Why some brokers don't allow scalping?

[barood4money]

[MENTION=75]Cutiekc[/MENTION] that's a good point on why some brokers don't alot scalping; actually reasoning that the scalpers are cheating them by risking little and earning more. Until now, I was thinking that it was only as a result of server overload that some brokers don't allow scalping.

Yes, that is the only reason that many brokers don't allow scalping. Scalping can be done frequently and anybody can earn a good amount with low risk.

 

[Cutiekc]

Well, most people are likely to say that its because that traders will be making more money than required with the scalping trading style. But then, thats not true because to me the mose reason why brokers wouldnt allow scalping are mostly because, when the market gets volatile their are said to be enormous inflow of clients which might be trouble to the server.

 

[barood4money]

Well, most people are likely to say that its because that traders will be making more money than required with the scalping trading style. But then, thats not true because to me the mose reason why brokers wouldnt allow scalping are mostly because, when the market gets volatile their are said to be enormous inflow of clients which might be trouble to the server.

Actually that is a point which applies. The main thing is what I said before. Scalping is an easy way to earn small profits with low risk. And thats why many people will try to do scalping and that load will effect the server. And that effect other trading also. Thats why most of the brokers don't allow scalping.

 

[kate beckinsale]

due to lack of the knowldge and experience they do the loss and as a result they cannot get success in the real life so to start any business we should first understand it and then we do the work

 

[Cutiekc]

Follow the post of s@ndr@ How to choose a Forex broker? - Page 2

There have one interesting topic that worth for the discussion: why some brokers don't allow scalping?

Scalping is a well-known trading strategy and tend to make profit for some traders. For definition what is scalping? Brokers that allow scalping check out Brokers for scalping | Forex brokers that allow scalping

But, there still have many brokers that don't allow scalping and restrict traders from using this trading method!

Why? What is your ideal?

I have come to give this a very close view and have seen to the reason why ,ost brokers are not allowing the scalping method, although most of us have said that its because of the technical problem but I now realized that its mostly because it has proven to be more profiting method.

 

[kate beckinsale]

the brokers which donot allow the scalping because they wanted to avoid from the risk as in trading the chances of profit and loses are equal for every one so that is the reason from which brokers avoid and we should also take care

 

[kaiceaziz]

Scalping is a good strategy for all forex traders. I wonder how come a respected forex broker prevent it s members using that strategy. In my opinion, such brokers will be less desired and by time will have the less member in it. For forex scalping is a trading strategy in which the trader makes dozens or even hundreds of trades daily, looking to capture a few pips per trade.

 

[Angelic]

some brokers donot allow scalping as they lack experience and knowledge of trading and their practice of trading demo account is not accurate that is why they can not get real success in their life and can earn money

What are you talking about. Do you really know the different between a broker and a retailer trader. A broker is that site where we the retailer traders excutes deals, the reason why they are not accepting the scalping method is maybe cause it much cause technical challeges.

 

[barood4money]

One more point of why some brokers don't allow scalping. Some brokers keeps a spread of 2 pips. And a scalping is something which is done for the profits of 1-2 pips. So when a trader trade for 2 pips, that is not counted as profit. So scalping didn't happened and trader didn't get any profit. But because of it server may get some load. Server never effects because of one persne. But if many people do at a time, then it really effects.

 

[Angelic]

One more point of why some brokers don't allow scalping. Some brokers keeps a spread of 2 pips. And a scalping is something which is done for the profits of 1-2 pips. So when a trader trade for 2 pips, that is not counted as profit. So scalping didn't happened and trader didn't get any profit. But because of it server may get some load. Server never effects because of one persne. But if many people do at a time, then it really effects.

I understand what you are trying to say but what I can say is that scalping trading method is not done by just one trader there are many traders ib a particular broker that awaits market volatility and when it comes they moves at once. That has a higher chances of causing server overload for some weak servers.

 

[barood4money]

I understand what you are trying to say but what I can say is that scalping trading method is not done by just one trader there are many traders ib a particular broker that awaits market volatility and when it comes they moves at once. That has a higher chances of causing server overload for some weak servers.

Yes, obviously your point is right. But there are not one people who does scalping. If you get to know, you will see there are lots of people who try to do scalping to earn small profits frequently.

 

[Angelic]

Yes, obviously your point is right. But there are not one people who does scalping. If you get to know, you will see there are lots of people who try to do scalping to earn small profits frequently.

And to that you can possibly see how it can cause a server break down for a broker than has no strong servers. Imagine in a situation where over 2,000 traders in one particular broker are in anticipation of market volatility and moves in at once. But scalpering method is a good form of making money with less risk.

 

[barood4money]

And to that you can possibly see how it can cause a server break down for a broker than has no strong servers. Imagine in a situation where over 2,000 traders in one particular broker are in anticipation of market volatility and moves in at once. But scalpering method is a good form of making money with less risk.

Yes, that is obvious. When many peoples are trying to do scalping, and at other many traders takes the chances of volatile market, then definitely server gets down.

 

[glucoseguy]

Apart from server overload, there are some other reasons why some brokers may not allow scalping. Some feel that scalping allows the traders to make much profits by taking less risks. All the same, other reasons why some brokers dont allow scalping is best known to them.

 

[barood4money]

Actually to me this two reason is known. But i think there must be some other reasons also. But still, I love scalping sometimes. I do it sometimes for experimenting.

 

[seeker]

I think scalping trading method is when someone who is a trader waits for the market to get volatile before making an order. That means that most traders in a particular broker will be waiting and when volatility comes they will make order. I think it should cause slow server response.

 

[tray]

This is just a simple question which need simple answer as well so the main and the major reason is just that they dont permit gambling type of trading here

 

[barood4money]

This is just a simple question which need simple answer as well so the main and the major reason is just that they dont permit gambling type of trading here

You cannot say that scalping is gambling. Scalping is just a trading with taking low risk. The reason you are giving is not accurate. There are many brokers who allows scalping.

 

[jackcm]

You cannot say that scalping is gambling. Scalping is just a trading with taking low risk. The reason you are giving is not accurate. There are many brokers who allows scalping.

I think most professional scalpers take higher risk than others as they only aim to enter and exit in seconds or minutes but also bring back huge earnings. Why scalp? It is because scalpers don't have long-term views or they cannot as market sometimes is unpredictable.

In my the past, I thought there was no problem if some broker didn't allow scalping but in fact, these brokers could be the scams.

 

[Cutiekc]

Apart from server overload, there are some other reasons why some brokers may not allow scalping. Some feel that scalping allows the traders to make much profits by taking less risks. All the same, other reasons why some brokers dont allow scalping is best known to them.

wellm I can't really tell if that is among the reason why most brokers does not allow scalping because even when the scalpers are going to make money the brokers too earns there own commission in the sense that the scalpers are known for opening and closing of orders.