ecn broker and limitorder with gap ???

[tangmase]

hello,

i am using an ecn account and often i put a limitorder ( buy/sell ). from the beginning i thought the execution is a bit strange. from my feeling i didnt get the price as i put on my lo.

now i observed after i complained to my account manager, nearly 90% of my lo are executed with a gap ( means 1 - 3 pips less then my order ).

the explanation was: some news in the market or high volatility.

but after i am now more sensitive i was checking the market and i couldnt see any big news nor any high volatility.

for me as i scalp on a 5 min chart with 10 - 15 pips benefit is this kind of execution very bad.

my question: is this kind of execution normal for an ecn broker??

who knows a broker with ecn or stp who execute the order to the right price ??

regards

 

[Pharaoh]

The good thing about a true ECN broker (and there are fake ones out there) is that they won't screw with your trades as much as a market maker.

The bad thing is that ECN brokers are prone to real world slippage. Of course, if the slippage is always negative, then there's something not right.

 

[scagnetti]

Hi to all,
A question I've wanted to ask for a long time, guys dealing with ECN accounts, would you please share you experience with regard to execution of Limit Orders as a whole? Are they being executed only at the price set or better, partially or fully? Is there any possible slippage both negative and positive for Limit Orders? Please, share your experience. thank you

 

[scagnetti]

The reason I'm asking is that it always seemed to me that Limit Orders (including TP) should be executed at the price set or better. I believe it is a standard of industry, the origin and essence of Limit Orders. However, now I'm trading with an ECN broker with executes Limits with negative slippage. I can hardly imagine how it is possible, thus it would be great to hear some other opinions on this issue.

 

[tangmase]

hi scagnetti,
i made some research about this issue in the net. i found if you trade mit a very small account ( 0.01, microlots - like me, my broker is 4xP ) the ecn broker never gives the order direkt to the interbank, because it is too small. Must be 1 lot or more. Thats one of the reason why i mostly dont get my marketorder filled to my price.
In times of News or high Volatility, Slippage is usual.
But i think there must be some Brokers they are more fair to their customers.
I hope some people from the community - can give us good advices.
Best regards

 

[scagnetti]

tangmase, thank you for the reply. no doubt that ecn brokers offering lots starting from 0.01 are in fact not a true ecn brokers. as far as i understand, they execute these small-amounted transactions im-house, and send lots starting from 0.1 to interbank. ok, i don't mind. but i do insist that negative slippage for limit orders is unacceptable. do you agree?

 

[tangmase]

scagnetti, sure i agree with you

at which broker you are at the moment ??

regards

tangmase, thank you for the reply. no doubt that ecn brokers offering lots starting from 0.01 are in fact not a true ecn brokers. as far as i understand, they execute these small-amounted transactions im-house, and send lots starting from 0.1 to interbank. ok, i don't mind. but i do insist that negative slippage for limit orders is unacceptable. do you agree?

 

[scagnetti]

Which broker you are at at the moment?

it's pepperstone.

 

[martinico]

Hi, for my forex account I am with FXCM and I have seen the same problem than you, for me an order limit must filled at the initial price.

 

[scagnetti]

hi, martinico. could you please check your Product Disclosure Statement or Terms of Business - the document where they set the rules of execution. check what are they saying regarding limits execution