Hello, compu-forex,
We are happy to hear that you are a client of ours and never had any problems – especially on the forum with an inherent anti-broker bias.
Despite the sudden witch-hunt in this thread, we will try to provide sufficient answers to all the relevant questions about the incident.
When a trade is opened and closed straight away, where does the money go(the spread cost)? Is that trade still routed to your LP, or is it processed within your bridge system. In other words, the money that leaves the traders account.......is it in your account, or that of your liquidity providers?
Our hedging system is based on 2 different ways of transferring trades to the LP.
1. Transactions, transferred according to the first model, are aggregated by the total volume and are sent to the LP in "slices" with a certain volume step. This model, in the first place, allows to work correctly with cent accounts, as well as to work optimally with fixed spreads. The counterparty to the trades is LP, not the broker.
2. Transactions, transferred according to the second model, use straight-through processing: the trading platform waits for a direct response on the execution from the LP and transfers the response to the client. The counterparty here is also LP, not a broker.
Both methods are combined by our Smart bridge, which makes a decision about the model of work with each order based on several factors: the type of LP, which spread is better, what the statistics of execution in the past is, the priority of execution, etc.
Without any exceptions, all the trading volume one way or another is transferred to LP providers. The company does not act as a counterparty to transactions.
I understand this is why brokers do not like certain types of high speed trading strategies as it leaves them exposed to the trade outcome without being able to route the trades to your LP in time.
You can see in the provided statement that the trades made by our client are not high-speed, they were not made during the news.
Therefore, we are not quite sure why we are talking about high-speed trading here.
In order to avoid changing the direction of the discussion, we want to remind the dry facts.
In his post, the client claims that the deals were not made by him personally. For its part, the company has openly provided all the logs of the trading server relevant to the situation.
You can see in these logs that authorization and trading on the account took place from several IP addresses. It is absolutely within the realm of possibility that some of the trading took place on VPS with the Expert Advisor installed.
Obviously, we cannot confirm or deny this, but, acting within the framework of regulatory documents, we also cannot cancel transactions that have passed the proper identification procedure on the trading server using the trading password, which is known only to the client.
The Company's trading server stores the password in an encrypted form. Neither an employee of the company nor any other person, except for the client himself, can get access to the decrypted password. MetaTrader 4/5 platform works according to its protected proprietary protocol and the broker has no technical possibility to see this password. The only thing the broker can do with the password is to reset it to a new one upon the client's request.
We hope this information brings a closure to the unfounded and, frankly, highly unfair accusations of the company.
