How forex brokers cheat their clients; Part 2
Two years ago I wrote an article about this very important subject for retail traders and as I see, that’s the one of the most reading articles in my web. Today, I will present the exact move against the clients from one of those brokers, who are not fair enough, to express myself like that for now. I will not name it, but if something like that happens again I write all over the web about it. I made a comparison with several other brokers few days ago and I didn’t manage to find the same move.
I’ve described in my previous article how A book and B book works and this was a gold short entry on April 07. which was caught in my point of view unfair with a move which is made over the B book. That means how the loss from orders goes to the broker or their other side like market-maker, which is mostly owned by the same company. Such a moves are rear, but they can be found all over the forex community, in between the different brokers. Basically, such a forex brokers are using both, “A and B books”, most of the brokers do, but unfair moves like this use the rear ones I quess. Let’s see what happend few days ago.
On this gold M1 charts, you can see the comparison in between two forex brokers and the difference in between the price and spread in that particural minute. I think how I don’t need to use too much words to describe it, because I wrote and explained everything on these charts. The price difference in total in one minute move were aprox 850 pips (xau/usd), (or 85 normal pips) which is huge if you are using a Stop Loss. To be worst in this case, the higest price on Broker 2 wan’t reached the SL, which was 100 pips away from it, but at the time that broker has a 350 pips spread and that’s how he caught the SL and plus. On the other side, on the 1M chart of the Broker 1, you can see the regular price. How this was recorded a day after, I can’t show the spread on Broker 1, but it was normal as I sow his tick chart from that time.
Now, what’s the worst thing about this? Beside how this was an unfair and we can also say an unregural move which took the part of the capital from the trader, it could cause a much bigger problems. I’ve use to experience something like this for several times in my career and I know how moves like this can totaly disrupt your trading. If you take a look how this move took aprox. 1500 euros from your account instead of a probable gain of at least 3000-4000 euros, because the trade in that time was good placed, the highest price of the was Broker 1 price and gold went only an hour latter 1000 pips down, in the morning over 2000 pips down. Now, you can imagine how huge difference is that on your trading account and in your mind even bigger. Especially when you know how this was, let’s call it a scam from your broker. You have to be angry, it’s inevitable and that’s where the bigger problems can begin for you if you continue to trade.
My advice in such a times is to stop trading, investigate a little bit, compare the price with other brokers and then sent it to your broker asking for the explanation. If you explain this clearly to them, similar like I did in my charts, they will probably return the lost money from that trade. But, that’s not what will calm you down, because you will have in your mind the missed profit from that trade and that could disrupt you hardly. You need to relax for few days, to forget about it and let it go. This things will happen, it’s invetable part of trading, unfortunately.
Have you experienced something like this in your trading career? Tell us about it.
Thanks for sharing this post here with us.