Scalping Forex Brokers

Forex Brokers that Allow Scalping

Scalping refers to a style of forex trading in which traders open and close trade positions within a space of a few seconds or minutes. While many traders would like to adopt this strategy so that their little drops of water can be combined over time to make a mighty ocean, many brokers frown at this practice. Many people would wonder why. It has to do with the manner in which certain forex brokers operate in the market.

 

List of Forex Brokers that Allow Scalpers 2017:

The following brokers allow scalping in 2014. For more information about the account details and trading conditions please click on the review link below.

1
Min. Deposit
$10
Exclusive promotion
Our score
10
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Start Trading
Description:
LonghornFX is a true ECN STP broker dedicated to delivering a superior trading experience to traders no matter their level of experience. Their services are based on transparency, innovation and efficiency, ensuring an unparalleled trading experience for all.
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
0% Commission Account
Low Spreads
Eco-Account Option
Start Trading
Description:
CedarFX is an eco-conscious broker offering 0% commission trading on 170+ assets, including Forex, Cryptocurrency Pairs, Stocks, Indices and Commodities. With up to 1:500 leverage, no-fee transactions and low spreads, traders can make the most of their funds. CedarFX also offers an Eco Account option to support tree planting and sustainability projects.
Payment Methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
3
Min. Deposit
$10
Exclusive promotion
Our score
8.7
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Start Trading
Description:
EagleFX is an online digital asset, Forex and CFD broker providing traders across the globe with cutting edge technology to trade the world’s markets. Our focus has been to change the way people trade Digital Assets and Forex. We are driven to provide traders with incredibly low-cost pricing across all Digital assets, FX, stocks, indices, commodities and futures along with industry-leading 24/7 live customer support.
Payment Methods
Credit Card, Debit Card, Bitcoin, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
4
Min. Deposit
$200
Exclusive promotion
Our score
8.5
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Start Trading
Description:
BlackBull Markets is a top-tier, award-winning, and financially registered forex broker with a globally trusted presence. Operating since 2014, BlackBull Markets is now the fastest growing financial services business in New Zealand. We were founded with the goal of becoming the leading online Financial Technology and Foreign Exchange broker. BlackBull Markets is a true ECN, No Dealing Desk brokerage specializing in Forex, CFDs, Commodities, Fibre Optic Communications and Fintech solutions for a global clientele.
Payment Methods
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand

Why do some Brokers not Allow Scalpers?

There are brokers that provide their traders with platforms that allow direct market access, which allows the orders placed by traders to go directly from the platforms to the liquidity providers, without passing through the broker’s dealing desk. These brokers also charge a commission in addition to the variable spreads that traders will pay for when they execute orders. These brokers take in traders with large account capital, so they make a good amount of money on the trades of their clients. These brokers restrict their earnings simply to the spreads and commissions.

On the other hand, brokers who perform market making activity frequently take up counter positions to the trades of their clients. There is nothing illegal in this, since it is an integral part of market making. These brokers purchase large chunks of positions on the buy and sell side of the market, splinter these positions according to the miniature size of their clients’ accounts, and so end up selling these positions to buyers, or buying these positions from sellers. This puts them in counter-positions to their traders’ orders. These brokers do not charge a commission, so they can only profit from spreads and from the full amount of losses incurred by their clients. Obviously, a situation in which trades are opened and closed within seconds will not be a profitable one for such brokers. This is why you are more likely to see brokers in this category ban their traders from scalping.

However, many retail brokers would never accept the reasons stated above. Here are some of the common reasons given by brokers for rejecting scalpers:

a)    It may become problematic for liquidity providers to fulfill orders.

b)    It is difficult to cover such positions in the market.

c)     Scalpers unfairly exploit internet latency to their advantage

d)    When there is a price feed lag, scalpers can gain massively by jumping in and out of positions.

These are some reasons that brokers give for not allowing scalpers on their platforms. Whatever the reason, the real truth is that scalpers get in and out so quickly that there is not enough time for a truly bad trade to turn into stupendous profit for the wily brokers.

Some brokers maintain both market maker and ECN – style brokerage services. So you may see some brokers that cut off scalpers from their retail trading brokerage operations, but allow traders to scalp on their ECN platforms.

 

How to Recognize Brokers for Scalping

a)    One of the best ways of recognizing a broker which permits scalping is to actually see if they do…with a small account of course. Simply open a micro account and place a very small amount of money in it, and attempt to scalp. If you are able to do so without issues, then the broker permits scalping. Those brokers who don’t will contact you and tell you to stop. Some don’t give any notice and will close your account without a refund. Of course, the money lost would be quite small and won’t make much of a difference.

forex scalping

b)    Try contacting the customer service desk of the broker in question and ask them straight up if they permit scalping. Many of them will tell you the true situation of things.

c)     Try scouring online review sites to see what other traders are saying about this. Usually, you will stumble on some reviews that will tell a story about the experience of scalpers on specific platforms.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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