I use FXChoice as a broker for the last 8 months. Basically price on GBPCHF opened today and 9 minutes after the open it had a 1 minute period where it rallied 300 pips to hit my stop losses and take 3 trades on GBPCHF which should have been positive into a loss. I look at FXCM chart and there is no such minute. So i talk to the FXChoice rep and they say its their liquidity providers thing and nothing to do with them and that they cant do anything. I have attached the chart.
Does anyone know if this is some sort of scam??? Is the broker stop hunting? How does price move 300 pips in 1 minute??? Does anyone know what happened with GBPCHF??? This account i am using has almost 50% return, is the broker scamming me since i am making good returns? Talk about rigged.
It is a ECN account, or at least its supposed to be.
Hard to tell from the pic. I can’t make out the numbers at the current resolution.
No, my charts do not not spike that high. I would definitely look into a different broker if they don’t resolve it for you. Depending on your location you might possibly have some legal resolution available. These brokers often use the same price feeds, so if you can undeniably prove that spike only happened on their chart, they should fix it for you. If not, ditch them.
They tell me to look at investopedia with this link they sent.
It too shows a strange spike. Ive already been through the crap to learn how to trade and now that im making money i get screwed around with random 300 pip minutes, fortunately i am using micro lots, but what if they were standard lots??? This must be uncommon?
Pip is the fourth decimal place. Again, it is 300, not 30. Well more like 250, It spikes as high as 1.56418. Currently the price is 1.53702. This is not 30 pips, it is more like 300, I have not mixed up a fraction of a pip up with the real deal.
I have closed all other trades through my others accounts and disabled the two EA’s i am using. The account in question was an EA by the way. I will await to hear more from the community before i open anymore trades.
Id post the transcript of me and FXchoices convo but it keeps telling me that its too many images, even though i told word to keep text only. If anyone knows how i can post it please let me know. Then my conversation with the rep will be visible.
I should also note that similar movement happens on other CHF pairs with this broker.
So what is this? How can this be possible? To me this just looks like someone abusing the market to make extra money. Does anyone else have any other thoughts about this? How can one go to sleep at night knowing that there are random 300 pip minutes? Is this the brokers fault? Is it because they have poor liquidity? Perhaps this is just a random event that could have gone the right way for me if i had bought GBPCHF?
Still seems like a scam to me… Do i need a new broker or is this a black swan?
I still don’t understand how price moves 300 pips in one minute and be legit…
Happened with my position too @ XM.COM. No reason to blame your broker I guess. However, I just heard it has to do with a data feed error and brokers are committed for reimbursement. Can anyone confirm this?
Indeed, I was not able to match this spike on charts from other brokers / chart providers. That’s weird. Also, although it happened in the one minute candle, I think it happened in a split second.
Update: just received without any notice whatsoever an amount in my account that seems to cover the losses. I’m not 100% sure if this has to do with the GBPCHF position since no details are provided, but I think it is. I would rather see that my position was restored, but oh well. Let’s see how the candle will close!
Mishav, i would like it if you please contact your broker and insure that this is what happened. This way i can get similar reimbursement for this clear price manipulation. Even if it is an error it should NOT happen. Price does not move 300 pips in a minute.
Seems like a legit price move, but maybe only for the brokers that come online at 17:00 est or earlier.
EUR/USD dropped about 130 pips before catching a bid. GBP/USD dropped 160-ish, USD/CHF up 280-ish. Might be seen by some as the first “real” trading day of the new year, Greek elections and other EUR news not agreeable and very thin market as Asia opens. :17:
Holding a position over the weekend is always somewhat risky. It doesn’t happen all the time but it’s common to see large gaps and wild spikes at the open of the new week.
So what is to be learned from this then? The previous poster said that he is getting reimbursed. FXChoice opens up at what i believe to be 14:00 PST which is 17:00 EST. Basically 2PM in the afternoon my time, so it was open for 9 minutes before this happened. I understand weekend gaps and all that but this stands out on any chart you look at it on. I know FX is volatile but 300 pips in a minute…?
Looks to me like XM.COM opens at 17:05 EST, which is 5 minutes after FXChoice opens and 4 minutes before the wild spike.
I realize this is an old post, however my comment might help others who trade forex.
A retail broker’s ability to trade is limited or expanded by their banking relationships, secondary markets, and their own share of the forex market. Many times you are just trading against another trader from the same brokerage as yourself. Thus the advantage of having a retail broker who has high liquidity.
Additionally, the interbank and primary brokerages usually has a minimum of what they will even accept as a trade and unless your broker has a method to consolidate and forward without intervention, then you are using (or switched) to a dealing desk for this trade and then they are trading against you.
Even advertised NDD brokers, when the order gets under a certain value 20,000 to 100,000 notational value, you are rerouted to a dealing desk. Some do a better job of pointing this out in the fine print, some forget to even publish the fine print and just state NDD execution, even though in reality anything less than 100,000 is usually a dealing desk, but not always. There is so much more to learn but I got to stop this course somewhere… .
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