⭐ UNLIMITED Scalping Forex Brokers
- Forex brokers that truly allow scalping would clearly mention it on their website. It's a huge selling point
- Forex brokers who don't allow scalping clearly define it as "prohibited strategy" in their Client Agreement
- And finally, brokers who would rather see no scalpers among their clients, but hesitate to say so - have no clear scalping policies
- Forex brokers that truly allow scalping would clearly mention it on their website. It's a huge selling point
- Forex brokers who don't allow scalping clearly define it as "prohibited strategy" in their Client Agreement
- And finally, brokers who would rather see no scalpers among their clients, but hesitate to say so - have no clear scalping policies
⭐ What is Scalping?
Scalping is a trading strategy defined by a combination of 3 key factors:
- frequency of trades
- time between Open and Close of each trade
- distance in pips between Open and Close prices
The higher the frequency of trading, the shorter the time period between Open and Close prices, the smaller the distance in pips between Open and Close, the more likely a trader will be qualified as a Scalper.
When scalping restrictions apply, they can be manifested in:
- higher spreads
- added commission
- lower leverage
⭐ Forex brokers that allow Scalping:
AdroFX
All Strategies Allowed
— AdroFX,
https://adrofx.com/compare-accounts
4XC
Scalping - a trading strategy based on the notion that you buy and sell (or vice versa) a currency within a very short time frame. Scalping is only available to Clients on the ECN Server.
— 4XC,
https://4xc.com/wp-content/uploads/2020/09/Order-Execution-Policy-4XC.pdf
AAAFx
Do you allow Scalping?
Yes, we do allow Scalping.
— AAAFx,
https://aaafx.com/faq
Abshire-Smith
Scalping, high frequency and news trading accepted.
— Abshire-Smith,
http://www.abshire-smith.com/direct-market-access-dma/
Admirals
No Restrictions
No stop distances or restrictions on trading styles or strategies
— Admiral Markets,
https://admiralmarkets.com/products/forex
AIMS
Our key features include:
Support scalping and high-frequency trading
— AIMS,
https://aimsfx.com/faq/
Apex Markets
All Trading style allowed
EAs & Scalpers allowed
— Apex Markets,
https://apexmarkets.io/account-overview/
AtlasForex
Is scalping permitted?
No restrictions on scalping. However, frequent scalping might cause server failure and we will charge you penalty in accordance with our Terms of Service and guidelines. Please refrain from extreme scalping trading.
— AtlasForex,
https://www.atforex-markets.com/qa#account_qa
Atom Markets
We provide ideal conditions for scalping and EAs with no minimal distance between the spread.
— Atom Markets,
https://am-broker.com/en/why-should-you-choose-us.php
Axiory
Both accounts have no restrictions on automated trading programs (Expert Advisor / cAlgo program), there is no regulation or limitation of built-scalping in either of them, which gives you the opportunity to participate freely in the world-wide market.
— Axiory,
https://www.axiory.com/guides/types-of-trading-accounts/
BAXIA
Is Scalping allowed?
Yes, we allow scalping strategy. Our spreads and trading conditions are the preferred choice of many day traders and scalpers globally.
— BAXIA,
https://baxiamarkets.com/faq/
CapproFx
Is Scalping and Hedging allowed?
We encourage scalping and hedging. Our spreads and trading conditions are the preferred choice of many day traders and scalpers globally. Scalping techniques less than two minutes are prohibited, all trades are required to be held at least two minutes or longer. Penalty may cause profits and rebates to be forfeited.
— CapproFx,
https://www.capprofx.com/faq.php
CedarFX
Does CedarFX prohibit any trading techniques?
No, we allow all trading techniques including hedging, scalping and robots, auto traders and Expert Advisors.
— CedarFX,
https://www.cedarfx.com/faq/
CK Markets
Utilise all Trading Strategies including Scalping
— CK Markets,
https://ckmarkets.com/
CLMarkets
SCALPING refers to a trading strategy that makes profits by opening and then closing the position "multiple times", "willfully", or "in enormous volume" within 180 seconds.
— CLMarkets,
https://clmforex.com/wp-content/uploads/legal-documents/CLMarkets-Terms-Conditions.pdf
Dizicx
With aggregated source of pricing from up to 25 institutional grade sources sources Dizicx Raw Spread account was built for day traders, scalpers and expert advisors.
— Dizicx,
https://dizicx.com/account-types/
ECR Capitals
Though many brokers do not allow placing stop and limit orders close to market prices, we encourage you to do just that. So stop and limit levels for Scalper account users are close to market price.Please note that Classic account charts show raw market spreads without the mark-up.
— ECR Capitals,
https://www.encorecapitals.com/Scalper.html
Eightcap
Does Eightcap allow ‘scalping’ and ‘hedging’?
Yes. We allow full scalping and hedging.
— Eightcap,
https://www.eightcap.com/en/client-support/faqs/
Errante
IS SCALPING ALLOWED?
Yes, it is allowed.
— Errante,
https://errante.com/faq/
Eurotrader
Eurotrader has designed the Zero account for day trading and high frequency scalping.
— Eurotrader
https://www.eurotrader.com/accounts/zero
Fair Forex
Do you allow hedging, scalping and news trading?
Yes there are no restrictions on trading at all.
— Fair Forex,
https://help.fairforex.com/hc/en-us/articles/360043944291-Do-you-allow-hedging-scalping-and-news-trading-
FBS
FBS company offers the most convenient trading conditions with a possibility to use all trading strategies without any restrictions. You can use automated trading with the help of expert advisors (EAs), scalping (pipsing), hedging, etc.
— FBS,
https://fbs.com/faq/218
FIBO Group
Do you allow scalping?
Yes, we allow scalping. We do not have any special policies or restrictions on scalping.
— FIBO Group,
https://www.fibogroup.com/faq/forinvestors/do-you-allow-scalping/
Fidelis Capital Markets
Do you allow scalping?
Yes, we do allow scalping.
— Fidelis Capital Markets,
https://www.fideliscm.com/about/faqs/trading-accounts-faqs/
Forex.ee
All trading styles are allowed. Scalping, news-trading, automated HFT, Expert Advisors – there are no limitations.
— Forex.ee,
https://forex.ee/ecn-trading-account/
ForexStart
Is pipsing allowed on FXstart?
Yes, we do not prohibit pipsing. It is welcomed on interbank quotes.
— ForexStart,
https://www.forexstart.org/en/faq/trader
Fortune Prime Global Limited
EA Friendly
We’ve built the perfect environment for EAs to thrive – we allow scalping, hedging, news trading and more.
— Fortune Prime Global Limited,
https://fortuneprimeglobal.com/
FP Markets
Do you allow scalping/hedging?
Yes, we allow both strategies.
— FP Market,
https://www.fpmarkets.com/faq/trading/#el-10d67975
FXCM
FXCM’s NDD forex execution offsets every trade one for one with our liquidity providers eliminating the hedging problems scalping creates for the typical retail dealing desk broker.
FXCM does offer a dealing desk option in which we act as the liquidity provider on our mini account offering, and scalping is not allowed on that particular setup. The account is intended for smaller account sizes allowing us to manage the risk. Traders wanting to scalp are able to do so on the standard account with NDD forex execution.
— FXCM,
https://www.fxcm.com/uk/about-fxcm/execution-transparency/
FXDD
Scalper friendly
— FXDD, https://www.fxdd.com/pe/en/premium-and-standard-pricing/
FxGrow
NO LIMITATIONS ON TRADING STRATEGIES
— FxGrow,
https://fxgrow.com/en
FXGT
Do you allow scalping?
Yes, we allow scalping.
— FXGT,
https://fxgt.com/gl/trading-faqs
FXOpen
All trading styles are allowed: scalping, news-trading, automated HFT, Expert Advisors – there are no limitations.
— FXOpen,
https://www.fxopen.com/en/trading-accounts/ecn
FXTRADING
FXTRADING facilitate your trades, not hinder them. We allow scalpers and EA’s (expert advisors) to trade in an unrestricted environment and offer excellent trading conditions for EA’s, Robots, Scalping and high frequency trading.
— FXTRADING,
https://fxtrading.com/trading-platforms/metatrader-4/
GBE brokers
All trading styles are allowed with GBE brokers accounts!
— GBE brokers, https://gbebrokers.com/account/
Global Prime
No restrictions Scalper, HFT, news trader + EA friendly
— Global Prime, https://www.globalprime.com/
Hugo's Way
Do you allow hedging, scalping and news trading?
Yes you are free to hedge, scalp and trade during news events.
—Hugo's Way,
https://help.hugosway.com/support/solutions/folders/48000575725/page/1
IC Markets
IC Markets cTrader platform has no restrictions on trading. We have some of the best trading conditions for scalping and high frequency trading globally, allowing traders to place orders between the spread as there is no minimum order distance and a freeze level of 0.
— IC Markets,
https://www.icmarkets.com/au/en/trading-accounts/ctrader-raw
IFC Markets
Does IFC Markets allow scalping?
Yes, scalping is allowed.
— IFC Markets,
https://www.ifcmarkets.com/en/faqs#does-ifc-markets-allow-scalping_702
InvestMarkets
“Scalping” shall mean the situation where the Client opens too many positions in CFDs at the same time and closes them for less than five minutes or buying at Bid price and selling at Ask price, so as to gain the Bid/Ask difference.
— InvestMarkets,
https://www.investmarkets.com/international/terms-and-conditions/
Key To Markets
Scalping without restriction, news trading allowed.
— Key To Markets,
https://keytomarkets.com/accounts-overview/
Kitco Markets
No restrictions – provide ideal conditions for scalping and EAs with no minimal distance between the spread*
There are absolutely no restrictions on trading – We have some of the best trading conditions for scalping and high frequency (HFT) trading globally.
— Kitco Markets,
https://kitcomarkets.com/why-kitco-markets/
https://kitcomarkets.com/raw-spread-no-commission-pricing/
LiteForex
Scalping and news trading allowed
— LiteForex,
https://www.liteforex.com/trading/account-types/ecn/
LonghornFX
Is 'hedging' and 'scalping' allowed on LonghornFX?
Yes, trading techniques such as hedging and scalping are permitted on LonghornFX.
— LonghornFX,
https://www.longhornfx.com/faqs
NPBFX
Scalping and high-frequency trading (HFT): Allowed and welcomed
— NPBFX,
https://www.npbfx.com/en/trading/account_types/
Orbex
Hedging, Scalping, EAs and all trading styles allowed and welcomed
— Orbex,
https://www.orbex.com/en/free-vps
Purple Trading
Trading approach: Intraday (scalping)
— Purple Trading,
https://www.purple-trading.com/types-of-accounts/
Range Markets
Do you allow scalping?
Yes, we do.
— Range Markets,
https://rangeforex.com/faq/
Tifia
Scalping, automated trading, news trading and arbitrage allowed The company allows using such trading strategies as scalping, automated EA trading, news trading, and arbitrage. Our clients enjoy complete freedom and convenience when trading, regardless of their strategies.
— Tifia,
https://tifia.com/en/company/why-tifia
OspreyFX
OspreyFX: Do you allow Hedging, Scalping and News Trading?
Yes you are free to hedge, scalp and trade during news events.
— OspreyFX,
https://knowledge.ospreyfx.com/en/support/solutions/articles/44001880030-ospreyfx-do-you-allow-hedging-scalping-and-news-trading-
Pacific Union
Are scalping and hedging allowed?
Pacific Union would not restrict trading methods including scalping in principle but abnormal transactions will be subject to corresponding financial regulations and supervision. We will have professional risk control and IT in the collection of data. Since transactions within the legal category are acceptable, so we do not restrict the transaction behaviour of customers within the legal limit.
— Pacific Union,
https://www.puprime.com/support/help/faq/
RannForex
12.1 Rann FS does not place any restrictions on the type of trading strategies which may be used and Clients are welcome to use any method, including scalping.
— RannForex,
https://rannforex.com/en/conditions/agreements/trading_terms/
SCHATZ Markets
We do not impose restrictions on your profits and allow all trading strategies, including hedging, scalping, and arbitrage.
— SCHATZ Markets,
https://schatzmarkets.com/about#About
SGT Markets
SGT Markets welcomes all trading strategies including Expert Advisors (EAs) and scalping. EAs are MT4 scripts that incorporate algorithms that automatically buy and sell based on their design. Scalping is short-term trading activity that is designed to profit from quick movements in asset prices.
— SGT Markets,
https://sgtmarkets.com/about-us/trading-advantages-with-sgt/
Solid ECN
Scalping - Fast order executions and small spreads allow Solid ECN to become a safe house for high-volume scalping strategies.
— Solid ECN,
https://solidecn.com/AccountTypes/Ecn
Thunder Forex
The Thunder Forex account is especially developed for active traders, scalpers and expert advisors.
— Thunder Forex,
https://www.thunderforex.com/account/
Titan FX
all strategies allowed, including scalping, hedging and EAs
— Titan FX,
https://titanfx.com/trading/accounts
TMGM
Whether you’re a scalper or day trader, use EAs or are a discretionary trader - we have you covered.
— TMGM,
https://www.tmgm.com/en/trading-accounts
tegasFX
Superior Algorithmic applications including Expert Advisors, Trading Robots and Copy Trading.
All trading strategies and EA’s welcome
— tegasFX,
https://www.tegasfx.com/metatrader-4/
TryMakets
“Scalping" is a form of trading strategy through which the Client performs and/or tries to perform numerous transactions on small price changes (5 pips average or less within 24 hours trading period of time) or in very short timeframes (closing a trading position within 5 minutes of opening).
— TryMakets,
http://www.trymarkets.com/pdf/terms-of-use.pdf
Turnkey Forex
Is Scalping and Hedging allowed? Yes, we are a hedging and scalping friendly broker.
— Turnkey Forex,
https://turnkeyforex.com/faq
Valutrades
TRADE ANYWAY YOU WANT
Expert Advisors, High Frequency Traders, Scalping and Robots.
— Valutrades,
https://www.valutrades.com/
VARIANSE
Prime conditions for Scalping
— VARIANSE,
https://varianse.com/WhyUs-Advantages.html
Ventezo
Scalping, Expert advisors, Hedging
Yes
— Ventezo,
https://ventezo.com/trading-accounts
Vital Markets
Is Hedging, Scalping And News Trading Allowed?
You are able to scalp, hedge and trade normally during news events.
— Vital Markets,
https://vitalmarkets.com/faq-category/general-queries/
XBTFX
Automated Expert Advisor trading: Yes, Encouraged!
Trading Styles Allowed: All
— XBTFX,
https://xbtfx.io/page/account-types-new
xChief
Use any trading strategy, such as scalping and various trading instruments, as well as robots/EA and Arbitrage.
— xChief,
https://www.xchief.com/about/advantages/
XGLOBAL
Do you allow scalping?
Yes, we do.
— XGLOBAL,
https://www.xglobalmarkets.com/faq/
XM
Do you allow scalping?
Yes, we do.
— XM,
https://www.xm.com/faq
Yadix
Yadix is the ideal broker for EA traders, Scalpers and profitable traders, as our trading environment combines Straight Through Processing (no dealing desk) execution, with low trading costs and superior order execution.
— Yadix,
https://www.yadix.com/about-us/ea-hedging-scalping/
⭐ Scalping allowed, yet prohibited?
While scalping can be "allowed" on the website, it can be "prohibited" in the Client Agreement.
Double-check with your broker to avoid future disappointment.
Example 1:
ARUM Capital
We welcome the use of:
- Scalpers and intraday trading robots
- High frequency automated algorithmic trading (HFT)
- Impulse and news trading robots
— ARUM Capital,
https://arumcapital.eu/company/advantages/
ARUM Capital
Client Agreement:
“Scalping” shall mean the form of trading strategy through which the Client, either solely acting or acting with others (internally by using other trading accounts held with the Company or by sharing the same IP address, or externally by using other trading accounts held with other brokers), performs and/or tries to perform numerous transactions within a very short time (for example up to three minutes), hedging positions (partially or fully) by holding open position on the opposite side of a trade, or by holding a position in a spot asset and the opposite position in the future of that asset, or buying at Bid price and selling at Ask price so as to gain the Bid/Ask difference, or in general a trading activity pattern that indicate that the Client aims to benefit financially without being genuinely interested in trading in the markets and/or taking any market risk.
...Each of the following constitutes an “Event of Default”:
if the Company reasonably suspects that the Client performed abusive trading such as, but not limited to, Scalping, Pip-hunting...
— ARUM Capital,
https://arumcapital.eu/company/legal_documentation/
Example 2:
Scandinavian Capital Markets
FAQ:
Do you allow scalping?
Yes.
Platforms page:
Great for Scalping
MT4 makes scalping an easy to control and manage strategy
— Scandinavian Capital Markets,
https://scandinavianmarkets.com/faq/
https://scandinavianmarkets.com/platforms/
Scandinavian Capital Markets
Client Agreement:
(f) Trader will not enter into any Trade for the purpose of arbitrage, scalping or to exploit any temporal and/or minor inaccuracy in any exchange rate. Scalping is a form of trading which the Company considers to be an unacceptable trading practice. Scalping is defined as any order opened and closed within 120 seconds (2 minutes). the Company reserves the right, at its sole discretion, to cancel or reverse any profits gained through Scalping.
— Scandinavian Capital Markets,
https://scandinavianmarkets.com/terms-and-conditions-and-trader-agreement/
Example 3:
MFM Securities
Why MFM Securities:
Our ECN trading environment has been created with traders in mind. Scalping, hedging, and automated trading are all allowed.
— Moneta Markets,
https://www.mfmsecurities.com/why-mfm-securities
MFM Securities
FAQ:
Does MFM Securities allow scalping?
We do allow any trading strategy, including scalping.
— MFM Securities,
https://help.mfmsecurities.com/trading-and-execution/
MFM Securities
Client Agreement:
The concept of “arbitrage” and “scalping”, or taking advantage of these internet delays, cannot exist in an over the counter Market where the client is buying or selling directly from the Market. MFM SECURITIES do not permit the practice of “arbitrage” on the Trading Platforms and considers this improper use or abuse of our trading Platforms.
— MFM Securities,
https://www.mfmsecurities.com/legal-documentation
Example 4:
Moneta Markets
Account Comparison: ECN account features:
Suitable for Scalpers & EAs
— Moneta Markets,
https://www.monetamarkets.com/clients/compare-accounts/#/
Moneta Markets
Client Agreement:
(b) Each of the following constitutes a Default Event:
wilful misconduct, (including commission churning, sniping, causing or contributing to or benefiting from a Quoting Error, moving the price of an underlying asset, scalping, arbitraging off‐market pricing);
— Moneta Markets,
https://www.monetamarkets.com/pdf/MonetaMarkets_Client_Agreement.pdf
Example 5:
OTX Forex
Hedging and Scalping is allowed *
— OTX Markets,
https://otxforex.com/account-types/micro/
OTX Forex
Client Agreement:
The concept of using trading strategies aimed at exploiting errors in prices and/or concluding trades at off-market prices and/or by taking advantage of internet delays (commonly known as "arbitrage", "sniping" or "scalping"...) cannot exist in a OTC market where the client is buying or selling directly from the principal; accordingly, we reserve the right, as out sole discretion, not to permit an abusive exploitation of Arbitrage on our Online Trading Facility and/or in connection with our services;
— OTX Forex,
https://otxforex.com/client-agreement-pdf/
Example 6:
GIC Markets
*Scalping, Hedging, EA Trading, All types Strategy Are Allowed.
— GIC Markets,
https://www.gicmarkets.com/trading/account-types
GIC Markets
Client Agreement:
Trading with scalping such as trade with duration of five (5), minutes or less is completely prohibited and the EA (expositor adviser) with this short scalping strategy also not allowed. Any fraudulent activity we must suspend the principal account under investigation of compliance.
— GIC Markets,
https://doc.gicmarkets.com/agreement/terms-and-conditions.pdf
Example 7:
OBOFX
EAs Allowed, Scalping And Hedging Allowed.
— OBOFX,
https://obofx.com/advantages-of-obofx/
OBOFX
Client Agreement:
SCALPING RULES (REVISED 2014) Scalping technique less than Five minutes is prohibited, all posts are require to be held at least five minutes or longer. Penalty may cause profits and rebates to be forfeited.
— OBOFX,
https://obofx.com/custom-agreement/
Example 8:
BKFX
All Strategies Allowed.
Scalping Yes
— BKFX,
https://bkfx.io/overview/
https://bkfx.io/account-types/
BKFX
Client Agreement:
Each of the following constitutes an “Event of Default”:
a. Client is engaging into scalping as defined in this Agreement;
“Scalping" is a form of trading strategy through which the Client performs and/or tries to perform numerous transactions within a small timeframe usually not greater than 5 minutes.
— BKFX,
https://bkfx.io/wp-content/uploads/docs/terms.pdf
Example 9:
Fusion Markets
Do you allow scalping?
Yes, you can enter trades and exit them as quickly as you would like with no restrictions on-hold time or where you set your stop loss or take profit.
— Fusion Markets,
https://fusionmarkets.com/en/FAQ
Fusion Markets
Client Agreement:
Default Event means any acts or omissions on the part of: a) the Client; ... Which in Fusion Market’s sole discretion, are deemed as being: ... 2. sniping; ... 5. scalping;
— Fusion Markets,
https://fusionmarkets.com/sites/5e3407911c37826ea0378bf3/assets/627a0bea071d1a07102eef1b/Financial_Product_Service_Terms__AU_.pdf
Example 10:
Noble Sky
Do you allow scalping?
Yes, we allow it.
— Noble Sky,
https://nbstrader.com/#/faq
Noble Sky
Client Agreement:
59.3 Unlawful trading techniques: ... The concept of using trading strategies aimed at exploiting errors in prices and/or concluding trades at off-market prices and/or by taking advantage of internet delays (commonly known as "arbitrage", "sniping" or "scalping" hereinafter, collectively, referred to as " Arbitrage"), cannot exist in an OTC market where the client is buying or selling directly from the principal; accordingly, we reserve the right, at our sole discretion, NOT to permit the abusive exploitation of Arbitrage on our Online Trading Facility and/or in connection with our Services;
— Noble Sky,
https://nbstrader.com/static/pdf/tkytl.pdf?v2.0
Example 11:
GeneTrade
Do you allow scalping?
Yes
— GeneTrade,
https://www.genetrade.com/faq/
GeneTrade
Terms & Conditions:
“scalping” (we shall refer to it as arbitrage) is not meant to be a part of an over-the-counter market that clients use for buying/selling openly; for this reason, we have decided to forbid any deliberate misuse of Arbitrage on our Online Trading Facility or related to our services; we can liquidate trading positions/contracts depending on price latency arbitrage as decided by us without informing beforehand;
— GeneTrade,
https://www.genetrade.com/terms-and-conditions/
Example 12:
Intercontinental Securities
Whether you are a scalper or day trader Use EAs or are a discretionary trader We have you covered
— GeneTrade,
https://www.is.capital/accountsOverview
Intercontinental Securities
Terms & Conditions:
10.6. We may refuse to accept an Order (including but not limited to any Order that relates to black-box trading, scalping or any similar trading practices) and we may place a limit on any Order or place other conditions on the receipt of instructions or Orders, in our absolute discretion and for any reason.
— Intercontinental Securities,
https://www.is.capital/resource/client.pdf
Example 13:
Vonway Forex
On average, the latency of Vonway’s MetaTrader 4 trade servers is less than 1 millisecond to major VPS providers either within the NY4 data center or through dedicated lines to nearby data centers. This low-latency environment is particularly beneficial for automated trading, High-Frequency Trading (HFT), and scalping strategies.
— Vonway Forex,
https://vonwayforex.com/account-type/
Vonway Forex
5.1. Fraud Traffic shall include, but shall not be limited to, spam, false advertising and deposits generated on stolen credit cards, collusion, manipulation of the service, system, bonuses or promotions (including, without limitation, “sniping” or “scalping’ hereinafter, collectively, reffered to as “arbitrage”, ‘cash back arbitrage’, interest arbitrage and/or ‘churning’), offers to share commission (s) or bonuses directly or indirectly with traders, and any other unauthorized use of any third party accounts, copyrights or trademarks;
— Vonway Forex,
https://vonwayforex.com/wp-content/uploads/2024/11/Client-Agreement.pdf
Is Forex Scalping legal?
Yes. Forex Scalping is a fully legal trading method/strategy.
Even though some Forex brokers would prohibit scalping practices on their platforms, it does not make scalping techniques illegal.
In the worst case scenario, when found scalping and it was against Broker's ToS rules, your trades will be nullified. Repetitive abuse will result in account being closed.
When Forex Scalping is allowed?
Scalping is allowed with all true ECN and DMA Forex brokers, and most No-Dealing Desk brokers in general.Scalping maximises frequency of trading, which benefits Forex brokers who stream all trading order volume to their Liquidity providerss and earn commission and mark-ups on each trade.
When Forex Scalping is prohibited?
Scalping is often prohibited with Forex brokers who run Dealing Desks.Due to the nature of the Dealing Desk execution (Over-The-Counter trading), where the broker is a direct counterparty to Clients' trades, there is often limited time left for the Dealing Desk to manage scalping orders in order to adequately profit from them.
Scalping with Forex Brokers "Yes" or "No"?
Scalping is one of the great trading phenomenons that Forex traders will sooner or later discover while trading.Many experienced Forex traders start by asking their brokers directly: “Do you allow scalping?”.
Oftentimes, the answer will be instant and clear: "Yes" or "No".
On the other hand, brokers who allow scalping, are likely to tell about it loud and clear on their website: “All trading strategies allowed, scalping included”.
While other brokers may allow it with certain restrictions, and/or allow it, but won't encourage it, and thus won't mention it widely.
Having said that, let's examine closely: What is scalping? Which brokers allow scalping? And how to find brokers that allow scalping?
What is Scalping?
In Forex trading, scalping means using a traiding strategy that aims to profit from small price movements. This is done by opening a lot of small quick trades (in a short period or time, usually under 60 seconds), thus taking advantage of small changes in price.For a trade to be considered as a scalping, the duration of the trade must be very short, but how short exactly? The exact time varies depending on which Forex broker you ask. For some Forex Brokers, scalping constitutes frequent trades that last under 60 seconds. For other brokers this interval is even longer — under 2 minutes. These statements can often be found in the Client Agreement or under the Terms of Service.
In any case, for those wanting to be on the safe side & away from scalping triggers, placing trades that last 5+ minutes is advised.
Additionally, one should keep in mind that sclaping triggers go up upon excessive trading activity — means, opening a large number of small trades.
Thus, if a trader made only a few trades under 2 minutes, but the general pattern of his/her trading is normal (e.g. most trades last over 5 minutes), this is not going to rise a flag in the eyes of a Forex broker, who rather looks for obvious policy violators.
Why some Forex Brokers don't like Scalpers?
The answer is simple: small profits that scalpers make tend to accumulate fast.Oftentimes, brokers are unable (don't have enought time) to effectively hedge their risk exposure, which means they keep losing to a successful scalper.
...to be continued
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