Why Brokers don't want you to scalp?

[DeadMoney]

I have read this comment several times...

They will certainly discourage you from "scalping" but many other brokers do the same thing as well..

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

 

[Vaco]

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.

 

[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 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

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 !