Hi traders. I wondered if anyone can shed some light on this.
I have just opened a Spread Betting demo account with GKFX to see how things are and I have noticed a significant difference in the price action. Could there be a reason for this. Seems a little peculiar. I thought price was gospel.
I enclose a few screen grabs from EURUSD Daily chart with ATR and 50 SMA as an example.
The big candle on the left of the chart. reads 1175 with the spread betting account. The same candle on the normal account reads 1429
Clearly there is more volatility in the normal account. The EURUSD is quite flat in general. On other pairs the difference is quite extreme.
Different brokers could have slightly different candles, and also demo will be slightly different as its not backed by live liquidity like a real account is
Its very unlikely this is a scamming broker. Anyone wishing to scam clients would set up in a tropical or Mediterranean jurisdiction where the chances of regulatory action are lower.
Your screenshots don’t help much and I’m not familiar with the firm’s systems but its hard to understand what they are doing anyway. They offer FX, SB and CFD accounts, but only SB Demo Accounts and “Standard” Demo Accounts. They don’t explain what Standard means but I assume it just means an FX account but not a CFD account. Where in their blurb do you get “Normal Account” from?
SB prices will differ from FX market prices but the differences should be minute. the issue here is likely to be a structural difference between the way the two accounts process price data rather than an issue of potential fraud. For example, what time do they mean by open and close for each day’s bars? And are the chart prices derived from bid prices or mid prices?
Hi there, thanks for making that clear . when I say Normal I just made that up as a spread betting account is different and I have not used one before . I should have really found the correct term for My AVA account.
The differences are not small I am going to post a few picture again from a more volatile pair. The timing is out also quite strangely.
Timing is an issue with real-time FX charts. For example, my SB firm times its day as 2200-2200. So each day’s bar includes 2 hours trading from from the day before but excludes 2 hours from today’s. On top of which today’s bar will always be labelled with yesterday’s date because it began yesterday. And I think demo accounts are commonly 15 minutes delayed from live accounts. None of this is helpful to clients.
Thank you Tommor and everyone for your advise . then the timing difference on the chart I am about to post has been explained thank you.
It just looked very odd when I first saw this. One hour before my “Normal” account candle was closing !!
Enclosed two charts from the Daily GBPAUD. The 2nd chart is the spread betting demo account. The candle in the middle I have marked is a little worrying. Similar to the banks feast on the 3rd of January this year .
