Scalping and broker

This is a discussion on Scalping and broker within the Brokerages forums, part of the Commercial category; Can anyone suggest in particularly the senior why scalping donít allow by and large trading brokers in their platform?...

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Old Nov 3, 2017, 11:18am   #1
Joined Apr 2017
Scalping and broker

Can anyone suggest in particularly the senior why scalping donít allow by and large trading brokers in their platform?
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Old Dec 8, 2017, 11:35pm   #2
Joined Oct 2015
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Originally Posted by Peter Borren View Post
Can anyone suggest in particularly the senior why scalping don’t allow by and large trading brokers in their platform?
Assuming you mean: Can anyone suggest the reason why scalping generally isn't allowed by trading brokers on their platform?

I am also interested to know from anyone who knows for sure.. (i don't)

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Old Feb 3, 2018, 12:13am   #3
Joined Jun 2005
errr, like what are you trading?

if your trading against a market like stocks, futures, options (i.e. on a regulated excahnge) then no broker will stop you as he earns a commission each time and takes no risk on your order.

if you are 'trading' otc like retail fx, spread betting, cfd's etc then you are trading against the broker for no commission - so he's taking risk on your trade - hes the other side. thats why.
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Thanks! The following members like this post: Kaeso
Old Feb 3, 2018, 3:17am   #4
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Originally Posted by Peter Borren View Post
Can anyone suggest in particularly the senior why scalping donít allow by and large trading brokers in their platform?
You first need to explain the meaning of scalping by your definition.
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Old Feb 3, 2018, 10:28am   #5
 
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I am not aware of any broker on stocks/futures that prevents scalping BUT

- you do need $25k in your account to scalp stocks
- bucket shops.... I mean Forex Brokerages might make very short term trading hard for you, especially if you are successful. They'd need to lay off your trades and with the short time frames, they'd never be able to.
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Old Feb 3, 2018, 5:55pm   #6
Joined Feb 2002
UK-based FCA-regulated spreadbetting firms don't trade against their clients to make their profits, they make these from spreads and in some cases overnight charges.

The firms may restrict very frequent day-trading activities because these can make it difficult (read "expensive"?) for them to adequately hedge the very short-term risk.

Either way, spreadbetting is a costly way to do frequent day-trading and unlikely to be successful. Use SB for longer-term stuff and you'll do fine.
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