Which broker limits scalping?

Scalping is a very aggressive trading style that involves simultaneously opening a significant number of orders with minimal expiration dates. That is, the duration of the transaction is a matter of minutes, and sometimes tens of seconds.

As a rule, fans of scalping invest serious sums in trading; in addition, due to the significant cash flow in their accounts, they bring enormous profits to the broker.

However, brokerage houses are increasingly blocking the trading deposits of scalpers, despite the fact that traders working using this method bring good dividends.

Naturally, such a combination of circumstances raises a completely logical question: why do brokers not want to cooperate with scalpers?

The main reasons for the ban on scalping

We have already noted earlier that scalpers are capable of bringing about $100 to their broker, and this is only for one transaction, but at the same time, they cause significant harm to the functionality of the trading platform. Understand that the simultaneous opening of several dozen transactions is somewhat reminiscent of a DOS attack on a website; of course, brokerage servers are not always able to withstand such a load, as a result, they fail for an indefinite period and trading is suspended.

As you understand, pauses of this kind are extremely unprofitable for all market participants, so brokers, by prohibiting scalping, first of all, insure themselves against unforeseen situations.

How do brokers combat scalping?

In order to protect themselves from cooperation with scalpers, many brokerage organizations are taking various measures to limit the basic principles of trading using this technique. Let's look at the most popular means of protection against aggressive traders using specific examples.

1. InstaForex is one of the most popular brokerage houses; for a long period of time it has been providing a whole range of services to ensure comfortable trading.

If we talk about this broker in the context of limiting scalping, it should be noted that the company’s management decided to introduce a clause in the set of rules of the user agreement on the minimum duration of a transaction - 5 minutes. Thus, the organization’s employees insured themselves from cooperation with traders who are accustomed to trading with minimal expiration dates.

2. Amarkets - they are limited, but as loyal as possible, transactions shorter than 2 minutes are not counted, there are no other restrictions, in general, scalping is encouraged.

3. FreshForex - I myself would not recommend it for scalping, because according to the terms of the contract, if you drive your account into the minus, you will still owe the company, and situations can be different.

Limit on the number of transactions per trading session

Not all brokers follow the same path; in this case, we are talking about introducing time restrictions on the minimum duration of a transaction. Some companies introduce a kind of quantitative qualification of transactions per trading session, that is, you can make a limited number of transactions.

As you understand, these types of provisions completely eliminate the possibility of scalping. But usually this is at least a couple of dozen orders, so this limitation can rather be attributed to pipsing .

Thus, in order not to get caught and ultimately lose your trading deposit, carefully study the user agreement before you start working with a broker. You can also immediately select a company from the list of brokers for scalping http://time-forex.com/brokery-dly-skalpinga