Why some brokers don't allow scalping?

[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.

 

[santri]

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

 

[Cutiekc]

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.

 

[sindarin]

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.

 

[Cutiekc]

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.

 

[sindarin]

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.