MT4 and IG Index price discrepancies

[random12345]

I don't think fxcm were cleaning out accounts, they were slipping people a few pips here and there using the plugin. Plenty of others have been caught at it too, I seriously doubt there is a broker that is not abusing their clients in some way or other.

Would you even know if your broker was stealing from you or would you just accept the old and now discredited excuse that slippage is natural and not broker induced?

I wouldn't know if IB or LMAX were stealing from me in the same way you don't know if they are... I don't know though, being filled on my exact stop entry for 99% of trades (the balance being news bars where I sometimes slip 1-3 pts, woe to me...) and getting the balance of the real time move deposited in my account makes me wonder exactly where the theft is occurring? I do sometimes get filled at an average price across two pts because I trade large size for a retailer... maybe this is where the stealing be done though I dunno, I saw this kind of latency fill issue at Mitsubishi too...

Those dastardly b'tards.

 

[pboyles]

The stealing as you call it has in the past been done by using asymmetrical slippage. It's well documented in the fxcm and gain capital cases. Fxcm had to repay $6 million to clients. Still if you're happy enough to lose that extra money then go right ahead. People steal from shops all the time but the shops don't always go broke. It's still stealing though so I suppose it comes down to ethics and whether you accept that stealing is OK or not.

 

[tar]

Artificial negative slippage is stealing , not paying price improvements is not necessarily stealing it depends if whether you're dealing with a MM or a broker ... etc.

 

[random12345]

The stealing as you call it has in the past been done by using asymmetrical slippage. It's well documented in the fxcm and gain capital cases. Fxcm had to repay $6 million to clients. Still if you're happy enough to lose that extra money then go right ahead. People steal from shops all the time but the shops don't always go broke. It's still stealing though so I suppose it comes down to ethics and whether you accept that stealing is OK or not.

Yes yes, I'm aware of the cases, you've mentioned them numerous times and I have read the case notes, but I'm not talking about those brokers though am I? So you're saying, as a matter of FACT that LMAX sometimes slip me into the exact price I wanted to enter at each time (these are STOP orders remember) by marking up the price against me on top of the market each time and that's how they make extra money? Note that my esignal shadow feed shows with very minor deviations the exact same prices though and they can't slip me without it being charted else it would feck up my trade price algorithm and I'd end up on the wrong side of the market (which has not yet happened...). And that they are also cruel enough to micro slip me on 200ms news bars just out of greed? They pocket the difference eh?

Slipping pips might be profitable for certain unscrupulous brokers and we've agreed they should be punished numerous times before. What you're unwilling to accept is that even fair market conditions, which I do believe exist with certain brokers, are still utterly hostile to the majority of forum posters. This game is much too complex in the long term for the caliber of participant it attracts.

 

[Trevor2522]

Any cases of UK brokers/spreadbet companies -- as opposed to US -- being fined?

 

[Jason Rogers]

I don't think fxcm were cleaning out accounts, they were slipping people a few pips here and there using the plugin.

FXCM has never used a plugin. What you are saying simply isn't true and may be libel? I believe what Steve discussed a few months ago should be respected: "making claims that cannot be backed up by some evidence then there will be a very real risk that your post will be altered or removed." (http://www.trade2win.com/boards/ceo-exchange/166820-legal-action-posts-threads.html)

I'm all for having a frank discussion about execution practices and slippage. I'm still curious if you agree with holding all brokers to the same standards that FXCM offers for positive slippage? Or should brokers be allowed to re-quote rather than passing through positive slippage to the trader as is the case with many brokers?

 

[pboyles]

FXCM has never used a plugin. What you are saying simply isn't true and may be libel? I believe what Steve discussed a few months ago should be respected: "making claims that cannot be backed up by some evidence then there will be a very real risk that your post will be altered or removed." (http://www.trade2win.com/boards/ceo-exchange/166820-legal-action-posts-threads.html)

I'm all for having a frank discussion about execution practices and slippage. I'm still curious if you agree with holding all brokers to the same standards that FXCM offers for positive slippage? Or should brokers be allowed to re-quote rather than passing through positive slippage to the trader as is the case with many brokers?

I don't for a minute think the other brokers are any better in this respect. In fact I have highlighted fines imposed on Gain Capital, Alpari, IB, Ikon and others (there are so many I can hardly remember them all). FXCM received the biggest fine for dodgy slippage practices, what you used to do it is rather irrelevant.

 

[Jason Rogers]

I don't for a minute think the other brokers are any better in this respect. In fact I have highlighted fines imposed on Gain Capital, Alpari, IB, Ikon and others (there are so many I can hardly remember them all). FXCM received the biggest fine for dodgy slippage practices, what you used to do it is rather irrelevant.

The past may be irrelevant, but the execution practices that traders experience now is not. I know you have spoken consistently about brokers treating their clients fairly, and I completely agree that traders should have the opportunity to receive positive slippage on their trades. Unfortunately, many brokers will pass on negative slippage when the market moves against them, but re-quote to the "correct price" when the market moves in their favor.

There are no re-quotes on FXCM's platforms, and all orders with FXCM can receive positive slippage, dependent on liquidity of course. The stats below show that with FXCM price improvements occur as often as negative slippage, and traders wanting to maximize their positive slippage should use limit and limit entry orders.

 

[pboyles]

I don't think the past is irrelevant, that's rather like saying someone's previous convictions for robbery are irrelevant when applying for a job in a bank.

 

[Vasco da Banana]

I don't think the past is irrelevant, that's rather like saying someone's previous convictions for robbery are irrelevant when applying for a job in a bank.

Innocent until caught!

 

[D70]

FXCM has never used a plugin. What you are saying simply isn't true and may be libel? I believe what Steve discussed a few months ago should be respected: "making claims that cannot be backed up by some evidence then there will be a very real risk that your post will be altered or removed." (http://www.trade2win.com/boards/ceo-exchange/166820-legal-action-posts-threads.html)

I'm all for having a frank discussion about execution practices and slippage. I'm still curious if you agree with holding all brokers to the same standards that FXCM offers for positive slippage? Or should brokers be allowed to re-quote rather than passing through positive slippage to the trader as is the case with many brokers?

LOL, is that a threat??? Nice.

 

[tar]

LOL, is that a threat??? Nice.

I know that they were fined for not passing price improvements , but to be fair did FXCM use the plugin ?

 

[pboyles]

The past may be irrelevant, but the execution practices that traders experience now is not. I know you have spoken consistently about brokers treating their clients fairly, and I completely agree that traders should have the opportunity to receive positive slippage on their trades. Unfortunately, many brokers will pass on negative slippage when the market moves against them, but re-quote to the "correct price" when the market moves in their favor.

There are no re-quotes on FXCM's platforms, and all orders with FXCM can receive positive slippage, dependent on liquidity of course. The stats below show that with FXCM price improvements occur as often as negative slippage, and traders wanting to maximize their positive slippage should use limit and limit entry orders.

I don't think it can all be swept under the carpet. Lets remember you only compensated US based clients. Presumably you kept the money that was taken off all other clients. You have steadfastly dodged this point for well over a year.

I'll ask again, were the same slippage practices applied to non US account holders and if so when will they be compensated? How much did non US based clients lose as a result of your practices?

 

[D70]

I know that they were fined for not passing price improvements , but to be fair did FXCM use the plugin ?

It's the manner in which he waves a legal threat that I find offensive. Not the basis behind it.

 

[hacks]

You can trade using MT4 with FXCM, so they may or may not have used the virtual dealer plugin. I guess we will never know. But other brokers have specifically said on their website that they don't use it, such as MB Trading.

 

[Jason Rogers]

You can trade using MT4 with FXCM, so they may or may not have used the virtual dealer plugin. I guess we will never know. But other brokers have specifically said on their website that they don't use it, such as MB Trading.

Hi Hacks,

FXCM has never used the virtual dealer plugin.

In fact, until recently, all our MT4 accounts were on No Dealing Desk (NDD) forex execution. Then last year, due to client demand, we introduced a dealing desk option with spreads that are 1 pip lower for the most popular currency pairs. Even on our new dealing desk execution, there are no re-quotes, no restrictions on stops and limits, and no virtual dealer plugin.

Jason

 

[brettus]

Artificial negative slippage is stealing , not paying price improvements is not necessarily stealing it depends if whether you're dealing with a MM or a broker ... etc.

No paying price improvements isn't stealing as long as they don't give you negative slippage either. You're basically saying MM have free reign to fill you anywhere.

 

[tar]

You're basically saying MM have free reign to fill you anywhere.

No i didn't said that , where i said that ? It isn't necessarily stealing , but yes it could be , it depends ...

 

[brettus]

No i didn't said that , where i said that ? It isn't necessarily stealing , but yes it could be , it depends ...

I'm exaggerating, but you get my point. It's just not fair practice. They already take the spread, which I'm willing to pay. Why do they need to steal my price improvements? Slip me and give me price improvements. Requote me.

 

[brettus]

Hi Hacks,

FXCM has never used the virtual dealer plugin.

In fact, until recently, all our MT4 accounts were on No Dealing Desk (NDD) forex execution. Then last year, due to client demand, we introduced a dealing desk option with spreads that are 1 pip lower for the most popular currency pairs. Even on our new dealing desk execution, there are no re-quotes, no restrictions on stops and limits, and no virtual dealer plugin.

Jason

Can you use more banks to price? Your spreads are bit whack overnight. You add on 2 pips overnight in spreads. That's bit of a joke really. You charge the client 100$/mio(roughly) and pay around 3-4$/mio. Im guessing.

If i was to open an FXCM activtrades account. Would I see those spreads, but 2 pips better or do you widen those as well as charging commissions?

I see on the website. You hsve eurusd from 0.7 spreads. Surely it goes lower than that. You set minimum spreads on the currenex hub? Probably add 0.1 either side too. Its ok. Ill find out soon enough.