Thread: Warning broker cheats and plays games during big news!

Originally Posted by ;

No not really. The point of an ECN. Is that as a trader you think commerce against you and that an ECN, isn't likely to play games like stop hunt you personally and or postpone price to fake you out.

Having an ECN you still pay the disperse, which you have to conquer to be in profit and pay their commision wether you win or lose the transaction. So, effectively it ups the disperse you have to conquer before profit by.

Having an ECN. You have a spread AND pay commsion.

oh geez. I can see where this is going but I will bite anyway....

Of course you have to beat the spread if you are dropping at market orders. However, when you take into consideration the spread is SMALLER than what you get at a bucket shop the extra small fee attached to each order you send through means small when you are pushing through LARGE volume.

Bucket shops pad their spreads... always! Where they earn their bread and butter that small bit of cushioning of this spread is. That IS their commission. The difference is that as you push larger and larger quantity, that little extra piece of spread that is added starts to equate to larger and larger commissions you are essentially paying to the bucket store. As it's pre-baked into the spread does not indie it is not a commission. The simple fact that it is pre-baked into the spread means people just like you do not see that you are paying larger and larger commissions because you push higher and higher lots through to the bucket store.

So, you are able to exchange via an ECN with a SMALLER spread in relation to a bucket shop and who also has a particular commission that does not change however big or small the quantity size you exchange is. Therefore, it's in your interest to be swinging some lot sizes to be sure the commission is only a speck of dust in the wind in comparison with the profit going in and out each transaction. ECN's aren't for mr penny account to toy in. They're intended for serious traders moving cash.

Plus, with an ECN you can buy on the bid and sell on the ask rather than passing all kinds of orders as @ market which isn't appropriate if you are using limit orders. In this way you are paying the disperse and possess the potential in the literal sense to scalp. In this way you become a market manufacturer and have possible.

So, why is paying a set commission such a bad thing again?

Originally Posted by ;

Trade futures. And you'll see just how much the commission price structure is. There are times that you pay no spread in any way. . Whaaa!!

I've been trading forex for more than a 7 years now, not switching to something else at this point. That's because they make it illegal to small time traders.

Originally Posted by ;

oh geez. I am able to see where it's going but will bite anyhow....

Of course you have to beat the spread if you're dropping at market orders. However, when you take into account the spread is more compact than what you get at a bucket shop the extra fee attached to every order you send through means when you're pushing through LARGE volume.

Bucket stores pad their spreads... consistently! That small bit of padding of this spread is where they earn their bread and butter. That IS their commission. The difference is that...

Ya, ya, ya, I've heard that argument before. End pay to the broker, than having to overcome the spread.

Why is paying a commission a terrible thing?

1. The spread commission is paid by you using an ECN.
2. I havn't discovered any ECN in the US that has a spread of less than the 2 pips (on EU) I've currently got together with my borker IBFX.
3. MB trading ( the ECN I'd go with when I went this route), successful commission is all about 1 pip each commerce. It scales with the lot size it's a percentage. So if you're trading a larger lot size, it is similar to adding to the spread.
I can't see any ECN giving you a flat rate of commission no matter your volume/slash lot size it would not be in their interest.
5. I am not investing, serious lot dimensions, I am doing risk per my account. I am not changing this to beat the commission/spread.

6. When you have to conquer a spread on a winning transaction, nothing comes out of your account. When you have to beat the spread and cover commission on a winning transaction something is still deducted from your account.

P.S. I was considering MB ECN, however I attempted their mt4 demo several occasions and it would not accept any of my orders no matter the order kind or when I attempted to put an order in if price was standing still. So, all the BS about being in a position to buy inside the spread sounds fantastic however is pretty worthless if the orders will not go in if you see a set up.

P.P.S. However, this is not the purpose of this thread so lets just drop it or begin another thread, this thread would be to point out how IBFX disconnects through the news and does it with regularity.

That's fine. You are wrong on a few points. But I'm glad that you remain wrong.

Originally Posted by ;

I've been trading Currency Market for over a 7 decades now, not shing to something else at this time. That is because they make it illegal for small time traders.

Fair enough, to each his own.

Seven decades of trading experience is really good, unfortunate though that you're still with a broker that does this sort of bucketshop bs. .

Welcome to ignore, cause it is evident you both don't have anything of worth.

Ok back on topicI noticed to this ibfx aus disconect host during news for approximately 30 minutes and with this reali interupts with my trading,I usuali hedge my position with difrent lotsize.So sometimes triger my trade then disconects and reopen 50 pips on counter direction.So the question is could somine recommend some reliable broker with hedge capb. And high leverige and comparable spred on eurusd.Sorry for speling mistakes.

Originally Posted by ;

Are you surprised?

IBFX is a market maker. Of course they are going to delay implementation, disconnect and do whatever else it takes to safeguard their working desk place during market volatility.

Move ECN. Market Makers are dead.

True that!

Im sorry to hear that IBFX are playing with these games STILL. . ( My very first broker was ibfx in 2008 and it was a nightmare.

1.) Requotes, when scalping.
2.) I could never close a profitable position
3.) Execution was slow

Most probably caused all by the Virtual Dealer Plugin , HOWEVER, things do change. IF MDP is operating on IBFX, they are not using the VDP nevertheless that they can disconnect their customers to prevent news trading. Most MM do so from time to time.

I've been with Oanda and IBFX because 2008 and that I really don't have anything negative to say about these. I really don't know whether they're really that poor or people tend to exaggerate somewhat. IBFX has some re-quotes throughout high volatility but that I really don't scalp and I trade so that I don't mind 1-2pip difference, if it happens, since there's no way any market maker can cause me to lose trades. They are professional and useful and I'll continue trading but I'll also be opening a account following year with the ECN broker to learn what's it like to trade with a NDD.

I don't understand why is it that people keep whining, you understand what you're getting yourself into. You always have alternatives. If you don't like market manufacturers, change around to STP/ECNs or trade ETF currencies or spread gambling.

Startling everyne seems to understand whos MM and who is not. Why don't you make a list?