Can anyone recommend a forex broker?
In short, I need someone whose actual prices match those on charts, where trades can be placed at any time of day online, offers limit orders (ie buy AUD/USD if it rises above X) and which has stop loss orders placed in actual prices (eg AUD/USD 0.7100) rather than being limited to a $ amount stop loss, and which doesn't require the computer to remain constantly connected to their server for the system to operate (I think some require this?). If you want to know why, read on...
I was reasonably happy with my present broker until I discovered a bit of a problem. In short, their currency rates applied to trades do not match those on their charts. This causes problems with false triggering of limit orders, stops being taken out unnecessarily etc. Unfortunately this problem was discovered in the course of investigating why the maximum drawdown has been exceeded (and therefore trading was immediately suspended).
I've checked the accuracy of the charts with some other brokers online and the charts agree. The problem thus seems to be that the broker uses one price for the charts and another for execution of trades. I suspect that yet another price is being applied to limit orders since a false triggering which doesn't match either the chart or the broker's price has occurred (this one alerted me to the problem). Suffice to say that I will be following this one up with them but that doesn't fix the underlying problem.
Two solutions come to mind. One is to get some charting software and manually input the broker's prices each day and create my own charts using the broker's actual prices. Time consuming but it should fix the problem since then I'd be trading the broker's actual price, however inaccurate it may be, and not a chart which doesn't match that price.
It would be better however to find another broker whose trading prices match those on either their or some other easily available charts. I'm trading crosses (eg AUD/NZD) and not simply majors AUD/USD, EUR/USD etc. I'm not too fussed about the spread (within reason).
Can anyone suggest a suitable broker that they have used and which doesn't have problems like these? Since I'm basically accusing them of acting in a manner which they ought to know would result in financial loss to clients, I think that I probably shouldn't post the name of my present broker on a public forum. Send me a PM if you want to know.
Some examples of the problem (using data from 23/3/06):
AUD/NZD chart says high 1.1572, low 1.1413. Broker's data high/low is 1.1563 / 1.1431
EUR/USD chart says 1.2079 / 1.1954. Broker's data is 1.2080 / 1.1959.
CAD/JPY chart says 101.23 / 100.03. Broker's data is 101.18 / 100.13.
The charts used are from the broker so it seems that something funny is going on...
Thanks in advance for any suggestions.