Forex Brokers that Allow Scalping: Research and Results

Ok, here is the reply from Marketiva received today.

"Thank you for contacting our team and for your interest in Marketiva.

The maximum number of short-term positions (shorter than 5 minutes) a trader can have in a 4-hour period is 10. If a trader closes more than 50 short-term positions or more than 200 total positions in 7 consecutive days, the trader's account will be temporarily prevented from sending new orders into the market.
Please note that these limitations refer to aggregate number of positions on both live and virtual trading desks. This policy has been introduced to limit the excessive number of short-term positions a trader can execute and to limit the overall number of positions in order to better control the load on our servers."

Thomas Andreas

(Alpari is next.)

pls find out if aipari uk allow scalping

Thanks for this post very helpful, please do you send mail to marketiva, that is the forex broker i have live account with.if you did what is there response if not please do. Again I wish you let us know those brokers that are reliable and good to trade with.
Ola
Nigeria

Edward trades at Oanda.

Edward, Alex, et all:
What Forex broker(s) do you personally use?

Thanks,
Jeff

I just opened up a acct w/ FXCM a week ago and I do scalp and make money but the market has to be on the move without a stall or I can end up waiting an hour for my payload to come in! The problem I run up against is that doggone pip spread that seems to always go from 3-5 in the majors when I scalp. It's a pain in my neck to overcome it! I am getting ready to open up a new account with EFX since reading so many great experiences about them but the clencher was how Jason (an EFX rep) always answers questions in detail on the no dealing desk forum! He really sounds like a stand up guy and I already trust him w/o even having an acct there (yet).
I ran their demo unit up against my FXCM unit in live trading and EFX spreads ran 1.5-2 pips many times while FXCM was running 3-5! Big difference and for a scalper it can make or break your trading career for sure. EFX does charge a modest $5 per 100,000 standard contract , not sure about minis though. And they open accounts w/ $400 so I look forward to getting started with them asap! ( ; Take care! ~Bruce ... see my new blog at ... http://texastrades.blogspot.com/

Hi Eric,

See if you like Oanda demo.

Oanda offers simpler trading platform - good for starters. Oanda demo account never expires, you may practice as long as you need to. Oanda offers low spreads.

Regards,
Edward

am a beginner which is the best demo a/c to use ope to here from u later
Eric
KENYA

I think you have proved yousself by this research,ur research answered all my questions
Thanks,Bravo..............
Mercury Assuzu
Forex Networks Nigeria

Yes, we heard about Marketiva
The maximum number of short-term positions (shorter than 5 minutes) a trader can have in a 4-hour period is 10. If a trader closes more than 50 short-term positions or more than 200 total positions in 7 consecutive days, the trader's account will be temporarily prevented from sending new orders into the market.

Regards,
Edward

hi edward wanted to know if anyone has heard abt the broker marketiva,and also want to know i f using a broker dat allow 3-4 pips is good.tanx alot.hope to hear 4rm u soon

hi, pls have anyone heard about marketiva.

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!