Seems like finding a good broker is a constant battle for every trader.
Yeah if the spreads are high then you will lose money in the trade itself. And due to the low profit margins after so many trades, you won’t get anything substantial in hand.
No, I don’t think regulated brokers do that. If you’re trading with a reliable platform that has suitable trading conditions and has some reputation, you won’t have to face something like this. For scalping, it is very important that you have a good knowledge of when to enter and exit the market. The profits are small but I think they are worth it. I have tried scalping and I’ve used CMC Markets, Fxview, etc as my brokers. With lower spread brokers scalping can be profitable.
Unless it’s highly profitable scalping, they shouldn’t be interested in your style or trading approach. If you try to exploit their platform via latency arbitrage, some inefficiency or gain some non-market advantage the chance they will create constraints is higher.
Scalping is a very tedious process with lots of room for errors. People generally only see the low capitals but not see the pressure involved in this strategy. Automated trading is a great way to actually get relieved from this stress.
I totally agree with you, EAs can take a lot of pressure off you, especially in scalping. I was using XTB broker and MT4 platform to write my scripts but then I switched to MT5 platform when I transferred funds to fxview. The real pain is that both the languages are not compatible with each other.
I suppose this is outside the purview of retail traders then
@Morrisanathoy True! For a long time this has been my main reason for not having shifted to the MT5 platform.
The only reason some brokers don’t allow scalping is that the servers can’t handle the bulk volume of trades that are a part of scalping.
Is it? I actually don’t know any broker that has issues with scalping, and I have used a lot of them.
Also hedging gets tough on the broker’s end. From traders’ perspective, I don’t really wanna get started on the problems that come with such fast entries and exits.
Even i feel the same. Hearing this thing for the first time.
If you use a reliable ECN broker, preferably regulated, with interbank spreads being very narrow, and tie ups with liquidity providers, there is no issue with this trading strategy. The only disadvantage of scalping that I see is the high intensity pressure. And it goes without saying that most brokers nowadays are fully digitized and don’t use outdated softwares which will crash because of scalping.
What about latency problems?
I have been trading by using this method where I trade 1 minute and 5 minute charts on MT4 on fxview, xm and icm. And till date, I have not faced issues of any requote. My order gets placed at the same price at which I place the order. The trading strategy you use has nothing to do with orders and fills. It’s the platform you use.
It can even be connection issues at the user’s end. Not many people would admit that.
Scalping in itself is never an issue. It just requires expert skills which come with experience.
But won’t you agree if the broker trading conditions happen to be good, then the scalping would have been better?
A moving average graph works swell for scalping. It is the most reliable indicator for identifying quick price movements.
I agree…