded with them for many years. Sure, there have been issues from time to time, as with all other brokers I have used, but I have been happy with most of the resolutions and am verry happy with the broker as a whole.

But keep on towing that 'all market makers are evil...
if you traded even 5 months in forex with a real account you would not be saying what you are saying, the song you sing is a demo account user song that had a bit of luck, as far as what I meant with "NEVER should you deal with a broker that executes your trade based on market conditions" it means if there are looking to buy EURUSD at a dollar and there are sellers looking to sell for a dollar, your broker has no business putting things on hold while he sets himself up over there to make sure his interests are put first, I worked in a firm that traded several billion dollars of currency daily (no they did not use MT4 lol, some used bloomberg term. some another platform) I saw and heard the facts of this business, not the myths designed to destroy peoples life
  • #16
  • Nov 8, 2011 3:58pm Nov 8, 2011 3:58pm
Because liquidity is very poor
  • #17
  • Nov 8, 2011 10:09pm Nov 8, 2011 10:09pm
Quoting Hedge212
if you traded even 5 months in forex with a real account you would not be saying what you are saying, the song you sing is a demo account user song that had a bit of luck, as far as what I meant with "NEVER should you deal with a broker that executes your trade based on market conditions" it means if there are looking to buy EURUSD at a dollar and there are sellers looking to sell for a dollar, your broker has no business putting things on hold while he sets himself up over there to make sure his interests are put first, I worked in a firm that...
Yeah, that is my whole point. Sometimes there is a buyer looking to buy for a dollar but no seller looking to sell for a dollar. In this case your broker will fill your order and offset the risk they have taken on with thier liquidity providers. If they can't offset this risk, then they are putting thier accounts in danger. Do you really think they want to freeze the platforms??? They make money when people are trading, they make nothing when their platform is down and they piss off thier clients at the same time.

But hey, what do I know? You worked in a firm that traded billions of dollars and you 'saw and heard' things, so you are obviously better informed than me on the issue

ps I was once a cleaner in a biochemistry lab. I saw and heard things too. Do you want me to explain the intracate workings of the latest cancer treatment because after all I saw and heard I reckon I could replicate it in my garage if I needed to
  • #18
  • Nov 10, 2011 7:41am Nov 10, 2011 7:41am
Quoting Agro
Yeah, that is my whole point. Sometimes there is a buyer looking to buy for a dollar but no seller looking to sell for a dollar. In this case your broker will fill your order and offset the risk they have taken on with thier liquidity providers. If they can't offset this risk, then they are putting thier accounts in danger. Do you really think they want to freeze the platforms??? They make money when people are trading, they make nothing when their platform is down and they piss off thier clients at the same time.

But hey, what do I know?...
I think you should read the FXCM and Gain Capital/forex.com judgements. Trade execution was being deliberately delayed to facilitate slippage in their favour, they had software systems in place to do this, this has been proven and heavy fines have resulted, I think FXCM were fined over $20 million.

When you stop rolling your eyes have a look at those documents.
  • #19
  • Nov 10, 2011 10:53am Nov 10, 2011 10:53am
Quoting PIN Trader
When you stop rolling your eyes have a look at those documents.
Hi PIN Trader,

Your post contains multiple inaccuracies about FXCM, though this may be from reading other forums where those inaccuracies were posted. A Q&A about what occurred can be found here http://www.forexfactory.com/showthre...83#post4867883 .

All FXCM clients have the benefit of receiving positive slippage on NDD forex execution dependent on liquidity, and we provide stats on positive/negative slippage here http://docs.fxcorporate.com/faq/slippage-statistics.pdf . It's something every trader should check on their trades.

-Jason
  • #20
  • Nov 10, 2011 2:15pm Nov 10, 2011 2:15pm
Quoting Jason Rogers
All FXCM clients have the benefit of receiving positive slippage on NDD forex execution dependent on liquidity, and we provide stats on positive/negative slippage here http://docs.fxcorporate.com/faq/slippage-statistics.pdf . It's something every trader should check on their trades.

-Jason
You do now, after having been caught and fined. How much were you ordered to repay to your customers? The facts are that you had systems in place to ensure that slippage was asymmetrical and was in your favour, hence the massive restitution you have to make.
0 traders viewing now