MT4 Brokers Accused in Being Scam?
It started eleven days ago on the ForexFactory forum, but I’ve read it first about a week ago on a TalkGold forum’s thread titled “Mt4 Brokers Are All Scam Brokers By Definition”. Of course, I’ve got interested in this topic because I’ve been trading on MetaTrader brokers’ accounts for almost two years and I have never thought of them being a scam “by definition". That made me read both of the threads thoroughly.
Here is the main problem that is pointed out in those threads. Back in February 2006 MetaQuotes announced a 5-day test of the Virtual Dealer Plug-in on the demo trading server. This plug-in was designed to imitate “real dealer work — random time of answer, requote etc [sic!]“. Eleven days ago a post on ForexFactory forum shows a part of some document’s scan describing plug-in’s functionality, including such things as “automated moving up the Limit & Stop Level and Freeze Level according to the preset list of news time”, “disabling (setting, modifying, deletion) of pending orders during news receiving”, “Max Losing Slippage”, “Max Profit Slippage”, etc. Thread starters and many other forum participants believe that this plug-in is being used in all MetaTrader 4 brokers on real trading accounts and that’s what making all such brokers the cheaters. The fact that MetaQuotes deleted all threads about the Virtual Dealer Plug-in on their forum added even more confidence to those traders.
So, what now? Personally, I can say that there’s no actual proof that this plug-in is used on real accounts on any of the MT4 brokers (I am not saying all). I am almost sure that this plug-in (or its newer version) was used during the Automated Trading Championship by MetaQuotes (this competition was for demo accounts). Another point — even if this plug-in can be used on real accounts and is used there by some of the MT4 brokers, it doesn’t imply that all of them are using it and are outright scams.
What will happen when more traders will read about this problem? Those, who thought that the MetaTrader brokers are evil, will definitely become more sure in their belief, those, who didn’t mind before, most probably won’t mind this problem too.
What should you do in this situation? I don’t know, but I’ll continue to trade with the brokers I’ve been using for a long time now, if I find that they hunt my stops or have a high slippage in their favor I will immediately switch to another broker. But I don’t think that it’s a good choice to leave a broker, with services of which I am currently satisfied, just because of some suspicious plug-in’s existence.
Tags: Forex, Forex broker, Forex scam, MetaTrader, MT4
March 30th, 2008 at 5:47 pm
Please, could you be of assistance by telling me the name of the MT4 brokers that you’ve been using for the past two years so that I can use them as well as I also believe what you’re saying.
Thanks.
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March 30th, 2008 at 9:05 pm
loopman, I have been using LiteForex, FXOpen and Northfinance (though, I’ve stopped to use the latter recently).
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July 4th, 2008 at 11:50 pm
Th best comments I’ve read about this problem is “Its not the market, its the provider..”
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December 7th, 2008 at 7:33 am
Information. No solution. solution would be IS NFA and CFTC doing their job! and care to look in to this matter. other then that that what else can we do.
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December 9th, 2008 at 6:42 pm
what a jerk JS is – as if the NFA shall rule the whole world. NFA is for US brokers. And of course nobody wants them outside US. I trade with a broker that does not have this tool. if you are interested – fxcast.
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December 16th, 2008 at 6:48 am
Hey, I’ve been using GoMarkets for the last 4-5 months, great MT4 platform in Australia, had trouble with other MT4 providers, but these guys are great, no issues with anything! highly recommended!
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August 14th, 2009 at 5:53 am
GOMarkets VERY VERY DODGY check your graph against orders pip taken graph plus pips taken again order. requotes, spikes, large spreads increase in morn EUR/USD They do have a NICE plug in
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