Fraud or not: metatrader 4 virtual dealer plugin Boston Technologies

Trading Tech and Tools
1

Hi folks came across this piece of [B][U]supposed[/U][/B] software by MetaQuotes and Boston Technologies.

Does anyone know anything about it?

http://www.forexfactory.com/showthread.php?t=70582

http://www.metatrader4.com/forum/13219

If you are noticing increased negative slippage and you use MT4 this is not good, BUT could be caused by this software. It would be mainly used by dealer driven hedging MT4 forex brokers like IBFX or others. As hedging brokers are the only ones that can benefit out of your losing trades. Not that always do, but they can. I also got told that last time it was posted at metatrader which is the metaquotes forum it got deleted very quickly.

2

Guess what… …my questions about this in the metatrader.net forum was deleted within hours of me posting a question. I was only asking, not accusing.

I now believe that metaquotes and boston technologies may have something to hide. I don’t know but maybe.

3

oh they do! that software does exist! It has to. If we have EA’s that can beat them, whay cant’ they have anit-ea’s?! I read this a while back. this is why I will only i use 3 mt4 brokers:

ATC (5k minimum in 2 weeks when they go live! yes!)
MBtrading (still beta)
BroCo (investor platform)

anybody else is just claiming they are an ECN so don’t trust it. believe me, i’ve done much research on mt4 ECN’s and everybody else is a fake or NDD. and a no dealer desk IS NOT an ECN to clarufy that!

anything else on mt4 is crap! i know personally, beacuse i was with the supposed “top” mt4 brokers! there’s no reason for their spreads to be so high! not one reason. I don’t wanna hear any excuses because i don’t have any problems at broco. my only enemy is the market and price!

The truth is out there and anyone trying to speak will be shut up just like you were!

4

the broker “add on” does indeed exist although i dont have a clue as to who is using it, and the frequency of the use.

all involved would obviously like the information on this nasty little secret to just go away, but it comes up every few weeks or so.

broco (regular, not investor) appeared to try it for a while, but now seems not to be using it, and while it doesnt upset your orders if you leave a tp set on a limit order, it can play havoc on a manually closed scalping tehnique, holding back your cover order for whatever time they specify on the set up — allowing the desk trader (who sees your trade come in) to move the price out of your favor.

NASTY little beastie !

che

5

yeah at first i was surprised but now Ive been around some live trading, not so surprised! well, I don’t want to find out the hard way myself! i just know of other tricks, well not tricks but outright scams, like deleting your trade history and refusing to pay. I wish I had the money for BT’s bank bridge. 20k to lease and 1500 a month seems like a lot but when you get to 100k, you want to keep it above 100k! but goforex.com can hook you up with guys that make currenex bridges (supposedly the same type that the BroCo investor platform uses) for 1000.00 usd. not bad if you want to connect to like say, Barclay, Goldman-Sachs or UBS

6

On the basis that its true I would encourage you to report to the appropriate authorities.

Make a complaint the software rather than your own trading. Because proving it on your own trading is almost impossible. But showing it on the history of their computers would be much easier.

USA

http://www.cftc.gov/customerprotection/redressandreparations/howtoreportinformationtous/complaintform/index.htm

http://www.nfa.futures.org/BasicNet/Complaint.aspx

Australia

https://www.edge.asic.gov.au/008/complaintV005?get/complainant/t=39363ba821ffb424ef4143f7eeff4abc9a755e9

Britain

http://www.fsa.gov.uk/Pages/about/complaints/contact/form/index.shtml

Swiss

http://www.finma.ch/e/pages/kontakt.aspx

Here’s the Boston Technologies web site

http://bostontechnologies.com/

Here’s the link that was deleted without [B]any correspondence[/B]. Metatrader trying cover up …but all things are traceable when investigating bodies get involved.

http://www.metatrader4.com/forum/13219

Don’t know about other countries.

Make a formal complaint [B][U][I]about the software[/I][/U][/B], instead of your actual personal trading.

Here is an example complaint or some of the tings that you might say in your complaint. Make sure you edit / correct as authorities will quickly recognise copied complaints:

Forex dealers such as IBFX, FXCM and Alpari have two ways of making money. One is spreads which is fair and legitmate, the other is hedging against our losing positions, which is also fair. But as a result they make money when the trader like me loses.

But what is not fair is when Dealer / broker deliberately uses software such as Virtual Dealer Plugin by Boston Technologies in conjunction with MetaQuotes, which deliberately and willfully slows down execution of trades in Meta Trader 4 platform to turn possible profitable trades to be less profitable or make them a loss.

Slippage at point of entry can allow the broker / dealer to make more money and the trader less if there was no real slippage there.

Slippage at point of exit can reduce the actual ability for exiting a trade, and therefore make a trade less profitable for the client. It can also hide the real exit point and allow for profit to be taken by the broker instead of the client.

The fact that Virtual Dealer Plugin 3.16 can also be targeted at traders who trade below a certain lot amount as is seen in the screen shot is appaulling. This is particularly bad because a trading company / broker / dealer can target users who are likely to be new to the market and have little trade with and maybe do not know the dirty tricks that some brokers get up to.

Virtual Dealer Plugin and any other similar programme should be made illegal as it is deliberately aimed at taking money from traders who could easily be making profit.

Many metatrader users have noticed an increase in slippage may occur with some brokers if they show themselves to be profitable in the first months of trading. This occurs even during highly liquid times in the market. And because brokers can benefit out of some of the clientelle going bust by hedging, I believe that the NFA need to step in.

Millions of dollars of fines to owners and managers of companies that employ these tactics are needed. Because a few slippages a day for thousands of traders each day adds up to a real lot of money.

[B][U][I]Make the formal complaint it will be worth it in the long run, because if MT4 are doing this then other platform dealers are likely to be developing it if MT4 get away with it, and it will effect every trader. If we let become accepted, it will become common place. Complain and complain loud about it.[/I][/U][/B]

Cheers

7

A number of Australian Foreign Exchange brokers use a trading platform known as Meta Trader 4. The companies that I know that use it include:

http://www.forextrading.com.au/
http://www.gomarketsaus.com/
http://www.axistrader.com.au/
http://www.forexfs.com/

.

These are the links to what appear to be fraud inducing software, produced supposably by Boston Technologies and MetaQuotes, and available for any metatrader based broker:


http://alansforexblog.com/wp-content/uploads/2008/04/metaquotesvirtualdealer2.jpg

http://alansforexblog.com/wp-content/uploads/2008/04/metaquotesvirtualdealer1.jpg

http://alansforexblog.com/wp-content/uploads/2008/04/dealer.PNG

So the complaint is about the use of dealer / broker software that has been developed and can be employed by meta trader offering brokers. To understand my exact complaint I think I need to explain how forex brokers profit and what slippage is.

Market Maker Broker Profitability

Market Maker Brokers such as those at top generally have 2 ways of making money. One is spreads which is fair and legitmate, the other is hedging against a traders losing positions, which is also fair. Consequently the broker / dealer makes money when the traders have a loss. However, because they only place traders trades and draw execution of trades from within their own funds and not the general market place, a market maker broker has an interest in gaining money out of losing clients to increase the pool of funds. Hence there are advantages for some brokers in having a number of their clients in losing positions. Hence there is a natural conflict of interest between the broker and trader. Hence the software identified below I believe gives the broker an illegitimate ‘house advantage’.

What is slippage?

Slippage is the change in price at the immediate point of entry or exit from a trade, and hence a different price is offered or forced upon the trader. However, slippage in its true form, should at times work in favour of the trader and at other times work against the trader.

The Fraudulent Software and Its Potential Use.

But what is not fair is when dealers / brokers deliberately uses software such as Virtual Dealer Plugin 3.16 by Boston Technologies in conjunction with MetaQuotes, which deliberately and willfully slows down execution of trades in Meta Trader 4 platform to turn possible profitable trades to be less profitable or make them a loss. This software prevents this and eliminates potential profits to the trader.

Slippage at the point of entry into a trade can allow the broker / dealer to make more money and the trader less if there was no real slippage there. This software supposably allows this to occur. It can also hide the real trade entry point so that if the trade happened to move in the traders favour for entry the broker gets the additional income.

Slippage at point of exit can reduce the actual ability for exiting a trade, and therefore make a trade less profitable for the client. It can also hide the real exit point and allow for profit to be taken by the broker instead of the client.

The fact that Virtual Dealer Plugin 3.16 can also be targeted at traders who trade below a certain lot amount as is seen in the screen shot is appaulling. This is particularly bad because a trading company / broker / dealer can target users who are likely to be new to the market and have little money to trade with and maybe do not know the dirty tricks that some brokers get up to.

Virtual Dealer Plugin and any other similar programmes should be made illegal as it is deliberately aimed at taking money from traders making those that are profitable less profitable, and those that are struggling broke.

Many metatrader users have noticed an increase in slippage may occur with some brokers if they show themselves to be profitable in the first months of trading. This occurs even during highly liquid times in the market. And because brokers can benefit out of some of the clientelle going bust through hedging techniques, I believe that ASIC need to step in.

Millions of dollars of fines to owners and managers of companies that employ these tactics are needed. Because a few slippages a day for thousands of traders each day adds up to a real lot of money.

I tried to communicate in non-accusational manner with metaquotes, and was banned without any communication from their forums and had my post deleted within 6 hours. Many other traders have reported this as happening to. The former link of my request for information is

http://www.metatrader4.com/forum/13219

if that helps with tracing anything.

We must prevent this to stop the illegal practices within the unregulated foreign exchange industry, or any other trading industry.

8

Some one has created a tool/indicator to detected the Virtual Dealing Desk Software , you can searchYoutube for “mt4 virtual dealer plug-in” video
Because I guess no link are allow in this Forum
:18:

10

Hi All,

I have a forex brokerage. Our platform is MT4 too. We are ECN/STP which means the trades are transferred to the liquidity providers (banks) directly. I just wanted to make a post here and let you know about something. It is correct that there are some plug-in that helps the brokers cheat the traders, but not all the brokers choose these tools and tricks. As far as it comes to my brokerage, we have never used and will never use these tools. So far our clients are more than happy with us. We have a very fast execution and tight spread. There is a small slippage with the ECN/STP brokers which is normal, because it takes time to receive the orders from the traders’ computers (specially when their internet is slow) and send them to the liquidity providers’ servers and during this time, the price changes and causes a price difference from the time that the order was sent and the time that it was received, approved and executed by the bank.

However, it is possible to force extra slippage to the trades and cause re-quoting, increase the spread to hunt the stop losses and so many other tricks that some brokers make. But, not all the brokers do it. We have never done that and we will never do it. We have built a big community of happy traders.

Look for honest brokers and you will find some :40:

11

And how do we know you are not using it? Is there a detection indicator that can asure us for sure? Somewhere in MT that lists all the ‘plug-ins’?

12

this plugin Boston Technologies