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...
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 >>>
Thanks Thomas. It's clear now.
Btw, are you using a ECN/STP broker for your trading? Can you recommend me a good ECN/STP broker outside USA? Since NFA is going to adopt new Compliance Rule 2-43(b) which will prevent traders to set stop loss/limit like previously, I am looking for a good ECN/STP outside USA.
Capital Forex - UK based ECN
http://www.capitalforexpro.com/
Thanks. They look good. Unfortunately they don't have metatrader platform.
hi,..im new about scalping...as what i ve read,scalping holding a position in just a few second....my question is..isnt it cause us to loose because of the spread?...can somebody explain to me how profit is possible by doing scalping?
Every time you enter a trade, there is a spread to pay, which makes you start in the negative pips territory. If you scalp, you look to cover the cost of spread in about 20-30 seconds after the entry and the rest is a profit to "grab and run" - often 1-2 pips, 5 pips at most.
Good scalping technique takes into account spreads and makes quick wins despite the initial trading cost.
Thomas
I've read ff avidly for a year, plus traded forex a little while.
Commission brokers probably won't care, spread brokers will. Thus, the more explicit the conditions a spread broker puts in their positive answer are, the more likely they'll play with your account.
Also, spread brokers trade against your position, so anytime you consistently make profits is another time when they'll mess with your account.
It surprised me FX Club answered as conditionally as they did; one of their platforms is ECN. Also, Saxo Bank is fairly big, and yet did the same.
That's humorous about FXCM. They love mucking around with communication with their customers.
pls, does alpari allow scalping?
Alpari allows scalping.
Often brokers are desperately trying to "keep the trademark" by posing no significant restrictions on scalping, but at the same time look to control scalping activity "from the backyard" so that they don't get a heavy hit from a bunch of highly profitable scalpers.
ECN brokers should not care about scalpers, since ECN brokers doen't make money on spreads, in fact, the more their clients trade, the more commissions the broker will earn.
Market makers will be watching scalpers, no matter how loose or tight their scalping policy is. If a scalper is very profitable, he'll soon get on the list of "least favorite clients", and as a result will become a candidate for manual execution, requotes, and possible account closing if things can "no longer be tolerated" by a broker and a scalper doesn't change the strategy.
Thomas
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