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
Bitcoin, Credit Card, Debit Card, Visa
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
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
Bitcoin, Credit Card, Debit Card, 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.
3
Min. Deposit
-
Exclusive promotion
Our score
8.7
Take a position on major global indices, including US Wall St 30 and France 40
Low spreads and accurate pricing reflecting the underlying market
Comprehensive analysis and new for better decision making
Start Trading
Description:
OANDA is the trusted name for Forex and CFD trading. Since 1997 OANDA has established a reputation for fair and transparent pricing and responsive customer service. Easy account opening process.
Payment Methods
Bank Wire, Check, Credit Card
Full regulations list:
CFTC, FCA, IIROC, MAS, NFA
Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest.
4
Min. Deposit
-
Exclusive promotion
Our score
8.5
Forex Demo Account
Trading accounts in EUR, USD, PLN, CZK, GBP
MT4 and MT5 platforms
Start Trading
Description:
Instaforex provides top-notch services and reliability are recognized by numerous awards and proved by the trust of over 7,000,000 clients. A wide selection of offers and investment solutions can meet the needs of any demanding trader. The safety is supported by the licenses from the CySEC, the SNB, the KNF, and CNB. InstaForex has everything to make your trading experience as positive as possible.
Payment Methods
BPAY, Bank Wire, Bitcoin, Boleto, CartaSi, Carte Bleue, China UnionPay, Credit Card, Dankort, Debit Card, Giropay, Ideal, MoneyGram, POLi, Paxum, PayCo, Przelewy24, Sofort, Trustly, Western Union, ePay bg, ePayments Transfer, neteller, postepay, skrill
Full regulations list:

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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