Number 1 Strategy Forex Brokers Use to Manipulate Your Trading
- VasilyTrader
- 2 days ago
- 3 min read
Your forex broker will rob you!
When the best trading opportunity arises, your broker will try to make you lose.
In this article, I will reveal a common scheme and strategy bad forex brokers use to stop you out from the trade and real examples of how they do that.
Real Case
Here is the story.
This week I found a very profitable trading setup.
It had a strong fundamental and technical rationale.
CADCHF pair tested a significant demand zone based on a recently broken trend line and a horizontal support.
A bullish breakout of a resistance line of a consolidation provided a strong signal.
The trade was taken on its retest.
I shared this setup on TradingView, and I explained the trade execution rules for this trade to my students on a live stream in my trading academy.
The trade was opened late in the evening, and we kept that overnight.
The next day, the price successfully reached the target.
Something Went Wrong
Then I started reading messages from my subscribers and realized that many of them closed the trade in a loss.
I started to look for reasons why it could happen and quickly came to the conclusion that many traders faced broker manipulations with that trade.
I started studying this setup on charts of different brokers.
On TradingView, you have an option to open the same forex pair with various quote providers.
Here is a price chart of the same CADCHF forex pair with 2 brokers of my students.
You can see that the price went substantially lower and they were kicked out from the trade.
With the third broker, this bearish movement was extreme.
The price set a low 12 pips lower than the low of my broker.
You can see that these price movements were clear manipulations.
Some brokers were trying to stop hunt their traders, making them close their buy positions in a loss.
Don't Worry
Good news is that such manipulations can be avoided.
To outsmart your broker, let's see when exactly these manipulations happened.
Let me show you.
This manipulation occurred when the market transitioned to a new trading day.
Such an event is also called the session rollover.
5:00 PM New York time, which often corresponds to midnight or 1 AM on many trading platforms
At this specific time:
Institutional Desks Close: Major banks and institutional liquidity providers in New York are closing for the day.
Next Session Not Yet Open: The next major financial center (like Tokyo or Sydney) hasn't fully opened its trading desks yet .
This creates a low-liquidity environment. With fewer participants and thinner order books, it takes significantly less trading volume to move the market price. This is the perfect breeding ground for manipulative activity.
At the same time, when liquidity vanishes, the spread (the difference between the bid and ask price) can widen dramatically—sometimes from 1 pip to 100 pips or more.
How to Avoid Manipulations
The best strategy to avoid manipulations during that time is to simply consider avoiding trading at rollover.
If you have an active trading position, simply
close it before a rollover,
reopen the trade after.
Broker manipulations during liquidity rollover are very frequent.
Being aware of this significant moment will help you to not be caught by artificial price movements.
Abuse
Also remember that some brokers will abuse a lack of liquidity during the session rollovers.
That is why it is so important to trade with a trusted broker.
Above you can see a significant difference in price charts of EURCHF of different brokers. A forex broker on the left chart abuses a rollover for creating artificial price movements.
Trade Forex with a trusted broker - LINK.
Be careful, traders, and be aware of such a dirty trick of many bad brokers.
