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Huge slippage 30 pips (Pepperstone)

  • #61
  • May 5, 2014 4:39pm May 5, 2014 4:39pm
Quoting aarontdang
FXCM spread is a little high than Oanda.
Hi Aaron, it's important when comparing spreads between brokers to keep in mind the execution model being used. While FXCM offers clients the choice between two types (No Dealing Desk and Dealing Desk), the broker you're comparing us to only offers DD execution. The real-time spreads table here show that our DD spreads are competitive with other brokers using the DD model, especially when you consider all market conditions: http://www.forexfactory.com/brokers.php#spreads

Quoting aarontdang
Oanda spread is crazy 10-25 pips depend on pair
  • #62
  • Edited 5:02pm May 5, 2014 4:49pm | Edited 5:02pm
Quoting nahman
I'm looking for a new broker as well, got hit with a 25 pip slippage on NFP, does anyone know any decent brokers preferably in Aus, US, Switzerland, Singapore with very low slippage during news events, anything under 10 pips would be ideal.
Quoting Connected
Your looking for something that doesnt exist, trade the news and you will get slipped, every time, every broker.
Hi Nahman

As Connected mentioned, the chances of slippage increase when you're trading news. That's because your order can only be filled at a price that's available in the market. However, it's worth noting that if your broker allows for it, then slippage can be either positive or negative. Positive slippage means your order gets filled at a better price than you originally requested. Such price improvements are more common with limit orders, while negative slippage is more common with stop orders.

Furthermore, there are tools such as the Maximum Deviation feature on MT4 to help you limit the amount of negative slippage you receive. For example, if you set your Max Dev at 2 pips (or 20 pipettes, if your broker quotes prices to 5 decimals) then your market order will only be filled if the maximum negative slippage is within your 2 pip tolerance. Otherwise, the order will get cancelled. That allows you limit your negative slippage and still benefit from potential price improvements if your broker allows for positive slippage.

Unfortunately, some brokers re-quote their clients rather than let them benefit from positive slippage. Brokers that re-quote orders often do asymmetrically. If you place an order to buy from them and the price is rising, they're likely to get re-quote you a higher buy price. On the other hand, if you place an order to buy from them and the price is falling, they're likely to fill you at your exact price which may cause you to miss out on any positive slippage that might have been available.

That's why it might be more advantageous to seek out a broker that allows for positive and negative slippage but that also gives you the opportunity you limit your negative slippage with tools such as the Max Dev feature on MT4.
  • #63
  • May 6, 2014 7:43am May 6, 2014 7:43am
Quoting Jason Rogers
{quote} {quote} That's because your order can only be filled at a price that's available in the market. .
If the above is true then this link is false http://www.investopedia.com/terms/l/liquidmarket.asp

Where it states the USD is the most liquid currency. Something doesn't exactly add up does it? This flaw is designed to be profited from by the broker... and the funny thing is, it is at this time where the volume spikes on the chart in every broker/chart you can find. How can there be no liquidity if there's higher volume on average? The secret of retail fx brokers is that... news trading is profitable but they mask it.
  • #64
  • May 6, 2014 2:54pm May 6, 2014 2:54pm
Quoting nahman
{quote} If the above is true then this link is false http://www.investopedia.com/terms/l/liquidmarket.asp Where it states the USD is the most liquid currency. Something doesn't exactly add up does it? This flaw is designed to be profited from by the broker... and the funny thing is, it is at this time where the volume spikes on the chart in every broker/chart you can find. How can there be no liquidity if there's higher volume on average? The secret of retail fx brokers is that... news trading is profitable but they mask it.
Hi Nahman,

It's true that generally speaking the currency market is the most liquid in the world, and that USD is the most liquid currency. However, there are times when even the currency market can become illiquid. This is the case during major news events like NFP. Think about it: the reason you were interested in trading NFP in the first place is because of the greater likelihood that prices can change dramatically at this time. The uncertainty surrounding NFP affects other market participants just like it affects you.

Everyone wants to limit their risk going into such an important event, so liquidity providers will reduce the amount of bids and offers they place in the market and widen the spread between their bids and offers. That way, if a trader buys at the offer price or sells at the bid price, the liquidity provider will have a smaller order to manage (because they reduced the amount bid and offered) and they will have more wiggle room to manage their risk (because they widened their bid-offer spread). For you as a trader, the smaller amount of bids and offers in the market and wider bid-offer spread translates to less liquidity. This is the risk you must assume when you choose to trade during a news event like NFP.

In regards to the volume spikes you mentioned, it's true that volume picks up after NFP, but it's important to consider the price at which the majority of volume is traded. For example, suppose an NFP announcement came out that was extremely bullish for the US dollar. That means no one in the market will be willing to sell USD at the price it was trading prior to the announcement, and there will be a huge amount of orders to buy USD.

We don't have to imagine what this would be like, because we have a real life example from the NFP announcement on Friday, 8 November 2013. That announcement caused EUR/USD to gap down 50+ pips at 8:30 AM EST. As you can see from the tick chart below, this move happened in less than one second.

http://img600.imageshack.us/img600/7281/zawm.png



If your stop loss order price is reached, then it is executed as a market order. You may want to sell at a certain price, but there has to be a buyer on the other side to complete that transaction. If there is no buyer at your stop price, then the order will be filled at the best available price. If the market gaps through your order price during an illiquid market period such as the weekend open or NFP, then you will likely experience slippage.

Anyone trading in the forex, stock, or futures market has to be willing to accept the risk that goes along with having orders executed during illiquid market conditions. There's no sugar coating this. Slippage is one of the risks you assume when trading, and the risk of slippage is greatest during volatile markets such as around a news announcement like NFP.

Also, keep in mind that slippage can be positive or negative, if you're trading with a broker allows positive slippage*. That means, if you have a limit or take profit order, and the price gaps in favor of your trade, then you will get filled at the more favorable price that is trading in the market. This is called a price improvement.

* Some brokers may not allow you to receive positive slippage. Instead, they might re-quote your orders especially if you're trading during news events like NFP.
  • #65
  • May 6, 2014 3:23pm May 6, 2014 3:23pm
No REQUOTE STP Brokers
Pepperstone order execution window. Mind the warning.
This is called MARKET EXECUTION. Suffer with what you got.
Tired..!? then should be looking for INSTANT EXECUTION Broker

Attached Image (click to enlarge)
Click to Enlarge Name: z.png Size: 14 KB
My Best Trade is Next Trade!
  • #66
  • Jun 3, 2014 2:28pm Jun 3, 2014 2:28pm
Quoting aarontdang
{quote} I trade with FXCM and Oanda in the US. I think Oanda is pretty good. FXCM spread is a little high than Oanda. All US Broker have leverage 50:1 Max No news trading is the best ... and don't leave your trade on weekend. Oanda spread is crazy 10-25 pips depend on pair

I also use FXCM and Oanda. Oanda has the least slippage of any broker I know, but will widen the spread the most, it is a trade-off for slippage but I like that vast majority of the time that my stops will be honored, this let's me manage my risk better. I haven't used FXCM too much, but during normal trading, they seem to be good about not slipping too much, maybe a 1-2 micro-pips usually. MBT is the worst, stay away. Axi Trader USA, you can see the gaps on the charts, I didn't have the nerve to even try there. Interactive Broker is supposed to be one of the best, but I don't have a $25,000 account yet.
  • #67
  • Jun 4, 2014 3:32am Jun 4, 2014 3:32am
interactive brokers requires a 25k deposit! ouch..
  • #68
  • Jun 4, 2014 7:22am Jun 4, 2014 7:22am
Quoting jiggz
interactive brokers requires a 25k deposit! ouch..

Kind of filters out the men from the boys doesn't it?
  • #69
  • Edited 11:53am Jun 9, 2014 11:32am | Edited 11:53am
Anyone who trades through NFP (Non-Farm Payroll to the new folks in here) should be lead outside and shot. Thats gambling, not trading. Its the single biggest influencer of the FX markets on the calendar. To fully illustrate my point, here is my spread on USDCHF BEFORE NFP:
Attached Image

A nice steady 0.8 spread.

Here is USDCHF at its MAX, seconds AFTER the NFP news. Just a normal NFP day, nothing out of the ordinary...
Attached Image

A somewhat more lively 41.9. Thats the SPREAD folks, never mind slippage. I'd say you got a pretty good fill there!

Now lets do EURUSD...
Attached Image

A safe little 0.4

Attached Image

And now a beastly 12.7

Between them the SPREADS alone peaked beyond 50 pips, this means you would have needed to be AT LEAST 40+ pips in profit to avoid even getting stopped out, never mind the slippage.

Play stupid games, win stupid prizes.

I have a video grab of the NFP spreads as they happen live if anyone wants to have it for reference. In case you missed my opening point, its foolish to trade through NFP.
In life you get 3 types of people, those who can count and those who can't.
  • #70
  • Jun 18, 2014 1:50pm Jun 18, 2014 1:50pm
Unfortunately we are still not in instantaneous communication and trading. It's very fast but those few seconds could mean a huge difference.
  • #71
  • Jun 19, 2014 2:43am Jun 19, 2014 2:43am
Quoting jotekfinance
Unfortunately we are still not in instantaneous communication and trading. It's very fast but those few seconds could mean a huge difference.
The difference will only be evident if your are in a trade. Else if, stay out be safe
  • #72
  • Aug 4, 2014 8:40am Aug 4, 2014 8:40am
Quoting HedgePiglet
Anyone who trades through NFP (Non-Farm Payroll to the new folks in here) should be lead outside and shot. Thats gambling, not trading. Its the single biggest influencer of the FX markets on the calendar. To fully illustrate my point, here is my spread on USDCHF BEFORE NFP: {image} A nice steady 0.8 spread. Here is USDCHF at its MAX, seconds AFTER the NFP news. Just a normal NFP day, nothing out of the ordinary... {image} A somewhat more lively 41.9. Thats the SPREAD folks, never mind slippage. I'd say you got a pretty good fill there! Now lets...
what platofrm is that? 12 pips on eur usd Id have no problem with on NFP
  • #73
  • Aug 6, 2014 4:13am Aug 6, 2014 4:13am
Quoting nahman
{quote} what platofrm is that? 12 pips on eur usd Id have no problem with on NFP
We are a group of institutional traders, so we have 'small bank' status. PM me if you're interested and I can put you in touch with some options. You will need a reasonably robust trading account to qualify.
In life you get 3 types of people, those who can count and those who can't.
  • #74
  • Aug 8, 2014 6:52pm Aug 8, 2014 6:52pm
Quoting Jason Rogers
{quote} Hi Aaron, it's important when comparing spreads between brokers to keep in mind the execution model being used. While FXCM offers clients the choice between two types (No Dealing Desk and Dealing Desk), the broker you're comparing us to only offers DD execution. The real-time spreads table here show that our DD spreads are competitive with other brokers using the DD model, especially when you consider all mark et conditions: http://www.forexfactory.com/brokers.php#spreads...
Oanda is ndd too. Doesnt matter, its just marketing BS. And this sort of slippage is quite normal at a bucketshop like pepperstone. Anyway, you agreed with their terms right?
  • #75
  • Aug 9, 2014 12:21pm Aug 9, 2014 12:21pm
Having been fortunate (or perhaps not?) to work very recently with a handful of VERY large brokers here in London, operating at a senior/board level, I can say with some confidence that the brokers do in fact appear to be working hard to provide the best service possible, where things like slippage, fill, carry and liquidity rank as priorities as deliverables to customers.

They don't sit on thrones, they certainly do read portals like these and they absolutely hear EVERY day several times a day from their customers.

I do think a large portion of perception is created in forums like these, where its more fun to read and buy into the story than accept certain fundamental truths. What we do know is, certainly here in the UK, the brokers are super-regulated. And by this I mean you have quite literally NEVER seen such onerous and complex rule books. And all this in a market that is organic and constantly evolving.

The brokers aren't stupid either. They also accept that if they play outside the rules the days of a wink and a nod are over.

I would say to any new trader or any trader with a reasonable account size. If you have more than around $25,000 in your account, you may be surprised to see what you can demand from your brokers if you ask. Don't be deceived into thinking you are but a small blip on a large radar screen, if you demand better spreads/fills/stops you might be surprised at what you might get.

Its the old adage, why do you think banks/cable/satellite/mobile phone companies ALWAYS seem to be offering new customers better deals than the existing ones? Because they know that most of us will assume we are on the best deal possible and never think to ask. Try it, phone your Sat Tv company now and tell them you're thinking of moving and we know what will happen. The brokers are the same.

Just my thoughts.
In life you get 3 types of people, those who can count and those who can't.
  • #76
  • Aug 9, 2014 12:25pm Aug 9, 2014 12:25pm
Quoting Anusragger
{quote} Doesnt matter, its just marketing BS. And this sort of slippage is quite normal
It most certainly isn't BS and I assure you its very normal on a news day like NFP.

Or could you show me ANY bank/broker/institution that doesn't see price volatility when a bomb drops on Baghdad? OF COURSE there is slippage! Some people run towards the bang and others run away. It widens while we all wait for the dust to settle. Or you have a different experience? Spreads tighten through Central Bank Interest rate cuts? Share prices track straight when the CEO and inventor of a product has a heart attack humping his secretary? You have charts?
In life you get 3 types of people, those who can count and those who can't.
  • #77
  • Aug 9, 2014 4:38pm Aug 9, 2014 4:38pm
Quoting HedgePiglet
{quote} It most certainly isn't BS and I assure you its very normal on a news day like NFP. Or could you show me ANY bank/broker/institution that doesn't see price volatility when a bomb drops on Baghdad? OF COURSE there is slippage! Some people run towards the bang and others run away. It widens while we all wait for the dust to settle. Or you have a different experience? Spreads tighten through Central Bank Interest rate cuts? Share prices track straight when the CEO and inventor of a product has a heart attack humping his secretary? You have...
I was talking about these marketing dicks with their BS ndd.
  • #78
  • Aug 24, 2014 2:08pm Aug 24, 2014 2:08pm
why hedge if you know the trend and if you donot know the trend why trade . lol.
  • #79
  • Last Post: Mar 4, 2016 11:55pm Mar 4, 2016 11:55pm
be careful friends. this broker steal money buy creating fake price

check this


http://www.forexfactory.com/showthre...26#post8788826
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