I have asked Tradersway, as well as FXChoice, by means of chat, if Arbitrage is permitted, and was told that there are absolutely no restrictions for either broker regarding choice of trading style, whether arbitrage, scalping, or high frequency trading (hft).
autofx:
In the case of Traderway, I think they have language that could be interpreted as anti-arbitrage.
From section 9.2 of their client agreement:
âThe Customer acknowledges, understands and agrees that the Company reserves the right to refuse to accept
Iâm looking specifically at the âmistaken (nonmarket) quotationâ part. How is that defined when itâs very rare or even nonexistent that any two brokersâ feeds agree all of the time at any given millisecond?
The broker has complete leeway to let us keep our profits, or not. They may never know, nor should they be allowed to know, the details behind any trading strategy a trader employs. A reasonable trader thinks, hey, why am I not free to look at anything I want to make trading decisions? Answer: we are free to do that but so is the broker free to pay or not pay out your profits (I guess theyâre not profits if youâre not allowed access to them).
Seeking arbitrage opportunities is a perfectly rational approach to making profits. However, since successful implementations of it are so powerful, brokers canât afford to let everyone do it, or even one single arbitrageur for very long. Youâd suck up all the available money.