I would like to publish what happened to me using IC Markets. I start saying that I believe IC Markets is a good broker and definitely not a scam (as many others are), I have used it for the past 6 months and I found that the spreads are razor tight.
However I have found a couple of problems:
First problem: IC Market on the website says that they have servers both in NY and London, one would expect that according to the user location they connect him to the closer one. Wrong! In fact the London servers are only for user who use cTrader and the one in NY are for those who use MT4. So using MT4 I am obliged to connect to their NY server. The problem is that I live in Europe and my latency suffer a lot. I asked the customer service if there could be something that could be done about that and they told me "no".
Second problem: be carful with the backfiring take profit of sell/buy stop order during high volatility news. This is something that never happened to me before and I want to publish the whole story so that nobody finds themselves in the same situation.
I decided to trade the Australian Interest Rate news (3 May 2016). Before the news I place the pending orders on different currencies with take profit and stop losses to saddle the news.
Basically once the price jump up with a gap the orders get activated but as my take profit is inside the massive gap that form I found myself with a loss. I attached the image of the situation and I also publish the whole discussion I had when I opened a trade investigation form. I think that in this occasion the broker stopped me out taking advantage of the gap. You can see at 3 trades, 2 in loss and one in profit.
First customer service I got in contact with:
"In reference to your order # 7274218 Sell AUDUSD, please be aware that due to high impact of news release on the AUD currency pairs, the market faced high volatility, and there was huge gap in the market prices received. Please note that, since this was a Sell order, it'll be executed once the received ask prices from our LP either exceeds the stop loss order level or becomes lower than the requested take profit order level.
In your case, the ask price we received was lower than your requested TP and thus incurred you a loss, as it was placed in a negative direction.
Regarding order # 7274244 Buy GBPAUD, please note that, since this was a Buy order, it'll be executed once the received Bid prices from our LP either exceeds the TP order level or becomes lower than the requested SL order level.
In your case, the bid price we received crossed your requested TP and thus incurred you a loss, as it was again placed in a negative direction.
Not satisfied, I feel upset as I really don't feel they want to sort out my problem with proofs and I asked them to escalate to a manager:
" I have attached the M1 charts for the trade I placed on the AUDUSD and GBPAUD and you can see from the chart that it is impossible that my stop was hit because the price you quoted as stop was way below the price and there is an up gap and an upside candle and the shadow of that candle doesn't even touch the price you quoted as stop. The same day I also placed another trade related with the AUD currency just before the RBA rate decision, I place a trade on the AUDJPY and as you can see you have correctly given me profit for that trade.
Please look closely at the charts attached.
Please answer me professionally attaching the tick charts of that very volatile minute and demonstrate me that you are right.
Why should you have given me profit to my sell AUDJPY trade and not to my sell AUDUSD and buy GBPAUD?"
"Firstly please accept our sincere apologies for the delay in investigation.
In reference to your trade order # 7274218, Sell 0.03 AUDUSD got executed once the ask price (0.76271) which we received from our liquidity providers fell below your set TP order level (0.76590). Your other order # 7274244, Buy 0.25 GBPAUD got executed once the bid price (1.9228) which we received from our LP exceeded your set TP order level (1.91724). Please find the attached files for more information.
Please note that,
• The Take Profit order on an open Sell position is executed if the Ask price in the quotes flow becomes equal to or lower than the order level.
• The Take Profit order on an open Buy position is executed if the Bid price in the quotes flow becomes equal to or higher than the order level.
The price on MT4 chart is based on Bid price but not Ask price. Adding up the spread onto price on the chart (Bid price) you will get the actual ASK price which is not shown on chart. By default, MetaTrader will only display the bid price on the chart. If you would like to see the ask price than you will need to right-click on your chart and click 'Properties' and then click the 'Common' tab and make sure the box for 'Show Ask Line' is checked.
Also, in comparison to your other reference trade # 7274396, Sell 0.03 AUDJPY, you set the TP correctly in a positive direction, which resulted in a profitable trade. However, the TP in your trade order # 7274218, was set in a negative direction, much above than your opening price, resulting in loss as the price at which you bought back the contract to exit the position was still higher than the price at which you sold the contract to enter the position. At IC Markets, we would recommend you to monitor and adjust your SL and TP accordingly to get benefited from the market movements.
Here in your case, the trades executed correctly and there was no system execution error.
Thank you for your understanding and patience while we investigated your case."
I feel more satisfied with the answer and I see that the manager attached the trading journal about those orders (have attached them in this thread) and I accept the loss.
"Ok, I am analyzing carefully the data. Basically a lot easier explanation is that the GBPAUD and AUDUSD orders ended up in loss because the value of their respective take profit (that I had previously set) fell inside the big bid/ask gap that formed on their respective charts, another way to say it is that the take profit of those two orders backfired me. On the other hand, the AUDJPY order ended up in profit because the take profit of that order (that I had set) did not fall inside the big ask/bid gap but inside the big bearish candle. Please tell me if an explanation like this could work."
I have this final answer
"Your conclusions are correct in a way. A much easier explanation would be that, the take profits you set on your trades, were not placed in a favourable direction to make profit and yes they did backfired you. The take profits were placed in a direction as stop losses are placed. You may need to consider the opening prices of the trades and adjust your SL and TP accordingly to gain profit from market movements."
Now that you know all the situation feel free to review my experience and tell me what you think of the situation. I am still of my idea that as the market went my way I found hard to see how I could lose those trades. According to IC Market representative explanation I have learned something: during news a take profit can backfire you.
If there anybody that could give his opinion on this case it would be great!
Thanks in advance.
All I can say is if it's happen to you once it will happen again and again until you change to good broker with good liquidity providers!
Only you can decide when you have had enough of the manipulation of prices and withdraw your money from this dodgy broker!
Which broker would you suggest so? It has been hard for me to find a broker that has spreads as tight as ICM, from your thread I have clearly seen how they manipulated the chart to take your SL out, what do you think of Pepperstone. Do you think Pepperstone is fine?