Why some brokers don't allow scalping?

[Cutiekc]

Follow the post of s@ndr@ How to choose a Forex broker? - Page 2

There have one interesting topic that worth for the discussion: why some brokers don't allow scalping?

Scalping is a well-known trading strategy and tend to make profit for some traders. For definition what is scalping? Brokers that allow scalping check out Brokers for scalping | Forex brokers that allow scalping

But, there still have many brokers that don't allow scalping and restrict traders from using this trading method!

Why? What is your ideal?

I have come to give this a very close view and have seen to the reason why ,ost brokers are not allowing the scalping method, although most of us have said that its because of the technical problem but I now realized that its mostly because it has proven to be more profiting method.

 

[kate beckinsale]

the brokers which donot allow the scalping because they wanted to avoid from the risk as in trading the chances of profit and loses are equal for every one so that is the reason from which brokers avoid and we should also take care

 

[Angelic]

some brokers donot allow scalping as they lack experience and knowledge of trading and their practice of trading demo account is not accurate that is why they can not get real success in their life and can earn money

What are you talking about. Do you really know the different between a broker and a retailer trader. A broker is that site where we the retailer traders excutes deals, the reason why they are not accepting the scalping method is maybe cause it much cause technical challeges.

 

[barood4money]

One more point of why some brokers don't allow scalping. Some brokers keeps a spread of 2 pips. And a scalping is something which is done for the profits of 1-2 pips. So when a trader trade for 2 pips, that is not counted as profit. So scalping didn't happened and trader didn't get any profit. But because of it server may get some load. Server never effects because of one persne. But if many people do at a time, then it really effects.

 

[Angelic]

One more point of why some brokers don't allow scalping. Some brokers keeps a spread of 2 pips. And a scalping is something which is done for the profits of 1-2 pips. So when a trader trade for 2 pips, that is not counted as profit. So scalping didn't happened and trader didn't get any profit. But because of it server may get some load. Server never effects because of one persne. But if many people do at a time, then it really effects.

I understand what you are trying to say but what I can say is that scalping trading method is not done by just one trader there are many traders ib a particular broker that awaits market volatility and when it comes they moves at once. That has a higher chances of causing server overload for some weak servers.

 

[barood4money]

I understand what you are trying to say but what I can say is that scalping trading method is not done by just one trader there are many traders ib a particular broker that awaits market volatility and when it comes they moves at once. That has a higher chances of causing server overload for some weak servers.

Yes, obviously your point is right. But there are not one people who does scalping. If you get to know, you will see there are lots of people who try to do scalping to earn small profits frequently.

 

[Angelic]

Yes, obviously your point is right. But there are not one people who does scalping. If you get to know, you will see there are lots of people who try to do scalping to earn small profits frequently.

And to that you can possibly see how it can cause a server break down for a broker than has no strong servers. Imagine in a situation where over 2,000 traders in one particular broker are in anticipation of market volatility and moves in at once. But scalpering method is a good form of making money with less risk.

 

[barood4money]

And to that you can possibly see how it can cause a server break down for a broker than has no strong servers. Imagine in a situation where over 2,000 traders in one particular broker are in anticipation of market volatility and moves in at once. But scalpering method is a good form of making money with less risk.

Yes, that is obvious. When many peoples are trying to do scalping, and at other many traders takes the chances of volatile market, then definitely server gets down.

 

[glucoseguy]

Apart from server overload, there are some other reasons why some brokers may not allow scalping. Some feel that scalping allows the traders to make much profits by taking less risks. All the same, other reasons why some brokers dont allow scalping is best known to them.

 

[barood4money]

Actually to me this two reason is known. But i think there must be some other reasons also. But still, I love scalping sometimes. I do it sometimes for experimenting.

 

[seeker]

I think scalping trading method is when someone who is a trader waits for the market to get volatile before making an order. That means that most traders in a particular broker will be waiting and when volatility comes they will make order. I think it should cause slow server response.

 

[tray]

This is just a simple question which need simple answer as well so the main and the major reason is just that they dont permit gambling type of trading here

 

[barood4money]

This is just a simple question which need simple answer as well so the main and the major reason is just that they dont permit gambling type of trading here

You cannot say that scalping is gambling. Scalping is just a trading with taking low risk. The reason you are giving is not accurate. There are many brokers who allows scalping.

 

[jackcm]

You cannot say that scalping is gambling. Scalping is just a trading with taking low risk. The reason you are giving is not accurate. There are many brokers who allows scalping.

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.

 

[Cutiekc]

Apart from server overload, there are some other reasons why some brokers may not allow scalping. Some feel that scalping allows the traders to make much profits by taking less risks. All the same, other reasons why some brokers dont allow scalping is best known to them.

wellm I can't really tell if that is among the reason why most brokers does not allow scalping because even when the scalpers are going to make money the brokers too earns there own commission in the sense that the scalpers are known for opening and closing of orders.

 

[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.