Why some brokers don't allow scalping?

[Ruchibhar]

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.

 

[budado]

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.

 

[barood4money]

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.

 

[sindarin]

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.

 

[willy]

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

 

[sindarin]

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.

 

[Decub]

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.

 

[barood4money]

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.

 

[sindarin]

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.

 

[chicken]

because some broker is a dealingdesk . you can't supply fast order. .it is a reason why they do not accept it

 

[ali222]

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..

 

[Decub]

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.

 

[Babar222]

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

 

[budado]

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?

 

[sininfinity]

Sometimes the other side of the scalper can not hedge against the scalping strategy due to very short time. So it is one of the reasons they don't allow sclaping.

 

[Dmitriy Ushakov]

Advantages of scalping: 1. For that you need the lowest deposit.2. Usually, scalping is able to provide a fairly high percent of income both for a day and a month. 3. Scalping - the fastest money in the market. Disadvantages of scalping: 1. Continuous physical and psychological burden for a trader.2. High requirements to quality of the Internt connection and the broker servers.

 

[panzer]

I don't scalp but I think I should contact my broker to clarify about this, but I think it's possible to scalp. How's about arbitrage strategies?

 

[Nezami]

I have seen according to my trading experience that in spite of a profitable trading policy scalping cannot use in a regulated trading broker. so, we the traders who are particularly scalpers have to choose the broker which is regulated and does not restrict any kinds of trading techniques with scalping and hedging.

 

[Fx Master]

Each the trader has a choice of the broker to be used, should the trader can choose a broker that is more appropriate to the concept of trading that will be used, if you love scalping should choose the broker which allows trading concept such as this.

 

[Glenn Phillips]

Unfortunately, it’s true; even there have so many brokers so are limited for retail Forex traders! By the way, if you are a scalper please don’t be scared! Because, till now you’ll get so many scalping friendly Forex brokers! Maybe it’s their business model; who are not allowing scalping trading; whatever I like to use a friendly trading platform!