Guaranteed Stops — guaranteed

[CTGJr]

you may want to speak with Magoo first

As you may have read on another thread, I have jast experienced the same problem as you, with ACM wich now belongs to REFCO.

I traded cable/$, and they deleted my trade 10 hours later, pretending a "misquote" problem. They of course also deleted my 3300$ gain.

Now I know how bitter you must be, having been stolen 30 times more money than me.

The point is that we can hardly fight against them, except telling everyone to beware and chose a better broker.

Cheers,
Magoo

thread

[jsoft]

Originally posted by Wallace
Email from ACM:
ACM Advanced Currency Markets SA
3, Rue de la Croix-d'Or, 1204 Geneva (Switzerland) —
who recently joined the Refco Group.

" Dear Sir, Despite recent market choppiness ACM will continue to guarantee all prices on market, limit, stop and OCO variant orders!
Regardless of how volatile market conditions are and even in market gaps ACM will honor all valid executions! "

Minimum account size $5000

http://www.ac-markets.com/

Dear Wallace, no offense, but I believe you've been advocating FXCM guarantees before. Bottom line is any broker must to be out of their mind to guarantee stops when market gaps. Unless, of course, they never intend honoring it and only use it as the marketing hype (which apparently was the case with FXCM).

[Wallace]

No offense taken Jsoft except for the fact the post isn't about fxcm.

Having posted ACM's original announcement they'd joined Refco http://www.moneytec.com/forums/_showthread/_s-93e9529ceb0ae4f9e75cff5a72c1d7d8/_threadid-8914 and receiving another email from them — particularly one of such note since guaranteed stops or lack of them are such a hot topic, it seemed appropriate to post ACM's latest communication of their 'guarantee'.

Online forex trading has notable benefits from my point of view over and above futures trading and guaranteed stops of course have never existed in the stock or futures markets.

Since I've no association with ACM beyond duplicating their email news releases for the interest of forum members, I presume it to be obvious to those reading such releases to contact ACM to verify the veracity of ACM's statements.

[TRADERguy]

"Guaranteed fills up to $20 million on stop-loss and limit orders *
Global Forex Trading, unlike many retail forex companies, plots its tradable prices on the major markets. This allows our clients to see exactly what prices are trading and have traded directly from our dealing desk. What used to be implied is now guaranteed by GFT. What you see on the chart, determines if your order is due to fill or not. Global Forex Trading will guarantee that if you see your price trade on our charts you are filled on your order. **

No Slippage on client orders *
Slippage is often a concern by customers, and it should be, because there are companies in the retail and institutional sector that specialize in precise slippage on stop orders to expand their revenues from clients. Global Forex Trading has an unwritten rule of filling customer orders at their respective stop price, unless extreme market movements dictate otherwise. But, we take this notion one step further by guaranteeing fills on stop-loss and limit orders on up to 20 Million. *
(Click here for a list of the maximum fill for each corresponding currency pair.)

* Does not include bad price spikes. Bad price spikes are removed from the price charts quickly to alleviate confusion. Does not apply outside of GFT trading hours or during fundamental announcements.

** Does not apply outside of GFT trading hours or during fundamental announcements."

This is a true BS guarantee. Not only do they not guarantee stops during economic announcements but "* Does not include bad price spikes. Bad price spikes are removed from the price charts quickly to alleviate confusion. " sounds like--we reserve the right to hunt for stops outside of interbank prices. These trades will stand unless too many people arb us and the hunt for stops was not profitable. If this is the case we will reset the chart and break all trades.

[CTGJr]

Isn't it odd that Brokers have to play these games and screw over clients
when 80-95% of us are supposed to be losing traders?

If those oft-quoted failure rates are accurate, shouldn't Brokers be able to just sit back and gobble up their spreads and all those losing trades of their clients?

[CTGJr]

RefcoFX's website says (at this moment):

GAURANTEED STOPS AND LIMITS*

Unlike most other forex firms, RefcoFX guarantees a fill at the specified price on all stop and other limit orders. By using the guaranteed stops offered by RefcoFX, you can limit your risk on a trade to the amount you choose.

Other brokers claim to guarantee fills on stop orders but they only back this claim for small trade sizes during normal market conditions. Many brokers routinely execute stops 5 to 15 pips away from the stop price. Only RefcoFX honors the exact specified stop level at all times.

* All stop-loss, limit and entry orders are guaranteed against slippage except in extraordinary volatile market conditions. All quotes and trades are subject to the terms and conditions of the Client Agreement accessible through this website

a Refco rep responded:

Hi, Below is a copy of a live chat with a Refco Rep.:

Äã: What is your execution policy? Do you still guarantee Srtops and limits?
Äã: Stops
Refco: On extreme volatile condition
Refco: If there is a price gap
Refco: The stop and limit would be executed at the next market price
Refco: If you have any question regarding stop, please feel free to call us
Äã: Why the info on your web site (refcofxasia.com) does not include this new policy?
Refco: We are still updating it at the moment. The policy has applied for a very short period of time only.
Äã: I see, I just found about it from one of the forums. As a client I would have expected you to inform me about changes in your trading policy.
Äã: Could you please define extreme volatile conditions? Is it 10, 20, 50 pips gap?
Refco: We sent that out yesterday in Chinese already
Refco: It is a gap. A gap may be 10, 20 or 50, we do not know
Refco: A market gap only happens on extreme volatile conidtion, like an important data being released
Refco: Let's say, if you see a price gap on the tick chart, it is a price gap
Äã: I did not receive any message about the new stop policy.
Refco: In that case, may I have your accout number please
Äã: So it's Refco's discretion to honor stops / limits?
Refco: It would depend on the market condition . . .

thread link


perfectly clear

[bobnat]

Originally posted by CTGJr
Isn't it odd that Brokers have to play these games and screw over clients
when 80-95% of us are supposed to be losing traders?

If those oft-quoted failure rates are accurate, shouldn't Brokers be able to just sit back and gobble up their spreads and all those losing trades of their clients?

I agree with your thinking, I guess they just don't want to leave anything to chance.

Nat

[MickMason]

Yeah yeah, all brokers are thieving rogues who should be taken out back and hung from the nearest tree!

So I guess all you victims will be closing your accounts and moving on to trade something else, well I mean you'd have to be crazy to want to stay in spot fx after exposing what a villainous market it is, right?

Mick