Why do some brokers prohibit scalping? (conclusion)

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Scalping is popular trading style. Traders love to scalp. Nevertheless, some brokers prohibit scalping or advertise " Scalping is allowed!" ( I have seen many banners on the forums). So what is the idea? Traders are making money with the scalping. Brokers don't like that. Where is the logic?! I came to the conclusion that scalping is the most profitable way of trading or there are more profitable scalper traders than others.

Why not make new rules like couldn't hold the position longer than an hour, day, week or 6 hours and 28 minutes

Regards,

Josef

 

I don't really about others, but the broker am with profiforex, scalping is welcome on 5 digit quotations.

 

Brokers that do not allow scalping are scared of traders making money. Such brokers are even ready to do some tricks to prevent traders who make lots of profit. I would stay away from brokers that dont allow it. My broker profiforex allows scalping and so do a few others.

 
okon:
Brokers that do not allow scalping are scared of traders making money. Such brokers are even ready to do some tricks to prevent traders who make lots of profit. I would stay away from brokers that dont allow it. My broker profiforex allows scalping and so do a few others.

You are right I guess. Some brokers do everything to repel traders who are making profit. These brokers don't like scalpers, because they make profit alot. Even if you are not a scalper, I think you should consider brokers that allow it because they won't care if you are making profit or not.

 
fortune:
You are right I guess. Some brokers do everything to repel traders who are making profit. These brokers don't like scalpers, because they make profit alot. Even if you are not a scalper, I think you should consider brokers that allow it because they won't care if you are making profit or not.

Of course, we can't stop loosing in forex, we can't eliminate the trading risk in forex because risk is one of part from forex business. We should be able to minimize it if we wanna get maximal result when trading.

 

I agree with you. yu have given very good information. Thank you for sharing this information.

 

they fear that there profit would get dissolved and to get that one they go for scalping

 
okon:
Brokers that do not allow scalping are scared of traders making money. Such brokers are even ready to do some tricks to prevent traders who make lots of profit. I would stay away from brokers that dont allow it. My broker profiforex allows scalping and so do a few others.

That's why if we wanna do scalping, we should choose right broker which allows traders to do scalping and provide the best trading conditions, such us maximal leverage. i get leverage up to 1:1000 from InstaForex.

 

You are very correct. Scalping is one of the most profitable trading strategies. If a broker don't like the idea, it prohibits it. However, not all brokers restrict trades in less than a minute and these brokers don't care how much you make on their platform, as long as you pay your trading charges. The broker I use, (profiforex) allows scalping and they charge only 0.3pips for trading.

 
jessicason:
You are very correct. Scalping is one of the most profitable trading strategies. If a broker don't like the idea, it prohibits it. However, not all brokers restrict trades in less than a minute and these brokers don't care how much you make on their platform, as long as you pay your trading charges. The broker I use, (profiforex) allows scalping and they charge only 0.3pips for trading.

I guess some don't want to take any chances, but being flexible as a broker helps a lot, it draws traders in. Am with this same broker and to be precise, scalping is welcome on 5 digit quotations.

 

Wow... Quite some answers about scalping.

Why do some brokers hate scalpers?

Because they fear the arbitrageurs might come in and take advantage of the price discrepancies. The same goes for news trading as well. Its called front running of orders... Traders with level 2 ECN access can see how the orders are stacked ahead of some important news releases and simply go with these big orders and ride the surf.

Banks don't like it.. and so do the brokers.

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