Manipulation question.

F

flakac

I have read that some forex brokers "manipulate" the price against you. I would like to ask: Is the manipulation the some for all clients? (Do all clients receive the some quotes ore there are differences in bid/ask/spreads between 2 accounts of the some broker?) Is there possible that 2 clients of the some broker receive different prices?
 
knew a guy that used to work for a forex broker...said they color coded customer orders. bottomline, they were much less likely to fill the "good trader's" orders but of course they would fill the "shitty trader's" orders. still sound like a good opportunity?
 
this is an excellent question and it would be very productive to verify in real time whether 2 different clients are getting the same quote, and even the same charts, especially when you are looking at the 5 minute charts. A game where the dealer holds all the cards it seems to me. With no centralized quotes it's like the cat quoting the mouse. I have a mini account with refco and I have never yet received a satisfactory answer on the real source of the quotes, so that means they make up their own quotes which could be just enough pips away from "reality" to stop you out. I made 6 trades, on breakout patterns and got stopped out 6 times, on some price shapes that I rarely see in equities trades. Started with 600$ nowhave 500$ and I am trying to discover whether this forex is all smoke before i go further. Any successful forex daytraders 5-10-15 minutes charts should chime in. If it's worthwhile let's get it into hot and heavy if it's scam let's spread the word high and low. I want to find out. I'm open to testing if someone else has a mini refco account, call each other and read the quote and charts.. Further yet, it's constantly billed as the most liquid market in the world, there is no way that that is being relfected on the charts that I see, even the most liquid pairs look like nothing but random fits and starts til a huge move comes from out of nowhere, after at least 4-7 very very shady looking false moves. That's my input, we need more experienced to step into this thread...
 
I don't think their is manipulation against your account. And even if you get screwed by a few pips that shouldn't change the outcome of your trade. You could use Yahoo for quotes to see how close it is to Refcofx.com. I also have a mini-account with Refcofx and so far am very please with it, but I made a major f*ck up with my first trade.

I started with $1000.00 and bought 5 lots, ( 50K for $250.00) at 200:1. I did not place any stops because I thought $250 was max loss, which I was willing to take. The position moved agianst me and got closed out at a loss of $750.00. I learned the hard way how margin works with these accounts. The more lots you buy without stops, the LESS money you will loose if the position moves against you. Example:

*Account with $1000
*5 lot order ($250.00), no stops, max loss $750.00
*15 lot order ($750.00), no stops, max loss $250.00

I also believe that the default 5 pip stop is not enough, and your position will get closed out too early. When the order is put in you should make it 15 or 20 pips.
 
I am also a little suspicious of refco. I have been stopped out several times when I don’t think I should have been. I may just be paranoid, but I think it’s worth looking into. I use Oanda for real time charts and place my trades with Refco. On a few occasions I have been stopped out in my refco account, then check Oanda and see that (according to Oanda) the price never even got to my stop.
 
I do not trade forex. I read probably more than a year ago here at elitetrader ---- a guy say he called up to refco and complained about his stop. Saying the market never traded there.

Refco gave him his trade back.

This made me very suspicious.
 
How surprised can you be if a dealer throws his qoute one way and tries to read you? Its intellectual curiousity if he can fade your trade.

You also have the option of watching the futures, and if the dealer reads you too far, to go the other way and lay off the trade in the futures.
 
IT is an OTC market...there is no "real market"...the retail brokers make their market based off feeds they are getting from Reuters and bank platforms like Autobahn and Piranah..they may tack on a couple of pips either way but that is the premium you pay for access to the market..very rarely do I see the retail guys that far off of EBS or Reuters highs...
 
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