Oanda hunts my stop

despe906

Recruit
Messages
9
A long AUD/NZD trade hits my stop loss at 5am, 5th of July, after a flash spike down to 1.2823. It happens, I think. Out of curiosity though, I check the price at my other forex accounts. Then I check price data from the web. Amazingly, the lowest level I see everywhere else is : 1.2877.
So I e-mail Oanda front desk twice:

"Today, on one of my sub-accounts a long AUD/NZD position has hit stop loss level at 1.2831. The problem is the lowest level this pair traded today on my 2 other forex brokers accounts was 1.2877, check for yourself : ducascopy.com. Open AUD/NZD chart to see where was the price today. As your platform is the only to display this level of price I must say this was a system error to my detriment."
"(...) Even if your spread was 35 points during news release - taken from your spread on Oanda website for Aud/Nzd for 5th of July - there is no way it could have reached my stop loss at 1.2831. Your spread, when the price was at 1.2877, must have been 90 points to reach my stop loss level!"

After long 24 hours wait and chat room query here comes the reply :

"We have investigated your trade in question (ticket xxyy) as requested and found no error on the trade. Please note that OANDA is a Market Maker and our prices are determined by the rates we receive from our liquidity providers and our rates are not necessarily same or similar to the rates from other brokers. When your trade was closed by the stop loss, due to the news announcement released in Australia, our spreads on the AUD pairs were widened momentarily. Your long position was closed by the stop loss when the bid price on the market fell to 1.28312. At that moment, the ask price was 1.28382 making a spread of only 7 pips. During the period, the lowest price the bid went to was 1.28200."

This is incredible! There was no big 35 spread when the stop loss was hit, just the price was 50 pips off the market when it happened! Oanda - 1.2820, the market/other brokers - 1.2877.

"Please note that OANDA does not trade against the clients nor benefit when they lose money on trades. OANDA hedges its exposure for trades made by clients by making corresponding trades with third-party banks. As a result, if you lose money on your OANDA trade, OANDA loses a corresponding amount to its third-party bank."

Oanda hedges its exposure, LOL. This is why during the busiest hours for AUD/NZD (Australasian session) on the most liquid market on earth - forex - there is 50pip difference from the spot market price! If your MM broker can be legally 50 pips off the market as their 'liquidity providers' dictate, this means it can do to your automatic exit and entry orders whatever they wish!
 

Sylvie O.

Sergeant
Messages
153
A long AUD/NZD trade hits my stop loss at 5am, 5th of July, after a flash spike down to 1.2823. It happens, I think. Out of curiosity though, I check the price at my other forex accounts. Then I check price data from the web. Amazingly, the lowest level I see everywhere else is : 1.2877.
So I e-mail Oanda front desk twice:

"Today, on one of my sub-accounts a long AUD/NZD position has hit stop loss level at 1.2831. The problem is the lowest level this pair traded today on my 2 other forex brokers accounts was 1.2877, check for yourself : ducascopy.com. Open AUD/NZD chart to see where was the price today. As your platform is the only to display this level of price I must say this was a system error to my detriment."
"(...) Even if your spread was 35 points during news release - taken from your spread on Oanda website for Aud/Nzd for 5th of July - there is no way it could have reached my stop loss at 1.2831. Your spread, when the price was at 1.2877, must have been 90 points to reach my stop loss level!"

After long 24 hours wait and chat room query here comes the reply :

"We have investigated your trade in question (ticket xxyy) as requested and found no error on the trade. Please note that OANDA is a Market Maker and our prices are determined by the rates we receive from our liquidity providers and our rates are not necessarily same or similar to the rates from other brokers. When your trade was closed by the stop loss, due to the news announcement released in Australia, our spreads on the AUD pairs were widened momentarily. Your long position was closed by the stop loss when the bid price on the market fell to 1.28312. At that moment, the ask price was 1.28382 making a spread of only 7 pips. During the period, the lowest price the bid went to was 1.28200."

This is incredible! There was no big 35 spread when the stop loss was hit, just the price was 50 pips off the market when it happened! Oanda - 1.2820, the market/other brokers - 1.2877.

"Please note that OANDA does not trade against the clients nor benefit when they lose money on trades. OANDA hedges its exposure for trades made by clients by making corresponding trades with third-party banks. As a result, if you lose money on your OANDA trade, OANDA loses a corresponding amount to its third-party bank."

Oanda hedges its exposure, LOL. This is why during the busiest hours for AUD/NZD (Australasian session) on the most liquid market on earth - forex - there is 50pip difference from the spot market price! If your MM broker can be legally 50 pips off the market as their 'liquidity providers' dictate, this means it can do to your automatic exit and entry orders whatever they wish!
Hi despe,

It's not the first time I hear OANDA widen their spreads.Someone has suggested me to open an account with OANDA. I will think twice before opening an account with them!
 

despe906

Recruit
Messages
9
Hi Sylvie,

Oanda widens their spreads almost everyday by 10, 20 or 30 pips. But this time simply their price was way off the market price which close my position with a loss. Last month, my entry orders (potentially profitable) were missed by 2-5 pips, this time my sl order was reached although 50 pips away.
 

Sylvie O.

Sergeant
Messages
153
Hi Sylvie,

Oanda widens their spreads almost everyday by 10, 20 or 30 pips. But this time simply their price was way off the market price which close my position with a loss. Last month, my entry orders (potentially profitable) were missed by 2-5 pips, this time my sl order was reached although 50 pips away.
Hi despe906,

I think that stop hunting is worse than widening the spreads. Like I said I will think twice before opening an account with them.
 

Banco

Recruit
Messages
5
OK no who can you trust!!

Thought they are OK and opened an account with OANDA.


I AM CONFUSED PLEASE HELP!!!!!!!!!!!

Dont feel like deposit money with them:unhappy:
 

4example

Recruit
Messages
1
6 years later...oanda hunts my stops. I have now 2 years with them. Contempt and frustration. They hunt my stops continuously and do not open my Limit order trades when market is on my favor. But they do it when things go wrong on my setup. Almost similar emails with those already posted.Why I still am with them?
Honestly, I know of no fair business to customers. Fairness would mean that a business will make just a living. No such thing for a thriving business. Oanda is a thriving business. They make more than just a living. Is a luxurious living. Who is paying for it? Us.
And...all the brokers are doing really really well. So, my choice...oanda.
But first glimpse on something better will make me leave. They don't inspire loyalty. Not at all.
So, my advise if you look for a broker- pick one that gives you a head start in terms of incentives.
Oanda doesn't offers (as of this moment)any incentives.
 
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