Day Trading & Forex Forum

DeadMoney

I have read this comment several times...

I am just trying to figure this out, why would forex brokers care how you trade?

Elefteros

Depends on if its a bucket shop or not, if your trading dma and been charged a commission they dont care, they make more money from you.

If you trade with a forex broker that only hedges large orders and you place large orders but have a scalping strategy it is difficult for them to hedge and they lose out.

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That's fine, for I shall show that it isn't positions which lend men distinction, but men who enhance positions.

DeadMoney

ok, right I didn't think about them trying to hedge their orders, scalping would make that much more difficult.

jack4u

It puts a lot of stress on their servers..............

oildaytrader

Brokers are scalpers ,scalpers screw brokers .brokers don't like being screwed.

Scalper is competitor of broker ,and drying up liquidity in bucket shop especially when liquidity providers have wide spreads in low liquidity sessions

Brokers hate scalpers , hence many platforms like FXCM AND odl will not allow pending limit orders within <8 pips of price.On real accounts scalping prohibited, by virtue of NO PENDING LIMIT ORDERS WITHIN 8 PIPS OF PRICE.

How is broker going to operate ,if no liquidity at low spreads fixed by broker?

O D T

Jason Rogers

Brokers running a dealing desk will not put restrictions on scalping strategies.

FXCM does not have restrictions on entry orders or scalping strategies since the platform uses no dealing desk execution. You can put a pending order as close to the market price as you want.

trs1

if you are with a proper broker you will be able to trade as many times as you please, when i say proper broker i dont mean a spread betting company i refer to a futures broker who is not going to be taking the other side of your trades !