Stockpair is a Scam After All

Oct 22

Stockpair is a Scam After All

I t really pains me to bring you this revelation, after all – I have been singing Stockpair’s praises for almost a year now. I have even written a long positive review before this one. However, I have discovered that Stockpair is not all it is made out to be. Stockpair is a scam. Probably alongside all binary options brokers… But whether you are a successful or unsuccessful binary options trader, either way – The house will eventually win.

Stockpair is a Scam After All

As many of you who have read this blog from the beginning will know, it has taken me a great deal of time to turn myself from an unsuccessful trader into a successful one. When I recall how much hard work it has taken for me to become consistently profitable to the point where you are winning most weeks, most months, the great feeling is short-lived… Being consistently profitable, as I have been the last few months, I understand you become one of the lucky ones… One of 5%, One of the lucky ones that can take home £1,000 per week even… As little as that may seem, over many months it starts to roll into a handsome overall profit in excess of £20,000. When this happens, eventually you will get noticed.

I am a binary options trader that went from losing most weeks, to drawing even most weeks, to eventually winning most weeks… It’s a great feeling. Up to a point, brokers will put up with you taking profit… The reason they do put up with it, is because they believe you will eventually screw up… You will have a bad few weeks, get angry, lose it all back to them… That is what they generally believe. BUT – As soon as they begin to believe differently to that, the moment they believe they are unlikely to see the profit that have given out to you will not return to them, your time with them is going to be at an end. Because as soon as the broker you are trading with believes that they will never be able to get back that money from you, they will do one of several things to get rid of you.

 

But the brokers profit when traders profit, right?

Wrong. The brokers lose when you profit, so don’t believe the bullshit they give you that they make money on the volume. When you win, they lose. When you lose, they win… It’s as simple as that. So if you are winning all the time, you are depreciating their capital. Their revenue stream is the deposits that clients like you and me make into the broker platform. There is no other revenue… That is it… So if you are a successful trader, you’re a hole in the net of that revenue.

As I mentioned earlier, they will allow you to continue trading up to a point, because they think you will lose it eventually – But the moment that belief changes, your days are numbered.

 

How brokers like Stockpair bump off their successful traders.

I can’t give you a definitive answer to this because all brokers will be different. Indeed, even within Stockpair, they may have different methods to push their revenue robbers away. They will normally do one or more of the following:

  • Refuse to payout (withdraw) any part of or all your balance.
  • Suspend your account and accuse you of cheating and/or breaking their terms and conditions.
  • Fix your account so that you cannot trade, are severely disadvantaged in some way making trades, or cannot trade at all.

In my case with Stockpair, they have chosen the last option from the above list. As you all know, I’m a 60-second trader. What Stockpair have done is targeted my account specifically and severely impeded my ability to set off trades. In other words, whilst other trader accounts are unaffected, my account will barely allow any short-term trades to be made. How is this achieved? Ok, listen carefully, this is precisely what has happened…

As we all know, market price moves nearly all the time. In other words, price rises, price falls… Rarely does price ever ‘rest’ or stand still. So in the midst of setting off a trade on a broker platform, the market price may have already moved on a few ticks (pipettes) from where you set off the trade. Why is this?

The reason is because all platforms are a fraction of a second behind the true feed. If you think about it – You’re watching a feed on a platform that could be a second or two behind real-market-price. So when you execute your trade on the broker platform, it could be as much as a second or more behind the true market price. So how do platforms compensate for this?

Well, before they start your trade off on its merry way (you may notice a pause for a few seconds whilst the broker processes your trade), that price you clicked on is checked against real market price. (In other words, the price the platform advertised it at and what you clicked on, compared to the real market price at the moment you clicked). After it has cross-checked your clicked price with real market price, Stockpair will usually say, ‘Ok… that’s close enough, we’ll let you start that trade‘ – And your trade then begins for 60 seconds.

However, sometimes it won’t give you the trade… It will reject it. Why would it reject it? Because maybe the market price spiked at the moment you clicked and because Stockpair are slightly behind the feed, the price you clicked on and the actual market price are too far away to allow you to have it – So they reject it. This is normal and is perfectly acceptable. I’m actually glad Stockpair will always try to honour the price you clicked on (other brokers don’t).

So here’s the important bit… As long as there isn’t a huge difference in price (ie. just four or five pipettes difference), Stockpair will give you the trade anyway. This is actually the case for most trades, because otherwise, you wouldn’t have any trades start – So most trades you try to start, will start (unless market price moves significantly as I mentioned above).

But here’s the thing… When you are on their “hot list“, such as my account is now, then no trades are permitted to start whilst price is moving AT ALL, even by a single pipette. And because the market price is usually moving all the time, this means 95% of all trades I try to start on Stockpair are now rejected. In other words, I cannot trade.

So to recap in case you missed it…

  • Normal account = allows market price shift of +/- 5 pipettes or so before being rejected
  • My account = allows ZERO market price shift. On comparing clicked price with real market feed, they must be the exact same or trade is rejected

It is actually amazing what a small, clever tweak on their part will make all the difference between being able to trade and being not able to trade. But this is what they have done – They would know that nearly all my trades would now be rejected. So they have effectively told me to bugger off. This subtle change has meant that my trading days on Stockpair are forced to be over.

If you didn’t understand what I have said above, then just know that before this event happened, 93% of trades I tried to start on Stockpair went through fine (about a 7% rejection rate). Compare this with after the event – 95% of all trades I try to start are rejected.

 

How can you be so sure you are being targeted specifically?

I ran a number of tests when this started to happen. I have a few friends who also have accounts. We set up test conditions where we all tried to fire off trades at precisely the same time. Then we switched around so the computer could not be blamed, or the internet connection… We switched people onto different accounts so the trader could not be a factor. It didn’t matter what conditions we set, my specific account has 100% been targeted by Stockpair such that most of my trades are rejected and other accounts are unaffected.

I have video evidence of this that I will be posting in a future update.

 

Did you try talk to them?

Yes of course. However it makes no difference. Stockpair will just run the line that nothing has happened on their end and your account is the same as everyone elses. However I’ve proved beyond any doubt that this is not the case.  It’s actually quite interesting that before this happened, my account manager called me regularly, had regular emails from Stockpair, the usual communication stuff. After this event, all communication stops.

 

Could you still withdraw your money?

Yes, no problems there. I think Stockpair will honour your cash balance and there have never been any problems with withdrawals. The only problem I have is that they have effectively cut me off from trading because I’m too profitable.

 

Conclusion.

Binary Options is a tough game. It is challenging, it can be rewarding if you stick with it. However, it is fraught with dishonesty. Most, if not all Binary Options broker platforms will tell you that they want you to win, that they make money from your trading volume, that they profit when you win… It is all bullshit my friends. The opposite is true. They say they want you to win, but they will only make money if you lose. So… logic therefore will tell you, if you keep winning… consistently… adopting excellent discipline, good money management and have a strategy that earns you consistent profit on a medium to long-term basis, they will eventually show you the door.

Take it from me, I have nothing to gain from imparting this knowledge – But just know that you could never make a living with Binary Options – It’s just a reality check!

15 comments

  1. Mike Spitz /

    Ouch! I suppose it is to be expected. The same would happen if you were always winning at BET365, or your local bookies… They need you to lose so they can pay their wages and stay in business!

    I agree though, it doesn’t seem as though you were greedy and taking too much – 20K is relatively small. Quite surprising. I thought Stockpair were a bigger outfit to accept a loss of that value.

    Nevertheless, I think I’ll stay clear of Stockpair!

  2. hahaah /

    hehe one site is scamm when not pay soo stockpairs not is only you are unlucky
    many people got and 100k payout and can trade soo you are only unlucky iff not can trade please remove this shit you are soo stupid man
    you want my account stockpairs i have 50k and can trade with 1000 $ easy

    • I think if you had better command of the English language, you might have read my main point in this article that it is not the amount that will get you noticed by risk management, it will be the consistency of your profit levels over an extended period of time. It has nothing to do with being unlucky, or being “stupid” !! I would guess that many people could win 100K by trading a high risk strategy over a short period of time, but how about over long periods? Someone who wins 100K in two weeks, could easily lose 500K in three… That is how risk management will think.

  3. charliebreaker /

    Although it doesn’t surprise me that your account was tampered with by a BO broker to stop you in your tracks, what does surprise me is the incredibly small profit level at which they stopped you.

    I would guess that (from your case example) risk management assess each case on its own merits… Had you won 20K over a week or two, they might have left it alone, because that length of time isn’t enough for risk management to believe there is no chance of getting it back. They might assume in that case that you’re a high risk trader and there’s a good chance it will go the other way one day soon and you end up losing 50K back to them.

    From what you say, you’ve built this profit up over many months, so your trade sizes are small and well managed. Good discipline will be something brokers don’t like and the fact you are many months ahead with a slow, but progressive profit build up, they realize that they will never see a return of that money back – Hence they found a way to screw your account so you go away.

    I don’t think this bad advertisement is worth 20K to Stockpair, behavior like this will end up biting them on their backside.

  4. I always suspected as much. Thanks for this info. This is one of the only honest websites on BO around. there is so much BS in this industry. I am with Marketsworld right now and don’t find them too bad, never experienced rejected trades like you do. BUt they use spreads I think.

    they do reject some trades, but not very often.

    thanks again for the info

  5. Geoff1958 /

    Hey Kris,

    I’ve been following your blog for over a year now and I really appreciate your honesty with a view to all-things binary options.

    It was actually your recommendation that made me sign up and try Stockpair, but I see with this post that my efforts will all be in vain, even if I were to become as profitable as you.

    I also get the dreaded ‘Due to market conditions the transaction could not be processed. Please try later.” message. Mine is nowhere near 95% of the time though – More like once every 10 trades… so 10%. It is very annoying, I agree. But as you say, I guess the alternative is getting whatever price suits them and not what you clicked on… Not sure what I’d prefer.

    Still, I’ve been playing around on 24Option recently and I think I will divert my attentions there and start to wind down my activity on Stockpair for the foreseeable.

    Thanks again,

    -Geoff

    • I would recommend avoiding Stockpair if at all possible. They don’t seem to have deep pockets and appear to get nervous with even a little profit earned.

  6. Jonathan /

    So sad to hear your story about stockpair. You have said the truth about these brokers who only want our money and nothing else.
    However, I beg to disagree with you on your last sentence in the last paragraph that one can’t make a living in the long run from binary options. For eg, you can close your account with stockpair and open with another broker and pool profits. There are scores of binary options brokers.

    Nonetheless, I don’t find binary options rosy that I have decided to switch over to forex trading.

    • Hi Jonathan – Thanks for your comment. I did try Forex in the past (and still try it now and again), but I have never been able to find a way to make a living from it – Just when I’m starting to do well, I screw up and lose it all again! If you know a great way, maybe you can share it with me!

      I agree, I can just pack up with Stockpair and start again elsewhere. But each broker’s platform is different and it takes a while for me to get accustomed to a new platform, I force myself to spend weeks in ‘test’ mode – And that’s time being spent not earning!

  7. Cliff Edwards /

    10 years ago when retail Fx Spot was in its infancy, the early bucket shop marketmakers did exactly the same thing. (And they are still doing it with uninformed customers in europe africa and far east) Because as you correctly point out, in the simple marketmaker model, when you win they loose. Successful traders were (and still are ) being “Listed” for selective slippage, and tradeserver latency. It is of course tricky to prove, expensive to legally pursue and given the incompetence of most regulatory authorities a waste of time to report.
    Same is situation now with 99% BO brokers. Especially with ultra short term TFs like 60sec.

    As Retail Fx has developed over the years and gained scale, technology has allowed brokers to adopt different models, Specifically where they take no side in the trade but simply provide a gateway, by consolidating and aggregating small orders and passing directly to the interbank.And genuinely making their revenues from volumes and a spreadcharge/commission per trade.

    The problem for the BO bucketshop is LayingOff imbalanced Book risk. They are being run like Casinos. And they dont need to be. And most people know the extent to which Casinos take to thwart consistently winning clients? In my humble opinion the answer is in HFT technology, which could allow Brokers to Lay-Off excessive Book imbalance on an ultra short time basis.Another simpler way would be offer dynamically adjusted Payback Spreads. So when everyone is short, the payback dynamically reflects that. Long/Calls get a 95% PB and short/Puts earn only 50%?

    BO is in its infancy. The SellSide models being employed are primitive. I expect new models to evolve over time, when volumes drive greater competition in the market.

    Untill then, I will be happy to help create Masking strategies for sucessful traders who like you, find themselves being “listed”.
    Ed

    • Hi Ed,

      Your post sounds very interesting, you obviously know a lot more than me about the inner workings of these industries.

      By ‘masking strategies’ do you mean ways of creating additional accounts to soldier on with the same broker, albeit as a different ‘non-listed’ trader?

  8. Well, this is why I consider once we want put real money (big sums) into BO we shall do it with FOREX COMPANY that also offers BO and not some company that does purely BO. Since those who does purely BO and not FOREX are earning from your OTMs they dont have the backend from FOREX trading where they make money regardless of OTM or ITM.

  9. Qland /

    Any updates…?

    • admin /

      No, the account was never rectified. I stand by the original article. After you have reached a level of success, any future success is seriously curtailed by some action that will penalize you in an effort to either make you lose, or go away.

      The only way around it, if you feel you must stick around, is to use another account, a friend’s or spouses account. I’m a signal provider, so I had to stick around as I have active clients. I just send the signals from a different account.

      • Qland /

        That’s really unfortunate. I’ve been having relatively good success but I guess it hasn’t raised a red flag yet.

        Maybe your account manager could be doing this on his/her own without. Have u asked that they assign you a new one?

        I’d still love to see your updated strategy and be a part of your signalling service. More info on that please…

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