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


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96 replies to this topic

#1
yogesh

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Traders that use scalping because open and close big no. of trades daily they pay big commission in form of spread to brokers, still some brokers dont allow scalping. What do you think the reason may be behind their doing so?
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#2
senger

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Scalping is the best way to get money in Forex, but certainly we have an obstacle stands higher spreads.
So we have to search for small brokerage
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#3
yogesh

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Scalping is the best way to get money in Forex, but certainly we have an obstacle stands higher spreads.
So we have to search for small brokerage


I agree with you @senger, in scalping we open and close a trade for only few pips and if we have to pay higher spread most of earning we make shall go to broker, so we should take every effort to get lowest spread, we should also explore about plans that offer spread back on trading a certain no. of lots.
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#4
budado

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scalping is now allowed by some broker because they want you to loss. That's simple I can think about. Just think like this. If you trade and have big pips loss. That means you loss a lot. But that would not going to happen if you do scalping. Although I don't understand also why they bothered simply because they can still earn via pips differential. But I guess.That's what this is all about. Differentials.
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#5
luke1

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The scalping method can make more money much higher than the Long Term strategy here. this is why many brokers still do not allow the trader to do this. Because it is not good for the Broker company.
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#6
flybiz08

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This is true and if the scalper involved is very successful. Another thing to consider is the broker type and that is important. Most market makers if not all od not allow scalping as they may take a lot of losses if the scalper is very successful.
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#7
Adnan

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The main reason as per my views is the fact that scalping allows traders with the facility to earn a few pips by opening huge position, say a trader can also earn $100 per pip by opening a huge position. This might be the reason why many forex broker doesn't allow it. However, there is not always the necessity the trader will end up in profits but in most cases a scalp trader do finish up in profits.
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#8
budado

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The scalping method can make more money much higher than the Long Term strategy here. this is why many brokers still do not allow the trader to do this. Because it is not good for the Broker company.

Actually this is not true. Base on reviews many brokers site stats. Does traders you frequently trade using scalping method has higher chance of losing all of their funds than those who trade long term. In fact theirs so many well known bots, veteran traders, institution that have good earning using long term method but theirs none that uses scalping method that last ten years. In short some who have gain great profit using scalping in the end they incur more loses than those who trading using long term.
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#9
yogesh

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I dont agree completely with the view expressed by you my friend @budado, there is no reason to consider scalping more risky than other trading strategies. In fact as scalpers do not play for big profits their stop loss are also tighter and so there is no way thinking they can lose big on single or few trades, rather it makes the trader confident of making profits in small amount again and again with a feel of safety.
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#10
antthenait

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Though scalping is the best way to make better profit from any foreign exchange. But still now some broker won't support this scalping. I hope that very soon each and everyone should accept this. This procedure can make some changes like little improvement. But it can not make some big changes.
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#11
euro

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I've heard that they have to pay liquidity coverage on your scalping so therefore they do not profit from it. IF they do make a profit then they have pay for their liquidity coverage so basically they don't make any money. So its not profitable so they don't really care for it. Plus, when you scalp, you profit and requests way too many payout so they don't like that either cause its too much work, inconvenient, jamming their system and also cash outflow. They also lose members as scalpers lose they also close off their account so no long term earning from them. 


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#12
fxchamp420

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Most brokers are just bucketshops that hedge against your position to profit when you lose.. So when you scalp there and make alot of cash they dont want to pay and just give you the boot...IF they are a legit broker they will always pay and help you scalp as you both will be making good money...


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#13
Bagus

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Most brokers are just bucketshops that hedge against your position to profit when you lose.. So when you scalp there and make alot of cash they dont want to pay and just give you the boot...IF they are a legit broker they will always pay and help you scalp as you both will be making good money...

I think there is also because many brokers that give you advantages in get in your trades and they do not try to reduce it in your trades so that obviously you have to do is how to continue to work in this trade with a better course


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#14
uncle gober

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I like to do scalping, especially with broker which i'm using now. I get the best trading conditions to do scalping, i get the lowest spread, fast execution in my broker, Armada Markets.


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#15
rofi93

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scalping is more profitable, but scalping is very risky...so, many brokers don't allow scalping...as scalping is very risky i think people should avoid it....


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#16
budado

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Its because of traffic. Since doing scalping add traffic to the market it's going to slow down the broker sites connection result to requote. This is the main reason why  I can end up having good profit without any problem at all. I'm sure we all be making one good income in here and I'm sure in two to three years time I can handle my account in forex without doing scalping.


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#17
uncle gober

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scalping is more profitable, but scalping is very risky...so, many brokers don't allow scalping...as scalping is very risky i think people should avoid it....

 

I think my broker allowed this scalping method. With Armada Markets all trading strategies are allowed. You can scalp, use expert advisors (EA-s), hedge your positions or trade during news releases. the other, armada markets offer super lowest spread and fast execution. it is suitable for the scalper trader


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#18
euro

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I think they don't allow scalping cause scalping cause them to pay liquidity coverage as well and they do not profit from your scalps. Also, they do not like to pay out profit when you gain profit while you scalp so therefore scalping is not profitable for them at all. Also, it causes way too may trades resulting in system jamming. 


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#19
screw_twizz

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scalping is now permitted by some agent simply because they wish you to damage. That is basic I can consider. Think in this way. In case you business and still have massive pips damage. This means you damage a whole lot. Yet that will definitely not gonna occur should you choose scalping. Even though My partner and i don't get furthermore exactly why many people frustrated given that they can nevertheless gain through pips differential. Yet I guess. That is just what this specific is centered on. Differentials.


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#20
Decub

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Sometimes I really find it difficult to understand why some brokers don't allow scalping. I begin to wonder if it does not give them a fair and credible name as brokers that allow scalping it there is a kinda fee they have to pay for allowing their traders to scalp.
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