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An example of how to burn accounts

  • #1
  • First Post: Dec 14, 2016 3:54am Dec 14, 2016 3:54am
This is an example of their logic of spread...
I had an account with flat position, means 1 BUY and 1 SELL, to cover my ass since the market was instable... but...
I found it closed with amount 0, and checking the transactions, I saw they closed the BUY at 11134.5 and the SELL at 11192.0... DEAD

I complained and opened an investigation: they say it's normal, as spread is variable...
and to me asking if it was normal that the spread is normally around 1 or 2, with peaks of 4, in that moment was 60... they answered with attached image.

Do you think it's normal? no more market makers...
Attached Image (click to enlarge)
Click to Enlarge Name: Prices.png Size: 11 KB
  • #2
  • Dec 14, 2016 4:14am Dec 14, 2016 4:14am
looks like the DAX jumped from 11134.5 to 11191 in a split second
  • #3
  • Dec 14, 2016 6:43am Dec 14, 2016 6:43am
Quoting tiz.r1
This is an example of their logic of spread... I had an account with flat position, means 1 BUY and 1 SELL, to cover my ass since the market was instable... but... I found it closed with amount 0, and checking the transactions, I saw they closed the BUY at 11134.5 and the SELL at 11192.0... DEAD I complained and opened an investigation: they say it's normal, as spread is variable... and to me asking if it was normal that the spread is normally around 1 or 2, with peaks of 4, in that moment was 60... they answered with attached image. Do you think...
Bid and Ask move independently from each other, the difference of these prices is the spread. It widens and it contracts, these things are absolutely normal. Hedging is no safe guard against spread widening, it's quite the opposite actually. You can of course check if that same happened with other brokers or on other accounts of that same broker but in general I think that the majority of those "the broker widens my spread to rob me" stories are just rubbish.
  • #4
  • Dec 14, 2016 7:58am Dec 14, 2016 7:58am
Quoting tiz.r1
This is an example of their logic of spread... I had an account with flat position, means 1 BUY and 1 SELL, to cover my ass since the market was instable... but... I found it closed with amount 0, and checking the transactions, I saw they closed the BUY at 11134.5 and the SELL at 11192.0... DEAD I complained and opened an investigation: they say it's normal, as spread is variable... and to me asking if it was normal that the spread is normally around 1 or 2, with peaks of 4, in that moment was 60... they answered with attached image. Do you think...
I checked chart at IC Markets and I must admit that it's looks rather suspicious. There shouldn't be spread widening at this moment. However, you can't prove it to ActivTrades. It's bad market maker broker that used many tricks in the past to make trading really hard. Delaying execution by 20 seconds, not problem at all, they can do whatever they want and explain that it was spread widening or external server problem, your computer problem, MT4 problem etc.
Attached Image (click to enlarge)
Click to Enlarge Name: capture1.jpg Size: 237 KB
  • #5
  • Dec 14, 2016 8:57pm Dec 14, 2016 8:57pm
use site such as www.tradeproofer.com to compare entries to all other brokers. much easier to complain when u have substantial claims.
  • #6
  • Dec 15, 2016 1:14am Dec 15, 2016 1:14am
In almost every situation, suddenly wider spreads are based on news releases.
You cannot be extraordinary by being normal
  • #7
  • Dec 15, 2016 1:47am Dec 15, 2016 1:47am
14:53 not very common time for a news.
  • #8
  • Dec 15, 2016 4:11am Dec 15, 2016 4:11am
Thank you all for your comments.
Chatting with their client service is quite useless, they still say that bid and ask are given by the market

Anyway, the good thing is that I didn't have huge amount of money, but it's the principle...
I posted this story just to share the experience, then everybody can take their conclusions.

Insomniawawa is totally right... they can find any possible justification to explain and so it's basically impossible to prove anything.
Lesson learned for me
  • #9
  • Dec 19, 2016 11:02am Dec 19, 2016 11:02am
spread only increase on news.
  • #10
  • Dec 21, 2016 10:02am Dec 21, 2016 10:02am
Quoting JensG
{quote} Bid and Ask move independently from each other, the difference of these prices is the spread. It widens and it contracts, these things are absolutely normal. Hedging is no safe guard against spread widening, it's quite the opposite actually. You can of course check if that same happened with other brokers or on other accounts of that same broker but in general I think that the majority of those "the broker widens my spread to rob me" stories are just rubbish.
  • #11
  • Dec 21, 2016 12:53pm Dec 21, 2016 12:53pm
Quoting tiz.r1
This is an example of their logic of spread... I had an account with flat position, means 1 BUY and 1 SELL, to cover my ass since the market was instable... but... I found it closed with amount 0, and checking the transactions, I saw they closed the BUY at 11134.5 and the SELL at 11192.0... DEAD I complained and opened an investigation: they say it's normal, as spread is variable... and to me asking if it was normal that the spread is normally around 1 or 2, with peaks of 4, in that moment was 60... they answered with attached image. Do you think...
Which broker is this?
Make your losses in demo. Earn your profits live.
  • #12
  • Last Post: Dec 26, 2016 3:44pm Dec 26, 2016 3:44pm
Quoting tiz.r1
Thank you all for your comments. Chatting with their client service is quite useless, they still say that bid and ask are given by the market Anyway, the good thing is that I didn't have huge amount of money, but it's the principle... I posted this story just to share the experience, then everybody can take their conclusions. Insomniawawa is totally right... they can find any possible justification to explain and so it's basically impossible to prove anything. Lesson learned for me
Sometimes it beats me when brokers behave funny sometimes when they know they stand the chance of loosing their dear client?
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