They don’t like it because they have difficulty laying off those positions into the market.
The odd small sized (less than the normal market size) trade here & there won’t particularly bother them, but if they begin to experience quite a large portion of regualar ‘fast timeframe’ activity, then obviously it could begin to impact on their risk & profit model.
Their business models aren’t set up or designed to accommodate this type of trading activity, therefore they actively repel it.
It’s the primary reason they refused to continue to guarantee stops & limits a while back, especially around economic releases. It was simply a license to print money for ‘straddle traders’
Once a retail trader begins to increase their fast timeframe activity (upon a successful model), & most definitely their [B]trade size[/B], the brokers will begin making life difficult.
As to how many pips define scalping? To be honest, it’s more the style of trading rather than the pip count which these retail brokers take umbridge to.
The very fact their spreads are normally larger than 2 pips across most pairs, deems it unrealistic that a retailer will return a profit over the mid to long term. The cost to risk ratio is simply unplayable.
But, generally a trader attempting to snaffle less that 5-10 pips over several round trips per session will certainly alert them to this activity, especially if the majority of these trades are positive in their returns.
And as for trading over news releases?..forget it as a business model over the mid to long term, again particularly if you’re executing via a traditional retail broker.