Is high frequency trading illegal?

Trading Discussion
1

i use high frequency trading strategy but i’m afraid that broker will ban my account. please help me

2

This will depend from broker to broker and suggest calling their support line for clarification.

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3

i’m affraid to tell them that i use that kind of strategy so they can know i do high frequency trading

4

I’m honestly not too familiar with the implications of high frequency trading.

5

Then why are you replying to the thread, Aleksoosh? Don’t you think responses from people who are familiar with it would help Floca more? :face_with_hand_over_mouth:

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6

Great point, hope you keep up the great input.

7

This is a community, and we should support one another. All opinions and ideas are welcome.

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8

No, high frequency trading isn’t illegal.

It may occasionally be contrary to a broker’s terms of service, but that’s a very different question.

Much more often, brokers don’t specify that they disallow it, but they disallow it in practice anyway.

It’s not too difficult to see why: spot forex and CFD traders who do this are actually trying (often unknowingly) to scalp the broker rather than the market - even if it calls itself an “STP” or “ECN” broker (in those cases, one’s scalping the liquidity provider instead of the broker, but that’s very similar in principle, and quite often the brokerage actually owns the liquidity provider without revealing this to the clients, as well!)

That said, there are also a few brokers that allow and wecome HFTs, because experience has taught them that the proportion of spot/CFD traders who are actually successful with it, over the long term, is very tiny.

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