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I'm speechless to think that Pepperstone would manipulate spread in order to cause a trade to stop in my account. I'm currently holding a razor account on pepperstone, which promises low spread for a commission.
Pepperstone's website shows average spread of GBPJPY is 0.4-1.23 pips. Which I believe is perfectly fine to pay a commission for such spread. I do understand that this is not guaranteed, but my trade was stopped out by a spread widening of 10 pips for no good reason.
Here's the response from pepperstone.
Thanks for contacting us today.
Thank you for your email and trade investigation. I noticed that you were in a Sell trade. Please note that Sell trades open at the Bid price and close at the Ask price.
The reason for the confusion in this trade close price is that the trading platform shows the Bid price as the chart price and the Ask price is not displayed on the charts by default. The Ask price is the higher price of the bid-ask spread and is above the Bid (chart) price by the distance of the spread. As you were in a sell trade, your position is closed on the ask price (and opened at the bid price). When sell trades are closed, it can therefore appear as if the trade is closed before the chart price reaches the requested level however the price was in fact reached by the ask price which triggered your stop-loss order.
Furthermore If you have a pending stop (market) order, it will be a request to close the trade at the next available price should the market move past your stop level.
To get a better idea of this, you can enable the current ask price on your [cTrader charts; right click on the chart, select Viewing Options > "Ask Price Line” / To enable the ask price on your MT4 charts; right click on the chart, select Properties, go to the Common tab and select “Show Ask Line”]
Below are the Bid and Ask prices at the time your stop loss was reached when the markets reopened:
2018.10.22 00:00:55 147.130 147.234
2018.10.22 00:00:59 147.126 147.230
2018.10.22 00:01:00 147.127 147.231
2018.10.22 00:01:00 147.126 147.230
2018.10.22 00:01:03 147.125 147.229
2018.10.22 00:01:03 147.119 147.223
If you need further information regarding the difference between these two prices, please see this section of the support site here: https://pepperstone.com/en/support/about-trading/bid-and-ask-prices
As a non-dealing desk broker we do not offer a fixed spread on our currency pairs; instead, we provide the interbank spreads that exist in the market.
Please let me know if you have any further questions or if I can provide any additional clarification. Thank you.
Kind regards,
Roger
Pepperstone Support
Note that they have indicated the tick data at 00:01:00, which is when my trade got stopped out with a spread of 10.4 pips. This is absolutely ridiculous. Why do I have to pay a commission on an account that offers low spread, to have a spread of 10 pips on GBPJPY? Would really appreciate it if someone could advise what I can do. Was thinking of lodging a complain with ASIC but not sure if that's going to work.
Pepperstone's website shows average spread of GBPJPY is 0.4-1.23 pips. Which I believe is perfectly fine to pay a commission for such spread. I do understand that this is not guaranteed, but my trade was stopped out by a spread widening of 10 pips for no good reason.
Here's the response from pepperstone.
Thanks for contacting us today.
Thank you for your email and trade investigation. I noticed that you were in a Sell trade. Please note that Sell trades open at the Bid price and close at the Ask price.
The reason for the confusion in this trade close price is that the trading platform shows the Bid price as the chart price and the Ask price is not displayed on the charts by default. The Ask price is the higher price of the bid-ask spread and is above the Bid (chart) price by the distance of the spread. As you were in a sell trade, your position is closed on the ask price (and opened at the bid price). When sell trades are closed, it can therefore appear as if the trade is closed before the chart price reaches the requested level however the price was in fact reached by the ask price which triggered your stop-loss order.
Furthermore If you have a pending stop (market) order, it will be a request to close the trade at the next available price should the market move past your stop level.
To get a better idea of this, you can enable the current ask price on your [cTrader charts; right click on the chart, select Viewing Options > "Ask Price Line” / To enable the ask price on your MT4 charts; right click on the chart, select Properties, go to the Common tab and select “Show Ask Line”]
Below are the Bid and Ask prices at the time your stop loss was reached when the markets reopened:
2018.10.22 00:00:55 147.130 147.234
2018.10.22 00:00:59 147.126 147.230
2018.10.22 00:01:00 147.127 147.231
2018.10.22 00:01:00 147.126 147.230
2018.10.22 00:01:03 147.125 147.229
2018.10.22 00:01:03 147.119 147.223
If you need further information regarding the difference between these two prices, please see this section of the support site here: https://pepperstone.com/en/support/about-trading/bid-and-ask-prices
As a non-dealing desk broker we do not offer a fixed spread on our currency pairs; instead, we provide the interbank spreads that exist in the market.
Please let me know if you have any further questions or if I can provide any additional clarification. Thank you.
Kind regards,
Roger
Pepperstone Support
Note that they have indicated the tick data at 00:01:00, which is when my trade got stopped out with a spread of 10.4 pips. This is absolutely ridiculous. Why do I have to pay a commission on an account that offers low spread, to have a spread of 10 pips on GBPJPY? Would really appreciate it if someone could advise what I can do. Was thinking of lodging a complain with ASIC but not sure if that's going to work.