Central Markets FOREX.COM brokers suspicious activity during LIVE trading today
We tried to trade long USDSEK during the Riksbank rate decision. Unfortunately Central Markets broker had decided to suspend trading on SEK pairs during this event.
The instruments were shot down in a very precise and planned manner during this event. About 1 min after the news release the USDSEK pair had moved over 1100 pips.
Both USDSEK and EURSEK were greymarked in MT4 platform and marked “Trade: No”
The broker then enabled the SEK pairs about 1 min in to the event.
At first they completely denied such thing and claimed that the instruments were not closed and that we just didn’t get a fill due to low liquidity.
I made the support guy to confess he hadn’t even looked at the USDSEK instrument or even bothered to check price and volume. He was just making standard excuses.
Then a supervisor called me and he repeated the same thing. Denying the instruments were shot down and I was mistaken. Unfortunately I had no photos or videos.
I did have all my students in the LIVE room but this is not a court.
Sometime later my broker emailed me with the below explanation
Please see below response from Forex.com (This is common practice and is a measure put in place to protect clients)
Have checked with the desk, it seems that before the numbers it is common for Banks to widen their prices to reduce their exposure.
To protect against these wide prices triggering compulsory closeouts and stops, we place tolerance levels on our spreads.
In this case, these were breached and the market was temporarily suspended until spreads came back into acceptable levels.
I would like someone from Central Markets FOREX.COM to come online and explain to my students LIVE why they suspended trading on SEK instruments.
We chose Central Markets after been scammed by MT4 brokers in suspicious countries fronting with offices in Europe.
It is therefore extremely disappointing to find that even a regulated broker in UK can behave like this.
Needless to say we will stop trading with this broker and move our business elsewhere.
It is hard enough to trade and make profits. We don’t want to worry when an instrument might get shut down without further notice.
We at PnL Trading apologize to everyone for recommending this broker to you today. But this was an incident we could not have foreseen.
I can assure you we did check all the facts before choosing this broker and traded with the broker for over a week before this event.
Central Markets is a regulated broker with FCA and we will demand full loss compensation for this incident.