I have been forum browsing for information regarding my question and have come to some conclusions that make some sense, but figured I can post my questioin here just for additional clarification.
I am registered with FX choice and have downloaded their Meta trader 4 platform. I was watching the EURNZD chart when I noticed a huge dive, which is pictured below.
I then checked the Oanda chart with the same pair EURNZD on the same time frame and saw that the huge spike down wasnt there.
I have read a number of conclusions to this that include stop loss hunting, a bad tick etc…
Can anyone clarify why there is a spike in one chart and it is missing in the other chart? Thank you for any insight.
Have you contacted the helpdesk/support staff at FX Choice, together with a copy of your Oanda chart, asking for their observations, and whether they’d like to correct your misfortune, here?
That should be the first avenue of approach.
Ultimately, if they won’t do anything about it, there’s probably nothing much you can do about it, since they’re a counterparty market-maker rather than a genuine broker, and you’re not really trading EUR/NZD with them, but only trading directly against them at whatever prices they choose to quote. Your last resort, if unsatisfied with their charts, is only really to use another broker instead, I’m afraid.
Hi Forexbrian33 - I have seen such anomalies only rarely in the last 10+ years with the several UK-based spread betting firms I have used. I can assure you its a data feed error. On one such occasion, when I was actually in a trade, a spike occurred on the firm’s chart which triggered my stop-loss; the firm immediately identified this and restored the position before I had even noticed and they then contacted me to let me know what they had done.
Whereas I have never personally suffered from stop-hunting so cannot conclude that’s what we’re seeing here, I have seen data feed error and I know it happens. If the firm is any good and tightly regulated, no traders knocked out by spurious data should be harmed. Eventually, the chart from my firm was cleaned up so as not to leave any residual misleading patterns, maybe you will shortly see this also.
Whichever of the two it is, what matters is surely (a) whether it’s correctable by the broker, once it’s happened (and this isn’t going to be answered without [I][U]asking[/U][/I] them), and (b) whether this is a broker with whom one wants to continue to trade (for me, that would be easy: it’s not one I’d have been using in the first place, but I’m not the person asking, am I?) :33:
Yes, you should definitely contact them and show them the two charts. But if this broker is a market maker, then perhaps you should reconsider your custom with them. I briefly checked their website, I saw that this broker is regulated in Belize and offers bonuses. Classic market maker for me, which screams stay away.
Hi Forexbrian33, Thanks for choosing FXChoice as your broker. Yes, this situation is a rollover and the spreads were consequently wide, as demonstrated here in the spike on your MT4 chart. In reality, nothing is executed at this price. We receive prices directly from our liquidity provider and we assure you that we do not interfere with these prices in any way. During the rollover, liquidity providers remove their orders and consequently spreads widen.
FXChoice Ltd.
I have traded with many different brokers and can honestly say that I have never experienced any stop-hunting and at this point, I am starting to think that it is a myth. A myth created by less experienced traders, for the most part. Retail traders are inexperienced, in their mass and sometimes tend to see things that aren’t there
I have been in situations similar to this one, and it was quickly rectified by my broker. I had a position and around midnight, “happy swap time,” there was a spike on my chart, and my position got closed. I contacted their support, and everything was fixed, they reopened my position.
So, my advice to the topic starter is this, contact them and see what they say.
Right, Lexys…huge red flags I guess. Usually this is the first thing I check, I think that most traders should too.
I was about to ask if there is any update but I see that there is a posted reply already.
Indeed … it was on the tip of my tongue, in response to “We receive prices directly from our liquidity providers” to say “You need to find some better ones, then, like other brokers have, so that your charts don’t have spikes that other brokers’ charts don’t have, don’t you, if you want to keep your customers?”, but to be fair to them, he did also specify that nothing was actually executed at that price, so I suppose that’s ok, then (if you like that kind of thing)? One can’t help wondering, though, what would have happened if something [I][U]had[/U][/I] been executed during the spike?
[U]Belize “regulation”[/U]: the reasons that counterparty market-making “brokers” [I]choose[/I] to be regulated in Belize are reasons designed for their own protection rather than that of their customers;
Yes, I completely understand what you mean. I guess during the rollover such things might happen but if anything is executed I’m not sure if they would compensate the clients (after all I think that it would not be the clients’ fault and it should not be their concern who are the LPs).
Ahhh Yes… So it was the LP with the candlestick in the cloakroom…
Drmorbid so after the “digital” spike… ONLY the traders that call their brokers have their positions reinstated…
Full well knowing that most traders won’t be running multiple platforms and actually notice and remonstrate the spikes.
Note: FX Choice signs on in May 2012 and Drmorbid signs on in June 2012 with one post disputing stop hunting with years of trading experience and the other asking what could possibly be a red flag??..just saying
Call me an inexperienced cynical bas$%@#, but what I take out of this thread is that BP is rich feeding grounds for the brokers.
Lol busted
Now seriously, if such thing happens (I mean the “mysterious” spike) the normal approach of the broker should be to adjust all affected trades and amend the balance of the affected accounts with no difference whether a client calls or not. Anything other than that is a scam.
Guilty as charged (sarcasm), caught in the act. I am here to defend the honor of the one “whose name we are not permitted to pronounce” (I meant the broker), even though they have an official account on here. (Facepalm). Don’t be paranoid.
I didn’t say that “[I]only[/I]” brokers regulated in dodge-pot countries are the ones to be avoided.
There are some scammy brokers everywhere.
There are also brokers regulated in good countries, whose regulators have exposed them as crooks and liars, and fined them [I]on multiple occasions[/I], and one should avoid those, too.
In my opinion, checking the regulatory record of a broker is one of the most important things you can do, before opening an account with them.
Regarding “the case of FXCM”, as you put it, [B][U]no[/U][/B] broker has ever had such a longstanding, worldwide, historical record of multi-million fines over adverse findings [B]directly related to the ways they treat their clients[/B] as FXCM has. I’m not pointing this out just because I’m trying to sound like “I told you so”, but to be fair I [I]have[/I] actually been saying this here for [U]years[/U], before they were kicked out of the US. The writing was on the wall for anyone who looked at the [U]consistency[/U] of their [I]previous[/I] regulatory record (it was [I]appalling[/I], and I’ve posted many links to it here, in the past!).
What is most concerning though is that the FXChoice demo account doesn’t show the spike at all. So I can only conclude that I will get different results from my live account than the ones I’m experiencing on demo. Although, I will say that the way I trade such an anomaly would not have affected me.
Lexys - when you say that FXChoice is a market-maker does that mean when I sign up with their pro ‘ECN’ it is not actually an ECN, or simply that, FXchoice puts the majority of their clients on a ‘B’ book?
Also what brokers do you find to be reliable? Many brokers accredited in Australia, and the USA (notably FXCM) are highly supsect as their reviews on sites like FPA demonstrate, whereas brokers like FXChoice, seem to be keeping their clients happy, somehow.
Care to address any of this, FXChoice, representative?
