|
The point here is not that forex brokers are all crooks, but that they engage in misleading marketing statements that appear to be intended to lull unsuspecting neophytes into placing high risk orders around fundamental news times.
I have noticed that instead of simply and honestly stating the stop and limit execution policy, most brokers continue to mislead by ADVERTISING how great a company they are because of their "no-slippage" guarantee, whilst they sneakily slip a small print asterisked statement all the way at the bottom of the page that exempts volatile conditions and/or fundamental announcements from the "guarantee." In the case of ACM, their "asterisk" is using the term "valid executions." They have no slippage, and no matter how crazy the market is going they will always honor all VALID executions. Of course, any order that gets executed in a gap cannot be valid, and thus will not be honored.
These guarantees are akin to the electric company "guaranteeing" that the power supply to your home will never be interrupted under any circumstances*
*does not apply to conditions beyond our control, such as extreme weather conditions, labor disputes, wars, etc.
It would be much more honest and forthcoming to state upfront something like "if you think we are going to fill your stop/limit order during a market gap, you are insane."
|