FxPig -charged me 10,000 pip spread(yes 10 thousand this is not a typo)

chitak

Sergeant
Messages
133
I have a complaint against FxPig.

On December 9th 2015 I entered several trades on the USDZAR and EURZAR pairs. Shortly after I was hit with a margin call losing about USD 11791 putting the account in negative USD 3016.

This was not a rookie mistake, I was not over-leveraged. Simply this was a sort of a stop loss hunt by the broker, more like a margin call hunt. Upon more detailed review I discovered that the spread on the USDZAR increased to nearly 10000 pips when I got hit with the margin call. To put this into perspective the USDZAR spread is normally under 200 pips, so this was 50 times the regular spread. the EURZAR was similar. How do I know the spread was about 10000 pips, well take a look at the screenshot of the trades, there are both short and long trades on the USDZAR closed at the same time by the margin call, ticket 2509663 and ticket 2509677, the respective prices 14.60664 and 15.59301, which is 9863 pips spread, not exactly 10000 pips but really close to it. this must be some sort of record for the biggest spread.

Had the spread not widened to 10000 pips I would have been able to close these position at about USD 500 profit 10 minutes later. How can anyone make a profit in this scenario? Did they widen the spread on purpose to hit me with a margin call? I don't know, but it sure looks very bad for the broker.

As I use an EA to enter trades I did not see this right away, but several hours later. I checked all charts and other trades on the same pairs that my EA entered.

I have been in touch with Kevin Murcko(the CEO of FxPig) I thought as this is such an obvious 'glitch' they'd reverse the trades right away and call it a day. But they are saying this is legitimate and can not reverse the trades.

The other two attachments are screenshots sent to me by Kevin. Those attachments are enough proof to reverse the following tickets 2509657, 2509663 for USDZAR as it clearly shows the price was never at 14.60664 for the closeout of the long orders. The following tickets 2509684, 2509682, 2509679, 2509680, show as closed at 15.64-15.74 this is also above the USDZAR chart, so those can be reversed using this as proof. The EURZAR attachment is proof to reverse the following tickets 2509621, 2509619, 2509616 as this chart shows the high at under 17.2 but my orders were closed at 17.3-17.4.

As a final note, I want to say that I am very disappointed by FxPig, they advertise direct market access. But is this what DMA means? If it means 10000 pip spreads then no thank you, I'd rather stick with a regular bucket shop.
 

Attachments

RahmanSL

Major
Messages
2,536
I am not sure, but that might be during the time when the S.A Finance Minister was replaced and then reinstated 4 days later. That caused huge spike/movements on the ZAR.

Anywhere, do invite FXPig representative to explain their position here.
 

chitak

Sergeant
Messages
133
I am not sure, but that might be during the time when the S.A Finance Minister was replaced and then reinstated 4 days later. That caused huge spike/movements on the ZAR.

Anywhere, do invite FXPig representative to explain their position here.
Yes it was at that time, and it did spike, however FxPig took the spike way too far, and the spread. No other broker seems to have spiked that far. I'll get some screenshots to post from my other live accounts that show the market didn't spike this much and it was a stop-loss hunt over at FxPig
 

chitak

Sergeant
Messages
133
Invited Kevin, he says they will reply here "in due course". I think they are waiting for the regulator to rule on this case, that will happen sometime in January. I'm gathering my data to send over to the NZ FDR.

Kevin indicated that the only way for them to pay me is if the regulator orders them to do so, in other words they aren't willing to pay if the FPA decides against them. In any case I will pursue all avenues that I have access to, that is FPA and NZ FDR as well as other forums that I have posted my experience with FxPig.

I will post all the supporting evidence I gather for the NZ FDR here as well...in a few days.
 

RahmanSL

Major
Messages
2,536
Invited Kevin, he says they will reply here "in due course". I think they are waiting for the regulator to rule on this case, that will happen sometime in January. I'm gathering my data to send over to the NZ FDR.
Kevin indicated that the only way for them to pay me is if the regulator orders them to do so, in other words they aren't willing to pay if the FPA decides against them. In any case I will pursue all avenues that I have access to, that is FPA and NZ FDR as well as other forums that I have posted my experience with FxPig.
I will post all the supporting evidence I gather for the NZ FDR here as well...in a few days.
The problem with NZ regulator (and I think AUS too) is that they only give protection to their citizen.
So, it will be interesting to see the outcome of your case.

However, do post your evidence here for the FPA community to evaluate your case and we will go from there.
 

chitak

Sergeant
Messages
133
Submitted my case to NZ FDR. Decided not to post here in the public until I get a ruling. It won't help posting here now, it might just hurt my case with the FDR if they found out I posted my whole case in a public forum.
 

chitak

Sergeant
Messages
133
The problem with NZ regulator (and I think AUS too) is that they only give protection to their citizen.
So, it will be interesting to see the outcome of your case.

However, do post your evidence here for the FPA community to evaluate your case and we will go from there.
I don't know if that's the case. At least legally. Do you have any examples to support that? Like 2 very similar cases where an NZ national won but a foreigner didn't?
 
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