Why some brokers don't allow scalping?

[xCFD]

Scalping isnt something which is very common unless you are trusting some newbie with the sensational claims. Bandwith matters and for that very reason we think a lot before investing in the right direction.

 

[glucoseguy]

In my point of view the reason for that is this method makes broker lose a lot of money. Just think about it... Every pair has a top price and a top fall... So scalping make you excut each order at a top price but you have to wait months for the rise/fall. And scalping has no risky margin.

Since scalping doesn't have any risk margin, it means that it may be very risky for a forex trader to invest with a broker that allows it. Apart from traffic, what other reasons are there which makes some forex broker allow it? I ask because it seems the disadvantages of scalping are higher than the advantages.

 

[Cutiekc]

I do not agree that brokers loses money as scalping style are been practised. The only main reason why some brokers does not accept the scalping method is because they are often encountering server over loading and it will generally affects the whole entire traders online. Also just as some brokers does not welcome hedging strategy because its is morre beneficiary to traders so as some broker does not welcome scalpers.

 

[Cutiekc]

[MENTION=75]Cutiekc[/MENTION] , ok i will go with you , but what i cant understand is how scalping will affect the whole metatrader systems. What difference does it take? There are millions orders per day even per an hour , so why this style will be the only disease , i doubt it. By the way what do you mean by hedging?

There are million orders depending on the popularity of the broker but then nothing happens because some of the orders has been in existence for months, or even year. But on the scalping style traded floods in when the market gets volatile. So when the move in with force there are chances for some broker with no powerful servers will experience slow down.

 

[Angelic]

According to my exprience and knowledge scalpig trading model is the entering into the market when there seems to be volatile and closing or existing when he market volatility starts fading. This trading model requires one who does it to aim for little profits but trades as much as possible depend on how many volatile session occured.

 

[sindarin]

In my point of view the reason for that is this method makes broker lose a lot of money. Just think about it... Every pair has a top price and a top fall... So scalping make you excut each order at a top price but you have to wait months for the rise/fall. And scalping has no risky margin.

Lose their money? nope, Broker won't lose here but what they will get here is overloading, do you imagine this scalping just like DDOS, especially when market movement is very volatile, and there are a lot of traders that scalping here trying to get profit as fast as they can, it will be a huge disaster for broker.

 

[Cutiekc]

Lose their money? nope, Broker won't lose here but what they will get here is overloading, do you imagine this scalping just like DDOS, especially when market movement is very volatile, and there are a lot of traders that scalping here trying to get profit as fast as they can, it will be a huge disaster for broker.

yeah thats right, but then, not all broker will exprience the over loading issues, some broker having a very strong server that can get hold of millions of traders and other connection will not have problem while scalper traders do their thing. But some broker to me thinks that scalpers risk little and earn more. Just like cheating.

 

[glucoseguy]

[MENTION=75]Cutiekc[/MENTION] that's a good point on why some brokers don't alot scalping; actually reasoning that the scalpers are cheating them by risking little and earning more. Until now, I was thinking that it was only as a result of server overload that some brokers don't allow scalping.

 

[Pip]

It`s because some brokers are market makers - meaning your orders won`t go to the market and if you can`t scalp or use EA-s then probability of winning on forex market is minimized. Also broker is doing everything possible to make you lose. I hope it helps

 

[Angelic]

Well, what I am about typing might be hard to believe, I have conduct so many research on brokers and how they earn then I learnt that some of the brokers are not accepting the scalping and the strategy called hegding Due to it will be making more money to the trader using it and making high flowing out of money from them.

 

[glucoseguy]

[MENTION=53902]Angelic[/MENTION] if your research is correct, then it could be said that its better to deal with brokers that allow scalping but even though I'm yet to embark on any forex trade, i feel that only few brokers may be available which allow scalping due to the above reason.

 

[sindarin]

Well, what I am about typing might be hard to believe, I have conduct so many research on brokers and how they earn then I learnt that some of the brokers are not accepting the scalping and the strategy called hegding Due to it will be making more money to the trader using it and making high flowing out of money from them.

that broker is not a good broker if they don't allow you do something like that, some big broker which have good reputation and have bigger deposit allow you to use many kind of technique you said because they act like real broker and the money you trade here is your money not their own money , and that broker you said trade with their own money or even create their own market.

 

[Angelic]

that broker is not a good broker if they don't allow you do something like that, some big broker which have good reputation and have bigger deposit allow you to use many kind of technique you said because they act like real broker and the money you trade here is your money not their own money , and that broker you said trade with their own money or even create their own market.

Mostly such brokers are brokers that are from the USA. Well, here are list of brokers that allows hegding on the same account, I think they are not bad, maybe they are putting in control the cash flow.
Hedging Forex Brokers | Forex Brokers allow Hedging -

 

[drewpleasant]

I think those brokers who don't allow scalping they are correct on their position.

 

[barood4money]

In India most of the brokers accept scalping. Because they take 0.2% commission on every trade which happens. So any traders buy or sell, they get commission. And if there is more trade, then there will be more commission. Whether traders gets profit or loss, brokers will always get commission.

 

[Cutiekc]

In India most of the brokers accept scalping. Because they take 0.2% commission on every trade which happens. So any traders buy or sell, they get commission. And if there is more trade, then there will be more commission. Whether traders gets profit or loss, brokers will always get commission.

You know, initially brokers charges fee on any positions. Are you trying to day that india brokers specifically charges more fee on scalpers trader? Well, that will be more better because due to some scalpers trading most brokers with low quality servers tends to have technical errors.

 

[barood4money]

[MENTION=75]Cutiekc[/MENTION] that's a good point on why some brokers don't alot scalping; actually reasoning that the scalpers are cheating them by risking little and earning more. Until now, I was thinking that it was only as a result of server overload that some brokers don't allow scalping.

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.

 

[Cutiekc]

Well, most people are likely to say that its because that traders will be making more money than required with the scalping trading style. But then, thats not true because to me the mose reason why brokers wouldnt allow scalping are mostly because, when the market gets volatile their are said to be enormous inflow of clients which might be trouble to the server.

 

[barood4money]

Well, most people are likely to say that its because that traders will be making more money than required with the scalping trading style. But then, thats not true because to me the mose reason why brokers wouldnt allow scalping are mostly because, when the market gets volatile their are said to be enormous inflow of clients which might be trouble to the server.

Actually that is a point which applies. The main thing is what I said before. Scalping is an easy way to earn small profits with low risk. And thats why many people will try to do scalping and that load will effect the server. And that effect other trading also. Thats why most of the brokers don't allow scalping.

 

[kate beckinsale]

due to lack of the knowldge and experience they do the loss and as a result they cannot get success in the real life so to start any business we should first understand it and then we do the work