Brokerage firms don’t like scalpers!

Most Brokerage firms don’t like scalpers, What they want is a trader who trades long term or is a position trader so that they are able to clear the transactions in the interbank market without risk.

Brokers are making money trading against their clients through their dealing desks.
It is still legal in the forex market that brokers trade against their clients! This will not affect regular traders that stay in a trade for hours or days. Brokers will not hesitate to close scalper’s accounts if they are successful scalpers.
Scalpers use all sorts of platforms to scalp currencies, but probably one of the most common is MetaTrader 4, MT4 has become the “de facto standard” with many forex day traders.
For MT4 to be used in scalping the forex market without any limitations or restrictions, an ECN- or STP-type feed must be used. Some brokers offer STP execution for extreme forex day trading or scalping.
forex brokers now use computer software to identify which one of their clients is using scalping.
Scalping means losing for forex brokers, if the broker finds that you are a scalper and causing a profit loss, they are going to take action by closing your account.
Banks are now changing by entering the retail market directly. Forex brokers may lose their business while more banks are entering the retail market, but banks are also against scalpers!
Some brokers are easy to deal with and they have lean operations, they have a website and small staff.
They license the Meta Trader Platform to an outside server or outsource the dealing desk.
If your broker does not accept scalpers, look for an ECN Brokers
Forex Brokers that allow scalping


Related Blogs