Master Yoda
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Why wouldn't it? unless they don't want to allow news traders or avoid traders who wish to earn from spikes
XM ( Trading Point Holdings Ltd ) removed profits generated from legal news trading
- Thread starter stevetrade
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Why wouldn't it? unless they don't want to allow news traders or avoid traders who wish to earn from spikes
alexx71
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This is the KEY ! They consider news/fundamental traders as arbitragers ! If they don't want news traders they have to write clearly in the contract so any
trader can decide if work with that broker.
News and fundies trading is a LEGAL way to trade is not fraudulent or a way to " exploit latency ", is a way to trade of banks and institution too.
So these broker simply ABUSE of a clause of the contract.
Again XM representative :
IS NEWS TRADING FORBIDDEN IN YOUR COMPANY ?? We are here to know your CLEAR answer.... hopefully before the end of 2015 !
stevetrade
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Their complaints procedure is 15 business days and I formally lodged my complaint with them on January 12th. So I guess next Monday is the deadline for them to respond to my official complaint. I'll keep you informed if they don't respond here as well. Somewhat disappointing that they don't want to comment on the request regarding news trading.
Best regards Steve
Best regards Steve
alexx71
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I think that their silence speaks by itself.
This is what you can do : Begin to write an online complaint :
Cyprus Securities and Exchange Commission
Maybe they don't care our mail... but if they want continue their business they must respect the rules and regulators is the way to go.
This is what you can do : Begin to write an online complaint :
Cyprus Securities and Exchange Commission
Maybe they don't care our mail... but if they want continue their business they must respect the rules and regulators is the way to go.
stevetrade
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I received my reply from XM, here it is. In addition they sent me an excel spreadsheet ( sample here http://c2n.me/3bCVjJ4.png ), which quite frankly could have been put together in about 5 minutes.
I move to have XM officially marked as a scam broker.
Best regards Steve
"Dear Mr. Boardman,
Please note that we have thoroughly examined your complaint and concluded that your orders have correctly been cancelled due to abusive trading strategies aiming to exploit price latency arbitrage opportunities identified in your trading account.
Particularly, we have reviewed your trading activity in your trading account 2181379 and we identified that most of the orders placed were opened just one second (or even less) prior to the occurrence of a price gap. Please refer to the attached table providing an analysis of your orders and the price movement one second following the opening of the orders.
In this respect, it is clear to us that you have been using a highly sophisticated software which allowed you to obtain the institutional price feed faster than our company and act accordingly in our platform. Although manually it may not be possible to take advantage of this, with the use of a highly sophisticated software it is possible when you instruct it to trade when it identifies fluctuations in the market from the faster price feed provider which have not yet occurred on our platform.
This cannot be deemed as an acceptable strategy as you create an environment which does not follow the fair rules of trading and makes the strategy in a way risk free and therefore not permitted.
We hope that the above information provides further explanation to what has occurred and we would like to assure you that it is not our wish to trouble our clients and further confirm that we always abide by the Client - Company agreement with which you accepted before starting to trade with us.
We would like to assure you that we treat all of our clients' complaints with diligence and we always follow our company's Complaint Handling Procedures which can be found on our website, XM (XM.COM) | Forex Broker offering Forex, CFD's, and Futures, in the About us/Legal Documents section.
Kind Regards,
XM Compliance"
I move to have XM officially marked as a scam broker.
Best regards Steve
"Dear Mr. Boardman,
Please note that we have thoroughly examined your complaint and concluded that your orders have correctly been cancelled due to abusive trading strategies aiming to exploit price latency arbitrage opportunities identified in your trading account.
Particularly, we have reviewed your trading activity in your trading account 2181379 and we identified that most of the orders placed were opened just one second (or even less) prior to the occurrence of a price gap. Please refer to the attached table providing an analysis of your orders and the price movement one second following the opening of the orders.
In this respect, it is clear to us that you have been using a highly sophisticated software which allowed you to obtain the institutional price feed faster than our company and act accordingly in our platform. Although manually it may not be possible to take advantage of this, with the use of a highly sophisticated software it is possible when you instruct it to trade when it identifies fluctuations in the market from the faster price feed provider which have not yet occurred on our platform.
This cannot be deemed as an acceptable strategy as you create an environment which does not follow the fair rules of trading and makes the strategy in a way risk free and therefore not permitted.
We hope that the above information provides further explanation to what has occurred and we would like to assure you that it is not our wish to trouble our clients and further confirm that we always abide by the Client - Company agreement with which you accepted before starting to trade with us.
We would like to assure you that we treat all of our clients' complaints with diligence and we always follow our company's Complaint Handling Procedures which can be found on our website, XM (XM.COM) | Forex Broker offering Forex, CFD's, and Futures, in the About us/Legal Documents section.
Kind Regards,
XM Compliance"
stevetrade
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One of the things that interests me in this response is the line "we identified that most of the orders placed were opened just one second (or even less) prior to the occurrence of a price gap"
Now in my understanding of arbitrage trading you have to wait until there is a price gap in order to exploit it?
Am I missing something? Or maybe they just got confused in their attempts to come up with a plausible excuse to cancel my legitimate news trades.
Best regards Steve
Now in my understanding of arbitrage trading you have to wait until there is a price gap in order to exploit it?
Am I missing something? Or maybe they just got confused in their attempts to come up with a plausible excuse to cancel my legitimate news trades.
Best regards Steve
alexx71
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To make arbitrage you need a very sophisticated software that is really expensive ( for what I know ) and need an infrastructure expensive too.
For what I know arbitrage last 1 - 3 seconds and profit from very few pips 1-3 pips.
In order to gain you must do that trading many times in a day and can occur in any time of the day.
But as you did " News Trading " is very easy for you show the timestamp of the ticket that has the time of the news,
for instance 8:30:00 and not random time like 8:53:22--- 10:12:34 and so on....
This is a Real Proof that you make " News Trading ".... LEGAL news trading and not arbitrage.
As the forex is OTC it is clear that 10.000 brokers CAN'T have the same feed at the same time especially in volatility time as
in the news... it is impossible ! So this is a reason to cancel a profitable trade ??...... SCAM!!!!!!!
For what I know arbitrage last 1 - 3 seconds and profit from very few pips 1-3 pips.
In order to gain you must do that trading many times in a day and can occur in any time of the day.
But as you did " News Trading " is very easy for you show the timestamp of the ticket that has the time of the news,
for instance 8:30:00 and not random time like 8:53:22--- 10:12:34 and so on....
This is a Real Proof that you make " News Trading ".... LEGAL news trading and not arbitrage.
As the forex is OTC it is clear that 10.000 brokers CAN'T have the same feed at the same time especially in volatility time as
in the news... it is impossible ! So this is a reason to cancel a profitable trade ??...... SCAM!!!!!!!
stevetrade
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Hi FPA guys,
What's the current thinking on this one? XM don't seem to want to comment about whether news trading is allowed and they aren't returning funds taken. What's the process now?
Best regards Steve
What's the current thinking on this one? XM don't seem to want to comment about whether news trading is allowed and they aren't returning funds taken. What's the process now?
Best regards Steve
stevetrade
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- Messages
- 8
Hi FPA guys,
What's the current thinking on this one? XM don't seem to want to comment about whether news trading is allowed and they aren't returning funds taken. What's the process now?
Best regards Steve
What's the current thinking on this one? XM don't seem to want to comment about whether news trading is allowed and they aren't returning funds taken. What's the process now?
Best regards Steve
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