Why some brokers don't allow scalping?

[barood4money]

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.

I don't agree that. Scalping is not prefixed strategy. A trader intend to do if there is an increase of pips. If there is no increase, then the trader wait for some times to increase the rate. Or if trader don't wat to wait then only he make a loss to start new trade.

 

[jackcm]

I don't agree that. Scalping is not prefixed strategy. A trader intend to do if there is an increase of pips. If there is no increase, then the trader wait for some times to increase the rate. Or if trader don't wat to wait then only he make a loss to start new trade.

Patience is very important but not to scalpers and thus being patient is the mistake in this case. Scalpers never plan for long term and they need to exit as soon as possible or they will face huge losses, soon !

I don't tell you what I think but rather what I saw. I guess you never see scalpers whose capitals and profits collapsed, don't you? Those scalpers aimed to earn some dollars at first but eventually lost hundreds of dollars because of the so-called "patience".

 

[barood4money]

Patience is very important but not to scalpers and thus being patient is the mistake in this case. Scalpers never plan for long term and they need to exit as soon as possible or they will face huge losses, soon !

I don't tell you what I think but rather what I saw. I guess you never see scalpers whose capitals and profits collapsed, don't you? Those scalpers aimed to earn some dollars at first but eventually lost hundreds of dollars because of the so-called "patience".

Well, I can't say about permanent scalper. But i also do scalping sometimes. I use high leverage and when I see that there is some increase in pips, i sell it. I have never done scalping intentionally thinking of doing scalping.

 

[Angelic]

Patience is very important but not to scalpers and thus being patient is the mistake in this case. Scalpers never plan for long term and they need to exit as soon as possible or they will face huge losses, soon !

I don't tell you what I think but rather what I saw. I guess you never see scalpers whose capitals and profits collapsed, don't you? Those scalpers aimed to earn some dollars at first but eventually lost hundreds of dollars because of the so-called "patience".

I can not understand what you are trying to say here are you saying that scalping trading method is not good that is the reason why brokers does not accept it or are you saying that it is not beneficiary.?

 

[gkintl]

Even though all brokers offer MT4 platform, the trade settlement process is totally different with each forex broker. They have their own algorithms monitoring the overall buy and sell trades and according place a counter trade with their higher lever data feed. This difference in algorithm primarily decides whether a broker would allow scalping or not. To allow scalping the algorithm of a market maker should weigh the number of buy and sell trades at extremely short durations and place a counter trade in the market. Not all brokers are equipped with such facility.

 

[Cutiekc]

Well, there are so many factors why so many brokers will say that they are not allowing the scalping trading because the hedging strategy too is not been welcomed by most brokers which are based in the United states but within them they know the real truth though most of them will say that it is because of server overloading.

 

[barood4money]

Well, that is true. No broker will invite someone who will not give profit to them but will cause problems to brokers. Because of the server overloading some elite members also face problems which cause the loss for brokers.

 

[Cutiekc]

Well, that is true. No broker will invite someone who will not give profit to them but will cause problems to brokers. Because of the server overloading some elite members also face problems which cause the loss for brokers.

They are however earning alot from the scalpers more than the long term traders because the long term traders do have the position long opened but the scalpers traders opens and close positions numerous times per day and that makes them more money.

 

[haneefzain]

in my opinion because some brokers scared from those traders who can makes some pips daily by scalping.

 

[barood4money]

They are however earning alot from the scalpers more than the long term traders because the long term traders do have the position long opened but the scalpers traders opens and close positions numerous times per day and that makes them more money.

Yes, you are right. I never thought from that point. As there is a fixed spread. Whenever a scalper do a trade, broker get the profit. And scalpers do many transactions in a day. Hence brokers can earn much more from them.

 

[seeker]

I think it is cause many people will be making many money and the broker will be lossing that is the reason why they are not accepting the scalping method, there are though some brokers that a accept the scalping but they have higher spreads.

 

[barood4money]

I think it is cause many people will be making many money and the broker will be lossing that is the reason why they are not accepting the scalping method, there are though some brokers that a accept the scalping but they have higher spreads.

How can you say that.? Remember that broker never lose money. Because they trade with spread. They get commission on every trade done by trader. It doesn't matter that whether trader is making profit or loss.

 

[barood4money]

How can you say that.? Brokers never lose money. They earn commission from every trade done by the trader. Whether trader is making profit or loss, no matter. Brokers earn from the fixed spread.

 

[seeker]

How can you say that.? Remember that broker never lose money. Because they trade with spread. They get commission on every trade done by trader. It doesn't matter that whether trader is making profit or loss.

Imagine some brokers that have lower spreads like 2pips and some scalpers traders are making 40k60 pips with little capital. Truely the brokers will be earning more commissions but at the same time they will be paying out more than they earn. It is just the good brokers that allows it.

 

[Cutiekc]

Imagine some brokers that have lower spreads like 2pips and some scalpers traders are making 40k60 pips with little capital. Truely the brokers will be earning more commissions but at the same time they will be paying out more than they earn. It is just the good brokers that allows it.

Well, regarding the profit making I don't really thonk that is the problem pr reason why brokers ain't accepting the scalping method of trading and it also has to do with the server at most because when there are enormous people floeing in at a spot it has an higher tendancy of causing the server hanging or slow down.

 

[gal40n0k85]

In my opinion, some brokers do not allow scalping because when scalping can quickly multiply the deposit. And the broker will have problems with payments...

 

[Daisy]

Scalping is too risky and many lose rather than gaining profit. Therefore, that is one reason to prevent many losses of their traders as well. If the traders lose money daily, they will quit that brokers and not open any more trades so the brokers lose money that way and lose customers. The brokers end up with a bad reputation for having way too many losing clients. Also, when the clients lose they will take their business elsewhere so that will cause a lost in clients and revenue as well for brokers. Its a measure to prevent massive loss of their clients as well.

 

[jackcm]

Scalping is too risky and many lose rather than gaining profit. Therefore, that is one reason to prevent many losses of their traders as well. If the traders lose money daily, they will quit that brokers and not open any more trades so the brokers lose money that way and lose customers. The brokers end up with a bad reputation for having way too many losing clients. Also, when the clients lose they will take their business elsewhere so that will cause a lost in clients and revenue as well for brokers. Its a measure to prevent massive loss of their clients as well.

What do you really know about these brokers to say so? Here, I'll tell you, these brokers (dealers) WANT THEIR CLIENTS TO LOSE MONEY.

You should open an account in some broker and you'll know supporter of that broker will often call you to urge you to deposit money. This is because your losing money is the main broker's income, you lose more, they earn more.

And about why brokers don't allow scalping, I've already stated before.

 

[Cutiekc]

Scalping is too risky and many lose rather than gaining profit. Therefore, that is one reason to prevent many losses of their traders as well. If the traders lose money daily, they will quit that brokers and not open any more trades so the brokers lose money that way and lose customers. The brokers end up with a bad reputation for having way too many losing clients. Also, when the clients lose they will take their business elsewhere so that will cause a lost in clients and revenue as well for brokers. Its a measure to prevent massive loss of their clients as well.

Thats not true, the scalping trading style even saves more money in the sense that a trader that is a scalper only trades when the market is volatile and you know what it means by the market being volatile, and closes his trade when the volatility of the market is fading aware. So therefore a trader with good analysis skills and less greed is likely to make more money from it.

 

[Daisy]

I've also read that because the broker has to cover their liquidity and exchange risks on the market so they do not like frequent scalping as that will cost them just as much. They earn from your scalping spread but has to pay up to their liquidity coverage and also many payout requests on scalping profit is hard for them too. They do not make as much in scalping profit.