GFT activating orders on bid/ask prices

[hotqld]

I was stopped out 25/5/2009 on sgx, I had a stop loss placed with GFT on a long trade @ $5.94.
According to my Live feed from the ASX, and checking with the ASX web site, Macquarie Prime, CMC markets the lowest this stock traded at on the 25/5/2009 was $5.99.

GFT advised they dont operate on actual share sales they work on bid and ask prices only.
So if someone places trade / order in the real market relises a mistake and cancells their order before the order gets filled ....GFT will use this bid / ask to trigger your stop loss or buy order.

Sounds a pretty dangerous way to trade to me as there could be large gaps in the bid and ask price without any trading being done....but GFT is going activate your orders based on bid and ask prices without the stock being traded!

This enlightened me to go back to trading real shares, or CFD with direct market access.

Not a market maker!

Cheers
Hotqld

 

[skyQuake]

CFD providers can be dodgy like that. However, my feed suggests that the bid never went below 5.98, so the marketmaker is obviously screwing you over.
Get DMA or get out while you still can.

 

[Krusty the Klown]

I've had the same thing happen to me with GFT.

 

[amaro]

I was stopped out 25/5/2009 on sgx, I had a stop loss placed with GFT on a long trade @ $5.94.
According to my Live feed from the ASX, and checking with the ASX web site, Macquarie Prime, CMC markets the lowest this stock traded at on the 25/5/2009 was $5.99.

GFT advised they dont operate on actual share sales they work on bid and ask prices only.
So if someone places trade / order in the real market relises a mistake and cancells their order before the order gets filled ....GFT will use this bid / ask to trigger your stop loss or buy order.

Sounds a pretty dangerous way to trade to me as there could be large gaps in the bid and ask price without any trading being done....but GFT is going activate your orders based on bid and ask prices without the stock being traded!

This enlightened me to go back to trading real shares, or CFD with direct market access.

Not a market maker!

Cheers
Hotqld

It is normal practice for companies like FXCM and GFT, and it is in their disclaimer too. Just read it, they have always used bid and ask corridor for trades activation. Don't get me wrong I don't defend them these two companies gave me a lot of hard time and I switched to one European company and really pleased with their execution and attitude.
One more thing stocks suck! at least for now.
Stay

 

[trendtrader]

I know GFT does a lot of dodgey stuff, but FXCM is a good broker.... it is an ECN and it cannot see your orders

 

[huyha123]

I actually preparing to go to fair trading about them.

1. The bid on Comsec is $1.22, same with what on their platform. I hit sell. The order executed at $1.18. with no confirm about the price change. no where visible to cancel (later I found where but only 5s to do that).

also very hard to know what price the order executed. take a while. and when you do, you will be so furious it hard to do anything else.

2. 20 minutes later, price go up to $1.25. I move my limit up to $1.05. and right away it gone!!! even though there is no price at that level the whole day let alone at that time.

3. I call to make sure I got the right price for my sell order. the price at that time $1.24 with 21,856 shares on bid side on Comsec. They said can only sell my 20,000 shares at $1.20 coz only at that price there are enough demand for 20,000 shares!!!

Market maker or not. they simply can just take my shares and then sell on market. with a difference of 3-4c over $1.22 (2.45-3.27%) and with the price on up trend, there is no way they lose any money.

after only few days trade with GFT, I should have $2000 more than what I got. their conduct to call 'DODGY" still an understatement.