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Why some brokers don't allow scalping?

scalping???
yeah, the best and quick strategy for making money in forex.
All brokers afraid with this strategy..
 
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.

Well, to me that can't be enough for a broker not t accept the scalping method of trading just as some brokers as well does not accept the fund hedging strategies. Well, the most common reason should be that of mismanagement constitution or perhaps causing them more cash out flow.
 
scalping???
yeah, the best and quick strategy for making money in forex.
All brokers afraid with this strategy..

quick but giving too much load and also it will be good if there are good movement of the market, for market maker maybe they won't accept scalping too much but for ECN or STP broker i think they will allow it as long as your scalping position don't make their server overload.
 
quick but giving too much load and also it will be good if there are good movement of the market, for market maker maybe they won't accept scalping too much but for ECN or STP broker i think they will allow it as long as your scalping position don't make their server overload.

Any broker that will accept the scalping method should be ready for the overloading of their severs perhaps they should have more strong additional servers. Yes scalping needs load of work in the sense that you would be glued to the chart in order to be notified on market volatility.
 
Any broker that will accept the scalping method should be ready for the overloading of their severs perhaps they should have more strong additional servers. Yes scalping needs load of work in the sense that you would be glued to the chart in order to be notified on market volatility.
especially their own MT4 servers, can you imagine there are a lot of request in 15 seconds without stop, it will only make the server falling down and don't want to process, but for the broker that allow scalp i am sure they have super great server that even can handle a lot of scalping.
 
Scalping only makes an individual trader gain profit, because of small lots involving and more volumes happening
This won't help broker in any way as he may lose big lots which gives more margin of profits. So, scalping is said to be perilous. But being an individual, anyone can do scalping with the specific broker who are allowing.
 
Scalping only makes an individual trader gain profit, because of small lots involving and more volumes happening
This won't help broker in any way as he may lose big lots which gives more margin of profits. So, scalping is said to be perilous. But being an individual, anyone can do scalping with the specific broker who are allowing.

Well, some traders however makes use of much lotsize. Trading on the scalping style does not neccessary means that the trader will invariably make use of small capital or small lotsize. Thats been said. So therefore the more sanctuoned reason why brokers don't allow scalping is because of the bugs it might possibly cause.
 
especially their own MT4 servers, can you imagine there are a lot of request in 15 seconds without stop, it will only make the server falling down and don't want to process, but for the broker that allow scalp i am sure they have super great server that even can handle a lot of scalping.

What i cant imagine is that great companies like forex companies didnt get a clue yet for that case. There must be a foundation in technology , a good metatrader that doesnt get affected with that problem. And i am sure there is . But, in my opinion, brokers who dont want lose money stop dealing with scalping rather than server overloading reasons.
 
When you come to technology there are no, greatness of proffession. hence you have exceed the limit it will react. Some enormous company to do have technical problems let alone a common broker. At times on placing order it takes time for it to be placed which I sensed should be caused by over activity.
 
especially their own MT4 servers, can you imagine there are a lot of request in 15 seconds without stop, it will only make the server falling down and don't want to process, but for the broker that allow scalp i am sure they have super great server that even can handle a lot of scalping.
I used to think like you. Well, why don't you think those big company have millions and even billions dollar and they are not able to spend some hundreds dollar buy good hosting?

So, there is the only one reason that can explain this, they try their best to prevent you from easily earning.
 
I used to think like you. Well, why don't you think those big company have millions and even billions dollar and they are not able to spend some hundreds dollar buy good hosting?

So, there is the only one reason that can explain this, they try their best to prevent you from easily earning.



You might be right but the have to make it subtle due to if they makes it known to their investors then they will be lossing some investors. I do think that, in concern with forex trading that they are just avoiding traders to make more money with the scalping strategy.
 
I used to think like you. Well, why don't you think those big company have millions and even billions dollar and they are not able to spend some hundreds dollar buy good hosting?

So, there is the only one reason that can explain this, they try their best to prevent you from easily earning.
I don't want to invest my money in broker that does not allow me to do scalping, i know i am quite picky but i want all kind of technique and strategies available for me in trading rather than choose a broker that does not allow me to do scalp, because i think they are market maker and not only market maker they also the bad one and want to play "naughty" with traders.
 
I don't want to invest my money in broker that does not allow me to do scalping, i know i am quite picky but i want all kind of technique and strategies available for me in trading rather than choose a broker that does not allow me to do scalp, because i think they are market maker and not only market maker they also the bad one and want to play "naughty" with traders.
That's good. There is no need to waste our time on those bad brokers while there are many reliable brokers such as RoboForex, FXDD and FBS that offer low spreads and allowing scalping.
 
I wonder why some brokers don't allow scalping too. Is it because they do not want their traders to trade in short term or they think that there are chances of losing more when they scalp which could give them a bad reputation.
 
Most brokers consider scalping as a simple process of taking advantage in quote delays. The data feed normally travels through the broker's server before it reaches the client terminal. By the time it reaches the client's MT4 platform, the price would have changed in a fast moving environment. Thus, allowing a trade to be completed at that price is nothing but trading with past data. Unless and otherwise a broker has facility or algorithm to balance such a situation, scalping will not be allowed. However, all ECN brokers allow scalping where our order gets executed directly without any kind of broker's involvement.
 
Scalping is dangerous but once you matter it, you can make quite profit. Your profit = Broker Loss. They want you hold the position still you loss or give they enough time to make some change on your platform. At least it may the case for few market maker brokers!

is it any intraday or positional strategies i mean to say that in which case we can apply this method
 
I wonder why some brokers don't allow scalping too. Is it because they do not want their traders to trade in short term or they think that there are chances of losing more when they scalp which could give them a bad reputation.

Yes absoloutely most of the brokers want to hold the traders position for more money or at first they provide some profit after they just hold position intensionally and make some losses and want coverage money ..
 
I wonder why some brokers don't allow scalping too. Is it because they do not want their traders to trade in short term or they think that there are chances of losing more when they scalp which could give them a bad reputation.

No. It is not the question of choice but depends on the algorithm they use to open counter orders with a higher tier broker. Usually, in a fast moving market, the data which the client receives in his terminal would lag a bit. To avoid a client from taking advantage of the same, most brokers do not allow scalping. The only alternative for a broker is to use an algorithm that manages risk in an extremely efficient manner. For every few minutes the algorithm should assess the overall situation and hedge against a higher tier broker, if necessary. This is not possible for all brokers and so scalping is not allowed.
 
That's good. There is no need to waste our time on those bad brokers while there are many reliable brokers such as RoboForex, FXDD and FBS that offer low spreads and allowing scalping.
yeah, allowing all kind of technique i think is a requirement of one good broker, but if we do some bad technique also it won't make that broker in "healthy" condition, and it seems that broker whose don't not allow us scalp in their platform really have problem and usually they said because of the server or because that technique is profitable for trader :D
 
yeah, allowing all kind of technique i think is a requirement of one good broker, but if we do some bad technique also it won't make that broker in "healthy" condition, and it seems that broker whose don't not allow us scalp in their platform really have problem and usually they said because of the server or because that technique is profitable for trader :D

So you say scalping is profitable. It might be but many do ended up with losses though. Even though there are numerous day traders that scalp. There are also many intra-day and swing traders. Those are profitable as well but the brokers don't stop them. There are many reasons that they don't allow scalping. One of them is the break even coverage for them and also way too many payment requests can really interrupt them as well. Its a huge inconvenient and cash outflow sort of thing for them. When many scalp, they must pay liquidity coverage as well so that is a break even when they make spread from your scalp.
 
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