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Why some brokers don't allow scalping?

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 is some fine explanation. I get more attracted to a broker that will allow me scalp than the opposite. I like brokers that offer me more trading options so I can operate my account to any that suites me at that moment.
 
Its because in forex market broker sites has some limits on how many volume its can transact per seconds and when theirs scalping theirs traffic and that means they can end up losing some speed simply because of too much activity.
 
Its more on traffic. If you notice if the volume of trade happen theirs always a slow down and sometimes you can see server busy or connection error when you trade. Its because the volume of activity is too much for a server to handle. And that's why they don't allow scalping or trade that is less than two minutes.

Realy many many thanks to you for share this comments or post am also a new trader and am just searching the solution for this problem and now after read your post solved the problem now am understood that why the signals some time go down no bit are taken in system and also systems go slow.

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.

Yes at the time of trading most of the traders are not allowed the scalping but its true that in that time anyone can earn money by scalping but at the moment systems are not working properly just go down in slow mode and for the same brokers just not allowed it.
 
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ProTrader

Forex Supporter
If you actually check FAQ section of brokers you may see this:

....welcomes all EAs. However, any EA that results in transaction flooding of our systems will be blocked to prevent service disruption to our clients.

It may not true for all but it maybe one of the result.
 
Well, I believe that scalping is very much beneficial at some point of time. Ultimately we all are trading to earn more money as we can. And every person has his own strategies and planning.
 
i think scalpers operated in short time frame. thats why the risk factors increases. may be this is the cause some traders do not like scalping.
 
I don't understand what is the connection of EA in scalping but as far as I know if you are using mt4 platform you can use EA and if you can use EA it does not mean you can trade using scalping strategy also.
 
i think scalpers operated in short time frame. thats why the risk factors increases. may be this is the cause some traders do not like scalping.
Well, if the traders are given chance for scalping then they will definitely utilize the full chance. Because it is the best way to earn money within few seconds. That's why many brokers don't allow scalping.
 
Also you need to know that scalping actually is not good especially for the server, because it is same like flooding and when you also using EA that work like scalping it will make the server does not have any option, but usually big brokers allow you as they only work as STP or DMA broker and even ECN really allow you.
 
i think it is better for the newbie to not trade with scalping i see this is a good point for the newbies and any traders because scalping is perfect way to make good profits with very short time but it can make you loss all your account with like one hour
 
I don't understand what is the connection of EA in scalping but as far as I know if you are using mt4 platform you can use EA and if you can use EA it does not mean you can trade using scalping strategy also.
There is, i think you must be know about an EA which is using scalping strategy, and for scalping i think each broker have different set of rules about it, but for most of dealing desk broker they will limit this thing.
 
I have also thought about this and came to the conclusion that most likely, the regulatory body might have something to do with this. Who knows, there might be strict laws from some regulators for brokers who allow scalping and that could make the brokers to decline from it and offer other format of trading.
 
I don't the exact reason behind this. But maybe brokers don't allow scalping to avoid server overload. As scalping increases the traffic and this can affect the server. And if the server gets down then many traders will suffer.
 
Yes, i think so. So if we want to do scalping, we should choose broker which allow their client to do scalping. Choose broker which has good trading condition to do scalping,especially for spread, leverage and execution.
I get what i need for trading in TenkoFx.
It is all about the server, because mostly of brokers said that they don't allow scalping because of flooding since this kind of transaction is a fast transaction. But if your brokers are fine then you still can use scalping, especially in a broker that regulated by strict regulator.
 
I think its not right that brokers dont allowed scalping because the broker should be more happy in scalping as he gets his due share through spread on every trade.. So why he would stop some one from scalping.. Every time you open a trade you have to give spread on that and that spread goes to the broker..
 
Well, it is obvious that there are brokers who don't. And what the trader should do from outset is to find out the ones that don't and work with the one that does. Since it floods the server and needs a much faster execution time, it is not all brokers that can afford this, thus, the reason they avoid it.
 
I think the broker not allowe for the scalping because the scalping need high ability to confirm
the quick order so some broker dont have this ability which mean the broker will not allow it
 
Its not that they don't allow it. Its just that they regulate it. Most forex broker sites has 2 to 5 minutes holding period. And if you are scalping its really not a big deal. On average I do hold my position for 30 minutes. Now if the waiting period is just 2 to 5 minutes then I'm not affected. Beside how much will you earn if you going to close your position in less than 5 minutes?
 
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