Pips difference in brokers?

Discussion in 'Forex' started by Elison0, Sep 24, 2023.

  1. Elison0

    Elison0

    I noticed pips differences while market moves fast in different brokers. Is it any type of theft?
     
  2. BKR88

    BKR88

    No, it's not theft.

    Forex is a decentralized market so each broker can have different liquidity providers.
    During a normal market prices will be very similar from one broker to the next but during high volatility each broker can have different prices depending upon the orders placed at each broker and the liquidity providers filling those orders.

    Futures & equity markets (not CFD) are centralized so every broker should have the same prices.
     
    kpwn likes this.
  3. This is true. However, because of this, many forex brokers can use being decentralized as a cover for cheating you out of your trades. TD Ameritrade’s forex division does this a lot. They will quote a price that’s not even in the ballpark of what other forex brokers are quoting in order to stop you out.
     
  4. padutrader

    padutrader

    it is better to assume that spot forex brokers are dacoits or worse......the market is not regulated ......
     
  5. BKR88

    BKR88

    Years ago when I was using FF a bit I heard this from traders yet when I asked for proof I was never given a single trade that showed the "theft".
    Most times it was just a stop-out during volatile times when spreads can widen significantly.
    Other times it was just noob traders that weren't aware they get stopped based upon the bid/ask not just what gets printed on a chart.
    Do you have a single example from any traders?
     
    SunTrader and p0box4 like this.
  6. Waylen

    Waylen

    But how come the price of a same currency can be different on different brokers?
     
  7. p0box4

    p0box4

    Different liquidity providers, manipulating spread, ...
    Forex is an unregulated market so anything can happen.
     
    BKR88 likes this.
  8. BKR88

    BKR88

    Decentralized market.

    If you buy AMZN stock the price is the same from one broker to the next because ALL brokers are connected to the same pool of buyers/sellers.

    If you buy EURUSD the price can be slightly different from one broker to the next because they each have their own pool of buyers/sellers (liquidity providers + customers). Orders from one broker are not seen at another broker.

    ***Currency futures (not CFD) will be the same from one broker to the next as the futures market is centralized.
     
  9. trismes

    trismes

    It might be a decentralised market, but rinsing of retail is a daily centralised affair. every bloody day. particularly at the 10pm (London) shakedown.
    i don't know anyone sell-side in bucket-shops any more, so maybe one can chime in if it's you... but as far as I can see, the Metaquotes infrastructure offsets (when their net flow hits the market) at 10pm London and the pricing goes beserk.
    Here's Eikon's price feed on EURCAD right now.
    upload_2023-9-26_22-30-33.png

    and here's an MQ feed of the same...

    upload_2023-9-26_22-32-14.png

    that red line is the top of the box in eikon's feed a full 20 pips away from current market pricing. It's daylight robbery. Not usually that bad, but happens daily at 10pm. You won't notice a lot of the time, because they actually just delete the data from their charts. Literally delete it, you'll notice the count of minute candles <1440.
     
    Onra likes this.
  10. Waylen

    Waylen

    Forex market is decentralized and no one can manipulate the price of the market but a broker can steal some pips from you through their software and I noticed it personally many times.
     
    #10     Sep 27, 2023