Stop orders, including Stop Loss (SL) and Take Profit (TP) orders, are critical for managing risk and securing profits in trading. These orders automatically close positions when certain price levels are reached, allowing traders to protect themselves from adverse market movements and lock in profits. However, a concerning practice arises when admin manually adjusts stop orders. In this scenario, a broker or platform administrator alters the stop orders set by traders, often without their consent or knowledge. Recognising this practice is crucial for maintaining control over your trades and ensuring your strategy is executed as planned.

Why Would a Broker’s Admin Adjust Stop Orders?

A legitimate broker provides traders with full control over their trades, including stop orders, and ensures they are executed according to the trader’s instructions. However, when admin manually adjusts stop orders, it typically happens for the following reasons:

• Reducing broker exposure: Brokers who operate on a B-book model (market maker model) may adjust stop orders to prevent clients from profiting, especially when the client’s trade is likely to result in a large win.
• Avoiding significant payouts: If a trade is about to hit a profitable stop loss or take profit point, brokers may intervene to adjust the order, potentially causing the trader to lose out on their intended exit point.
• Risk management for the broker: During periods of extreme market volatility, brokers might manually adjust stop orders to manage their own risk exposure, especially if their platform faces liquidity issues or technical difficulties.
• Disrupting profitable trading strategies: Some brokers may manipulate stop orders to deter profitable traders or to influence trade outcomes in the broker’s favour, particularly if the trader has made consistent profits.
• Technical or system errors: In some cases, brokers claim technical issues or errors in the platform’s automated systems, which might cause them to manually adjust stop orders to “correct” the situation.

Legitimate brokers ensure that stop orders are executed according to the trader’s instructions, without interference from platform administrators, unless there is a technical malfunction that requires correction.

The Risks of Admin Manually Adjusting Stop Orders

Loss of control over your trades:
If a broker manually adjusts your stop orders, you lose control over how your trades are managed, leading to unexpected results that may not align with your trading strategy.

Increased exposure to risk:
If your stop loss is moved to a less favourable position, you could be exposed to greater losses than you originally intended, especially in volatile markets.

Missed profit-taking opportunities:
If a broker alters your take profit level, you may miss out on profits, as your position could be closed at a less advantageous price than you initially set.

Inconsistent execution:
If stop orders are adjusted inconsistently or arbitrarily, it creates an unreliable trading environment where your strategies are undermined, leading to confusion and frustration.

Potential financial loss:
Adjusting stop orders to prevent a trade from being closed at the intended level could lead to larger-than-expected losses, especially if the market moves quickly in the wrong direction.

Signs That a Broker Is Manually Adjusting Stop Orders

Stop orders are executed at different levels than set:
You notice that your stop loss or take profit orders are executed at prices that differ from the levels you initially set, especially during volatile market conditions.

Frequent changes to your stop orders without consent:
Your stop orders are adjusted without your approval, and the broker fails to provide a clear reason for the changes.

Inability to place or adjust stop orders during critical times:
You attempt to place or modify a stop order, but the broker’s platform fails to execute it or changes the order after it’s placed, particularly during key market events.

Vague explanations from customer support:
When you contact customer support to ask about the adjustment, you receive vague or unclear explanations, such as “technical issues” or “market conditions” being used as justifications.

Increased stop-loss slippage after profitable trades:
You notice that after making a profitable trade, your stop loss order is moved in a way that prevents you from locking in your profits, or it is adjusted unfavourably to reduce the likelihood of taking profits.

What to Do If Your Broker Manually Adjusts Stop Orders

Request a detailed explanation from the broker:
Ask the broker for a clear and detailed explanation of why your stop orders were manually adjusted, and request that they provide a written justification for the changes.

Review the broker’s terms of service:
Check the broker’s terms of service to see if they have clauses that allow them to adjust stop orders in certain situations, such as during periods of high volatility or technical issues.

Document the adjustments and discrepancies:
Keep a detailed record of the instances where your stop orders were adjusted, including the date, time, price, and any communication with customer support. This documentation can be crucial if you decide to take further action.

Submit a formal complaint:
If the broker is unable to provide a reasonable explanation or refuses to address the issue, submit a formal complaint through the broker’s official complaint process, demanding a resolution.

Withdraw funds if necessary:
If the broker continues to manipulate your trades by adjusting stop orders or refuses to provide satisfactory answers, consider withdrawing your funds and moving to a more transparent and reliable broker.

Report to the regulator:
If your broker is regulated, such as Intertrader, AvaTrade, TiBiGlobe, Vantage, or Markets.com, escalate the issue to the relevant regulatory authority, providing evidence of the unfair manipulation of stop orders.

Warn other traders:
Post your experience on independent review platforms or trading forums to warn other traders about brokers who engage in unfair practices by adjusting stop orders.

How to Avoid Brokers Who Manually Adjust Stop Orders

Choose brokers with transparent, automated execution policies:
Opt for brokers who offer transparent, automated trade execution, ensuring that stop orders are carried out as set by the trader, without any manual intervention.

Ensure the broker is regulated by a reputable authority:
Select brokers regulated by top-tier financial authorities like the FCA, ASIC, or CySEC. These brokers are required to adhere to strict standards regarding fair execution and client protection.

Test the broker’s execution system:
Before committing significant funds, test the broker’s platform using a demo account to see how stop orders are executed during various market conditions. Ensure that stop orders are reliably executed at the set price.

Look for brokers that allow full control over your trades:
Choose brokers that provide full control over your stop orders and trade settings, ensuring that you can set, modify, and rely on your stop orders during all market conditions.

Read reviews from other traders:
Check reviews and feedback from other traders to ensure that the broker offers reliable, transparent execution without any manipulation of stop orders or trading conditions.

Conclusion

When a broker manually adjusts stop orders, it undermines a trader’s ability to execute their strategy and manage risk effectively. This practice can lead to unexpected losses, missed profits, and a loss of trust in the broker. Traders must stay vigilant, document all instances of stop order manipulation, and choose brokers that provide reliable, transparent execution policies.

Learn how to protect your trades, ensure fair execution, and build a successful, secure trading strategy by joining our Trading Courses. Stay informed, stay empowered, and ensure that your trading success is never compromised by brokers manipulating critical order features like stop orders.