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...


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i've found that almost all customer service people say yes, they allow scalping. but they are not the dealing desk. the customer service and sales people usually say "yes" to everything, since forex is an unregulated market and there is hot competition for accounts.

the problem brokers have is positions held open for less than a minute - because they cannot properly hedge themselves; not enough time supposedly. they particularly will not allow automated systems to scalp due to the high volumes involved.

what you will find is that if a broker does allow scalping in a fast market, they will requote you. i've found that, in a news trade, one can often profit by immediately accepting whatever the broker requotes. if you wait to look at the requote, you've lost the trade. you just have to push the button as fast as possible and hope for the best.

Yes, everyone is very welcome to post their comments on brokers' platforms. Please also explain in few simple words why you give the preference to a certain trading platform. Comments on scalping experience are also in great demand.

Edward.

Daniel,

Unfortunately, I cannot make a statement since I haven't tested even 30% of the platforms...
I'm very sorry. May be our users could add suggestions on the subject.

Thanks
Thomas Andreas

Thanks Thomas,
Can i ask you which of the platform mention above is best trading on ?
Daniel

Most banks scalp by having a bid and offer constantly in the market with a fixed spread. When they get a fill they move both prices away from the last fill price. Of course they also use money management to limit their risk.

This also helps them 'see' buying or selling pressure.

SABTrader.

Thank you for valuable addition.

Edward.

Yes, FXCM do allow scalping. I asked them at online chat.

Yes, in fact I did send an inquiry to FXCM.
They didn't answer at all.

I then later sent another request, pointing out the following:
"...I'd like to believe that my first email was misplaced somewhere.
Let me ask you the same question again and hopefully receive the answer..."

I asked them again about the subject but haven't got ANY emails :( , I checked my junk folder as well.

Update: we got a response!

"Yes as we say on our website: http://www.fxcm.com/better-trade-execution.jsp

"Scalp the market with NO restrictions on order placement." -FXCM

Thanks again, and happy trading!"

Now everything is alright.

Did you direct any enquiry to FXCM and if so, what was their reply?

Very useful research, thanks for taking the time to do this.

THANKS For List

Most brokers do infact allow scalping. What most brokers dont condone is a form of scalping based on the latency in the price feed when compared to other brokers.

These trades usually will only last several seconds which is how market makers differeniate between the two.

Basically they dont mind if you open and close a trade in a few seconds. Its only a problem when your always doing this and always winning.


 

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