Dirty Brokers

Discussion in 'Brokers' started by foreigner, Jul 18, 2014.

  1. foreigner

    foreigner Est. 12480 Hours and Counting

    Joined:
    Aug 22, 2013
    Messages:
    609
    I wanted to start this thread to raise awareness of the 'dirty games' that brokers play to increase the already high odds of you losing your entire account.

    Second to our own psychology, this could be the biggest risk of failure so its worth thinking about.

    Here are a few examples of inconsistencies that you may encounter with your broker, I strongly recommend you take note and be aware of how this affects your risk reward ratio and ultimately your success.

    1. Price Manipulation - Withholding price from optimal entry zones to pushing price further to trigger stops.

    2. Poor Order Execution - Slippage on entry and exit orders.

    3. Off Quotes - Preventing entry and exit from market at critical times.

    4. Widen Spreads - Eroding profits and increasing losses.


    The best defense against this is choosing a broker that scores well in all the above areas and ditching brokers that repeatedly offend.

    If you have any experiences of your own please share them below so traders can be more prepared.

    Good Luck Good Trading and Good Riddance to Dirty Brokers.
    F
     
  2. foreigner

    foreigner Est. 12480 Hours and Counting

    Joined:
    Aug 22, 2013
    Messages:
    609
    I received this story via PM, I hope the author doesn't mind me sharing!

    --------------------------------------------------------------------
    Hi foreigner,
    Regards IG-Markets. About 5 years ago I had a small account which I used to trade alongside my Futures account. I didn't trade Spot at this stage because it was still in its wild west unregulated stage.
    Anyway, I ran a a very small 3 figure acct to a medium 5 figure account in about 3 months trading SPI CFD's. Obviously levered and trading it pretty heavy. Not recommended.

    I assume their risk management department assumed I would blow up like most gamblers. When this didn't occur they started to crash platform, sticky tickets that took ages to execute, placed me on phone orders with interminable waiting periods incessant re-quotes.

    I closed account and they thanked for my business and I never heard from them again.
    I spoke to another trader who had this occur as well.

    Things may have changed and if used for share cfd's I'm fairly certain everything would be okay.
    Just relaying my experience and why I will never trade with them again and have no issue informing other traders of my experience.

    Have a good weekend
    -------------------------------------------------------------------
     
  3. jack

    jack Administrator Staff Member

    Joined:
    Mar 29, 2013
    Messages:
    2,427
    Yeah, that's the trouble with some CFD based brokers (notably from the UK,) even though they can still service a profitable trader's account and make a few bucks from the spread difference between the CFD they offer and the underlying, it's much more profitable to put the same resources into people who'll just bust out and who they can identify as safe to be the counterparty...

    It reminds me of online bookies who limit your max bet if you've had one too many 'big wins'.

    I realize there's a lot of brokers who view their services as a betting operation and see their clients as gambling punters... and I don't blame them, given the success rate in retail forex, but I'd at least like to know my broker is interested in my business, not my account depleting.
     

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