Stop Loss Hunting

Allegations that brokers deliberately shift prices to trigger clients’ stop losses. Have you ever experienced this? If so, please name the broker.

It’s worth asking the question. After all, if you find a broker which artifically slides its prices higher or lower than its competitors, you can trade against their prices, they won’t be able to maintain the differential very long.

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Most ‘hunts’ I’ve seen were simply thin liquidity around news or rollover rather than some grand conspiracy. Volatility-adjusted stops, avoiding obvious round numbers, and respecting session ranges reduced my stopouts a lot.

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Most people have. Very often unknowingly.

It’s not about that. It’s about where and how customer accounts are regulated.

For example, with Fusion Markets, you’ll almost never see adverse comments from their Australian-resident customers with ASIC-regulated accounts, while many of their others, with Vanuatu-”regulated” accounts, often complain about this issue.

As we can see from that and many very similar situations, it’s not about which broker it is: it’s about which regulator.

What the brokers can get away with depends on that, and they know it.

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Brokers do not know the difference between a pending market order to enter or exit. Their spreads are skewed to help balance their exposure.
By placing a stop order, you’re letting the broker fill your order at best available pricing.
Orders that demand liquidity will always be filled at worse pricing as you are paying for immediate execution.
This is a decentralized market. Anything can go in the name of illiquidity.

My broker is good at executing my orders. I don’t want them to execute pending market orders, so I don’t place them. I help provide liquidity to them in the form of limit orders instead.

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Yes, I have heard about this issue in several forums that I follow. Whether it is true or just their negative perception due to market conditions, I do not know. However, it would be better to avoid brokers who offer prices that differ from trusted platforms.

sound good

I disagree with you somewhat. I use a broker called Headway and another with the same regulations, but I have experienced this price difference. With the first one, I get price transparency that I compare with TV and it is relatively the same. But with the other broker, even though it has the same regulations, the price difference occurs.

You may be taking a chance, there.

It’s not a properly regulated broker.

Headway is “regulated” only by South Africa’s Financial Sector Conduct Authority (FSCA) - which is far from a top-tier regulator.

And quite apart from that, an investigation earlier this year also found that the FSCA-linked information for Headway in its registry doesn’t actually connect the forex brand to the registered company Jarocel Pty Ltd, its claimed owner, raising concerns about potential cloning and legitimacy. :stuck_out_tongue_closed_eyes:

It really, really is important to use due diligence before sending funds to CFD “brokers”!!

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I can explain something about stop hunt

I have been with them for over a year now, and I feel comfortable and satisfied with their work. They offer low spreads, stable servers, and responsible payments. If you have had any unpleasant experiences with them, I would like to know about it.

I haven’t (and wouldn’t, because 1 minute’s due diligence put me off).

I’m not sure I’ve ever seen a brokerage with so many horrible reviews calling them scammers, fraudsters, crooks and so on .

Honestly, hair-raising stuff!

And if independent investigation reports of concerns about potential cloning and legitimacy don’t put you off, what would?!!!

I’d strongly advise anyone I knew with funds there to withdraw them immediately.

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I have observed that on several platforms, their ratings are balanced, and most of the negative reviews stem from behavior that does not comply with financial security rules or clauses, discrepancies between the source and destination of transactions, money laundering, arbitrage, clients with bank account issues that disrupt the process, and problematic brokers. Therefore, it is advisable to also consider who wrote the review. So far, during my use of Headway broker, there have been no significant issues.

Balanced between incentivized, paid-for posts saying “there have been no significant issues” (Headway’s one of the many fraudster brokers that pays people to post favourable comments in forums and on review sites) and the many horrible reviews calling them scammers, fraudsters, crooks and so on .

An independent investigation raising concerns about potential cloning and legitimacy ought to make anyone run a mile!! Otherwise what’s due diligence for?!

As has been mentioned here, and in countless other places, people who have done even just a little due diligence are rightly advising anyone they know with funds there to withdraw them immediately! :grimacing:

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