New Problem Found with a common Micro Broker

Beginner Questions
21

Please wait for a site operator to respond.

Libi: Hello …it seems we got disconnected.
you: yes, thankyou
you: the problem is I need to contact the compliance dept
you: this is of utmost concern
Libi: You will have to submit an email to our compliance department.
you: that is crap
Libi: to <[email protected]>
Libi: They will respond to your inquiry
you: I am an account holder with this brokerage
Libi: Yes, I understand.
you: I should, after having depositted over 700 dollars into my account, regardless of the size of the account, be able to speak to someone here
you: no you don’t
you: my account is under $20 and there is a problem
you: a huge problem
you: and I have a very big mouth
you: and know a lot of people in the trading world
you: and all have told me
you: that I have a case if i am denied the ability to speak to someone live concerning this matter
you: would you like to be the one to help me build my case?
you: I belong to sites that this brokerage advertises on
Libi: at the current time, our Compliance department is unavailable.
Libi: Please contact us during normal business hours
you: will they be available in the morning EST that I may reach someone through this avenue ?
Libi: and you can state your concerns at that time.
you: and don’t tell me to send an email
Libi: They are available in the morning at EST times, however they only take inquires via email. But there will be more resources here to assist with your inquiry during daytime hours.
Libi: Can you please tell me what your concern is?
you: variable spreads primarily
you: when I am in a live trade
you: a carry trade, if you will
you: that is opened on a friday
you: and I place a stoploss
Libi: I see that you were sent an email today, have you received that email?
you: and on sunday, the price action starts to move a full 3.27 hours prior to my ability to make a trade or even close my currently open trade, and the price actions dropps below my s/l a full 52 pips without stopping me out… there is a problem
you: yes
you: I have sent 2 separate complaints
you: maybe 3
you: but also, concerning this trade.
you: I opened the trade at a spread of1.9
you: I have seen the spread climb to over 8.5 during that trade
you: so who’s pockets is my money going into???
you: what kind of scam is this
you: I was born in the evening, but it wasn’t last evening
you: I have the trade ref. number written down
you: it is 7796474
Libi: in regards to your inquiry please email <[email protected]>, ATTN Compliance with your trade inquiries so that we can review. Please included your full name and account number and the tickets for each trade
you: I can’t sende the tickets for each trade… only had the fortitude to write down this one, but all trades I have made on this account are now in question as will be every trade by every trader that reads my posts on every forum I can find between now and the time I speak to someone from compliance
you: perhaps you don’t understand my position quite completely yet
Libi: you will need to email us with the requested information so we can review the details to resolve this matter
you: Libi, I am sorry for interrupting your shift
you: can you please be a human being and speak to me?
Libi: I would be happy to help you if I could, but I simply do not have access to Micro information as it is a separate division.
you: I am cutting and pasting a copy of this conversation to the email I send to compliance and every post I make between now and then
you: and because this is such a minnescule account, I don’t have acces to your resources or the resources you would be able to apply should I have a larger account?
Libi: If you should required further assistance, please send an email to <[email protected]>. Please contact our compliance department if you have any further inquires.
Chat session has ended.

this is a live conversation that just took place… MP, any further suggestions?

22

While I munch on my popcorn and Stare at the screen for the next avail comment… :eek:

This is absurd. I never like speaking to a rep through chat. I get more productive results via phone call. :wink:

23

The problem is, this particular division of FXCM, (FXCMMicro), has no live assistance available. They only respond via e-mail to any concerns their customers may have. Below is the result of the complaint, received today:
Michael,

We are writing you in regards to your recent trade inquiry. The audit committee has reviewed the trade, the details are as follows:

Ticket 07796474 Long 1k GBP/USD
Opened at market 01/23/2009 20:50:51 GMT 1.38004. Still open.

The trading desk is open from 5:15 PM Eastern - 4:00 PM Friday. Every week, prior to the open, the prices update in preparation for the open.

One of the great things about trading FX is the trading desk opens only once a week. In contrast, the stock market opens 5 times a week, often with significant gapping. If you believe weekend execution risk is not appropriate for your trading style, we would suggest using limit orders, not holding trades over the weekend, or taking other steps to manage weekend risk. To review weekend risk, and steps to manage other market risks, visit here.

In regards to spreads, the spreads go up and down based on market volume. Sundays are often slower, as it is the weekend in much of the world. The active sessions are during the London and New York trading sessions. Today, the market is particularly thin as Sydney is closed for Australia Day. To view more about the weekend news in the market, click here.

To access the full trade history of the trading account at any time, simply run a report from the top of the trading station.

To review execution risks and steps to manage them click here.

FXCM Micro as a discount brokerage is dedicated to low spreads, fast service, and automated execution for the self guided fx trader.

Regards,

FXCM Micro - Sales & Client Services
32 Old Slip, 10th Floor
New York, NY 10005

Now, where do I go from here?

24

Hey chubs are you saying you were in a trade when the market closed on friday, then when it started on sunday there was a gap below/above your SL?

I see this all the time price gaps between friday close and sunday open at IBFX. That’s why it’s a good idea, unless you are long term trader, just to be out.

One texan: Unless you are a VERY experienced trader you have no one to blame but yourself for losing money if you are trading without a stop loss.

I’ve never traded at FXCM, so I can’t say from experience if they are good broker or not. But, if you are going to blame the broker for losses you won’t get very far. How they behave is out of your control, so you shouldn’t even waste your time worrying about if they are crooked if you are going to trade with them. If you think they are crooked find another broker.

Also, market makers make their own market. This means two different market makers won’t have the exact same prices or movements for the same pairs. So, bringing up charts and prices from a different broker to try and point out where you think they purposely went after your trade is pointless. Even two different ECN brokers won’t have the exact same price and price movement.

25

I just sent this letter to the Compliance dept. at FXCMTo:

<[email protected]>his particular trade calls into question every trade I have made on this account, as well as FXCMMicro’s business ethics, rules and reg.s, and application of software. I opened this trade on Friday at approximately 3:50 p.m. EST and set a stoploss at 15 pips below the zero line. Upon opening my trading station on Sunday, I noticed that the price had spiked up an additional 35 pips, then began a reversal. I know that this was pre-trading hours. However, when the price dropped below my stoploss and continued a downward motion and eventually showed a -77 pip position, I have to wonder how often this happens. Your brokerage is changing price in this situation a full 3.47 hours before market open, and dropping price to a point it never truely reached according to several other reliable sources, including MetaTrader4, CMSForex’s VT2, and several other seasoned traders. Now, I am new to trading the Forex market, but I am sure many rules have been violated here. I am not one to bite my tongue and am more than willing to go to the fullest extent possible to change your business practices where this situation is involved and will be the biggest pain this firm has ever dealt with if something is not done here. Further, the fact that FXCMMicro does not offer live support is a travisty. The fact that FXCM’s Trading Desk is allowed to monitor FXCMMicro account trades and is unwilling to accept complaints or concerns by its account holders is a further travisty. I am sad to say that I am beyond displeased and would like to speak to someone live concerning my account, this matter imparticular, and hopefully to find an adiquate resolve before purueing further steps that I would much rather not be forced to take. I belong to several trading sites and will be posting this letter as well as any response or lack thereof on every forum that will allow me to. I am currently a Senior Member of BabyPips.com, Forex Factory, CNBC, and a few others. Please know that I feel I am being pushed into this situation by FXCM and I don’t like to bark, but am not afraid to.

Does anyone have a comment as to any steps I should be taking from here?
Thanks, and good pippin,

Chubs

26

Yes, the gap was a full 52 pips below my s/l and it was never triggered. I was long in the position.

27

Ya showing price moving in the platform, but not being able to adjust an already placed trade is total crap. On my IBFX micro account, when trading closes the movement on my platform stops, it doesn’t start again until trading is open.

I’ve only used the chat support for IBFX, but their answers were always satisfactory. Look into them if you are considering switching brokers.

I’d like to say one last thing. And I mean this in a friendly way. So, please don’t take offense to it. This is the second time I’ve seen you post about a loss and assuming it was some dirty business on part of the broker. While, maybe that is the case, maybe you should take this as an experience of how not to trade with this broker? Maybe avoid having trades in friday because of the gap?

On your last complaint, I believe that the problem was resolved and they reimbursed you some money? If so, IMO, that is nothing short of an admissiong of guilt or at the very least something that is simlply not working like it supposed to. Lot’s of traders complain when they lose and complain about it to the broker. A fair broker will look at the problem and 9 out of 9.99 times tell you it is your fault you lost and tough beans.

I see a lot of this about IBFX, people complain about requotes, because they are trying to manually close orders instead of settting SL/TP. IBFX has a lot of customers, their market is big, even for micro accounts. People don’t understand that’s it’s not like going to the supermarket and because you see someing for 5.95 you get that exact price. I’ve never had a reqoute or off quote when price went through a SL/TP. I know this isn’t your problem, but my point is maybe you need to find out if what is happening is simply because of user error, before crying, “scammer!!!”.

28

just stay the course chubb

need be we all start barraging them with emails

mp

29

Brother, I value your opinion. I appreciate that you are taking the time to give me helpful advice and man, no need to ever restate our tattered past again, all is forgotten.

I do have another larger account with a more reputable broker that offers fixed spreads. Money is not the only issue here, and if I were the only one having this problem with this broker, I wouldn’t be persueing it. If I set an s/l on a trade and price drops below my s/l without triggering it, there is a problem. If at that point I am still unable to close the trade, there is a bigger problem. If the broker is forcing price down below actual valid price action to take advantage of a lower low than any other broker has access to, That is a Huge problem, and needs to be brought to the attention of anyone who holds an account with said broker as well as any policing agencies…

This is not the end of me by any means, but there is a definite principle involved here that said broker is violating.

Thanks for your valued input.

Good pippin,

Chubs

30

Read their terms & conditions carefully, you�ll find you haven�t got a leg to stand on.

I�m not being funny, but you might want to run the rule over your spell check next time you decide to fire a broadside volley off to your broker. First impressions (professionalism) still count for something when attempting to fight your corner!

You trigger a position at the close of business on a Friday with a ridiculous protective stop-loss in place in these volatile conditions & then expect your broker to honor any illiquid fluctuations which go against you?
Are you completely insane?

Quite frankly you deserve all you get & if I was your broker I�d return your funds & close your a/c with immediate effect.

Do yourself a favor - revert to demo for at least the next 12 mths & begin learning how these markets[B] [U]really [/U][/B]function.

Judging by the recent examples of your market awareness & behavior, you�re definitely not sufficiently prepared, either financially or psychologically, to trade a live account.

31

Thankyou for your opinion as it does mean… something to me. Being as you are not my broker, I don’t think, and you have every right to speak your mind, I will not go about bashing you the way you seem to be me.

If you were in any type of similar situation, I would expect you to react similarly, however, being as you seem to be a far more perfect trader than any I know, would you like to manage my other accounts?

Oh, sorry, one would need a License to do that, and being as you are here with the rest of us NEWBIES, I can only assume that this is not the case.

Thankyou again for your comments and they will be properly filed away into the circular file next to my desk… as will any invalid attempts to defuse a situation that you obviously have no experience in.

Good Pippin,

Chubs

32

I think y’all are not being fair with Chubs-

the issue is not whether one understand gapping, slippage, volatility yada yada but that he got caught in a fxcm technical glitch—see my screen shot and look at the price of the E/U.

This is exactly why I close all on Friday and don’t open a position till sunday 7-8PM.

and btw Jocelyn, do you happen to be a government clerk that much stressing the need of a spell check? What has professional in trading got to do with spell checking your angry mails to your crooked broker?

OneTexan


33

let us allow that SOMETHING was TERRIBLY wrong with FXCM that day.

aside from blowing right by his sl, they took the price to a place no man had ever gone before, which is kewl in that it looked so nice, but more like “lemme gettem dad . . . . huh. . . . . .huh . . . . . . huh ?”

Fxcm likes to give the opinion that “ehtics” are their strong suit but the man behind the curtain seems to have a “few” tricks up his sleeve for the newbs.

i intend to send an email letting them know that it is not ONE person theyre dealing with, but rather one website and a whole bunch more — this situation can spread like wildfire and while not everyone will send an email to the company, enough will to make a rather pointed statement for a company that constantly seeks new money !

i will convey the message that we dont care for a public announcement — they can reverse the trade with no admission of guilt AS A FAVOR TO A CLIENT, in 24 hours — after that, Joshua brings out the horn and starts walking around Jericho !

mp

34

LoL…I’m ready to march! Although how does one march in a virtual world?

Keep us updated on what happens!

36

Ok, I’m gettin’ involved.

Chubs, I seen this Gap through the SL happen before on demo. it scared me straight even though as I have said in my past post… I dont do Fridays carrying over the weekend.

Thanks for bringing this all up as I am better educated about the particular brokers.

Rock on

38

[B]1)[/B] she has the common sense never to have put herself into that uncontrollable situation in the first place

[B]2)[/B] you should be so lucky that you�d have someone of her quality managing your funds. But then, you�ll never get [B]that[/B] lucky son.

what irritates those of us fortunate enough to actually work this business for a living, is the manner in which you operate out there.

your comments/posts quite obviously indicate the fact you�re unprepared financially & mentally for the tasks you undertake. You lack discipline & have absolutely no knowledge of market structure, yet you lay down hard cash & then throw your toys out when the market exposes your inadequacies.

you then have the audacity to question the ethics & professionalism of the firm who offers you the facility to interact with the markets.

it�s [B]your [/B]responsibility to familiarize yourself with the [B]generics of the environment [/B]you�re operating in, as well as the [B]specifics of the liquidity issues[/B] & terms of business of your chosen brokerage shop(s).

the sooner this industry raises the bar in terms of minimum financial input (eradicating micro/mini facilities) & basic knowledge requirements before issuing & authorizing trading accounts, the better.

39

two Final Words For You Chubs
You Tosser

40

Dear Michael,

The FXCM Compliance Department is in receipt of the complaint you recently submitted.

We understand your disappointment with respect to the matter you brought to our attention. Please be advised that FXCM takes these matters very seriously. We have initiated an internal investigation of this matter and expect that we will be contacting you shortly.

If you have any further questions regarding this matter, please feel free to contact FXCM’s Compliance Department at <[email protected]>.

Kindest Regards,

John Wrobel
Senior Compliance Associate
FXCM Compliance Department
2701 Dallas Parkway Suite 600
Plano, TX 75093
Telephone: (888) 503-6739
Toll free (US & Canada): (888) 503-6739
Fax: (877) 229-0004
Email: <[email protected]>

FXCM and its affiliates assume no responsibility for errors, inaccuracies or omissions in these materials. They do not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM and its affiliates shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This email is not a solicitation to buy or sell currency. All information contained in this e-mail is strictly confidential and is only intended for use by the recipient. All e-mail sent to or from this address will be received by the FXCM corporate e-mail system and is subject to archival and review by someone other than the recipient.

P.S. from chubs,

Thankyou to all of you naysayers… You have managed to strengthen my resolve, if nothing else…

Good Pippin,

Chubs

42

I did not read your entire post. I am only responding to the first part of your post where you accuse me of willingly putting myself in harm’s way.

Perhaps this is a trading strategy being used on a micro account to benefit a much larger equity account.

That being said, take from this thread what you will and use it to your advantage if you see fit.

For example: If I were to have opened this trade on a leverage account with a stoploss in place and the stoploss were not tripped, I could expect the market to do what it did. (The fact that the broker honored the s/l is of no relativity any longer.)

On the other hand, if I were using this as a way to better understand a good exit point on a trade with another broker simulaniously, I would have a better idea of where the market was going to be correcting to at Market Open in advance, thereby gaining a few pips before an exit, or setting up a market order for the coming day’s trade.

I know you may think me foolish, but, to pay what I paid, without wiping out my account, I have gained a valuable tool, don’t you think?

Judge me any way you choose, but technique is what it is and I don’t care to hear if you support my tactics or not.

Thanks and good pippn,

Chubs

43

My previous submission stands. Perhaps I was trying to benefit other traders and make them aware of other situations.

Thanks to Babypips for an avenue, and thank you for your input. Perhaps this tool will assist other more experienced traders than I. Perhaps a better understanding of the market is just what I was intending to point out.

Yes, it is true that I ws SUSPENDED from ForexFactory’s Forums, but my abilities have been restored and perhaps I will use this thread as an example of exposing potential tools to new traders… oh I forgot, sorry, I already did that here.

Why would I elect to help anyone who chooses to ban me. I am here to help newbies understand the market and how brokers operate.

Thanks for your time, Thus endeth the lesson

Good pippin,

Chubs