I beleive FOREX.com is commiting fraud. I hope I am wrong.
Let me explain why I think so.
Their platform allows you to put a stop from the entry price and greater.
This could could wipe out your account if the trade goes against you.
The stop should be at least 1 pip plus the spread for you to have a chance of winning the trade and not having a chance of getting wiped out.
For example in the Euro/Usd pair where the spread is 3 pips you buy at 1.3403 and put a stop at 1.3403, or1.3402, or 1.3401 and a target of 1.3404.
Your stop and limit are sell transactions. Because of the spread the moment your buy is executed, your bid price is 1.3000 which is below the stop. If the position continues to go against you, your account could be wiped out in no time.
I asked many people who are into forex trading this question and they thought that as long as you put a stop loss below the entry price you cannot lose more than what is defined by the stop loss. After I contacted Forex.com and pointed this out they agreed with me that the platform should not allow this. I requested the direct business contact address, e-mail or the telephone of Mark Galant,CEO, to discuss this matter with him. They ignored my requests. Some of them said that they would contact higher managent to rectify this. They have neither rectfied this nor contacted me.
I am only worried about people who are not aware of it and lose their hard earned money for no reason.
I know some people will say nobody should put a stop that close. That's beside the point. I am talking about dishonesty, in my opinion.
I hope Merlin, vdluca, firedave and others who know far more about forex and trading will address this issue.
Peace,
Mangala
[merlin: edited thread title]
Let me explain why I think so.
Their platform allows you to put a stop from the entry price and greater.
This could could wipe out your account if the trade goes against you.
The stop should be at least 1 pip plus the spread for you to have a chance of winning the trade and not having a chance of getting wiped out.
For example in the Euro/Usd pair where the spread is 3 pips you buy at 1.3403 and put a stop at 1.3403, or1.3402, or 1.3401 and a target of 1.3404.
Your stop and limit are sell transactions. Because of the spread the moment your buy is executed, your bid price is 1.3000 which is below the stop. If the position continues to go against you, your account could be wiped out in no time.
I asked many people who are into forex trading this question and they thought that as long as you put a stop loss below the entry price you cannot lose more than what is defined by the stop loss. After I contacted Forex.com and pointed this out they agreed with me that the platform should not allow this. I requested the direct business contact address, e-mail or the telephone of Mark Galant,CEO, to discuss this matter with him. They ignored my requests. Some of them said that they would contact higher managent to rectify this. They have neither rectfied this nor contacted me.
I am only worried about people who are not aware of it and lose their hard earned money for no reason.
I know some people will say nobody should put a stop that close. That's beside the point. I am talking about dishonesty, in my opinion.
I hope Merlin, vdluca, firedave and others who know far more about forex and trading will address this issue.
Peace,
Mangala
[merlin: edited thread title]
It doesn't load for me anyhow - I use metatrader for the charting and find that it correaltes very well with the forex.com prices.
