FXCM

[topedge]

Just wanted to alert members to a scheme by FXCM. I had a resting order prior to news which was at least 10 pips out of market prior to CAD Core Retail Sales today. Expected was 0.1% and actual was a kill 1.2%. The market took off and I had a 10 pip fixed trailing stop. Next thing I see my account had 'lost' 20 pips. I had a chat with FXCM immediately and they said 'slippage' can occur. Unfortunately for them I was up all night making that money. I took screen shots of their platform and I also have a Ninja platform running on another computer. I took a screen shot of a tick chart. I have asked them to replace the 20 pips and give me at least the 20 pips I would have made. In reality they probably took me out from 35 pips.

 

[Master Yoda]

why won't you share the screenshots?

 

[topedge]

At the right time I will. I informed FXCM I had posted on this site and expected them to deal with this in a shorter time than their 3-5 day estimate. I will give them the opportunity to correct the issue. If not, I'll post the screen shots. It's not rocket science. I have a screen shot of a tick chart which shows absolutely no upward movement let alone a 20 pip 'slippage'.

 

[stevesmain]

One cannot rely on the stations to keep pace any more at news times. Orders are STP'd which = slippage in fast markets. Just because a station shows a price the market behind the scenes is moving & the station does not keep pace. One's order goes to the server and gets the next best price if you are first in line, if not more slippage is possible. When a market pair bounces around such as at news times a trigger can be hit but not executed at that exact price, again slippage on the way in & on the way out. I have had it work to my benefit & loss. Liken an order to a light switch there is a fraction of a second before the light comes on, in this case that fraction of a second was likely costly going in & exiting the trade.

Appears here to be a case of a slow station unable to keep up with market. Hopefully you have watched the market & you were not expecting to have your price triggered exactly at your chosen price.
Straddling the market is a great way to trade, just beware of slippage & the come backs that boot one out with a light stop. If you get your price it is a bonus.

The USDCAD dropped about 35p in the first minute, I have seen that pair do the two step often at news. Wasn't watching it but it does not surprise.

FXCM has been none to give you one, hopefully this is your turn.

 

[topedge]

Thanks Stevesmain for your response. I did not have a straddle trade in place. I had a trailing stop set so if the market fell fast and retraced I would make bank. What happened was the trade was triggered by the offer and the spread was so large my trailing stop took out the trade. I took a screen shot of the tick chart to verify the market wasn't bouncing on CQG feed. It went straight down. It wouldn't have mattered if my order was filled at the price or later, the market did not bounce after the order was filled. It dropped straight down. I am sure you have seen where some brokers go goofy with their spread on news items without reason from a market perspective. They are trying to clear every order in sight and use a spread sometimes as big as 30 pips. Some brokers play fair and others play this way. I posted it here for two reasons. 1) to help newer traders understand the necessity to take screen shots and speak with their brokers if they don't feel they were treated fairly. 2) to keep FXCM honest. It was poor execution on their part. They don't need to take my $400. I am very good at giving to the markets on my own accord.

 

[stevesmain]

Topedge

Sure sounds like a straddle tho with a limit order, even if it is one sided. None the less not important.
Super wide spreads happen & are not controlled by the dealer but the liquidity provider. The market perspective is their own not what you see else were. If the dealer wants to be competitive then they may try to do something about it. More & more the spreads are extra wide at those times & they are treacherous to trade. If a chart shows one price the market may already have moved & it is not updating fast enough?
I can not trade much in the way of the news on one station i use as it has those wacky spread & they hold them well longer than they should.
One ought not to blame dealers at these time they do not set the spreads usually again it is the liquidity providers (banks).

As you are doing warn all, that this can happen & expect anything goes at these times so be careful out there.

 

[Pharaoh]

A BIG surprise on a news event will lead to wide spreads and massive slippage. It's the nature of the game. Any broker that promises fixed spreads and no slippage won't pay off on news trade winnings.

 

[Master Yoda]

That's true but he also said the he compared FXCM charts to other companies and he found out there is a difference between the charts

 

[yideng]

That's true but he also said the he compared FXCM charts to other companies and he found out there is a difference between the charts

what are the differences?

 

[stevesmain]

During quite times there will be similarity's
During busy times, all bets are off & one can not compare as price feeds & the speed of stations keeping up are different.
Even huge spikes at news times may be considered normal.
Expect the unexpected