How brokerages are cheating us

WallStreetHero

Well-known member
391 18
This video is quite shocking on how brokerages can manipulate the market and our trades.

https://www.youtube.com/watch?t=1&v=bGWAEX5xtpY


Plugins are available for brokers, just check these out
http://www.tools4brokers.com/products/Virtual_Dealer

Quoted from the description
By the end of delay the plugin confirms the order using the worst price for the trader.
Target groups should be specified in MT4 Administrator.
It is possible to set delays for special actions on a certain account.

You also need to read this:
http://4xtrader.net/forex-market-manipulation-how-to-spot-it/
 
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sun11

Experienced member
1,474 337
I guess this is what done by the market makers.
Hope ECN brokers are not like this.
 

WallStreetHero

Well-known member
391 18
I guess this is what done by the market makers.
Hope ECN brokers are not like this.

Yes your right, but these days every market maker is calling himself ECN by registering a sister company and sending orders to them to avoid being called a market maker.
 

sun11

Experienced member
1,474 337
Yes your right, but these days every market maker is calling himself ECN by registering a sister company and sending orders to them to avoid being called a market maker.

sister company = Introducing Broker Program ?

Regards
 

options-george

Well-known member
483 92
For more on this topic, with heavy emphasis on the US stock markets, have a read of Michael Lewis' "Flash Boys". [It does require a certain amount of background knowledge of the financial markets]. If you want to go one step deeper/more advanced than try Dark Pools.

Flash Boys is a fantastic book trying to explain how the market is very rigged. High-frequency trading firms (HFTs) effectively front-run orders placed by retail traders, mutual funds, pension funds and other institutional investors. Well-known brokers and Wall Street banks sell their customers orders to HFT's to enable the latter to trade against them. These payments are hundreds of millions per annum. And finally you have Wall Street banks ripping off their clients in their dark pools. Often they only "extract" 1c per share traded. However the numbers really add up as they do this all day long on nearly all of the transactions.

You may have heard about the near perfectly-straight fibre cable laid between Chicago and New York at the cost of several hundred million dollars, all for the sake of shaving 3 milliseconds (3/1000ths of a second) of the time taken for an order round-trip? That's Chapter 1 of the book.

It's an amazing read! (Be warned - it may be hard to put down!)
 
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Frank Junior

Newbie
3 0
What is FOREX.com’s anti-money laundering policy and does it affect me?
 

Frank Junior

Newbie
3 0
A withdrawal of funds will result in a reduction of funds available to be used for margin to maintain open positions. This may result in the liquidation of any or all of my open positions. It is your responsibility to ensure that the account holds enough margin to maintain open positions.

Can anyone explain this?
 

michaelbai

Junior member
23 0
A withdrawal of funds will result in a reduction of funds available to be used for margin to maintain open positions. This may result in the liquidation of any or all of my open positions. It is your responsibility to ensure that the account holds enough margin to maintain open positions.

Can anyone explain this?

This has to do with Margin Call or getting stopped out. Ask your broker what their levels are. If your margin can not handle the losing trades after withdrawal your account is basically game over.
 

J H PAGE

Newbie
5 0
I guess this is what done by the market makers.
Hope ECN brokers are not like this.

ECN Brokers are not like this. I work at FCI Markets and we do not take these actions. It is against FCA Regulations to move markets in the sense shown in the video.

It's a little naive to think that ALL Brokers cheat the markets and their Clients when in actual fact, it is very few brokers that are twisted in this corruption but sooner or later are found out.

You're more than welcome to open a demo account at FCI to prove this is not that case.
 

J H PAGE

Newbie
5 0
Magin requirements

A withdrawal of funds will result in a reduction of funds available to be used for margin to maintain open positions. This may result in the liquidation of any or all of my open positions. It is your responsibility to ensure that the account holds enough margin to maintain open positions.

Can anyone explain this?

Margin call is a broker's demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin. Margin calls occur when your account value depresses to a value calculated by the broker's particular formula.

In this instance, FCI Markets, the Broker I value highly, have a partial stop out at 100% Margin call. This means that only your losing positions will be closed when your margin call is met at 100%. Allowing any winning postitions to stay open.
 
 
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