Why some brokers don't allow scalping?

[Alf]

First and foremost bucket shop brokers are fake broker sites. So you can't pass a fake one as legit one. In short we can't consider them a forex broker sites at all as they are fake and their rules and reason are nuisance as its a con broker site to start with. A legit broker site has legit reason why its does not allow scalping.

I totally agree with that , my point it is that these "brokers" often claim that they are legit. In fact I skip brokers which doesn't allows scalping, even though its not my trading style.

 

[eddiej]

it's probably because some broker's systems cant handle the amount of trades being done? I mean scalpers tend to do multiple trades at any given time during a trade session, maybe that's why brokers don't allow scalping. I'm just happy that my broker, profiforex allows scalping.

 

[UMOFX IB]

Scalping a a technique in which traders open their trade only for some seconds less than one minutes they get profit from it . It is profitable in quick market. When market is volatile they can get high profits in low time .Daily some hours are very quick in positions and scalpers collect enough profits.That is why some brokers not allow scalping they restrict them to remain open positions for certain minutes.

 

[akonlki231]

The Forex Broker that I use accepts investment via Liberty Reserve, but they do the investing for the client. I have been using them for 5 years now and haven't had any service issues and have received excellent returns.

 

[rosstaylor]

Scalping is very useful for making quick profit, But what about risks,
Scalpers need to capitalize quickly on arising opportunities but if that was fade they will losing one this is because they can not weight for another rise.

 

[sindarin]

Scalping is very useful for making quick profit, But what about risks,
Scalpers need to capitalize quickly on arising opportunities but if that was fade they will losing one this is because they can not weight for another rise.

The risk in scalping is high, i already loss with it but in other hand i can gain from it, just know the right time to do scalping if you over do that technique i don't know what will happen with you dude, this technique is good and will give you a lot of profit if you know this technique so well.

 

[budado]

Usually its take lots of traffic if a broker site allowed scalping so what they do is that they try to put minimum number of minutes before we can close our position. But as far as I know we can still close our position if we are incurring loses but we can't close our position in less than a time allowed if we are making profit.

 

[Cutiekc]

There is no other known factor apart from it do cause much load to their sever or system,when the market starts geting volatile traders tends to come in,well,thats shouldn't be much reason why they should not allow such feature as 30 percents of know traders are scalpers,brokers that means business allows the feature.

 

[budado]

Right now I notice that the bigger the account type the more likely they going to allow you to do scalping. I don't know if its only because right now I'm shifting from mini accounts to lite accounts and I see lots of lites accounts that accept scalping while theirs only few mini accounts that accept scalping and if ever they do theirs some few minutes holding period rules.

 

[riddick09]

You mean here of the cents account? I don't know if there are basis for some brokers to have scalping or not. But I think this entirely in the broker policy or agreed terms for having scalping or none. Perhaps, we can say that others have strict rules in Forex trading like in US and while others are not strict like in Russia.

 

[budado]

The basis is traffic. Scalping increases site traffics. The more traders do scalping the more traffic the site gets and the result is a lot of requote. In order to prevent requote problem some broker site has 2 minutes minimum holding rules other have less other have more. But the main purpose is to prevent unnecessary traffic.

 

[naninov]

i don't know much about broker procedure executed clients order, but i think some broker especially brokers with no ecn account type will restricted scalping techniq because they need time to pass the order to interbank quotes.. so if someone closed the order with profit in a short time before the order passed by the system than the broker will bear loss, i think it is the reason... but i no longer found brokers restricted scalping, is there any?

 

[budado]

Scalping only make trading activity increase and the more activity the more crowded the server is resulting to slow down and worse its can result to more loses in our part if theirs some disconnection issue each time we trade. That's why I prefer to trade broker sites that has some scalping rules in this way at least we can preserve some good trade.

 

[martyn]

broker does not allow us to do scalping probably because it can provide a major influence on the server so that it can cause interference with the execution time, indeed I often feel this disorder when the volume of the market is crowded

 

[rafiqshahid]

Some broker not allowed to use the scalping in during the trade. They has make the restriction on using it. This is their own policy they trader also should accept it. For newbies this strategy of shaping is useful and easy to perform. Some times it prove very dangerous for the trader.

 

[budado]

Some broker not allowed to use the scalping in during the trade. They has make the restriction on using it. This is their own policy they trader also should accept it. For newbies this strategy of shaping is useful and easy to perform. Some times it prove very dangerous for the trader.

The question is why some broker does not allow scalping and its seems you don't answer the reason why but just expound the question of this thread. One reason why scalping is not allowed or at least we need to hold our position for two minutes before we can close it is because we of server traffic. If broker sites allows scalping the activity will going to increase result to requote problem.

 

[jackcm]

Because those brokers are themselves market makers or dealer. Remember that dealers don't only make money via spread but also losing trades because they make transactions against traders. Scalpers try to earn too little money and too fast for them to have chances to really benefit from traders. That is why.

 

[riki143]

The phrase scalping mainly is the phrase for latency trading, where customers wrongly manipulate, to their benefits, setbacks that may happen due to the fact that forex trade is Internet-based.

 

[sindarin]

Scalping means more traffic since it is very fast execution, and as we know there are some brokers which is not a credible broker or at least doesn't have much bandwith and if we doing scalping it will bring a lot of traffic to them which is not a good thing for them since they need to requote over and over again.

 

[glucoseguy]

So in other words, its advisable that forex traders avoid doing trading with forex brokers which allow Scalping as that will prevent unnecessary traffic which could lead to slow down of the site server or does Scalping has its advantages which could be applied in different situations?