A Trader Encountering Malicious Slippage at Equiti Capital? No Response from the Broker

Recently, BrokersView learned that a forex trader's Gold orders on Equiti Capital were all liquidated with a loss of $183,976, appearing to have suffered malicious slippage.

Oversized slippage results in forced liquidation, no response from Equiti 

According to the trader's description, he opened an account on Equiti Capital to conduct trading for a period of time, during which his highest deposit was more than 5 million RMB. At the time, he could be very trusting of the platform.

However, on December 4, 2023, the trader found that three Gold orders in his account were forcibly liquidated, and three orders accumulated losses of $183,976.

Although the account losses and forced liquidation are “commonplace”, he soon found out that something was wrong: his MT4 account with Equiti Capital has three orders of spot Gold, which were liquidated in the process of Gold rushing high in the opening of December 4, 2023, but the price of liquidation is 2186+ dollars. He said, “The price of liquidation is unacceptable to me.”

“I understand that the price of Gold on almost all major platforms worldwide as well as US Gold futures has risen during this time but has not reached the level of 2185+ dollars. For these three orders, I required them to provide detailed information about the orders and the legal certificates issued by the regulators, but they have not responded!”

Almost a month after the incident, the trader hasn't received any response from the platform.

Regulatory Status of Equiti Capital

Equiti is a multi-asset trading brokerage regulated by the UK FCA, Seychelles FSA, and UAE SCA. In light of what happened to the trader, BrokersView rechecked Equiti's regulatory information, and the results show that the broker's licenses are all currently in order. 

However, BrokersView would like to re-emphasize that licenses and oversight do not completely eliminate investment risk and the possibility of broker misconduct.

Bottomline

Slippage is the difference between the expected price of a trade and the actual price at which it is executed. It is usually unavoidable in forex trading, and it is usually caused by sharp fluctuations in the market and network delays. However, there are inevitably platforms in the industry that maliciously manipulate slippage in order to earn gray income.

Oversized slippage on Equiti Capital has caused huge losses to the client, and it's unclear why, but the lack of explanation and response disappointed the client.

BrokersView reminds you that when choosing a forex trading platform, in addition to the important matter of checking the license information, it is also important to understand the broker's reputation through client reviews and feedback, which may help you avoid potential financial losses. If you find a problem with the platform you are trading with, you can submit a complaint here.