FREE FOREX STRATEGIES

Forex Brokers that Allow Scalping: Research and Results


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.”

That’s it.
Today, I’d like to share with you what my research has revealed.
So, brokers allowing or not allowing scalping...


Read entire post >>>


 


If you intend to scalp without restrictions and varying pip spreads imposed by brokers, you must use a broker that is an ECN such as MB Trading, EFX, or Hotspot. These are pass-through brokers who charge a commission of $1 per mini lot round-turn. They do not rely on the hidden spread to make money.

All of the above mentioned brokers are what are called "market makers" which add liquidity to the markets. However, the problem with them is that they are actually trading against you. They take the opposite position from you which helps provide liquidity in the markets. As such, they put themselves at risk so they will widen their spreads greatly if anyone is scalping and during times of high volitilty, ie, news time. This lessens their exposure and risk and ensures they still make a profit in those times.

Even though most of the brokers mentioned claim they allow scalping, all of the "market makers" will do something to restrict you if you are an active scalper to protect themselves and limit their risk, ie wide spreads, slow executions, or requotes.
The only way to make any money in scalping is to use an ECN type broker like MB Trading. These are brokers who truely have "no dealing desk", unlike some who claim to have "no dealing desks", ECN's platforms utilize the STP method (Straight Through Processing)which routes your order directly to the exchange which may be a bank or a market maker offering a bid or ask price. With an ECN it is possible to scalp between the bid and ask prices if you want.
I have two accounts, one with FXCM a "market maker" for extra liquidity and some autotrading, and an account with MB Trading for scalping and news trading. There are still spreads on the MB Trading account but those are actual spreads caused by the bid and ask prices of the actual markets, not imposed by the broker. Depending on the time of day, the spreads on my MB platform for the majors, ie, EUR/USD, USD/JPY, EUR/JPY can change from 0 pips to 2.5 or 3 pips. It just depends on what the bid-asks of the markets are doing at the time. Usually the spreads decrease, sometimes to zero, during high volitity times, unlike marker maker's platforms whose spreads widen.

Good trading everyone.

Here is a chat with MIG FX:

USER: Do you allow scalping?
MIG FX: yes, we do allow scalping!

MIG FX: however, our Dealing Room may increase the spreads

USER: then how much would you increase the spread?
MIG FX: it depend on. Our dealing room analyses each concrete case.

MIG FX: It could be for the majors a increase of 5 pips or maybe 10 pips

USER: can I be banned for severe scalping?
MIG FX: no, only spread increase is applied.

Good luck!

Do anyone know by just how much does MIG FX increase your spreads if they find you scalping?

Is it killing for scalping or tolerable?

Thanks!

How does it relate to scalping?

Is there any broker like Admiral Market?

Thank you for adding a comment on Forexyard.
Well, if it is so, too bad for them, 5 min limit is quite discouraging.

I asked FOREXYARD in live chat. They said they do NOT allow scalping. Minimum holding time is 5 mins!!!!

I asked GCI in live chat, they said they do not allow scalping...

what about GCI? Do they allow?

IG Markets Ltd Client Services replied today:

Thank you for your email, please note that scalping is not a trading strategy that we allow.

Hi Edward,
Have you asked IG Markets? Do they allow scalping? Anyone has feedback on this broker in terms of reliability, honesty, etc?
Thanks.

GFT gives you slippage all the time. It is almost like a "bait and switch". You get their quote but they don't honor it when you take it.

It's the first time I hear about such 5 pips rule...
Could you please name any broker who would have such policies?

Most brokers seems to allow scalping in under 1 minutes. But some of them might not allow pips closing less than 5 pips.

thank -you for your efforts!!(learning to think smart!)


 

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