Which brokers limit scalping?.

Scalping is a highly aggressive trading style that involves opening a significant number of orders simultaneously with minimal expiration times. This means that trades last only minutes, sometimes tens of seconds.

Typically, scalping enthusiasts invest significant amounts of money into trading, and due to the significant turnover in their accounts, they generate colossal profits for the broker.

However, brokerage firms are increasingly blocking scalpers' trading deposits, despite the fact that traders using this method generate good dividends.

Naturally, this combination of circumstances raises a logical question: why don't brokers want to cooperate with scalpers?

The main reasons for the ban on scalping

We've previously noted that scalpers can earn their broker around $100 in profits from just one trade, but they also significantly disrupt the trading platform's functionality. Keep in mind that opening dozens of trades simultaneously is somewhat reminiscent of a denial-of-service attack on a website. Of course, brokerage servers aren't always capable of withstanding such a load, which can lead to indefinite downtime and trading being suspended.

As you can imagine, pauses of this kind are extremely disadvantageous for all market participants, so brokers, by prohibiting scalping, are primarily protecting themselves from unforeseen situations.

How do brokers combat scalping?

To protect themselves from scalpers, many brokerages take various measures to restrict the fundamental principles of trading using this method. 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 firms, which has been providing a full range of services for comfortable trading for a long time.

Regarding this broker's scalping restrictions, it's worth noting that the company's management decided to introduce a clause in the user agreement requiring a minimum trade duration of 5 minutes. This protected the company's employees from dealing with traders accustomed to trading with minimal expiration times.

2. Amarkets - they have restrictions, but they're extremely lenient. Trades shorter than 2 minutes are not counted. There are no other restrictions, and scalping is generally encouraged.

3. FreshForex - I wouldn't recommend it for scalping, as the contract stipulates that if you run your account into the red, you'll still owe the company, and situations vary.

Limit on the number of transactions per trading session

Not all brokers follow the same approach, in this case, imposing time limits on the minimum duration of a trade. Some companies impose a kind of quantitative limit on trades per trading session, meaning you can only make a limited number of transactions.

As you can imagine, provisions like these completely eliminate the possibility of scalping. However, this typically requires at least a couple dozen orders, so this restriction is more likely to be attributed to scalping .

Therefore, to avoid getting scammed and ultimately losing your trading deposit, carefully read the user agreement before starting a partnership with a broker. You can also choose a company from the list of scalping brokers at http://time-forex.com/brokery-dly-skalpinga