One glance at advertisement, we saw many forex brokers offering very attractive deals if you were to fund with them. Is this a good thing for you? You might think so. However, this doesn’t make sense especially if all these goodies/freebies come at your expense.
Before sharing what I had to say, there are few changes in the arrangement with Axitrader (and very important to act on it if you are trading with Axitrader)
1. Continuously I have been asking Axitrader to reduce spread. The most recent reduction in spread is XAUUSD, XAGUSD, WTI and all indexes. You probably won’t see it, unless you are tracking the spread. So this is good news
2. Starting from 15 Oct 2013, Axitrader will increase the conversion of credit into cash only if you have traded 70 lots accumulatively. Previous arrangement was 20 lots. Therefore, important implication, if you have traded from the day you open account till now a total of 20 standard lots, please immediately write to Ben Clay (email@example.com) to have your $200 credit convert to cash. Otherwise from 15 Oct 2013 onwards, it will be 70 lots
3. I have arranged for maximum spread to be cap. So far, this is the only broker who is willing to go with this arrangement. In recent volatility, you have seen how important this is. In the recent mistake by Axitrader, they have compensated those who suffered monetary losses due to widening of spread (because of market volatility). However, now the maximum spread of EURNZD is 25 pips (and not 16.1 pips anymore). The other pairs remain unchanged, namely FX Major cap at 6.1 pips, FX Minors cap at 11.1 pips and FX Exotics at 16.1 pips. I encourage those who want to get tight spread most of the time, yet want to have your spread capped during volatile times to go with Axitrader. Click here to make sure you get all the privileges that we have arranged.
Is Forex Slippages just pure bad luck?
The above statement is definitely not true.
In fact, regulators fined forex brokers of slippages. However, one questions, how many forex brokers who are slipping their customers slip out of the net? Next question, how many forex brokers are really regulated? How about your broker?
What are slippages?
I have written an article on Forex Slippage- how slippages happen and why you need a good broker
To quote the previous article:
Slippage definition: A slippage happens when a limit order or stop loss is triggered at a worse price than the originally set price. Forex slippage is very frustrating and one reason for traders to encounter heavy unexpected losses. If you encounter slippage regularly during trading, you may have chosen a bad broker.
It is not uncommon to read that Forex brokers fined by regulators on slipping their customers. Probably you didn’t know about it!
About 1 month ago, FXDD was fined $2.74 million by CFTC
Why was FXDD fined and what happened:
According to the CFTC, FXDD solicits customers to open trading accounts and to buy or sell foreign currency with FXDD taking the other side of the transaction. FXDD streams forex price quotes for particular currency pairs to its customers through its electronic trading platforms. The price quotes offered by FXDD — measured in “pips” — often change, or “slip,” between the time the customer clicks on a price showing on the computer and the time FXDD fills the customer’s order. If the price slips, FXDD’s system employs slippage parameters that determine whether FXDD fills or rejects a customer order at the original price clicked by the customer, the Order finds. ˜Quoted from http://countingpips.com/forex-news/2013/09/blotter-fxdd-fined-2-74-million-cftc/
What is Asymmetrical slippage?
According to the CFTC, FXDD used asymmetrical slippage parameters on its principal trading platform, meaning that the system favored FXDD over its customers in slippage situations. Based on these parameters, FXDD rejected a customer’s order when the price slipped more than two pips in the customer’s favor (and instead re-quoted the customer the new, less favorable price), but filled a customer’s order at the original price if the price slipped in FXDD’s favor by more than two pips. ˜Quoted from http://countingpips.com/forex-news/2013/09/blotter-fxdd-fined-2-74-million-cftc/
Not surprising, this is not the first time that FXDD was fined for asymmetrical slippage. FXDD was fined by NFA 1.5 years ago
One thing that I like to share that so far I have not found Axitrader conducting slippages. If you have encountered, please do let me know and I will pursue fully. Again, if you would like to have in my opinion a good broker, go for Axitrader. Use this link for TerraSeeds privileges.