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broker slipage

  • #1
  • First Post: Aug 16, 2006 3:49pm Aug 16, 2006 3:49pm
GBP/USD Stoploss at 1.8945 did not excuted at 8:30am (EST), stopped at 1.8979. somebody else? Thanks
  • #2
  • Aug 16, 2006 4:55pm Aug 16, 2006 4:55pm
SAme with me on the last 4 news trades..i captured 120 pips on one news day..yet was in negative 500. because the did not trigger my stop loss on one position...i took my money out.
  • #3
  • Aug 16, 2006 5:40pm Aug 16, 2006 5:40pm
I think if you guys examine some of the other recent posts, you'll see that slippage is happening all over the place. The market is gapping quite frequently here in August. It may be a side effect of the summer season, or there may be other problems. But slippage complaints are coming from all over, not just InterbankFX. I had 13 pips slippage today using CoesFX. So, keep a level head and lets see if this begins to work itself out as summer ends.
  • #4
  • Aug 16, 2006 7:25pm Aug 16, 2006 7:25pm
Quoting stockwet
I think if you guys examine some of the other recent posts, you'll see that slippage is happening all over the place. The market is gapping quite frequently here in August. It may be a side effect of the summer season, or there may be other problems. But slippage complaints are coming from all over, not just InterbankFX. I had 13 pips slippage today using CoesFX. So, keep a level head and lets see if this begins to work itself out as summer ends.
CoesFX?

I heard they are in a law suit? Someone is suing them.
  • #5
  • Aug 16, 2006 7:59pm Aug 16, 2006 7:59pm
Quoting BurgerKing
CoesFX?

I heard they are in a law suit? Someone is suing them.
Yes. Take a close look at the NFA complaint and the lawsuit. They had a rogue IB who's sales people promised guaranteed returns in the forex market. CoesFX was liable for their fraud since they were the final broker of record. Otherwise, they have a good reputation as one of the few ECN's in the market.
  • #6
  • Aug 16, 2006 8:07pm Aug 16, 2006 8:07pm
Have you visited CFTC website?

Check the financial data. Their capitalization was over 1M last January and is not less than 2K in June?
  • #7
  • Aug 16, 2006 8:28pm Aug 16, 2006 8:28pm
I have an account with Interbank FX as well as a couple of other brokers. I used to trade the news but now it no longer works consistently with most brokers. IBFX has the following warning on their web site:
Quote
Trading During Economic or Geo Political News releases
In the case of significant economic releases, like non-farm payroll, there could be a significant gap from the price of a currency and the price immediately after. We have seen a gap on the gbpusd of 150 pips about three years ago. Basically what occurs is right after a release all of the Offers in the market go away from the current price. Banks can move their offers significantly from where it was prior to the release. This was the case on Friday the 4th of August 2006, the Market reacted negatively toward the dollar and the EURUSD and GBPUSD jumped significantly. If someone has a resting order such as a buy stop or sell stop, those stop orders are activated and turn into market orders and then are filled at the current prevailing market price. A buy stop or sell stop is not a guaranteed order at a certain price. It simply turns into a market order when it is activated and it then filled at the current prevailing price. The actual fill on a buy stop or sell stop could vary significantly from the original order price during significant market moves or gaps, during an economic release like non-farm payroll.
  • #8
  • Aug 16, 2006 10:14pm Aug 16, 2006 10:14pm
Quoting BurgerKing
Have you visited CFTC website?

Check the financial data. Their capitalization was over 1M last January and is not less than 2K in June?
Yes I have. They are disbanding CoesFX as and FCM and moving everything under SpotFX. Look at SpotFX's capitalization in June and you'll see what's happening.
  • #9
  • Aug 16, 2006 10:17pm Aug 16, 2006 10:17pm
Quoting nvwine
I have an account with Interbank FX as well as a couple of other brokers. I used to trade the news but now it no longer works consistently with most brokers. IBFX has the following warning on their web site:
That's kind of funny considering they send out an email to their customers every month before NFP letting them know that it's a great trading opportunity. An excerpt from the email:

Quote
Of all the world monthly economic reports that can move the currency market, this is it! The monthly US Non Farm Payroll report. This report is the most highly anticipa! ted report each month that can have the most dramatic impact on the markets.

  • #10
  • Aug 16, 2006 10:40pm Aug 16, 2006 10:40pm
Quoting stockwet
That's kind of funny considering they send out an email to their customers every month before NFP letting them know that it's a great trading opportunity. An excerpt from the email:


[/font][/size][/font]
Ha, stock-y...that's because they want their traders to trade. you have to love their marketing guys.

All, stock-y is right...slippage will occur during news releases. It never ceases to amaze me how often people complain about their brokers during news releases. People! ya'll need to be absolutely aware of what news is being released on any given day. You have to realize that if you're in short-term or highly leveraged trades, you absolutely MUST know what fundamental data could drive the market. No matter how technically adept you are, if you're trading short-term positions, or a 100 pip movement would hurt your account, then honestly...KNOW the news. You DO NOT have to trade the news...you DO NOT even have to be in a trade during the news...you could absolutely trade around the news and avoid all the slippage issues.

The stop-loss that triggered the post? pffft..30-40 pip slippage during a news release? nothing...

Slippage is so common during these types of events that we shouldn't have to repeat this every month...This forum is full of posts wondering if there was something wrong with their brokers because of slippage. "Is broker A bad because it's NFP and I couldn't get in without a requote"...it's a bit much, my people...

Folks, the brokers aren't perfect by any stretch of the imagination, but ya'll have to expect this song and dance during releases. There is absolutely nothing you can do. Sure you can leave your broker and move to another...but you will find that the next broker will suffer from similar (if not worse) problems. Not all trades are the broker's fault (except for a few really bad apples...right stock-y?)...whether these news events are ways for brokers to rake in some extra cash should be of almost no consequence because it is an accepted thing in ALL trading worlds...slippage. If you don't like the result...change your mission, change the way you trade...that may include staying out of the news.
  • #11
  • Aug 17, 2006 8:12am Aug 17, 2006 8:12am
Sorry if this is old info for some. I think it's important to understand the typical mechanics of slippage so that people can figure out how to minimize it as best as possible. I say typical because this post clearly doesn't address any broker shenanigans. So, assume the broker is dealing honestly.
Prior to a news announcement, most people set buy or sell stop orders in order to catch the move. Yesterday, I set a buy stop order on the EUR at 1.2807, anticipating a strong bull move. As the announcement comes in, the market begins to move. In my case yesterday, ticks came in at around 1.2796, but then the next tick came in at 1.2820. In the case of these orders, where a tick never came in at your price, you get traded at the next available tick. In my case, that was 13 pips away from my desired entry point.

These gaps are only sometimes represented on the chart. Usually, small slippage like this is not well represented, sometimes it is.

If a broker guarantees your fills, then think about what that means for them. In my case, the market jumped 13 pips. If my broker had guaranteed my entry, then, I would have been entered into the market at 1.2820, but my entry price would have been represented at 1.2807. Guess who pays the difference - your broker. Most brokers aren't keen on paying all those pips out when the market skips.

So, how do you eliminate skips? Well, think about the factors in the market that can cause it. Sometimes, the entire market moves at once. For instance, with the FOMC announcement, nearly everyone anticipated a pause. So, everyone was positioned and ready to pounce on the dollar. Almost at once the market moved when the news was confirmed.

However, another cause for gaps is liquidity. If you're trading with a broker who has a single bank relationship, then, you have a representative market of 1. The likelihood that that one bank will gap is fairly high. However, if your broker has a relationship with 10 banks, and you're getting aggregated feeds, well, the probability that ticks will come in at your price during fast markets is fairly high. In other words, because there are more banks giving the feed, you have a higher probability of having ticks come in near your price because you have a wider market.

Not sound like an ad campaign, but, this is the primary reason I switched to CoesFX. As an ECN, CoesFX has a true aggregated feed from a number of different banks and market makers. They also have a corporate strategy of constantly increasing their number of liquidity providers. I say that they have a true aggregated feed because I have doubts about some of these other brokers who say they do. But, that's another topic.

So, my point is, find a broker that has access to the largest portion of this enormous market to ensure you have excellent liquidity. I'm crossing my fingers with CoesFX, so, I'll have to see how it goes. I did notice incredibly fast execution with my market orders as the market slowed - a problem I had with other brokers after a fast move.

Regards,

stockwet
  • #12
  • Aug 17, 2006 8:29am Aug 17, 2006 8:29am
Quoting stockwet
Sorry if this is old info for some. I think it's important to understand the typical mechanics of slippage so that people can figure out how to minimize it as best as possible. I say typical because this post clearly doesn't address any broker shenanigans. So, assume the broker is dealing honestly.
Prior to a news announcement, most people set buy or sell stop orders in order to catch the move. Yesterday, I set a buy stop order on the EUR at 1.2807, anticipating a strong bull move. As the announcement comes in, the market begins to move. In my case yesterday, ticks came in at around 1.2796, but then the next tick came in at 1.2820. In the case of these orders, where a tick never came in at your price, you get traded at the next available tick. In my case, that was 13 pips away from my desired entry point.

These gaps are only sometimes represented on the chart. Usually, small slippage like this is not well represented, sometimes it is.

If a broker guarantees your fills, then think about what that means for them. In my case, the market jumped 13 pips. If my broker had guaranteed my entry, then, I would have been entered into the market at 1.2820, but my entry price would have been represented at 1.2807. Guess who pays the difference - your broker. Most brokers aren't keen on paying all those pips out when the market skips.

So, how do you eliminate skips? Well, think about the factors in the market that can cause it. Sometimes, the entire market moves at once. For instance, with the FOMC announcement, nearly everyone anticipated a pause. So, everyone was positioned and ready to pounce on the dollar. Almost at once the market moved when the news was confirmed.

However, another cause for gaps is liquidity. If you're trading with a broker who has a single bank relationship, then, you have a representative market of 1. The likelihood that that one bank will gap is fairly high. However, if your broker has a relationship with 10 banks, and you're getting aggregated feeds, well, the probability that ticks will come in at your price during fast markets is fairly high. In other words, because there are more banks giving the feed, you have a higher probability of having ticks come in near your price because you have a wider market.

Not sound like an ad campaign, but, this is the primary reason I switched to CoesFX. As an ECN, CoesFX has a true aggregated feed from a number of different banks and market makers. They also have a corporate strategy of constantly increasing their number of liquidity providers. I say that they have a true aggregated feed because I have doubts about some of these other brokers who say they do. But, that's another topic.

So, my point is, find a broker that has access to the largest portion of this enormous market to ensure you have excellent liquidity. I'm crossing my fingers with CoesFX, so, I'll have to see how it goes. I did notice incredibly fast execution with my market orders as the market slowed - a problem I had with other brokers after a fast move.

Regards,

stockwet
Very Good information Stockwet, thanks for sharing that with us. So does that imply that there would be zero slippage with an ECN like CoesFX? Or more realistically , the slippage could be very minimal in the order of 1-5 pips? tia.
  • #13
  • Aug 17, 2006 8:50am Aug 17, 2006 8:50am
Quoting forexplayer
Very Good information Stockwet, thanks for sharing that with us. So does that imply that there would be zero slippage with an ECN like CoesFX? Or more realistically , the slippage could be very minimal in the order of 1-5 pips? tia.
Well, I had 13 pips slippage yesterday, if that tells you anything. However, I had 30 and 40 pips slippage on the EUR and GBP with the FOMC and FXDD, so, I can live with 13 pips slippage. I'm more interested to see how this goes as they continue to add liquidity partners. I'm told that by September, they should have 3 or 4 more partners coming on board. Couple that with higher post-summer volumes and things should work out nicely. I'll let people know if they aren't any better than a typical broker.
  • #14
  • Aug 17, 2006 9:06am Aug 17, 2006 9:06am
Are you saying that inspite of the law suit and the very not nice CFTC data, you are still putting your money under coesfx?
  • #15
  • Aug 17, 2006 9:28am Aug 17, 2006 9:28am
Quoting BurgerKing
Are you saying that inspite of the law suit and the very not nice CFTC data, you are still putting your money under coesfx?
BurgerKing,

Hmm, I'm not sure you read my posts about those things. Look, if you're not comfortable with them, then you don't have to use them. Why do you keep bringing it up though when I've already answered your previous posts?

stockwet
  • #16
  • Aug 17, 2006 9:31am Aug 17, 2006 9:31am
Quoting stockwet
BurgerKing,

Hmm, I'm not sure you read my posts about those things. Look, if you're not comfortable with them, then you don't have to use them. Why do you keep bringing it up though when I've already answered your previous posts?

stockwet
I'm considering CoesFX, too. At the moment they look like the best option for a broker that uses MT4.

stockwet, what about rollover charges? are they ok?
  • #17
  • Aug 17, 2006 9:33am Aug 17, 2006 9:33am
Quoting piccolo
I'm considering CoesFX, too. At the moment they look like the best option for a broker that uses MT4.

stockwet, what about rollover charges? are they ok?
That's a good question. I don't know because I'm an intraday trader. I haven't even looked at their rollover rates.

I need to give you some private information about their MT4 implementation, though. Send me a PM or email.
  • #18
  • Aug 17, 2006 9:42am Aug 17, 2006 9:42am
Quoting BurgerKing
Are you saying that inspite of the law suit and the very not nice CFTC data, you are still putting your money under coesfx?
BK,

This has been explained several times in multiple threads. So let's lay it down...CoesFX is liable by proxy because the Introducing Brokers who scammed those people was introducing through CoesFX. They will have to pay some form of penalty for not screening their IB's more closely, but the amount of punative damages that can be claimed against CoesFX will be minimal because CoesFX entered into the relationship with the IB's with the expectation that the IB's were working honestly. Besides, has the lawsuit even been settled?

If it hasn't, then you need to reserve judgement...here in the states, all parties are innocent until proven guilty.

If they have settled the lawsuit, then you have to see that CoesFX is still running perfectly fine, so...what's the line of questioning getting at?

Stock-y is entitled to his opinion and he is more than free to put his money at any broker he sees fit. He has answered the lawsuit issues in multiple threads and it seems pretty clear cut.

As far as I can tell, CoesFX hasn't skipped a beat since the lawsuit, but obviously, we'll keep our ears peeled for any info from the vine.
  • #19
  • Edited 9:59am Aug 17, 2006 9:49am | Edited 9:59am
Quoting mrmikal
BK,

This has been explained several times in multiple threads. So let's lay it down...CoesFX is liable by proxy because the Introducing Brokers who scammed those people was introducing through CoesFX. They will have to pay some form of penalty for not screening their IB's more closely, but the amount of punative damages that can be claimed against CoesFX will be minimal because CoesFX entered into the relationship with the IB's with the expectation that the IB's were working honestly. Besides, has the lawsuit even been settled?

If it hasn't, then you need to reserve judgement...here in the states, all parties are innocent until proven guilty.

If they have settled the lawsuit, then you have to see that CoesFX is still running perfectly fine, so...what's the line of questioning getting at?

Stock-y is entitled to his opinion and he is more than free to put his money at any broker he sees fit. He has answered the lawsuit issues in multiple threads and it seems pretty clear cut.

As far as I can tell, CoesFX hasn't skipped a beat since the lawsuit, but obviously, we'll keep our ears peeled for any info from the vine.
I read that the lawsuit is settled. CoesFX paid something like $260k in damages to close this matter and they are neither proven guilty nor innocent (case closed).
  • #20
  • Last Post: Aug 17, 2006 10:02am Aug 17, 2006 10:02am
Quoting piccolo
I read that the lawsuit is settled. CoesFX paid something like $260k in damages to close this matter and they are neither proven guilty nor innocent (case closed).
THANK YOU!

So peeps...DROP THE LAWSUIT BIT! It's a DEAD issue.
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