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Scalping pay more spread to broker still some broker dont allow it, why?


yogeshwartyagi

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Anyone should do that, searching advantage of broker will be so much helpful for them but not all provide, there are some that were good but now turning and seems like having policy that against their trader. As for scalping, it is all about server condition and if one broker does not allow scalping it means that broker having some secrets or problems

Well it seems your posts is a bit confusing i know there are some brokers that used to be like that but it is not main point. Scalping is consdiered as resource hunger and has biggest profit chance which make them banned by some brokers, especially for dealing desk broker.

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I used to wonder about this and why it is that certain brokers simply do not like the issue about scalping. It is just important to know that whatever that has a good process also comes with challenges. This is seen from the fact that scalping can also be demanding because a broker that accepts that will have to deal with the server too.

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Server could be the issue here, since we know that more than one order will drive the server to the "new" height which may also affected the other traders especially for the one who did swing, server maybe shut down and the bad part that the price feed maybe affected.

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  • 6 months later...

I wonder if scalpers will pay a lot of spreads in fact they keep trading with lower spread as much as they can, this is something good i think. Not to mention that scalpers only open not so much positions, but still it is depend on how frequent a scalper trade if the more they trade it could contribute to largest earning for a broker whose have scalpers.

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That maybe right myregister but you need to know that scalpers also open a lot of positions some maybe 5 positions per trading? or 10 positions or even more. So if you calculate it the result would be big enough for you and that is good for broker because more spreads =  more earn unless you trade in dealing desk broker.

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  • 3 weeks later...

But the cost of opening a lot of positions for small scale brokers are not economical, and if there is a broker who don't allow it or restrict it then that broker should be questioned, are they reputable and reliable broker? Or they are just another typical broker which doesn't have good financial support.

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Maybe that broker isn't a good broker. Scalping is just like other strategy, but the best possibility for this cases is actually comes from the load of their server and connected to the previous issue, if a broker is a good and reputable brokers, having big or massive order isn't a big deal.

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  • 2 weeks later...

Maybe that broker isn't a good broker. Scalping is just like other strategy, but the best possibility for this cases is actually comes from the load of their server and connected to the previous issue, if a broker is a good and reputable brokers, having big or massive order isn't a big deal.

Not maybe but that broker isn't a good broker. Scalping just like you said is another strategy, it is a strategy that depend on fast execution and you must repeat it more than one. I don't now if scalping pay more spread, but so far there is no great reason to limit the way people to do scalp.

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  • 1 month later...

Yes, that is right many scalpers do that and i think that is not a really good idea for broker to be like that. All traders want a reliable broker isn't it? And scalping in fact is not an ilegal activity that is just legal as when you do swing, it is not hacking the price feed and pretty normal from my POV.

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  • 3 weeks later...

Yes, that is right many scalpers do that and i think that is not a really good idea for broker to be like that. All traders want a reliable broker isn't it? And scalping in fact is not an ilegal activity that is just legal as when you do swing, it is not hacking the price feed and pretty normal from my POV.

 

Some brokers are not allowing scalpers because they think it will be parasites for them (And I have no idea why they're saying it)

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Yes, that is right many scalpers do that and i think that is not a really good idea for broker to be like that. All traders want a reliable broker isn't it? And scalping in fact is not an ilegal activity that is just legal as when you do swing, it is not hacking the price feed and pretty normal from my POV.

It is not illegal but if your broker is dealing desk broker you surely will have much problem with scalping. Not to say dealing desk earn from your loss so your loss means their earning. Your POV is pretty similiar to the others, brokers mainly doesn't allow much of scalping because of infrastructure problem or because that scalping is more profitable for traders LOL

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Of course which part of scalping which is illegal, i want to know. Also i never heard anyone said scalping is an illegal action to do beside hacking the price feed. Overall, that broker just don't have much money to sustain their own server just like what i'm suspected, and this is the worst thing for traders who want a reliable broker. A big pain i can say.

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  • 1 month later...

Some people said scalping is illegal to do because it provide faster return on profit in relatively shorter time which some people don't like but actully the legality of scalping is true, also talking about flooding the server it might be true but not all scalpers can do that. If you trde with robot maybe yes but if you flooding the server it means you are DDOsing not trade.

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  • 2 weeks later...

Yes it is all about executing the position faster and it needs broker who can meet such a high demand, but note this thing that broker is not illegal activity that is a normal and aggressive type of technique. Brokers who don't allow it neither have power to meet such demands or that broker is bucketshop broker who love to gain profit from member's loss.

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This should not be our concern, it is not all the broker that accept scalping also it is not all the broker which charge the same amount of spread and this is excellent.

Any broker need to be well determine to trade beforex making further step to trade and win

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This should not be our concern, it is not all the broker that accept scalping also it is not all the broker which charge the same amount of spread and this is excellent.

Any broker need to be well determine to trade beforex making further step to trade and win

Broker is the middle-man and they just facilitate their client's trading in this case maybe me and you. Scalping pays because they open more positions which means more spreads for the broker, so far there is no unified reason behind this blocking but mostly because of server flooding.

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I don't know  what reason why broker don't allow scalping, maybe for dealing desk broker don't allow scalping because as trader might they can often get winning trades, and as broker will implemented rules with making more benefit fro their company and choose broker also important for scalping because not all broker allow scalping

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@radex78, I never think that this is true why such comments getting wining trade means that you need good skills and knowledge scalping could be more hazardous to the newbie traders.

Yes the newbie traders do take it as the most important trade which they can placed but I think that long term trading is more beneficial

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  • 1 month later...

Scalping in fact requires more order and more bytes send by your broker which means that they might need more bucks to handle that stream. Well, that is one of the thought of some people who are into forex. But i think as long as your broker is legit and big enough also really serious into this business, scalping is actually not  a big deal for them.

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  • 2 weeks later...

Who know about that also as far as i know i heard that it is for the sake to offset the risk of that broker and because of the cost  or there is a regulation which don't allow them to accept scalping or accept scalping but with certain conditions. There is no reason broker not allow scalping trading method because if the main broker profit is spread, they will get many profit from scalping activity.

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Market makers and dealing desk is different, dealing desk is broker who act as market maker, the real market maker is liquidity provider such as banks like JPMorgan or DeustcheBank which open their pool to the world including that broker. Scalping is not accepted because of various reason behind of it but the most suspicious part is that broker is a dealing desk broker.

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  • 4 months later...

Where you heard anything like that? I believe spread is equal for scalping or long term trading unless for some strange occasions. The only thing is that scalping is done often, so that way you can say it. However, I don’t think any trustworthy broker is going to stop us from any method. I do various style of trading under FreshForex and its all okay with incredible features including Zero Spread, 101% Trade Able Deposit Bonus and much more.

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