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Broker reverses $20K winning trades for alleged latency arbitrage

  • #621
  • Feb 29, 2016 7:32pm Feb 29, 2016 7:32pm
Quoting reddevil
mmswe, each trader need to evaluate which broker is best depending on his/her trading style, I choose my Australian broker based on the criteria in this order: 1. zero cost to deposit & withdraw ( to Aussie banks) - I was surprised some not homegrown Aussie brokers charge for local withdrawal !. 2. Has Bpay facility to deposit. For those traders intending to use Australian broker, fly to Aus and open a bank account here. Do not use internet banking to fund, use Bpay. Bpay is a Australian wide vendor payment facility. Vendor receive a file each day...
ICmarkets, lol No thanks. There is nothing good about this broker.

Commission is not cheap and slippage is quite high.

I have seen my terminal log into their hongkong data center in the log. The trick they play is log customers in north america to the hongkong server which cause extra latency and price of course slippage. Be careful with this scam broker.

It is a STP at best, if not a market maker. Pure STP brokers are rare to find because it is less profitable. All of those that offer 500:1 are either market makers or connect to market makers. There are fake prime brokers that share profit with retail brokers that bring flows to them. fake prime brokers are mushrooming in recent years.

I also know that slippage is higher once u pay $5.5 per lot instead of $7 per lot. I had 2 accounts with them and compared side by side.

In my opinion, $7 per lot is too much. In addition, there is slippage.

I do not know about GTX platform. But when I was with forex.com, my stops were left untouched even if it is 0.1 pip away from the market price. The issue I had was disconnection when my ea modify orders. Never had my profit revoked. forex.com is the only broker I used that mail cheques, for no charge of course. Other brokers can do wire transfer when I request withdraw. If the broker does not charge fee, my local bank always take 20-30 dollars for incoming wire transfer.
  • #622
  • Edited 10:24am Mar 1, 2016 8:34am | Edited 10:24am
Quoting demark1
{quote} ICmarkets, lol No thanks. There is nothing good about this broker. Commission is not cheap and slippage is quite high. I have seen my terminal log into their hongkong data center in the log. The trick they play is log customers in north america to the hongkong server which cause extra latency and price of course slippage. Be careful with this scam broker. It is a STP at best, if not a market maker. Pure STP brokers are rare to find because it is less profitable. All of those that offer 500:1 are either market makers or connect to market...
IC Markets only routes through the HongKong servers for MT4. They do that to lessen the server loads. IC Markets IS a STP broker but NOT a market maker. They do what is called b-booking. They separate their clients into 2 categories, clients who trade in large size (100K+) and actually make profits which they categorize as A-book, they send their orders directly to the LP's to execute or execute themselves but hedge with the LP so they won't incur much risk. With clients that trade in microlots that lose more often than winning which they lump into B-book, they actually take the opposite side of the transaction because with those clients, they see they can actually earn profit against. Majority of the "ECN" brokers out there operate in this model; there are very very very few brokers right now that operate in a pure ECN fashion where they earn their revenue purely from commissions they charge you for each transactions cuz it's just not revenue-maximizing for them. WHY should they confine themselves to just earning their revenue from commissions when they can profit from trading against us at the same time? Regarding the slippages, it's really the same regardless whether you're paying $7 commission or $5 commission. You MIGHT get better slippage with the $7 commission but that's because you are using cTrader and trades ARE executed faster on cTrader than on MT4. MT4 is the most scam platform out there in forex even without the virtual dealer plug-in so DON'T use it if you can avoid it. If you open an account with IC Markets through an introducing broker and there are LOTS around, the commission on cTrader is reduced lot more. On some currency pairs, it's almost the same as commissions in MT4 so there shouldn't be any reason for you to use MT4.

The thing with those STP brokers is just that you just don't know in which category you belong to because you can't see where your order is being routed to and no broker is willing to provide you a trade execution confirmation that shows you EXACTLY where your order was executed and who executed your order all in the name of preserving anonymity (some broker claim they do upon your request but when you really do request it, they won't give it to you or they will give you something vague that doesn't really tell you anything). It's not like in stock exchanges, when your order is executed, you know exactly who executed your order or where your order was executed.
Make your losses in demo. Earn your profits live.
  • #623
  • Mar 1, 2016 8:52am Mar 1, 2016 8:52am
Quoting Forexia
{quote} IC Markets only routes through the HongKong servers for MT4. They do that to lessen the server loads. IC Markets IS a STP broker but NOT a market maker. They do what is called b-booking. They separate their clients into 2 categories, clients who large size (100K+) and actually make profits which they categorize as A-book, they send their orders directly to the LP's to execute or execute themselves but hedge with the LP so they won't incur much risk. With clients that trade in microlots that lose more often than winning which they lump into...
Hi,Forexia
Thank you for your review.
  • #624
  • Edited 10:57am Mar 1, 2016 10:47am | Edited 10:57am
Quoting Forexia
{quote} IC Markets only routes through the HongKong servers for MT4. They do that to lessen the server loads. IC Markets IS a STP broker but NOT a market maker. They do what is called b-booking. They separate their clients into 2 categories, clients who large size (100K+) and actually make profits which they categorize as A-book, they send their orders directly to the LP's to execute or execute themselves but hedge with the LP so they won't incur much risk. With clients that trade in microlots that lose more often than winning which they lump into...
Thank u

I had a VPS set up in New york because IC advertise that they have a server in New York. The latency between the VPS and IC's server is less than a few ms that is why I bought the VPS. If I remember it correctly, IC Markets routes my order to both New York and Hongkong. It is a random act and myth how they operate. But I have found the price feed from the 2 could be 1-2 pips different. Most Fake ECN brokers are both market maker and STP. In that regard, IC is a market maker and a STP. Lots of other are the same. I am ok as long as there is not much slippage. There are brokers that can tell you who execute your order, for example Global prime, but that really does not help. From the trade receipts of global prime, I found that my orders were sometimes rejected 2-3 times before it was filled. Execution speed of STP is slower than market maker or true ecn and it is normal to take more than a second. I trade standard lots so I am on A book. On everage my profit is only a few pips so there is no way I can offer $7 a lot. I do not know how others are ok with $7 per lot. After paying 2k a month, I realized that IC took more than 50 percent of my profit. lol. Their customer service is also the worst I experienced. Lots of chinese guys there that are rude and do not speak good english. I guess they want to talk to me in Chinese. IC markets never refund me even it is their fault. Their sister company, global pirme, provide a little better customer service. In essence, They are the same shit. I have got 2 full refund from my current broker. It is not the business model, market maker/stp/ecn that but rather business attitude that decides the company policy. My current broker is also STP/market maker. The size of customer base is important. Bigger company should be less money hungry and greedy because it is not necessary to hunt losses aggressively. Most retailers are loser so the profit will come naturally. Mt4 is a good platform for charting and I have done my EA with MT4. I think it is more important to choose a broker than choose a platform. Many prime brokers have their own platform for ECN accounts. It is going to be a headache to pick one. I think java api is a good choice because it is cross platform. Once I recode my program in java, it can work with many brokers. cTrader is also a good choice, but only seen retail brokers support it.
  • #625
  • Mar 2, 2016 1:59am Mar 2, 2016 1:59am
BUMP!!

Lets not forget forex.com steals its "clients" money and they are not alone!! FXCM have been fined over $8million dollars for similar things. BTW, the big fines are not big because the same company’s keep re-offending!
  • #626
  • Mar 2, 2016 4:52am Mar 2, 2016 4:52am
LOL. forex.com has been advertising itself in China heavily , as the most honest US forex broker
  • #627
  • Mar 2, 2016 10:46am Mar 2, 2016 10:46am
Quoting demark1
{quote} Thank u I had a VPS set up in New york because IC advertise that they have a server in New York. The latency between the VPS and IC's server is less than a few ms that is why I bought the VPS. If I remember it correctly, IC Markets routes my order to both New York and Hongkong. It is a random act and myth how they operate. But I have found the price feed from the 2 could be 1-2 pips different. Most Fake ECN brokers are both market maker and STP. In that regard, IC is a market maker and a STP. Lots of other are the same. I am ok as long as...
Like I said, it's MUCH better if you use cTrader. Trades are executed much slower on MT4 than on cTrader on an overall level. If you sign up with an Introducing Broker, you will get much reduced commission than $7. I dunno about the rejection of your orders; looks like those are requotes then which is a frequently occurring practice in MT4 with the Virtual Dealer Plug-In. Even charting is much better than cTrader I find, lot more intuitive and informative and with cAlgo you can design really versatile and powerful trading bots. Its C# is the easiest to learn among all the C# flavours used by all the platforms.
Make your losses in demo. Earn your profits live.
  • #628
  • Mar 2, 2016 10:48am Mar 2, 2016 10:48am
Quoting fifaman2009
LOL. forex.com has been advertising itself in China heavily , as the most honest US forex broker
OMG! I feel so sorry for the Chinese traders who now make up the biggest sucker traders market for all those scam brokers. I hope they are more informed and experienced in choosing brokers after what they went through with IronFx.
Make your losses in demo. Earn your profits live.
  • #629
  • Mar 2, 2016 9:19pm Mar 2, 2016 9:19pm
Hi yuben

what strategy you trade ?
  • #630
  • Mar 2, 2016 10:43pm Mar 2, 2016 10:43pm
Quoting Forexia
{quote} Like I said, it's MUCH better if you use cTrader. Trades are executed much slower on MT4 than on cTrader on an overall level. If you sign up with an Introducing Broker, you will get much reduced commission than $7. I dunno about the rejection of your orders; looks like those are re-quotes then which is a frequently occurring practice in MT4 with the Virtual Dealer Plug-In. Even charting is much better than cTrader I find, lot more intuitive and informative and with cAlgo you can design really versatile and powerful trading bots. Its C# is...
My current broker doesnot have the cTrader platform. Re-quotes I talked about was between the dealer and its LPs. Orders were rejected by the LPs for whatever reason but usually retail traders do not know what happened. All they can see is slippage. Execution speed is less important for me because It is possible to catch more profit when the execution is slow. The real deal is low spread from ecn brokers. I admit cTrader is a beautiful platform. will try it.

forex.com is not a scam broker, although there are better ones. Real scam will never send your money back, not even one cent. All your initial deposit will be lost.
  • #631
  • Mar 3, 2016 3:14am Mar 3, 2016 3:14am
Quoting demark1
forex.com is not a scam broker, although there are better ones. Real scam will never send your money back, not even one cent. All your initial deposit will be lost.
LOL, using virtual dealer plugin , manuipulating price feeds , cancel winning orders ; all these kinds of practices wont be considered as Scamming ..you just blow my mind .
Btw, they had been fined by NFA , by using Virtual dealer plug-ins, maybe the company has changed its policy afterwards, but once a scammer, always a scammer, there are plenty amount of decent brokers outhere.
  • #632
  • Mar 3, 2016 9:38am Mar 3, 2016 9:38am
Quoting demark1
{quote} My current broker doesnot have the cTrader platform. Re-quotes I talked about was between the dealer and its LPs. Orders were rejected by the LPs for whatever reason but usually retail traders do not know what happened. All they can see is slippage. Execution speed is less important for me because It is possible to catch more profit when the execution is slow. The real deal is low spread from ecn brokers. I admit cTrader is a beautiful platform. will try it. forex.com is not a scam broker, although there are better ones. Real scam will never...
Oh yeah I am not surprised to hear the requoting between LP and the dealer; unfortunately it is quite common cuz after all the LP's are the ULTIMATE market maker in the forex market. They call the ultimate shots and if market maker dealers at retail level can requote, what stops those LP's from doing it?

The spread means nothing if they can widen it to whatever they want when executing the trades. It's the slippage + the advertised spread that counts.

Forex.com is what I would qualify as scam broker. Forfeiting any profits that a trader and not allowing him to withdraw his profit is what I would call scam. And the type of broker that you refer to as not even sending back the money to the trader is what I call fraudsters or con artists; they don't even register as brokers in my book.

Have fun with cTrader! You are going to love it!!
Make your losses in demo. Earn your profits live.
  • #633
  • Mar 12, 2016 5:35pm Mar 12, 2016 5:35pm
Wow that's serious amount, it is pretty sad to see brokers restricting good traders, this is why we need to forget about conditions and look for safety in selecting brokers because if one is good enough than he can do well in any conditions, but with wrong broker even good traders will suffer.
  • #634
  • Mar 12, 2016 10:15pm Mar 12, 2016 10:15pm
Quoting Forexia
{quote} Oh yeah I am not surprised to hear the requoting between LP and the dealer; unfortunately it is quite common cuz after all the LP's are the ULTIMATE market maker in the forex market. They call the ultimate shots and if market maker dealers at retail level can requote, what stops those LP's from doing it? The spread means nothing if they can widen it to whatever they want when executing the trades. It's the slippage + the advertised spread that counts. Forex.com is what I would qualify as scam broker. Forfeiting any profits that a trader...
Hi,forexia
yes, ctrader is better than meta.
Do you recommend any ctrader broker?
  • #635
  • Mar 16, 2016 10:14am Mar 16, 2016 10:14am
Quoting fifaman2009
{quote} LOL, using virtual dealer plugin , manuipulating price feeds , cancel winning orders ; all these kinds of practices wont be considered as Scamming ..you just blow my mind . Btw, they had been fined by NFA , by using Virtual dealer plug-ins, maybe the company has changed its policy afterwards, but once a scammer, always a scammer, there are plenty amount of decent brokers outhere.
Apparently you do not understand what scam is.

Actually I am going to open an account with GTX and find out the how the feed and liquidity is by myself. If u blow ur mind, that is your problem.
  • #636
  • Mar 16, 2016 10:29am Mar 16, 2016 10:29am
On the ecn platform, manipulation comes from the liquidity providers, not the brokers. If the liquidity provide pull the plug, reject orders(= requote), hunt stops, or freeze platforms. There is nothing the broker can do.
  • #637
  • May 7, 2016 12:02pm May 7, 2016 12:02pm
Quoting Rtm
Another! wow So many people reporting from them, including myself! Similar things happened to me, they basically stole alot of money from me and I will never ever go back there and will do everything I can to stop others from going there. They are by far the worst bucket shop there is. No doubt they have been fined before.
This is good to know now. Whom do you recommend?
  • #638
  • May 7, 2016 5:52pm May 7, 2016 5:52pm
Quoting demark1
On the ecn platform, manipulation comes from the liquidity providers, not the brokers. If the liquidity provide pull the plug, reject orders(= requote), hunt stops, or freeze platforms. There is nothing the broker can do.

after reading your remarks it seems you might be a broker trying to defend scams by brokers my opinion only
people leave, but this thread will go on for ever
  • #639
  • May 9, 2016 9:58am May 9, 2016 9:58am
http://smnweekly.com/2016/05/05/gain...l-in-apr-2016/

that's maybe a resut of you guys keep pushing this post to the front
  • #640
  • May 9, 2016 10:27am May 9, 2016 10:27am
Quoting fifaman2009
http://smnweekly.com/2016/05/05/gain...l-in-apr-2016/ that's maybe a resut of you guys keep pushing this post to the front
Thanks for sharing
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