Thanks for pointing out Gain or Oanda, I don't use them. Nonetheless, it must then be a serious issue with one or some of their liquidity providers. 2% is not 10 or 30 pips. And IB is not fxcm or gain or Oanda. I think you would be equally concerned would you trade in size and had a 7 second price spike wiping out your position at a large loss.
I find it funny how many, who would get a handgun and shoot their car repair shop if they felt cheated out of 100 bucks seemingly have no qualms at letting brokers get away with the excuse that "everyone has flaws". Some people unfortunately really don't get it that something that happens to someone could also happen to them. We are not talking about gimmicks or a little stop hunting here or there. We are talking about a large broker who argues that they just receive prices from liquidity providers. That's the same broker who was fined several million hkd recently for not properly monitoring prices and electronic executions in a particular stock. My point again is that this price spike was not a real price move, one liquidity provider or several blatantly pulled some fictitious price levels out of their ass and yanked them around by 2% for a mere few seconds. If your portfolio manager called and told you he just lost you 20,000 usd because of a 5 second price spike you would probably lynch that guy.
Just need to know dangers of each market, and spike like these do happen in Fx, so the solution is to trade currency futures and not worry about spot fx spikes.
That is blatant nonsense. There are rules and regulations in this market. Customers expect to be filled at traded prices at fair market value not seemingly random or rigged price levels. Brokers are strictly regulated what they can do and what they cannot do. A regulated broker cannot just fill clients at fictitious price levels. Hence the claim/suit and hence the loss of trust in brokers who participate in such games.
Things like this are not supposed to happen with regulated brokers even in fx. Not even the most exotic fx pair moves around 2% in split seconds absent any market stress or economic releases before settling back at the exact price level prior to such price rigging 7 seconds later. Not even in the darkest hour of the past financial crisis.
Good luck winning this at IB or any other broker. You must be really new to trading. Reality is different from fiction. Happens all the time, that is why you need a central market that such as CME currency futures for example.
With all due respect I don't think you know what you are talking about. If that happened all the time you would be able to at least show one single occurrence in the past 5 years. 2% move absent any news or economic releases, 7 seconds back to the exact price prior. Not one such move did not get busted. And stop talking about cme futures. Currency futures are ridiculously illiquid in general and non-existant in scandies. Please do not participate in threads you clearly do not know anything about. If you put up a claim then provide factual backup otherwise you risk disqualifying yourself. And its not me as I pointed out. But I make keeping IB on my broker list or not a function of the outcome of the claim my colleague launched. Whatever you say as non cash fx pro, this does not generally happen with a reputable broker and is a huge disappointment and source of a loss of trust.
I talked to IB this morning, the customer representative was not aware of this either. I've been searching all over, I can't find it. Really appreciate it if you could let me know where these reports are. Would be very helpful.