Do You Still Lose?
Stop Loss Hunting by Forex Brokers - What to Do?
Hello My Friends 
It is several days that whenever I find some free time, I work on an article about MACD. I think it will be a good article because I have collected all the information and systems related to MACD. I love to publish it as soon as possible. But today I have decide to spend my free time on writing an article about stop loss hunting. Before I talk about stop loss hunting I suggest you to read an article I already published about stop loss and target orders and the way they have to be set properly: Where Is the Best Place for Stop Loss and Limit Orders?
What is Stop Loss Hunting?
As you know forex brokers make money when you take a position. They charge you some pips when you buy a currency pair. This number of pips that brokers charge when you buy currency pairs is called spread. Different brokers have different spreads for different currency pairs. Spread is almost the only way that the forex brokers make money.
Good and reliable brokers are happy with the money they make through the spreads BUT there are some scam brokers who are not satisfied with this and want to make more money. Stop loss hunting is one of the ways they use to do that. They have some special robots or hire and train some employees who monitor the clients trades. When a client takes a position and sets a stop loss and the market goes against the position and becomes so close to the stop loss, the robot or the stop loss hunter employee increases the spread manually to help the market hit the stop loss sooner. For example you take a short position with EUR-USD at 1.3180 and you set your stop loss at 1.3280. You have a short position and to close this position you have to buy. So your stop loss is in fact a buy order. You pay the spread only when you buy. So you don’t pay the spread when you go short. You pay it when you want to close your short position and so you buy.
Ok! Back to our example. You have a short position at 1.3180 and your stop loss is at 1.3280. The market goes against you and goes up to 1.3275 which is only 5 pips away to trigger your stop loss. As your stop loss is a buy order so the amount of the spread has to be added to the market price and if the result is equal to your stop loss value, it will be triggered. So the market is against you and is only 5 pips away from your stop loss value but it doesn’t mean that it has to go up 5 more pips to hit your stop. If your broker charges you 2 pips for EUR-USD, this 2 pips has to be added to the market price which is 1.3275. So in fact your buy price will be 1.3277 which means it is only 3 pips away from your stop loss. If the market changes the direction and goes down at this stage, your stop loss will not be triggered but this is the opportunity that the scam brokers wait for it. As soon as the market becomes so close to your stop loss, the broker increases the spread. So while the spread is 2 pips and so the market is only 3 pips away from your stop, the broker adds at least 3 more pips to the spread to hit your stop loss. You think that you have lost your money in the market and because of the bad position you had taken, but in fact you have not lost it in a real trade. The broker has increased the spread to pretend that your stop loss is triggered but in fact it is not. The money you have lost is in the broker’s pocket.
I have experienced this myself. One day I have been watching the market through a very famous broker platform. I was checking both the live and demo account and I had one position with the demo account and one with the live account, both at the same time and price and with the same currency pair. Suddenly I saw that my position with the demo account triggered the target but the live account position was still open. When I checked, I found out that when the price became so close to the target, the spread was increased to prevent my position from hitting the target. The spread jumped from 4 to 14 in one second. It attracted my attention and I kept on monitoring the broker and I found out that they do the same thing when the price becomes so close to the stop loss. While the demo position is still open and has not triggered the stop loss, the live position becomes closed by the stop loss. So a trade that could make only $400 for the broker through charging 4 pips as the spread, made $10,000 for hitting a 100 pips stop loss. Easy money!
Why don’t they let the target to be triggered by increasing the spread?
If they let your target to be triggered, your trade will be closed and you will make a profit but if they keep your trade open, it is possible that the market goes against you and then they can hunt your stop loss.
As soon as I became 100% realized that they hunt my stops and don’t let the targets to be triggered, I enlightened all traders I knew. If you Google for it you can still find some of my posts on different forums. It also caused me to get some infractions from some forums because they work for those brokers. I think two of them even banned me and many of them deleted my post completely.
Can they succeed to hunt your stop loss or prevent your target all the time?
Not all the time. They try their chance. When the market goes to your direction strongly they can not do anything and your target will be triggered. Also when your position goes to your direction right away and doesn’t get close to your stop or when you have a wide stop loss, they can not do anything.
What should you do?
- Choose a reliable and well-know broker. Always check the reviews before you sign up. Do not be deceived by those brokers who are proud of having no dealing desk. Some of them may have no dealing desk but they do have stop loss hunter employees!
- Do not set tight stop losses and always consider the maximum spread. Click here to read the article I have written about setting the stop loss and target orders.
- Try to take the best positions at the right time.
Further Reading:
Before
leaving our website, please take a look at the other articles we have published.
Great article Forexoma. I see them hunting all the time. Sometimes I think a casino is more ethical
Hi James,
Yes, this is true but fortunately there are still a lot of good brokers and now traders are becoming smarter and more knowledgeable and so scam brokers don’t dare to cheat them.
Best regards,
Forexoma
Hi Forexoma!
Thank you very much for your help!I think your advices are the best in the web!But I have a question:
I trade GBP/USD for 3 years only with MACD 12.29.9 ,RSI and Support and resistance break (4hour charts).I want to use EMA too but I would like to know what are the best parameters concerning moving averages in a 5mn chart?
I am sorry to post here but I didn’t find your email adress.
PS: I will try your programm next month
Thank you
HENRI
Dear Henri,
Hi
Thanks for your comment.
Regarding your question, if you have been doing good with the indicators you mentioned, so why do you want to add something more to your chart? You’d better to make your system more simple.
But to answer your question, 14SMA and 20SMA are good. 20SMA is in fact the Bollinger Middle Band which is a big help. So if I wanted to use a MA, it would be 20SMA.
Best regards,
Forexoma
Forexoma,
I always love to read your articles. Your strength is your ability to articulate difficult issues to be easily understood by a newbie like me. That is your power indeed. Thanks a lot.
If you know, Could you list down whichever brokers are scam brokers? And also please help list down the best brokers so that all of us here can avoid subscribing to scam brokers and stick to the best one. It will be very informative if you could do so.
Those who subscribed to IBFX lost their money yesterday selling EURJPY due to hitting the stoploss at 132.03. I check FXPRO is fine and that’s why you collected a fantastic profit.
Different brokers have different data feed, and therefore will have different charts and candles. Since candlestick is the most reliable indicator of where the price will go in the future, it will create a confusion to stick to it if different brokers feed different data. What is your opinion in this case?
Could you please clarify and respond to the above questions?
Cheers and Thanks
PRIA
Hi Pria,
Thanks for your comment.
Unfortunately I am unable to give any advice about the brokers. If we add a discussion board, we will have a special forum for talking about brokers.
Yes, different brokers have different candles because of the time difference but it will not make any problem because when there is a buy/sell signal, both brokers shows the buy/sell signal but in a different way. For example when we have a Doji that shows a reversal, with the other broker we have a dark could cover which is also a reversal signal. Sometimes a broker shows a stronger signal.
I am used to see at least two charts from two different brokers with 3 hours difference. It helps.
Best regards,
Forexoma
Forexoma ,
I want to some few newbie questions:
1. What make different brokers have different data feed?
2. How is forex trading working across the world? where is the hub and centre of data input and output, and inflow and outflow that create a chart or a candle that all of us can see on the screen?
3. Do all the banks providing the data feeds to each broker interlink to each other?
Thanks for your clarifications
Cheers
PRIA
Pria, to answer your question…
The Forex market is what we call an Over The Counter market. There is no centre of data input or output, there are just brokers and dealers who negotiate with one another, using several different systems and channels. One of the reasons for the different data feed in fact maybe due to this - because there is no one central clearing unit.
Hi Forexoma,
That is what happened to me on eur/jpy couple of days back as my stop loss was 132.03 and my stop loss was triggered at 8:53pmest on that day, and according to my broker, the price went to 132.044, just 1.4pip. i am going to open a demo account with that broker, and i will take the same trade on my demo and on my live account and i will monitor this for a month to find out. i suggest everybody does this to check out their brokers.
thanks
ateeq
Ateeq…
What is your broker? Good if you can share so that we can select the best broker in the future. Thanks
PRIA
one way to avoid SL hunting would be to hide the SL from the broker. I mean: if you want a SL at 1.3280, in your sample, then set it at 1.3310. But you do not want to loose another 30 pips, so (in MT4) give an automatic COVER (buy) signal at 1.3280. Since this order is stored on YOUR PC, not on the server of the broker, the broker does not see this, so he cannot hunt it. - The SL you give to your broker at 1.3310) only serves as an emergency exit in case the internet connection fails. - Forexoma, what is your opinion about my idea ?
Hi Steve,
Thanks for your advice.
Yes, it is a good idea and that I forgot to mention in the article. It is one of the ways to avoid SL hunting. The problem is your hidden stop loss may not work if the anything happens to the internet connection.
There are some EAs that can do this on MetaTrader.
Best regards,
Forexoma
Or when you enter a trade, either set a big (50pt) stop loss cushion and then move it, or else use alerts to keep you informed of the spot price. The bots tend to focus, I think, on the stop orders but many traders use alerts to tell them when to exit a trade and thus try and circumvent the stop hunting.
Forexoma your knowledge and experience is always invaluable and Enlightenment, thank again for the insight.
Cheers
Jerome
Thanks to you too. I will be happy to be help.
Is it not strange how greed can make some people into shallow and disgusting creatures. I wonder if they go home proud of themselves? Is it not strange how the financial services industry; banks, brokers seems to be full of cheats and thieves? I can never cease to wonder at their venality and shallow theft. They should know; they are thieves, not clever, not smart, just thieves like the lowest petty thief there is. You will get your reward some day.
I am not sure that a “cover” or, in Oanda “limit” order is stored on your PC, perhaps the best advice is to have a “false” stop, but the danger is that the market goes against you while you are not looking.
Perhaps we need to start making a list amongst ourselves of what we think of the different brokers. I use Oanda.com and they seem OK, I have said that some strange things have happened, but I have not recognised a pattern of strange things and I am really not actually suggesting anything, perhaps I just feel bad when something “strange” costs me money! To be fair, some strange things have happened (like sudden huge jumps in the space of a minute or less) that have made me money. The EUR/JPY event, where I was stopped out, seems to be explained by the fact that Oanda had a spread of 3.6 versus a smaller spread for Forexoma and co.
I must say that I have gone and checked the graphs in the practice account and the live account over different time periods and they do not differ as far as I can see so Oanda does seem OK. No I do not work for Oanda if anyone is wondering
and I have a small account so perhaps my tiny trades are not worth the time to hunt!
cheers
Stuart
Hi Stuart,
My stop loss was triggered with another broker but fortunately I traded very small with that one because I knew that their spreads are not stable and reliable.
Also stop loss hunters don’t come after you when you trade a very small. I think when you trade over 1 lot they start monitoring and manipulating your trades.
Best regards,
Forexoma
Many thanks Forexoma……..
I hope and pray for the day when the Forex minefield will feel the teeth of some REAL regulation, in order to rid itself of the stigma associated with these disgusting criminal offences perpertrated against honest and unsuspecting traders.
Why, if there are at least some scrupulious and honest brokers out there, do they not form themselves into a aelf-regulated association with the aim to be identified as such, and I’m quite sure the vast majority of traders would flock to their doors!
Great article Forexoma,
a) we have to differentiate between the real stophunting as described by you, where brokers widen the spread or adjust manually, and
b) where “big players ” purposely go in to a pullback ( eg. at the beginning of a impulsive strong new trend ), to take out the stops of smaller players, just to resume with the trend direction.
Unfortunately, saying they do not have a dealing desk which monitors the trades, is often just a fake honesty approach. The real price of the currency is still 1-2 pips above the Interbank market price anyhow and doesnt prevent the operation of stop hunting employees.
It also depends on the amount you put in, lets say a 100K funded account which doesn`t scalp successfully, trades only during major market hours etc. will be treated differently than a 3K account going wild….
The question is really - apart from placing the right stop and target as you describe - what can we do as smaller traders to avoid getting totally paranoid and seeing enemies everywhere ?
a) choose the right broker, preferably an ECN broker that ties your platform directly to a bank liquidity feed such as Currenex, where different banks compete for the price. I dont know if giving names is inappropriate, but especially the enhancements made in Metatrader4 now
enables some honest brokers to link their MT4 platfrom to an ECN feed, just Google it, especially some European brokers from the Northern Hemisphere ( hint).
b) once you are seeing positive results in your trading, use the usual platforms only for charting, execute the trades in the Majors in a FX Futures account, which is fully regulated by the CME, the new Micro contracts are only 1/10th the size of the large contracts.
c) use Forex options for medium and longterm positions, eg on the ISE, or on a standard broker platform the World Currency Options by the Philadelphia Exchange.
Great discussions going on here, I will join your group soon, keep it up !
Good luck to everyone and listen to Forexoma !
Dear Michael,
Hi
Thank you for the comment and information. I learned a lot from you.
Yes; false support/resistance breakout managed by big traders is also a problem that causes stop losses to be triggered. You made me remember that I already published an article about it:
http://www.forexoma.com/dont-let-the-interbanks-suck-your-blood-by-making-false-supportresistance-breakouts/
Best regards,
Forexoma
TQ Forexoma I’ve experianced this before. hehehe. stupid broker.
please recomend me a good broker - I will join u asap.
another thing… can I copy and paste using your article and put it at my blog.
TQ in advance if you dont mind.
Allah Hu.
Hello,
Thanks for your comment.
We can not recommend any broker. You can find a good one by checking the reviews over the internet.
Regarding our articles, you can link to them but you can not post the whole article or any part of it on your weblog. They are copyright protected.
Best regards,
Forexoma
Humping over 3 pips when you are wrong 100 pips over the bad analysis, is not that pathetic?! Forexoma writes: You think that you have lost your money in the market and because of the bad position you had taken, but in fact you have not lost it in a real trade. The broker has increased the spread to pretend that your stop loss is triggered but in fact it is not. The money you have lost is in the broker’s pocket. To my mind Forexoma implies that it’s a bad fairy together with bad broker took your money and not because you were so stupid to open the trade with 100 +/-3 pips stop-loss if you are not sure in success. And in fact your are genious that opened such a great trade!
From my previous experience with the signals from Forexoma’s previous site, he had such wide stops that in order to cover them in case if they were hit, you had to make at least 2 full take profits out of 3 possible. Can’t wait to see his new trading strategy stops tighter than 150-250 pips.
It is not just the matter of +/-3 pips. I have explained that they increase the spread from 4 to 14 in one second.
And who says that if market becomes so close to your 100 pips stop, you are stupid and your position is wrong??? You have chosen a 100 pips stop to give 100 pips space to the market to fluctuate and move to your target. It can move toward your target right away or goes against you for over 90 pips and then turn over and moves to your target. If you spend a little more time, you will see all of these different cases. I had positions that moved against me for over 100 pips and then returned and triggered my target. If you check the daily time frame, you will see candles with over 200 pips upper or lower shadow. Do you know what does it mean? It means your stop loss has to be over 250 pips.
Hi Forexoma,
I agree with your comments about the scam brokers, there are no doubts that in an age of “raping”, “stealing” money in order to reach your targets, so you can get your bonuses (the CEO of banks, and Fx Brokers) they will have to steal as much as they can. Afyter Forexoma it is a national sport, lol just look at thes banksters that claimed millions, billions, zillions of profits tyhe last 10 years, But when the sh*t hit the fan they all bankrupt, they do not only steal from their customers in order to pay obsene bonuses to the CEO, now they even have the audacity to steal the nation, the taxpayer. You dont have to look any farther than UK look at the expenses claimed by the ministers? even porno is paid for by the taxpayer. So Fx brokers are no different, you guys must realise that until recently Fx brokers were not regulated, and as no regulations, and the potential of big bucks,. it inevitably will atract gangsters to run fx brokerages. I have 5 accounts with different brokers until recently, but no doubrt in my mind, after my experience that the worst “gangsters” in the fx worls as brokers are the FXDD, the champions of invalid prices, requotes, etc etc . So there is no secret at all, they are there to make money but the greed that brought this recession/depression globally is only due to greed, so guys check carefully which broker you going with because they are there only for your money, nothing elses, and do as I did go ECN, I rather pay commission to a broker that is not chasing my SLs than to pay spread to all those “gangaters”. When you people read in their website, the words guarantee spreads, etc etc run a mile price flutuactes from interbank to interbank, if you see guarantees you can be sure you are trading against the broker your chances are minimal.Regarding Vladimir, well he probably works to one of those scam brokers . Guys check before you open an account with any of those “gangsters” .and go ECN.
Hi Forexoma,
Thanks for your great article, they really give me an understanding of why have I been loosing a lot of trades from these so called NDD brokers. I have been trading live and demo account respectively. When I trade in Demo, I always perform very well and to get from $200 to $800 in a week is consider very promising. Whenever I go live with the same set of mind, I always end up on a loosing side. then I wonder why until one day I saw my target was not hit when in fact the candle did pass it at 6 pip. For E/U that should be sufficient enough but it did not and end up closing at my Stop Loss pos. That really pisses me off. So I really need your help to recommend me a broker as I do not have the luxury of testing each broker there is. I could only sign up to one broker with max of US$2k account and thats it for my saving. I want to make a living in this line and I do not intend to fail just because of the broker’s scamming. So please help me out. you can email me personally or give a link or your email for me to contact with. Thanks/
Hi Ahmad. You are probably not going to like what I am going to say, however, unfortunately we cannot recommend a broker. So far - we have not found an excellent broker with zero issues. Every broker we used, had some issues. The best thing to do is ask around (your friends and see what kind of feedback they give you - if they use brokrs). We are still searching for the right broker - we have accounts with a few of them now.
But to all those Broker goons…all the tiny trades can add up. Besides…they have machines which hunt for stops automatically.
Those Oanda folks must really hate me. I trade micros with 300 or 400 stop losses. I use the 4 week high low Dochian method.
If they hunt for my stops…they are wasting there time.
Also…try the ranging currencies…the eur/chf for intance. Use big stop losses for day trading…buy low and sell high. They hate that too. Sort of a conservative type of scalping method. Just be sure to check your trade regularly or set alerts.
If those broker thieves are going to take there gloves off…we should do the same. Just add some brass knucks to let them know you mean business!
Thanks for your advice
dear Forexoma …. what about with OANDA is it bonafide broker ?
There is no 100% perfect broker. Like all other brokers, Oanda also has happy and some angry clients. But in general I think it is a good broker. I have never had any demo or live account with them, but I know some people how have and they are happy.
Hi Forexoma i think what u have posted hear is really helpful teachings especially to a new forex trader like myself who really needs solid advise.
Well i`ve done some demo trading and im itching to open a live account but i’ve developed a paranoid feeling about brokers scamming. I was looking for small trades preferably micro or mini to start with 1$-500$ minimum, & accepts Canadians. No brokers 100% so i wondered mabey spread trading isnhahar’t the way mabey should i op for a ECN or STP (is it the same?) where they charge COMMISSION or stick with fixed spreads and hope they don`t s/l chase ( for mini micro accounts is this ideal?)
If u can email me some good brokers that would be more than awesome!! P.s so far my eyes on gomarket (STP), iam (STP), or onanda…all end in fx.
Cheers Ant
Hi Anthony, Forexoma will have a brokerage service very soon. It will be the only brokerage that I can recommend because I will trust it 100%
Does Oanda hunt stop loss?
Ask Oanda clients on their forum. They will tell you.
hey Forexoma do you know anything about how brokers cheat using entry orders cause my broker executed my trade even before the price was reached and the market went down and i was in a buy position and i got a loss.i wanna shift to news trading do you knw a broker who execute pending orders if market goes my way during news time and instant execution of trades at whatever time.i have two brokers and one is always laging behind with 3pips so i think he is cheating on us cause and stelas our 3 pips cause we are behind the market when we enter the trade.
Hi Simon,
You should consider that it is not always possible to execute the orders, stop loss and target exactly where they are set, specially when the market is volatile. So not all of the slippages that you see should be considered as an intentional slippage by your broker.
for you trader (stupid little fish)
I tell you some examples why and how brokers “hunt” those stop-loss limits. (sorry about my english, it’s not my main lanquage).
There are several type of brokers. Market makers are colorful brokers, because as the name says, they make the market (prices) for their clients.
But that’s not always the worst scenario. There are good market makers if you behave and know your job as a trader. You make trades once in a while, trade long trades and in other words, you don’t make money to your broker and broker can see that you have skills, so he leaves you alone.
Then there are real market makers, bucket shop brokers. Offering high leverage trading, even bonus money for new clients to trade. Very nice web site, aggressive promoting and always in the air with their business. Well, if you are a broker, of course you need to do marketing, promotions etc etc to get new clients. That is called fishing and oh boy, this river called currency traders river, is full of fish to catch. It’s a never ending flow of fish, old and fresh, small and big fish. Bucket shoppers are pro-fishers. They use very high skill promotors, very cool web graphics, you can find them basically anywhere.
Some time ago, brokers did have stats about average volume of clients, average client accont, average client flow counted by account size. Result was norma to brokers, but it was not mentioned to be public information.
Average client deposits (lost) ~5.000-6.000, but not at once. Average client deposits more money to his account 3.5 times, before he run out of money and won’t trade again.
But most active loosers was clients under $1000, hyper active looser was clients under $500. Why, they are new comers and can’t make profit? No, big no. They got fished from that river.
You see, normally in this real world, when you are broker, you must have liquidity from banks so your clients can have feed, prices for currency pairs to trade with. Very simple thing. But banks ain’t stupid. Here is a little question: minimum position offer from the bank (feed) is $10.000, same as 0.1Lot. Bucket shoppers offers you account starting from $400, leverage 400:1 and minimum trading starting from 0.01Lot (micro-Lots). You put your trade on with 0.01Lot, does it execute in bank?
No, it will not. That’s brokers job to take care of those micro-lots. Don’t even think that they are pooling all clients traders to make one bigger to get that in bank position. Every time there is bank position, there is bank fee to broker side, of course. Bank’s don’t offer liquidity for free to brokers, it’s their business to get paid from their service as liquidity providers.
So turn your head to the broker side, what you have?
- You have clients who’s trades won’t go to bank, so you don’t have fee to paid.
- You have clients, who’s pay you feed as inside the spread or seperated commission, your 100% free income.
- You have clients, who loose. No bank positions, 100% your income.
- You have clients, who makes profit. 100% off from you pocket, because there ain’t bank positions. Bad thing… 100% from your pocket….. Well, not so bad, it’s easy to care of, you only have to do one thing, make sure that you have more loosers than winners! In that way all added spreads and seperated commiossions are 100% yours and your loosers are covering your winners. Easy money! And if you get a little greed… there is a little less winners and a little more loosers… just to cover you in the future
How to do that? Get money off from your clients? How hunt those stops?
Now at first, basically all data from brokers to the bank moves thru internet. Very simple thing to undestand. Second, now please, don’t be so blind to think, that brokers don’t have such a tools in their hand, to custom their own trading platform. Somebody even call that manipulation tools. Here is some stupid issues to make things clear in everybodys mind ok?
- Broker has a new client, so they need to add client to database
- Client closes his account, so Broker needs to close that trading account, even delete it.
- There is sometimes bad data from the bank or an error tick. Broker needs to correct that: remove bad tick values and add new correct tick value.
Does this small stupid list makes you wonder, what your broker can’t do?
Now some very smart peoples has create that your brokers wonderpiece, trading platform.
Do you really think that these smart peoples can’t create any tools to the broker, for making his live a little bit easier? Like automate some things to get job done faster or even better?
Tools like AutoDealer? VirtualDealer, DealerHelper? just tools from smart people to the broker, with nice price of course.
Then you have that control panel for your automated little helper. A no brain robot function what works like a fine swiss clock. Do you really think that broker uses that to make more money to you as an client? Tune up that stupid little helper to make your broker pay more from his pocket to you as an client? Or….. tune it to ease his job to make better gains when there is even less winners and even more loosers?
Are you getting the picture what is going on in your broker side? It won’t be there to make money to you. It’s there for fishing, making money from you!
Then there is ECN platforms, super speed direct bank connections and dealing room services. For you, as an client of broker (you little stupid Fish), how do you know, that your ECN broker is a Real ECN Broker, not a fisherman? Don’t answer, that you asked that from your brokers live chat support or you called you broker and he said so.
That same person, support or manager who works for your broker, is fishing you in. He’s only purpose is fishing, nothing else. He’s not getting bonus for chatting nicely, lovely and even charming. He’s getting paid from his total client base and their volume, so he need you (your money) to get money, you stupid little fish.
There is even brokers with Bank status, what blaims that they are ECN brokers with Bank status. In last year, little group of people find out, that those couple banks are also fishermans, nothing else.
Then there is, elite of Brokers, true ECN-brokers. They are elite of fishermans also. They like fishing, they like fish a lot, but they don’t eat that fish. They have different kind of view for that fish. They are only after liquidity, dealing in other words. They live from that commission what they take and it’s all visible. They are even so cleaver, that they trust that fish. After some time when that fish finds out that he ain’t at dessert list, he goes and tell his friend that there is a place what won’t eat us!!!! Only tiny problem there is…. that place is not for little stupid fish, that’s only for whales. Normal account opening starting from $50.000, $100.000 and even from $1.000.000.
Now these bucket shoppers knows those elite brokers, what they do? They copy elite ways to get more fish, those little stupid fishes what that river is full off.
Now you stupid little fish, do you trust your broker, “because he said so”, or me, one no name internet voice? Let me tell you a little secret, you fish………
I’m a fisherman and i like fish a lot! Only in odd way, I like watching those fishes in the river, trying to help them avoid those other fishermans traps.
Thanks for your comment.
You are right in many of the things you said, the way brokers cheat and make money and… . Unfortunately this is true and most brokers are like that. However, we are a broker too and what I am 100% sure about is that we do not do any of these tricks to cheat our customers. We are a real ECN broker with real liquidity providers. We do not offer any leverage higher than 100:1 and the min lot size you can trade with us is 0.1.
It seems you are offering a service that saves the little fishes from being hunted by the brokers. Please explain clearly what your service is and how you can help. I will be more than happy to know about it here. However, what I have understood is that with all the above negative things you listed, the only way to stay away from these Fishers is avoiding the forex trading, because according to you, in any way that you trade, you will be hunted and cheated. So what is your solution? Forgetting about trading?
Please let us know
Hi Forexoma.
That was nothing personal against you or your business. But yes, I have some questions for you. I’ll try behave.
Some of the questions may be very easy, sorry about that. I haven’t got time to look better your broker side.
- Where is your brokerage located?
- as liquidity, are you aggregated by feed?
- do you have PAMM to offer?
- little about commission structure, inside the spread or seperated commission?
- what is your regulation?
- who is your auditing company?
just these to start with.
And no, I didn’t mean that only way to survive in forex is to stay away from brokers.
Big picture is how you know your broker. Lets compare two traders, normal client and my self.
Normal client haven’t ever see or will maybe ever see MT4 server side back office or MT4 manager terminal with full functions.
So if there is something…shall I say odds, he’s only getting that information what broker tells him and he don’t even know what critical questions there is to provide needed information to make clear about his issue or odds.
For me, I have right questions to ask, no answer then regulatory side can get out what I need to proof that everything was ok in broker side and I was wrong. And i just have to get over that market error.
as broker Forexoma, you know how many different report there is at the MT4 server side. Then you also know about MT4 server side log files, location of those incuding line information what you can get out and from where.
So I can show screenshots to regulatory side, basically make help file for them to get that needed info out to show, was it market or broker who make that odd thing to happened.
Normal client don’t have any idea how to protect himself and what to ask if needed.
So when you know your broker and broker knows you. You have a good relationship with your broker and your broker will behave. As with normal broker, client managers don’t know MT4 back-office. Only IT and company owners know setups of their MT4.
I haven’t say that you are scammer or bad broker or good broker. You offer service and you are totally new to me, so i like to look who are you and what you are doing here :). If you have good MAM or PAMM and you are offering services in place what is so far unknown for me, I like to know you better. You have then client area where I don’t have activity and I like to resolve that issue off and trade with you, now when you know my skills with MT4.
Open mind, open heart. Way to go.
Hi,
> That was nothing personal against you or your business.
I know. As I mentioned something you said was absolutely right and most brokers make money through the traders’ losses. This is true. But it is not true about Forexoma
Forexoma is a mere ECN broker. All we do is connecting the MT4 you install on your computer to the liquidity providers. Fortunately our liquidity providers are also good. Personally I have moved almost 99% of all my trading funds to Forexoma Brokerage and I trade through the same MT4 that all the other Forexoma clients do. I am really happy with it so far. we have the normal and expected slippage during the volatile periods of the market, but in general everything is really good. Our stop loss and target execution is perfect.
Your questions:
> - Where is your brokerage located?
We are in Canada but the brokerage company is registered in BVI for now. When we become regulated in Canada, we will move the company registration to Canada.
> - as liquidity, are you aggregated by feed?
What do you mean?
> - do you have PAMM to offer?
We will have MAM (multi account manager) very soon.
> - little about commission structure, inside the spread or separated commission?
We charge no commission. We make money through the spread only.
> - what is your regulation?
A new broker can not just start working as a regulated broker. It is a long process and takes about 1-2 years to become regulated. So we are not regulated now, but we will become regulated when it is time to.
> - who is your auditing company?
Should we have an auditing company?
Regarding the things you mentioned after your questions, I have to say that our clients knows us and they opened an account with us as soon as the brokerage started working. Fortunately some of them are growing their accounts steadily and unfortunately many of them are still living in the territory where 95% of the traders live. We had a few accounts that have become doubled or tripled during this short time and we have some wiped out accounts too.
So it all depends on the traders. With Forexoma, all they have to be worried about is their own trading style. If they trade properly, they win.
We also have very fast funding and withdrawal and our clients enjoy this a lot.
What is your BVI company reg.nro#?
You are not regulated, you are offshore with proxy inc domain and you are playing with spread as you said “We charge no commission. We make money through the spread only.”
So you are unknown “Forexoma” no last name, from Canada with offshore MT4 broker company without regulation messing with spreads??? Are you kidding me?
regards,
Fisherman
Look Fisherman, it seems you are good enough in finding brokers. You do not have to open an account with us. Just find a good broker for yourself. Those who have already opened an account with us, are matured enough to understand if they should keep on trading through our brokerage or they should close their accounts and switch to another broker. So please don’t worry about them.
Thank you for your comments so far. You said all the necessary things you wanted to say.
Why is Forexoma spread so wide compared to other brokers?
If I have a ECN broker who charges a commission, NO PIPS, then I don’t have to worry about stop loss hunters.
Does this make sense?
Hi Art,
There is no “no pips” ECN broker, because the liquidity provider charges some pips for each position. So you still have to worry about stop loss hunting.
Also please note that there are so many ECN/STP brokers who claim that they transfer the orders to a third party called “liquidity provider”, but in many case that so called “liquidity provider” is another market maker broker or just the same broker’s sister company.