Pepperstone: Possibly manipulating spread

marco_mmbiz

Sergeant
Messages
191
@Todoimaginario
You can see such spikes on nearly all brokers from time to time. This is something you don't have to worry about. If you use a good well-known broker they'll refund losses if any even happened. I also had this problem with a few brokers now and I always got my money back and sometimes my trades didn't even recognize these spikes (because they were too fast), so no extra P/L's at the end. :)
 

Todoimaginario

Private
Messages
17
Hi Traders,
Thank you for inviting us to this discussion as you are correct to say spreads fluctuated, but no trades would have been affected. Let me tell you why.
There are two important points; Pepperstone disabled execution of trades from 23:59 – 00:01 (2 mins). This is done as ‘roll overs’ is the lowest liquidity time of day, so we disable execution to avoid an impact to our traders.
Whilst it's correct that spreads did move to 10 pips, this occurred at 00:00 server time. At 00:01, our first executable tick of the day, the spread was 2 pips. (See image below)
'rollover period' which is 00:00 serve time/midnight server time (GMT+3) is when banks and institutions reset their servers for the new trading day, enabling updates. Again, we want to clarify at this time no party can execute a trade.
Another point I'd like to mention is that Pepperstone does not manipulate pricing. We receive our pricing from external liquidity providers. As a non-dealing desk broker, we are proud to say we do not create our pricing and have never deviated from the price received by third-party liquidity providers
I’ve added a guide below that talks about spread fluctuation in more detail. It's an important read for any trader and I hope you enjoy it.

https://pepperstone.com/en-au/education/bid-offer-spreads/

Dear OP, I've tried to call you to ensure this is understood, but let me know if there is a better time to call.

View attachment 54091
When you say "no party can execute a trade", does that mean a Stop Loss wouldn't have been triggered? For example, someone with a long position with a SL at 114.800. My concern is not about opening trades, but about closing them.
I understand the concept of spread fluctuation, but such a gigantic spike that only occurs for a fraction of second, and in one broker only, makes me very suspicious.
 

ForexViking

Recruit
Messages
130
Good to point this out and make us aware, and nice to hear an explanation from pepperstone. I’ve had this happen to me when trading with other brokers, a quick phone call sorted it all out. :)
 

Pepperstone Support

Pepperstone Representative
Messages
13
When you say "no party can execute a trade", does that mean a Stop Loss wouldn't have been triggered? For example, someone with a long position with a SL at 114.800. My concern is not about opening trades, but about closing them.
I understand the concept of spread fluctuation, but such a gigantic spike that only occurs for a fraction of second, and in one broker only, makes me very suspicious.
Hi Todoimaginario, you are absolutely correct. No execution takes place during rollover black out period, 2 mins, whether this is a Stop Loss, Take Profit, new trade or pending order. This decision was made due to consistently high spreads received over rollovers would see negative client outcomes. Something we are always working to remove.
 

Pepperstone Support

Pepperstone Representative
Messages
13
Didn't get affected but sure IC Markets refunded a huge spike on gold not so long ago

Hi Sebking1986, How brokers handle bad market pricing is important. Pepperstone also saw some bad pricing related to a low liquidity time and large roll over spreads.
This is something we are always trying to improve, but in this situation, we corrected clients who were affected by this and reinstated over 500 clients into positions and reimbursed losses where applicable. We will always do our absolute best to make sure client outcomes are fair.
 

oscarra

2nd Lieutenant
Messages
1,237
I’ve added a guide below that talks about spread fluctuation in more detail. It's an important read for any trader and I hope you enjoy it.

“ Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such,……….etc”

Obviously, Pepperstone don’t even believe their own literature….or what :D

…..here some more serious matter


https://www.forexpeacearmy.com/comm...about-margin-call-they-are-lier-broker.64511/
 
Top