I am about to finish the FX School and just one question: Why most brokers “discourage” (as it is said) Scalp Style?
In the time when I subscribed with my broker, my account manager dropped a hint about not to exit too early from a deal, but as I was more beginner than nowadays, I didn’t ask why and now I prefer do it first here, celebrating my first thread , and accepting I am this type of trader due the nature of my job.
The reason some brokers discourage it is not because of actual scalping, it’s because of people trading the lag between two different price feeds. If you open two accounts with two different brokers you’ll notice that often one broker’s prices move a split second faster than the others. Some people take advantage of this to make money, and brokers don’t like that.
It’s hard for brokers to tell the difference between this and legitimate scalping, so some of them discourage it.
Also, just because you have a job does not mean you can’t trade longer time frames. It’s a common myth in the forex world that high time frames take longer to trade than low time frames. That’s actually the exact opposite.
Take a look in the “Free Forex Trading Systems” section and you’ll find a number of 4 hour and daily trading methods that only take a few minutes per day, or week!
Depends on if its a bucket shop or not, if your trading dma and been charged a commission they dont care, they make more money from you.
If you trade with a forex broker that only hedges large orders and you place large orders but have a scalping strategy it is difficult for them to hedge and they lose out.