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


yogeshwartyagi

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I think not all broker restricted scalping, still many other broker that allow scalping, and for beginner maybe they like using scalping, because they think they can making money quickly, but not all trader like scalping because some trader that having high temper, they can emotion if often facing with successive loses

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  • 1 month later...

Uncle gober actually there is nothing wrong with scalping and people don't have to worry about making money with it, it is legal strategy but some brokers don't like it because that is a rapid profit strategy and usually a broker who rejected scalping and doesn't allow their clients to use are scammers or bucketshop brokers.

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well  basically  it's  quite  hard  to  make  very  good  cash  amount  from  this  method  as you  enter  very  short  time  period  in  this  particular  method  and  you  move  from  the  trade  so  quick  with  few  amounts  of  pips 

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  • 3 months later...

I am sorry but they are not brokers. If you talk about any genuine broker then there can’t be any restrictions at all. A genuine broker will never restrict us from any technique and in fairness; I don’t think they have the RIGHT to do it. I operate under OctaFX where I am able to do whatever I want and through whatever technique I want. I can do scalping, hedging, news trading or even EA with ultra-ease, comfort and freedom.

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True annemorris, they are pseudo broker or the broker which don't have good intention to traders. Why we should limit scalping? That is legal way to trade and nothing wrong with it, and if one broker cannot afford more servers i think that broker is not ready to be a broker, since becoming a forex broker we must expect this kind of trading.

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That broker either pseudo broker or small broker which doesn't have much funds to start the business as broker. When somebody want to start the business they must know that it takes lots of money to be a broker, from support and to the availability of server must be reconsidered first.

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  • 2 weeks later...

That broker either pseudo broker or small broker which doesn't have much funds to start the business as broker. When somebody want to start the business they must know that it takes lots of money to be a broker, from support and to the availability of server must be reconsidered first.

Maybe they don't want to take this business is serious, and this is why i said that regulation is important, a strict and strong regulator will ask for fees to be regulated for one year. If a broker into the list it is one step from becoming a serious broker. The scalping problem mostly comes from dealing desk broker.

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I don't know about that, but some brokers don't allow because of one certain reason, mostly dealing desk broker have this kind of strict rules and trader who don't follow that rules won't be able to survive, also in dealing desk if you make bigger profit or more profit per trading you must be cautious.

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  • 2 weeks later...

I am sorry but only foolish people consider such firms as Brokers, they are just masked scammers. If you talk about real broker then I don’t think they restrict us to any technique which is to do with it not been in their hands! We must understand we have the RIGHT to do whatever we want with our investment, so I will never go with broker that doesn’t allow any technique. I am currently joined with OctaFX broker who allow every technique from scalping to hedging to news trading which is why I love working with them.

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I am sorry but only foolish people consider such firms as Brokers, they are just masked scammers. If you talk about real broker then I don’t think they restrict us to any technique which is to do with it not been in their hands! We must understand we have the RIGHT to do whatever we want with our investment, so I will never go with broker that doesn’t allow any technique. I am currently joined with OctaFX broker who allow every technique from scalping to hedging to news trading which is why I love working with them.

Surely a scam to the core i think and that is understandable for some newbies want to join that kind of broker because usually, that broker offers a nice offer such as no deposit bonus for example. Since scalping requires faster order and execution that is why some brokers think twice before included as "legal" technique so they don't burden themselves.

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I am sorry but only foolish people consider such firms as Brokers, they are just masked scammers. If you talk about real broker then I don’t think they restrict us to any technique which is to do with it not been in their hands! We must understand we have the RIGHT to do whatever we want with our investment, so I will never go with broker that doesn’t allow any technique. I am currently joined with OctaFX broker who allow every technique from scalping to hedging to news trading which is why I love working with them.

You are right that kind of broker should be reported but they have their own reason from the reasonable one to the unreasonable. What makes it worse that some broker does this silently like against you when you use scalping so you will lose mostly when using that strategy. If that is non-dealing desk I am sure they will allow it because more spread to pay LOL

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But it doesn't make any sense that there is a broker who wants to restrict someone to do scalping, in fact that is good if the broker is non-dealing desk. Scalpers usually open more than one transactions and closed it fast. Imagine they do 10 transactions per day, how much spread fee that broker get, it is just from one trader how about thousands or more? Well, i couldn't imagine it but that would be enormous.

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It doesn't make a sense for an honest broker but for an untrustworthy broker? I doubt they want to play clean with the traders. Scalping is a legal technique that all people can use, it is not a bad thing and also with more spreads to pay the broker will happy, if that broker is dealing desk they won't bother with the legality of scalping, as long as you keep making profit you could change to be a threat.

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  • 2 weeks later...

It doesn't make a sense for an honest broker but for an untrustworthy broker? I doubt they want to play clean with the traders. Scalping is a legal technique that all people can use, it is not a bad thing and also with more spreads to pay the broker will happy, if that broker is dealing desk they won't bother with the legality of scalping, as long as you keep making profit you could change to be a threat.

Sure they won't play with them since i think that is one of the hella risky movement for them. But you will find some reasons why a broker doesn't want to accept scalping or treat it with so many rules which must be followed. You know when you make small but in high-frequency profit, they might try to investigate you.

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Yeah that is true but there are some brokers which is typically bad broker or bucketshop broker and limited the trader chance to get more money from scalping, they also have some rules where you need to wait for several minutes before you can close the position while scalping. In fact, doesn't have that kind of limitation.

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That kind of bad broker aka bucket-shop broker is the one we should avoid at all cost, to find out if your broker is like that there is no other way but to use real account to trade. Scalping is fast execution, it gives more load to the server with fast execution and maybe because scalpers get bigger profit in relatively shorter period which makes it unprofitable for bucket-shop broker.

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  • 2 weeks later...

A bad broker which everyone should avoid, first of all, if your broker is limiting your scalping activity then send to their support a PM asking for the reason. Usually, they have their own reason but mostly are nonsense. The most acceptable one is the server problem and so on which is not make a sense for big broker with thousand clients. 99% bucket shop broker with dealing desk version capped scalping.

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A bad broker which everyone should avoid, first of all, if your broker is limiting your scalping activity then send to their support a PM asking for the reason. Usually, they have their own reason but mostly are nonsense. The most acceptable one is the server problem and so on which is not make a sense for big broker with thousand clients. 99% bucket shop broker with dealing desk version capped scalping.

That is understandable for that kind of broker, bucket shop broker just wants their client to lose their money in either long term or even in short term. As for scalping, it is not a good strategy for bucket shop especially considering your high throughput performance and your account will be under their watch. 

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