Yadix, www.yadix.com incredible spread widening + slippage... j

bashar777

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hello there.

i've been trading news for awhile and am really sick of some brokers replies when u argue them when u suspect of scamming actions...

anyway the case is :

i wanted to straddle trading the news event of GBP/official bank rate due to July, 4 11:00 GMT with yadix.

so i filled my 2 pending orders 10-20 seconds prior event release time, usually am using 10 pips away from current price...

so the difference between pending buy-stop n sell-stop is 20 pips + spread!

i also use 10 pips to set my sl.

i was risking around 12.5% per each pending (too high but i was testing this broker)...
so i was expecting in the worst case scenario if my both pending had triggered n hit the sl i will lose 25% of my account..

now... what happened, as per attached..

1. u will see my entry price slipped for 15 pips for both pending orders, based on sl appeared on the platform.
2. exit price slipped for 40 pips for both pending orders, based on sl n exit price difference.

so basically i got over 65 pips slipped, more than 30 pips in each pending order!

that resulted my loss to move from max 25%.. to 115% loss...
yes i lost more than 100% of my account... ... my account is negative now there... maybe i should pay for them to let my account reach zero .... isnt that funny!!

i contacted them... they keep saying stuff about high risk .. high volatility.. slippage may happened... positive or negative... - with such broker u will never see anything positive- anyway... all news trader aware of that...

but 65 slippage is to huge.... specially when a broker claim he is using multi liquidity providers - i guess they mentioned around 10 LP's they r using-
and i was watching the price action with different broker... nobody has that gap at that time, except him!

another issue .. while i was discussing the issue with their support team... one of their staff.. told me the spread went to 40 pips at certain stage... am not sure if he mentioned that intentionally ... but i admit i couldnt see that size of spread while mentoring the trade... who knows maybe they doing yo-yo spread too!!

so i want to hear an expert opinion in this case ... if u recommend me i will continue and open a case in the court... btw i was telling him am gonna invite a third party to check his opinion in that issue, i donno why yadix stuff considered that as a threaten... maybe when u do smthing wrong u will see everything as a threat!!!

anyway guys, i appreciate that time that u will spend by reviewing my case.
i really trust u, n i wanna hear ur opinion...

many thanks...
 

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Trade 1
Original SL 1.52599
Execution SL 1.52408
Slippage 19.1 pips

Trade 2
Original SL 1.52544
Execution SL 1.52770
Slippage 22.6 pips

It would be nice to know the entries on the pending orders so that exact slippage on those could be known. The entries are 38.4 pips apart, so if we assume that the pendings were 20 pips apart, that comes to an average of 9.4 pips each direction (minus the spread).

Why did you test a broker with more than the minimum trade size?
 
each entry was 10 pips from sl , so :
slippage@entry = 38.4-20-spread, if we assume the spread at the time of initiate the pending which is prior of the news event where around 3 pips.. we got 15 pips slippage@entry.
now, slippage@exit = (1.52599-1.52408) + (1.52770-1.52544) = 19+22.5 = 41.5
total slippage is 15 + 41.5 its around 56.5 pips!

i used 0.6 lots on each trade assuming mostly one trade will be triggered...its a part of testing ur broker when u decide to trade news with him to increase ur lot size... since some of them will change their previous behavior when u increase lot size or u start make profits...
so u cant tell much about the broker of u test him with so low trade sizes.
 
Yes, behavior can get worse as lot size increases with some brokers. Still, it's a very bad idea to make your first news trades (or first any trades) anything other than the bare minimum. After all, if you don't know if the slippage will be bad at the minimum trade size, why find out the hard way by trading 6 times that amount (or is it 60 times - I don't know if their minimum is 0.10, 0.05, or 0.01)?

If there was exactly 10 pips slippage on entry, that would make your worst slippage 32.6. Since this was a news straddle, slippage is expected either way, so summing them up is less informative that looking at the maximum.

If spread really hit 40 pips, then you didn't actually get the worst of it.

This is a case of order fills that truly suck. Part of it is news-based, so it would be impossible to say that the broker isn't 100% responsible for all spread widening and slippage. You could have an ECN feed to the 10 largest central banks in the world, but if you trade a big news spike, you will experience slippage and spread widening.

Another point - they may have 10 LPs, but this doesn't mean that each of those LPs aren't serving 100 other brokers. It's very possible that some brokers get preference over others, depending n their contracts with the LPs.

And, finally, any broker that allows news trading will cover itself very carefully in the TOS regarding slippage and spread widening during times of major volatility and/or low liquidity.

What happened truly sucked, but even if other brokers had a smaller spikes and narrower spreads, that doesn't prove deliberate manipulation. It does show that the broker lacks sufficient liquidity for your news trading plans - like many other brokers out there.
 
Yadix operates a true STP broker model that represents trading on true market conditions and offers direct market access to its clients. Because of this, we do not have the ability to manipulate market conditions, control spreads or slippage in any way. We are always happy to explain the workings of how trading on true market conditions can benefit profitable trading strategies and also what can be expected when implementing specific strategies such as news trading.

Due to this model, our brokerage offers a platform that does not restrict any type of trader. We are proud to offer no limits or levels on stop loss, take profit and all other pending order types, and we do not delay order execution even during abnormal market conditions such as trading during “news” or the “gap”. During these times slippage and higher than normal spreads can occur due to the unstable nature of the market place.

All clients are encouraged to ensure that the trading environment is suitable for his/her specific trading strategy prior to the commencement of trading. Yadix is very transparent in the way this information is published, specifically in regards to these instances on the website, and in communication with our clients.

As a broker, it is in our interests to target profitable traders and as such we offer many tools to all clients that are in place to improve all aspects of trading execution. They include the use of the Equinix Financial Exchange and infrastructure, offering free VPS to clients, both ensure the lowest latency and faster order execution. Generally, we aim to provide beneficial trading conditions across all of our account types. In cases where we as a broker are at fault, we will take responsibility. Our trade services team will fully investigate each query case by case and make a true evaluation based on the findings.

Once again, in case of any questions or clarifications, our support team are on hand to discuss with any client or potential client.
 
Trading news with any broker will lead to slippage. You are trading a real market not virtual. And that’s why yadix would even warm you about trading news on their look at this, When trading during the release of forex data, Market can become volatile and unpredictable with sharp change in prices within milliseconds. When a currency pair ticks aggressively the market can offer multiple prices per second of an MT4 candle. During these times a news trader experiemes slippage. Get your clams right before you make unformded comment toward yadix
 
That was an insightful comment martial99, because of naivety, People sentimentally conclude some forex broker are scam. The word “Scam” is always used when a trader uses money because of his their own arrogance. Forex trading is like a School, If you don’t study you won’t pass. A lost of People like the trader with several account at yadix and have been making money. Check this out you can withdraw any profit anytime without restriction. My advice to People is that, They should try to understand the concept of trading Forex because going into Forex. I think that would reduce the high rate or complained
 
I really commend the effort to yadix support center offer to extensively explain issues to their clients. I total disagree with pharaoh when you say yadix lacks sufficient liquidity for news trading plans. As you know, the Forex market liquidity varies throughout each trading day from my experience the most suitable broker for news trading is yadix and you known broker try as much as possible to protect themselves from this kind of sceneria. Yadix operate a time ECN/STP with deep liquidity not ever failing MM. An MM will offer you unbelievable low spreads, so that broker offering them would make money from your loss.
 
Nice point scorpion23, talking about slippage, yadix platform is best when you want to avoided irregularities, like unnecessary slip. It has a smooth platform functioning before and during the news, no freezing, no crashing or other Crappy technical issues it hardly has reqoutes, which make it trust worthy. in my opinion to avoid unnecessary loss which most times lead to complains, I would advise traders to fully understand the key words involved in trading with Forex broker like yadix. When it comes to high volatilities, trader should understand few indications that can help you guage a pair’s current volatility. It will also help in offering you more opportunity for trading and potentially for trading successfully
 
Nice spam. If this is how Yadix promotes itself, the level of desperation shown makes me think the company must be having severe financial troubles.
 
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