IKON GM Nailed by the NFA for Using a Virtual Dealer Plugin

[LEHayes]

The real question is this, as a developer of MT4 automations, can we code a verification tool that will identify the manipulation and could possibly report that broker to NFA?

Not only would it help to protect ourselves and/or clients, it would also assist NFA with doing something good.

 

[Tayo Adebayo]

Not only Ikon GM do this to the best of my knowledge, let NFA carry out this test randomly on other notorious brokers. In fact i will like this to be done on Fxpro. They give requotes when you are loosing, but never when you are gaining. Thanks.:unhappy:

 

[sky]

Looks like you have more things to do, i use Figfx.com, cos I'm interested with their bonus offer, I trade there for small lots first just to increase the money (0.01-0.10lot) and after i get the money to play a bigger lot like 0.50 or 1 lot i keep getting requote even the price isn't moving while i sent my order, and in same case i set my tp, the price passed my tp but my position not closed, the price bounced back again and my trades losing its profit... when i try to close it manually the requote keep coming, when i agree with the requote price the process will take about 10 seconds at least before it executed, most of the time there will be another requote...

I dont know how to make some evidence on this case cos i already loss the profit i made cos the requote keep coming when i try to close my position. i trade using scalping method hunting less than 10 pips there cos they offer 1 pips spread, but when i set tp to 10pips the price passed the tp sometimes till 3-4pips but my position not closed.

I dont know what to say know, i just want you to look for that broker cos i guess they use same thing with Ikon for cheating their client.

Thanks.

Hey pal, there is a software that can record your live MT4 trading. i cant remember which website or software name. Anyone out there knows about it?

 

[ErikV]

I use Alpari as broker.

And yes; I have seen the same thing happening. Is it just my mind playing up or is there really something fishy going on ?
- opening manual trades at market results in a delay of two-three seconds (connection, sending order to market ?) . Strangely enough, I always get the worst entry price. Sounds familiar ?
- I have programmed a script to open orders with fixed target / stop loss to make life easy and to place a scalp order quickly. If I allow a slippage of let's say 3 pips with the order - guess what happens ? The order is always filled with 3 pips in the broker's favor (3 pips off my entry price that is). Same with other settings (slippage 2 pips, 4 pips). So now I have programmed the script with a slippage of zero.

So yes, I think it's a plugin which is common with most (if not all) brokers ...
And I surely hope there is something we can do about it.

 

[MikeDnC]

Detecting it

[A]s a developer of MT4 automations, can we code a verification tool that will identify the manipulation and could possibly report that broker to NFA?

Good question. I can't see how to do this if the only information you have is the slippage you experienced. Having "Level 2" Forex information may help however, if this is possible. I spose you would need a view of the same pool of "liquidity providers" that your broker connects to (and sends its orders to). Then you would see what the broker sees, and could fairly easily gauge over time whether your broker is being honest.

I wonder if it's possible to get that "read-only view" of the liquidity providers without becoming registered as a broker yourself.

In the real world, positive slippage and negative slippage should be about equal over time.

I'm not sure, but I don't think this is true. Think about it: If your strategy is one that tends to always get you into the market _buying_ when everyone else is also buying, then you're more likely to experience negative slippage than positive.

Taking this a step further, I might be able to conjecture that the more profitable a strategy is, the less negative slippage you'll experience over time. This is because trading is a zero-sum game, and if you're winning over time, that means that you're more often than not buying when others are selling, and selling when others are buying. (If this is true then the inverse would also be true: Losing strategies could expect to see greater negative slippage overall).

That might be a way to test a broker for slippage honesty!



As a _third_ possible method for testing a single broker, one could of course just compare multiple brokers simultaneously: Always send orders to many brokers at once, with same lot size. The fact that different brokers connect to different baskets of liquidity providers complicates things, but I believe over many orders and several months the overall picture of honesty for each broker would become fairly clear.
Note that this measured honesty would be "relative" honesty: How honest BrokerA is compared to his peers.

 

[SAMMYFX]

Big Shame!!

Frankly speaking brokers like this should be banned. Even the principal staff of such brokerage firms should not be allowed to float any other firm.

Honestly for a broker like IKOM to fall for this is very disappointing. I think is a BIG SHAME for a BIG BROKER.

 

[geoffrey]

Re: Ikon Gm Nailed

We must always be on the watch because as we are determine to make it in the forex market, its brokers will also continue to scheme ways of making it from us.

A success story.

 

[Dewey]

A lair of thieves

First let us all be thankful for FPA.

Next one has to wonder why the developer of virtual dealer plugins, that are designed to steal from clients, is not sanctioned as well as IKON and other thieving brokers.

 

[Dewey]

Stop it all with licensing

Frankly speaking brokers like this should be banned. Even the principal staff of such brokerage firms should not be allowed to float any other firm.

Honestly for a broker like IKOM to fall for this is very disappointing. I think is a BIG SHAME for a BIG BROKER.

Unfortunately, these fines will be paid by clients. The only way to stop this kind of broker behavior is to strip the brokers' license when it happens. Maybe then they won't be so cavalier about it.

 

[ashaikh172]

Thanks

Thanks,for leting us know,about brokers using Virtual Dealer Plugins,

I think UFX Bank is also using the same.

Abdul