Capital market services (CMS)...Good for scalping??

[Rossini]

I have had a demo account with these people for a while now, to try out a new scalping method I want to use. The fills are very good, but then they would be as there is no money being traded!!!

Today for example I have done 45 trades, yesterday was more like 65. I know they are a market maker but how good will they be with real money? I can hold a trade from as little as 20sec, up to about 10min, in very fast and volitile pairs.

I know Direct acess like trade station would be better but I find it hard when the spread increaces and I am already in a posision. CMS has a fixed spread and I like that as I know where I am.

Will any market maker act like IG index and dealer fill me when I up my size and start taking larger ammounts off them?

Many thanks for your help.

 

[Alibubble]

Sorry if this is a noob question, but what exactly is scalping?

I have heard this term used a couple times but I still have no idea what it means...

 

[Rossini]

Sorry if this is a noob question, but what exactly is scalping?

I have heard this term used a couple times but I still have no idea what it means...

Scalping refers to the time of the trade, scalpers get in and out quickly take a few pips and market makers dont like them.

If anyone can help answer my question I would be greatfull.

 

[UKtradergirl]

any company that is not direct access is likely to try to impede your progress if you start scalping in bigger sizes. Trading like you are you are probably better off taking the risks with direct access, or keeping your position sizes small. Try spreading yourself about between several different companies too so all your trading is not concentrated in one point- might give you a bit more time before they try to switch you off. These companies are in it to make money, and the times when the direct access spread widens, but you still trade from a narrow spread, is taking money out of their pockets (assuming they even hedge direclty, which they don't!).

 

[anley]

scalping = a sure way to lose money, but slowly. The mind is generally tricked because the losses are always small so the trader doesn't really notice the damage in the short term.

Always exceptions to the rule but unless you have ULTRA cheap commissions then the deck is stacked too far against you as the cost of doing business will eat your money up.

The ONLY way to make money as a scalper overtime and 'overtime' is the key word is to go work in one of the arcades.

 

[Rossini]

Would the arcades give me an advantage? Is it so much cheaper to trade in one?

 

[UKtradergirl]

can't you just scale up your scalping strategy to longer term time frames? most of the methods i use to trade are very scalable to whatever time frame.

 

[Rossini]

thats an option, but I havent look long and hard at this jet.

The thing is direct in the market the normal spread is about 15ish. I can get a fixed spread of 8 from a market maker but as you say that will mean I am taking money straight out of their pocket!

I spoke to Saxo bank yesterday, if I play large they can offer a core spread (they dont add anything on) and that workes out around 4-7pips. Problem is they need a volume per month of 250 million. I dont have enough money in the account to justfy the risk.

 

[everyonerich]

atcbrokers seems good for scalping, but i have not use them. they are ECN based, its MT4 based as well

 

[Wolffx]

I think for scalping you need to use ODLs currenex or Hotspot. for smaller acounts MB trading and Varengold with Mt4.