FxPig raises spread to 10000 pips on USDZAR | Forex Factory

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FxPig raises spread to 10000 pips on USDZAR

  • #1
  • First Post: Dec 22, 2015 11:53am Dec 22, 2015 11:53am
Fellow forexfactory members just wanted to alert you of a potential trap by a broker. Don't let what happened to me happen to you.

This is what happened:

On December 9th 2015 I entered several trades on the USDZAR and EURZAR pairs. Shortly after I was hit with a margin call losing about USD 11791 putting the account in negative USD 3016.

Upon a detailed review I discovered that the spread on the USDZAR increased to nearly 10000 pips when I got hit with the margin call. To put this into perspective the USDZAR spread is normally under 200 pips, so this was 50 times the regular spread. the EURZAR was similar. How do I know the spread was about 10000 pips, well take a look at the screenshot of the trades, there are both short and long trades on the USDZAR closed at the same time by the margin call, ticket 2509663 and ticket 2509677, the respective prices 14.60664 and 15.59301, which is 9863 pips spread, not exactly 10000 pips but really close to it. this must be some sort of record for the biggest spread.

Did anyone else trade the ZAR at that time and got hit with a margin call or a SL due to the spread widening?
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  • #2
  • Dec 22, 2015 2:27pm Dec 22, 2015 2:27pm
Broker name?
  • #3
  • Dec 22, 2015 2:33pm Dec 22, 2015 2:33pm
Quoting mrbigstar
Broker name?
The broker is FxPig. The account type is DMA. The broker generally advertises direct market access or true ECN, which was the main reason I opened an account there, even though the name sounds silly 10000 pips spread, doesn't make a broker look good
  • #4
  • Dec 22, 2015 4:47pm Dec 22, 2015 4:47pm
I started this thread here for two reasons. To alert traders of the dangers of trading with FxPig. And also find others who have suffered similarly at FxPig so that we can combine our forces to get FxPig to reverse the wrong trades
  • #5
  • Dec 22, 2015 5:27pm Dec 22, 2015 5:27pm
With DMA the spread is set by the liquidity providers .. you got hit by an unexpected news release as far as I can see.

​http://www.businessinsider.com/south-africa-rand-falls-to-record-low-2015-12
  • #6
  • Dec 22, 2015 5:54pm Dec 22, 2015 5:54pm
Quoting fido
With DMA the spread is set by the liquidity providers .. you got hit by an unexpected news release as far as I can see. ​http://www.businessinsider.com/south-africa-rand-falls-to-record-low-2015-12
  • #7
  • Dec 22, 2015 6:47pm Dec 22, 2015 6:47pm
HOLY FUCK! that is just awful!!! Im sorry for this, I see it happen OFTEN and it has happened to me losing much more than 10k! This is why FX is a scam. trade these pairs but no broker should get the spread this high, I don't give a shit. 10000spread? What is there only one guy in south Africa that has ZAR to deal with and only accessible by helicopter pad? LIKE WTF such bullshit.
All posts are my personal opinion
  • #8
  • Dec 22, 2015 6:51pm Dec 22, 2015 6:51pm
Also, the broker should not auto execute you like that, it is just wrong. The sad thing is, no authority or regulator will do anything for you. I honestly don't know what is the point even of broker regulation when they don't do shit all for traders.
All posts are my personal opinion
  • #9
  • Dec 22, 2015 7:53pm Dec 22, 2015 7:53pm
I get it it's around the news, but 10000 pips, it's not that it moved also, just he spread widened, and only on FxPig too, I took the same trade on a few other brokers and closed with a small loss or a small profit.

Also I was on both sides of the trade as you can see, had a buy and a sell that got closed out, so for the service of matching my buy and sell orders I was charged 10000 pips, or in USD around $2800. Even if there was 0 liquidity I was there on both sides why is the spread 10000? I did pose those questions to FxPig's CEO, Kevin Murcko, all he had to say is that it was the liquidity provider, but come on why would matching my own orders cost 10000 pips, there is just no logic, it is a glitch and as it was a profitable one for the broker they are calling it real. I bet it if it was in my favour they'd have those trades reversed in less than 24 hours.

I call this Margin call hunting. The DMAs seem to be the new bucket shops. I tried back in the day when no broker was regulated and this was happening daily, we were complaining back then about 20-30 pip spread on the EURUSD
  • #10
  • Dec 22, 2015 7:56pm Dec 22, 2015 7:56pm
Quoting fido
With DMA the spread is set by the liquidity providers .. you got hit by an unexpected news release as far as I can see. ​http://www.businessinsider.com/south-africa-rand-falls-to-record-low-2015-12
Thanks for posting this articleIn that article they say the rand plunged to as low as 15.0563 which is about 6000 pips away from where I was stopped out.
  • #11
  • Dec 22, 2015 8:24pm Dec 22, 2015 8:24pm
Quoting chitak
{quote} Thanks for posting this articleIn that article they say the rand plunged to as low as 15.0563 which is about 6000 pips away from where I was stopped out.
I'm sorry about your loss it must be really painful
Basically the liquidity providers will do anything to protect themselves from losses so they will spike the spreads excessively when something unexpected happens - personally I stay away from the more exotic pairs to minimize the risk of something like that.
Did you get any respons from fxpig? I have a live account with them too.
  • #12
  • Dec 22, 2015 8:45pm Dec 22, 2015 8:45pm
Quoting fido
{quote} I'm sorry about your loss it must be really painful Basically the liquidity providers will do anything to protect themselves from losses so they will spike the spreads excessively when something unexpected happens - personally I stay away from the more exotic pairs to minimize the risk of something like that. Did you get any respons from fxpig? I have a live account with them too.
Yeah I've been back and forth with them for over a week, basically they arent willing to do anything, they did make me an offer to settle this but the offer basically calls for me trading 200m before being able to withdraw the amount they offered. It is not worth it Would I stay with a broker who is looking to stab me in the back when I'm not looking? If they had my back and reversed the erroneous trades I'd be happy to keep on trading. For now I'm mostly going to be trading with Squared Financial - top notch service and spreads.
  • #13
  • Edited 9:33pm Dec 22, 2015 9:19pm | Edited 9:33pm
Quoting chitak
Fellow forexfactory members just wanted to alert you of a potential trap by a broker. Don't let what happened to me happen to you. This is what happened: On December 9th 2015 I entered several trades on the USDZAR and EURZAR pairs. Shortly after I was hit with a margin call losing about USD 11791 putting the account in negative USD 3016. Upon a detailed review I discovered that the spread on the USDZAR increased to nearly 10000 pips when I got hit with the margin call. To put this into perspective the USDZAR spread is normally under 200 pips, so...
I'm sorry for your loss dude. Seriously that's rigged but the name says it all. Why would you trust a broker named "FXPig" with your hard earned cash? I don't mean to sound crass. Is there a particular reason you chose them instead of a more "reputable" broker mate?

FXPig. Fucken hell!
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  • #14
  • Dec 22, 2015 9:25pm Dec 22, 2015 9:25pm
Quoting Dimi.A
{quote} I'm sorry for your loss dude. Seriously that's rigged but the name says it all. Why would you trust a broker named "FXPig" with your hard earned cash? I don't mean to sound crass. Is there a particular reason you chose them instead of a more "reputable" broker mate? FXPig. Fucken hell!
I know rigjt, but they had great reviews at forexpeacearmy so I figured I'd try them. And Pig is short forPremier Interchange Gateway which doesn't sound as bad as FxPig lol. But yeah you have a point, still its ridiculous to raise the spread to 10k pips no matter the broker name.
  • #15
  • Dec 22, 2015 10:14pm Dec 22, 2015 10:14pm
Quoting Dimi.A
{quote} I'm sorry for your loss dude. Seriously that's rigged but the name says it all. Why would you trust a broker named "FXPig" with your hard earned cash? I don't mean to sound crass. Is there a particular reason you chose them instead of a more "reputable" broker mate? FXPig. Fucken hell! {image}
lol funny graphic!
All posts are my personal opinion
  • #16
  • Dec 23, 2015 1:12am Dec 23, 2015 1:12am
pig? what else you was expecting from a broker with such name? pigs gets dirty all the time.
We are proud to be most consistent signal provider in entire industry.
  • #17
  • Dec 23, 2015 1:20am Dec 23, 2015 1:20am
Here is but one way to avoid getting taken.

1. Stop trading exotics!!!!
2. Stop using hard stops.
3. Trade using fractional position sizing.

All of these things will reduce your profit. All of these things will also reduce your losses.
If you are good at something, never do it for free--Joker
  • #18
  • Dec 23, 2015 4:46am Dec 23, 2015 4:46am
Are they forcing you to pay the negative balance?
  • #19
  • Dec 23, 2015 6:03am Dec 23, 2015 6:03am
Quote
On December 9th 2015 I entered several trades on the USDZAR and EURZAR pairs. Shortly after I was hit with a margin call losing about USD 11791 putting the account in negative USD 3016.
Dont allow them to take your money so easy.It's a robbery.Make complain to their regulatory body.
  • #20
  • Dec 23, 2015 7:24am Dec 23, 2015 7:24am
losing almost 12k is worth the price of a mob 'hit' on the owners/managers/employees of this den of thieves. Im sure there is some coked up criminal that would take the job!
FF = Forex Faggots
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