Sorry to inform you- UK’s largest Forex trade group does NOT trade its currency spreads on the real exchange.
They wrote their own platform program and have full control over it while you are trading. And while they may try to mimic the current real market- they can and will cause there to appear to be sudden spikes on your individual account when your close to your margin limit. The agreement you signed says they are not required to inform you when your margin is at risk and you agreed to allow them to liquidate your account, without prior notice to you, to recover the losses created by the fake spike.
THIS MEANS- THEY CAN AND WILL TAKE ALL YOUR MONEY. That’s what they are in business for- they don’t make their money on the point spread. They make their money by triggering the loss of the whole account.
Their risk disclosure statement: (in part)
Gearing and Leverage
Before you are allowed to place a spread bet with us, you will generally be required to lodge money with us – this is called the deposit requirement. This deposit requirement will usually be a relatively modest proportion of the overall bet value, 10% of the bet value, for example. This means that you will be betting using ‘leverage’ or ‘gearing’ and this can work for or against you; a small price movement in your favour can result in a high return on the deposit requirement placed for the bet, but a small price movement against you may result in substantial losses.
At all times during which you have open spread bets, you must ensure that your account balance, taking into account all running profits and losses, is equal to at least the total deposit requirement that we require you to have paid us. Therefore, if our price moves against you, you may need to provide us with substantial additional deposit requirement, at short notice, to maintain your open bets. If you do not do this, we will be entitled to close one or more or all of your bets. You will be responsible for any losses incurred.
Unless you have taken steps to place an absolute limit on your losses (for example, by entering into a controlled risk bet) it is possible for adverse market movements to result in the loss of the whole of your deposit and more, so that you owe additional money to us. We offer a range of risk management tools to help you to manage this risk.
Need to monitor positions
Because of the effect of gearing and therefore the speed at which profits or losses can be incurred it is important that you monitor your positions closely. It is your responsibility to monitor your spread bets and while you have open spread bets you should always be in a position to do so.
Spread bets are over-the-counter (OTC) derivatives
Our spread bets are not made on any exchange. The prices and other conditions are set by us, subject to any obligations we have to provide best execution, to act reasonably and in accordance with our customer agreement and with our order execution policy. Each spread bet you open constitutes both a contract and a wager with us; these contracts/wagers can be closed only with us, and are not transferable to any other person. This also means that you may be exposed to the risk of our default. In this unlikely event then we are members of the Financial Services Compensation Scheme which, in respect of proven and eligible claims, provides protection of 100% of the first £30,000 and 90% of the next £20,000 – a maximum of £48,000 – rising on 1 January 2010 to cover the first £50,000 of
link to the official risk statement on their website:
Don’t be fooled by the success you are experiencing- it is programmed into the game. The appearance of being really good at trading builds your confidence- to the point you risk loosing the whole account- putting more than half the margin on the line. That’s all they need. The program responds to the percentage of margin you use- by spiking the market within minutes of you placing the order.
If you try back out- change your mind about risking that much- You will suddenly experience anything from computer crash, screen freezing, “page loading” = delayed order execution that buys them the extra few seconds to have the program redirect the game into “spike now” mode. Always- when the computer glitch clears- it’s too late.
Nearly every top rated trade site has been sued for millions for doing this to customers. They are no longer allowed to have this level of control over the game in the USA. That’s why they all say- not for customers in USA.