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I traded forex using two different brokers in two countries. Forex.com in USA and alfaforex.ru in Russia. What I experienced both times was unexpected position sell-outs and fake quotes:

  • position sell-outs:

you open a position with a leverage. There is a price spike, your margin goes below a threshold value, and the position is closed. Then the price returns into the profitable area. You are not notified to add funds or address this otherwise. another case(forex.com): broker claims that position in EURUSD is closed when margin% goes down to 100%. The position, however, is closed at 110%

  • fake quotes:

you open a position with a stop loss. The price fluctuates just to hit your stop and comes back, your position is closed with a loss. You look at the price history from the same broker, the closing price is outside the low-high range of that candle bar (plus spread, if applicable)


with forex.com in USA, I also had issues with closing multiple trades of the same instrument and withdrawal.

  • closing multiple trades:

You open 2 EURUSD positions, one is profitable and another one is not. You are trying to close the profitable to free the margin, but you can't. You find explanation in the log later. It's the FIFO rule, you have to close positions in the order in which you opened them. Remarkably, the details of this rule are not documented anywhere on their website. You are losing money because nobody told you the rules of the game.

  • withdrawal issues (TBD):

you get fed up and login to your account to request a withdrawal. You see your balance, but when you switch to the withdraw funds view, it shows "zero available to withdraw". You contact support and wait while reading on trustpilot that lots of people could not get their money back for one or another reason.


My understanding is that the forex brokers are regulated. According to them, you should trust them because you are protected by their membership with the regulator.

I contacted the one that regulates alfaforex.ru first, and the answer was "their agreement is on their website. You joined them and could see the agreement". they pretty much repeated the reply from the broker. Issues above are not covered in the agreement.

I am preparing a complain to CFTC, the regulator for forex.com

But given the reply of the first regulator, I would like to ask for an advice. Am I going the right path? What do people do? Is there a way to join a class action suit? I looked at the reviews on trustpilot and posts here, and I see that many people have the same concern. Please kindly share your related experiences.

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  • "You open 2 EURUSD positions, one is profitable and another one is not." Why does it matter which one you close? FIFO affects realized gains for taxes, but shouldn't affect trading otherwise. You get the same proceeds for selling the same quantity at the same price, regardless of the purchase price. – nanoman Aug 20 '20 at 17:15
  • Place two orders and try to close the second first. You should be getting an error message if you are using a US broker. This is a US regulation. Since this rule exists, it should be the responsibility of the broker to inform clients about it. Not "trial and error" kind of thing. I had a loss. – J W Aug 21 '20 at 16:14
  • I understand it was an unexpected restriction, but I'm asking why you care which position you close. You mention margin as the reason. Do you think you "free" more margin by closing a profitable EURUSD position than an unprofitable one? I don't see this. A position's maintenance margin requirement is based on its current value and doesn't depend on purchase price. Before you sell, one position's profit and the other's loss are already reflected in your buying power. Selling an equal quantity of either one would free the same margin. Can you work out example numbers that show your concern? – nanoman Aug 23 '20 at 8:36
  • Each position takes some margin percentage, profit does not matter. Once you close it, the corresponding percentage is freed – J W Aug 24 '20 at 9:11
  • Great, but you said "trying to close the profitable to free the margin". It sounded like you thought you'd free more margin that way. I still don't follow why you wanted to close the profitable position specifically. – nanoman Aug 24 '20 at 17:59
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I may misunderstand the exact details of your experiences but:

position sell-outs: you open a position with a leverage. There is a price spike, your margin goes below a threshold value, and the position is closed.

That is completely normal and correct behavior as far as I know.

you open a position with a stop loss. The price fluctuates just to hit your stop and comes back, your position is closed with a loss.

Completely normal and correct as far as I know.

Ridiculously fake brokers: there are many absurdly fake "brokerages". Unfortunately they all now have decent-looking web sites! I have no clue if the two mentioned are ordinary normal brokers or just ridiculous fake brokers; perhaps someone on here knows.

Using a normal household-name broker: There seems to be little reason to use any broker other than just the 2 or 3 major household name ones.

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  • This seems to ignore OP's specific complaints: "broker claims that position in EURUSD is closed when margin% goes down to 100%. The position, however, is closed at 110%" and "the closing price is outside the low-high range of that candle bar". – nanoman Aug 20 '20 at 17:30
  • Perhaps someone can address that specific point, N. (I'd say, charts shown on sites mean very little, it's just a representation; other things could have happened in the order flow.) – Fattie Aug 20 '20 at 18:33
  • 1. normal? To me it looks like a quote manipulation to steal your money. nanoman is right. It should definitely be within the low-high range for the bar. 2. I used to trade forex on Oanda. It was years ago. Back then, I never experienced this. 100% margin means lots of money on the account, it is way before negative. Why hurry to sell the position? Previously, brokers warned you to deposit more funds if your balance gets close to min margin. When they sell and the price goes back, it looks like a price manipulation by a market maker to rob you. And they are a market maker – J W Aug 21 '20 at 16:37

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