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Brokers for scalping | Forex brokers that allow scalping




What is scalping?

Scalping - (also known as "snipping", "churning") - is a fast-paced trading style where a trader seeks very small profits (usually 2-5 pips) by repeatedly opening & closing trades, which usually last less than a minute.

Forex brokers that allow scalping with no known restrictions

1lotstp

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Broker discussion area

trader

September 17, 2009

BrokerGuru

September 17, 2009

FIGfx has been added successfully. Thank you.

Erich

September 30, 2009

ad FIGfx: they widen the spread if you are a scalper. you have to tell them at the beginning, but what scalping is for this company it is not clear; Erich, Vienna, Austria

trader

September 30, 2009

http://loyalforex.com/

for scalping they want you to stay in a trade for 5 minutes;

BrokerGuru

September 30, 2009

Thank you, guys!

I've listed them both in non-scalping brokers column, since wide spreads as well as 5 min limits make any good scalping impossible.


trader

October 4, 2009

Hi, I am interested in opening a forex account, but I don't understand why someone would charge a scalping fee since they already make a fee on the spread?

It would seem that the more trading that one would do the more fees a company would make so why would these companies try and limit people from this type of trading, instead of encouraging it, seeing these companies would be making more fees by more transactions?

If more transactions mean more fees: then why not offer a discount to people who trade more?

There appears to be something fishy in these companies way of doing business: can someone please explain this so that I can somehow understand this apparent back-wards reasoning?

The obvious explanation seems to be that these companies are playing against traders and expect you to lose your money to them on over-margining yourself against the swings.

BrokerGuru

October 4, 2009

You're absolutely right in your speculations. A broker should be happy to see a trader trade more frequently, because it would mean more fees charged = more profits to a broker. But things aren't that pretty in reality.

Unless you trade with an ECN broker, you can forget about serious and long lasting scalping with any other brokers. Why?

ECN brokers are the only type of brokers who don't care whether you lose or make money trading Forex. They don't make money on spreads, they make money solely on commissions. So, we can confidently say, that an ECN would rather see you winning all the time, so that you can continue trading and paying commission to them. And, of course, the more trades you take, the more commission you pay = the happier is the ECN broker.

On the other side of the island are market makers - dealing desk brokers. These brokers will lose when you win and win when you lose. Why scalping with a market maker doesn't work? If you lose by scalping Forex, no consequences for you, except for losing own money; but if you are a successful scalper, you are not welcome there, because when you win, a market maker loses, because they trade against you (good scalping is a profitable business, and market makers know it). If you are caught scalping with a market maker, you'll most likely not be able to receive money won by scalping, and your account will either be put on a delayed execution scheme or will be reviewed to quote higher spreads or simply closed (in this case you should receive back your initial deposit, unless you lost a portion of it while trading).

I would be also cautious scalping with an STP broker, since many of them use liquidity partners - banks, who are market makers, there is a possibility that your trading style may not be welcome there as well. Although it depends, and conditions vary from broker to broker.

trader

October 6, 2009

ad figfx.com define scalping like this:
under their conditions they calculate a three-day average of pips; if your scalping method was not successful in the beginning of your trading and the result was equal or less than 5pips you will be asked to change your account style - bad for your spread, because it adds up!

trader

October 6, 2009

GoForex.co.il allow scalping

BrokerGuru

October 7, 2009

thank you for adding brokers.

Regarding GoForex.co.il, what language is it?


saeedreza

October 10, 2009

prime4x not withdraw money i from iran prime4x about 2700 $ not pay back me my account prime 37329 my name saeedreza dolatkhah my password htt7047


trader

October 13, 2009

BrokerGuru, GoForex.co.il is in Hebrew. This is a link to the chat where you can chat in English and ask whatever you want:

http://messenger.providesupport.com/messenger/goforex.html



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