Hello
The FX broker that i am using is Alpari. it is a UK based broker and regulated by FSA. suppose to be one of the best and honest FX broker around. i check and read a lot of brokers reviews before i choose Alpari. they seem to be better then the others like IBFX, FXDD, FXCM, etc. all of them had bad reviews and complains by users.
Alpari is a market maker broker. what that means is that if you win money, they lose money. the money we win comes from their pocket. which seems like a conflict of interests if you keep on winning their money. but as long as your account is small i don't think they really mind.
we all know that fx is a OTC product which is not regulated, does not have a physical exchange. which means that the FX world is pretty shady to a certain extend. brokers are like poker cards dealers, they know all the cards everyone is holding and they will shift the game in their flavor. thats is in a way cheating but that is just how things works in the fx game. nothing much i can do abt it i am just a small fry. we just had to understand the dirty tricks brokers play and don't fall into their traps.
there are a few dirty tricks that brokers plays like price shading, delayed/wrong prices, stop loss hunting, crazy tax on your profits, manupliate prices, do not allow you to close/open trades. giving wrong advise, teaching a wrong methods to trade, going in forum to confuse traders. basically to screw us up and steal out money.
"real prices" from IBFX live account eurchf 2 march 2009 low is 1.4750
"sl hunting" alpari live account eurchf 2 march 2009 low is 1.4650
ok today i am going to talk about an stop loss hunting incident that happened this morning on my live alpari account. here you can easily see the dirty tricks borker plays. the real low price for the day is 1.4750 on my IBFX live and alpari demo.
but on my live account there is a crazy long tail coming down very fast and fly back up. the low of my alpari account is 1.4650 a difference of almost 100 pips. now this area 1.4650 is a obvious area for the brokers to attack becoz it is forming a "strong support" based on previous days, most traders put their stop loss on support/resistant. went down real fast, grab all their stop loss and prices fly backup. this is the reason why i do not use stop loss in my trading. we are always "educate" to use stop loss to manage our risk but is that really helping us or not? FTI said using stops are for suckers and are jsut sitting ducks waiting to be killed. ok now happy already? after you grab all those traders money? the prices will start to move up which is good for me as you can see from my charts i am holding on to lots of long trades heheh.