Forex Brokers that Allow Scalping: Research and Results
Submitted by User on June 5, 2007 - 13:56.
The topic of Forex Brokers allowing scalping is always actual and sensitive.
I was looking for answers in various forums, tried searching with keywords in search engines, tried reading policies and FAQs on the websites of different Forex brokers for scalping...
It seemed like I had only guesses, but nothing solid to rely on.
And then I came up with a simple solution - sending customer support inquiries to the different Forex brokers...
My question to all of them was the same:
“Do you allow scalping? By scalping I mean holding a position for less than 1 minute.”
Today, I’d like to share with you what my research has revealed.
So, brokers allowing or not allowing scalping...
I’ve got the answers the same day from the next Forex brokers:
#1 MG Financial Group - out of business.
Thank you for contacting MG Financial Group. In regards to your
question, you may keep your position open for as long or short a duration of time as desired.
We do allow Scalping but it might become a problem with our liquidity providers and filling orders etc… We recommend that you stay in a trade for at least 93 seconds. If a customer engages in scalping and it somehow becomes a problem we will notify that person.
#3 MIG Bank
MIG Bank (formerly MIG Investments) does not require a minimum number of trades per month as neither we require a minimum pip value or open time for positions before allowed to close.
We do accept scalpers but since it is difficult to cover such positions in the market, we would need to increase the spreads for clients with permanent scalping strategies.
We consider an scalpers somebody who systematically pip hunts below 5 pips as average.
All the cases are studied based on general performance and we do get in contact with our clients prior to take any related decisions.
Update 13.08.2008: The new M I G Investments General Terms and Conditions are effective immediately (13.08.2008) and have been updated with reference to M I G's current position on Scalpers: Due to the difficulties associated with covering such trades, M I G Investments does not accept scalpers.
The term scalping here primarily refers to latency trading, where clients unfairly exploit, to their advantage, delays that may occur due to the fact that FXTrade is Internet-based.
OANDA does not have any restriction on the length of time a trade is held.
#5 MB trading
Got two short replies:
Yes, scalping is allowed.
Yes you can scalp with us.
Yes, you can do that. As long as you have enough margin to open a position, you can close it at any time during our normal trading hours which is between Sunday 5 pm ET and Friday 5 pm ET.
#7 Global Forex Trading
Yes we do not have any restrictions to the length of time on holding positions.
The next day I've targeted remaining on my list Forex brokers and got next replies:
#8 CMC Markets
You are able to hold a position for less than a minute, however, we do not encourage scalping.
#9 United Global Markets - out of business.
Scalping is not an issue so long as you are not taking advantage of our price feed lag. We do allow scalping, news trading, grid traders and other in and out traders.
#10 IFX Markets - presently redirects to FX Solutions.
Your question is very easy to answer. We allow scalping, we don't care if we hold your position for 1 second if you can make money that quickly.
#11 FX Solutions
Yes, we do.
#12 Interactive Brokers
IB does allow scalping.
#13 Saxo Bank
The answer to your question is yes. You can hold a position for less than 1 minute.
But we don´t allow that you take advantage of the system.
#14 Forex Club Financial Company
Yes we allow scalping. Only thing if you going to request a lot of quotes and not act on them the system will put you on the bottom of the list and you will receive lesser priority.
#15 CMS Forex
We have no age requirement for positions. Be they open for 1 year or 1 minute, you can mange your positions as you wish within our market.
#16 Then from the FAQ of Global ForexNow
I've copied next: "Do you allow scalping?
We don’t condone any one particular type of trading style."
So far seems like almost nothing should bring clouds to your sunny sky... Is it really so..?
Opening accounts with each and every of mentioned here Forex brokers and scalping for at least about a month to get a result would be a very difficult task... So, hopefully, we are going to hear from other traders about their experience. Please drop us a line in a form of comment below. Thank you!
There were also two brokers that did not gave a straight forward answer on my question, but to complete my check list report I'm going to cite their replies anyway:
I would like to take this opportunity to introduce myself as your Account Executive at ACM. In the next few days I will contact you in order to discuss how to use our services to your best advantage.
#18 ODL Securities - presently operated by FXCM.
I would be happy to answer any questions you have regarding opening an account with ODL. What is the best telephone number to contact you?
Please note, that my research is based not on a real account with each broker and actual scalping with no problems. It is rather a journalist report on some sort of “interview” with brokers’ customer support. So, there is no way I can guarantee that you can go out and scalp freely with any of these brokers.
Dear trader, do you happen to have any scalping experience with any of the Forex brokers mentioned or not mentioned here?
Drop us a line by leaving a comment below and we would be very grateful... not only us, but all other users that are waiting to hear about some real scalping experience!