Hi all! I’ve been bouncing between platforms, Forex.com , CSMFX.com and CSFX.com. Thus far, I like Forex.com. They have great service etc. BTW, I’m working on demo practice accounts. Anyway, I spoke with a rep from CSMFX.com today regarding my style of trade. I explained to him I am content with between a 2 and a 3% weekly return. I’m pretty big into scalping and would certainly prefer picking up 1 or 2 pips for now.(I plan on doing micro lots He mentioned they have a 5 pip limit. Has anyone heard of this?
Do we have any other scalpers in the house? I’m working off of fundamental analysis and MACD, what else are tell tail sings for a quick few pips?
In most brokers there is a limit to how close you can set a Stoploss or TakeProfit. It is simply a practical limitation as neither you nor the broker can be sure what your fill is going to be like or what the spread may be at the instant that the trade executes…could you enter a trade with a 1 pip stoploss or takeprofit…what about 0.5 pips, etc so there has to be a standard Unfortunately this is just a reality of trading the FX market.
You may want to check if this is what he is talking about.
Despite this restriction, you can still close a trade any time you like. It just means you cannot use server side stops to do your scalping.
You need to ask the broker if they have a policy on scalping specifically and how they define scalping. Some brokers will tell you that they require you to be in a trade for at least 90 seconds, or possibly they will say if more than 25% of your trades have a profit in pips that is less than the spread for the currency pair you are scalping.
Some of these brokers will then apply extra charges to your future trades if they classify you as a scalper.
I should also say, if the broker has a definition for what they consider to be scalping, you best steer away from them as they will certainly have a way of dealing with scalpers.
I suggest you consider an ECN broker for scalping, so forex.com is not your answer…I am not familiar with the other 2 brokers so I won’t comment on them.