Why some brokers don't allow scalping?

[Islamnoor34]

thread starter
it is most asked question. I think main difference between casino and Forex is scalping. Professional traders do not do scalping and gambling as compared to newbies or beginners. Forex firms encourage traders than newbies by putting restriction on scalping.

 

[marrie11]

When a trader make a trade with his broker, the broker has to cover the position in the market to protect him against exchange rate risk. Scalpers trade frequently sometimes making hundreds of transaction in a short span. Though the broker is getting income from the spread in these transactions, the frequent trades makes it difficult for the broker to correctly assess his position and cover it in the market. Moreover, the broker has to make frequent covering. Because of this many brokers are not preferring scalpers.

 

[budado]

Since server can be floated with orders that cause the slow down of the server that's why broker sites sometimes does not allow scalping. So that the server cant' be loaded with too much orders. But other broker site do allow scalping and usually this broker site either has low activity yet or has powerful servers.

 

[kva84]

i think scalper make broker network so busy,,so it disturb the platform and other trader..

 

[PROPENSITY100]

this is really an interesting topic to discuss as scalping is one of my favorite subjects. My opinion is that the potential of scalping is limitless and we can multiply even a small capital using these strategy and the broker may face losses. this is the reason why some brokers do not allow scalping, only the best ones can allow it.

 

[Achiever2015]

Scalping is a good trading strategy for those who have mastered it. I think one reason could be that it is not to the broker's advantage, as little profits are made by the brokers. As the scalper makes LITTLE profit so does the broker make VERY LITTLE profit. Less profit = lesser profit.

 

[Syrine22]

I stand to say that majority of this brokers wouldn't want to be on the losing end and that is why they do everything to uphold that.The more people trade with them the better their advantage for them and that is why some of them dont get to accept scalpers.

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I stand to say that majority of this brokers wouldn't want to be on the losing end and that is why they do everything to uphold that.The more people trade with them the better their advantage for them and that is why some of them dont get to accept scalpers.

 

[budado]

Since activity do increase if theirs a multiple transactions in a very short period of time. I think this is the main reason why right now they don't allow scalping. Simply because of too much activity the connection slow down and if theirs a slow down many clients will experience getting DC.

 

[Cutiekc]

Well,scalper traders are those who trades when the market is volatile so it can possibly cause server slow down for a broker that does not have a strong sever so thats why some brokers don't allow it,those broker that allows it has a strong server that can take control of any amount of clients they have.

 

[Taha Nizam]

for a starter to use securing techniques are very risky because they do not comprehend how the real price action goes so they are still at a loss when experienced with a scenario of price actions is whether to protect failures or benefits to shut in dealing making scenario especially if you have to use a long-term dealing techniques really very risky

 

[Cutiekc]

for a starter to use securing techniques are very risky because they do not comprehend how the real price action goes so they are still at a loss when experienced with a scenario of price actions is whether to protect failures or benefits to shut in dealing making scenario especially if you have to use a long-term dealing techniques really very risky

Don't get your point,what sclaper trading is,scalper are those trader that makes entry when the market price is high,which is been noticed from the chart,so some brokers don't accept this because it do give overload to a non strong server according to my observation.

 

[nasim39]

I do not like scalping technique because too much time in front of computers. This technique requires accurate analysis and high concentrations. I do not have too much time in front of a computer.

 

[Cutiekc]

I do not like scalping technique because too much time in front of computers. This technique requires accurate analysis and high concentrations. I do not have too much time in front of a computer.

It is also the most profitable trading technics because traders who are scalper goes into the market when price are high though they also keep watching at the chart,but you must keep your eyes on the chart all day long there are times when the market is said to be volatile.

 

[kasual]

to be honest, I don't get idea why some brokers not allow scalping method but maybe some brokers that not allowing scalping is ECN broker and they usually will transfer the traders order directly in trading room. in this case, if traders use scalping method, brokers will have enough time to transfer the order to trading room. anyway, its just my opinion.

 

[rexway]

Yea that is true basically the ECN brokers are those brokers which I learnt that they dont even allow scalping but come to think of it I dont really like the way which this brokers do their own things because the services as a whole suppose to be extend to scalping

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Yea that is true basically the ECN brokers are those brokers which I learnt that they dont even allow scalping but come to think of it I dont really like the way which this brokers do their own things because the services as a whole suppose to be extend to scalping

 

[usman khan]

i think some brokers don't allow scalping because he is not like scalping and he is not allowed scalping some time this is bad effect on your Forex.

 

[Cutiekc]

Yea that is true basically the ECN brokers are those brokers which I learnt that they dont even allow scalping but come to think of it I dont really like the way which this brokers do their own things because the services as a whole suppose to be extend to scalping

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Yea that is true basically the ECN brokers are those brokers which I learnt that they dont even allow scalping but come to think of it I dont really like the way which this brokers do their own things because the services as a whole suppose to be extend to scalping

Then for sure they ain't gonna be having good amout of client because i aready learnt that over 89 percent of forex traders are those who are scalper traders so there for any broker that does not support this won't be popularly known,thats my own point of veiw.

 

[rexway]

That is very much true most of the forex traders are the trader who normally do scalping because thet see scalping as been easy for I know that there are so many traders who are doing scalping so I think that the broker who really want to get something good should allow all type of trading

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That is very much true most of the forex traders are the trader who normally do scalping because thet see scalping as been easy for I know that there are so many traders who are doing scalping so I think that the broker who really want to get something good should allow all type of trading

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That is very much true most of the forex traders are the trader who normally do scalping because thet see scalping as been easy for I know that there are so many traders who are doing scalping so I think that the broker who really want to get something good should allow all type of trading

 

[mnmkforex]

if we use our money to invest, broker should allow and welcome all strategy. why they don't provide some service. maybe they are not ready. they will lose a part customer who use scalping

 

[Taha Nizam]

I do not like scalping strategy because too much time at the front side of computers. This strategy requires accurate analysis and high concentrations. I do not have too much time at the front side of a computer.