FX broker that executes stop-orders the normal way?

Discussion in 'Retail Brokers' started by andy4444, Oct 8, 2013.

  1. andy4444


    I wonder which retail fx brokers execute stop-orders the "normal" way? I.e. teh way stop-orders are handled in the "real" intebank market.
    I have asked Oanda, forex.com and FXCM, and none of them do this. They all execute the stop-orders like NO professional trader would like to have them executed.

    By the "normal" way, I mean the following: If I am short, and I call up the dealing desk at UBS or Deutsche to place a stop order to buy, they will assume that I want to place a BUY-STOP-IF-BID. (they will still ask to be sure, but 99,9% of clients will opt for this option).

    Such an order is triggered if the BID price in the market goes above the trigger price, and is then filled at market, i.e. at the ASK price at that time.

    This way I will be filled at a slightly worse price compared to a BUY-STOP_IF_ASK (wjich will trigger slightly earlier), but I will avoid being stopped out from just having the bid-ask spread widen without the actual bid reaching my trigger price.

    So, the question is, which retail brokers offer this kind of execution of stops?
  2. contra


    Never seen it. I am surprised to hear that is normal or even possible with interbank dealers actually.
  3. Not familar with FOREX (only futures) but they might take MIT orders and that will assure (in theory!) that it actually trades there.
  4. Not familar with FOREX (only futures) but they might take MIT orders and that will assure (in theory!) that it actually trades at price. At least in the futures market you know definitively if the price was hit or not. I would hate to take a FOREX dealers word for it.
  5. Blotto


    Interactive Brokers - IdealPro.
  6. andy4444


    Thanks Blotto

    Does anyone know of any otehrs than Interactive Brokers?
    Especially if there are any where I can use MT4 platform.

  7. The MetaTrader platform itself imposes certain requirements and restrictions on how trades are managed. Remember the MetaTrader front end you see talks to a MetaTrader backend on the broker's servers.
    The way trades are handled in terms of lot sizing, trade management, reporting etc are all imposed by MetaTrader and are broker-independent. So the behavior is the same from broker to broker.
  8. andy4444


    Anyone know if Dukas Copy offer the "normal" type of stop order, e.g. buy-stop-if-bid or sell-stop-if-offered?
  9. andy4444


    Someone on another forum asked me if there was any advantage to using the stop if bid to place a buy stop, and I wrote the below answer. Figured I post it here as well as people don't seem to be aware ot this way in which the retail FX brokers take your money day in day out...

    If you are short and want to place a stop-loss, you have 2 options:

    1. Buy Stop if Bid. If market maker wants to stop-hunt your stop-order he needs to raise his BID to your trigger price, thereby also (at least in theory) being obliged to fill any limit sell orders (of all the brokers others clients) that have limit price below your trigger price. (Brokers will find a way around this as well (there are soo many ways...), but if found out and reported they would have some explaining to do to regulators...)

    2. Buy Stop if Ask. Free money for Market Maker. He just widens his bid/ask spread for a millisecond (not visible on charts, not even bid-ask chart(at least not the ones published to client...)), and immediately cashes in lets say 10 pips through simultaneously triggering all buy and sell stop orders placed within a 10 pip radius.

    Oanda has done this to me twice today. They only offer buy stop if offer. While showing a bid/ask spread of 2 pips or less, they have triggered buy stop orders placed 5.2 pips and 4 pips above where their chart bar highs are (chart is based on BID) (during liquid markets with no volatility inducing news)

    They (and the other bucket shops) do this day in and day out. I'm surprised that people on this forum are so unaware of this.