OK so your website claims you allow scalpers.
Can you define what you mean by scalping ? … what is the time frame (approx) that you consider someone a scalper. Do you allow people to trade for less then 1 minute ? Im talking about scalping with your Spread Betting account for UK customers
Dan
Hi Dan,
Brokers typically define scalping as holding a trade open for a very short period of time such as a couple of minutes or less. FXCM welcomes forex scalping strategies. You can open and close trades in any amount of time, even if you want to close the trade seconds after opening it. If the broker you trade with does not allow scalping, it most likely means you’re trading with a dealing desk broker (your broker is acting as the market maker).
Scalping is not allowed on most dealing desk platforms because the broker is often holding the other side of the trades. Scalpers create an abnormal amount of transactions, which typically come too fast for a dealing desk to properly manage the risk. In addition, profitable scalpers compound the issue for dealing desk brokers as the dealing desk can wind up holding several losing positions after the scalper has already exited the trade. This is why scalpers can experience re-quotes when scalping with a dealing desk broker. The dealer has to ensure they can manage your trade without sustaining a loss.
In contrast, when placing a trade through FXCM’s No Dealing Desk forex execution, the trade is executed back to back with one of multiple liquidity provider on the platform. FXCM takes a commission in the form of a pip mark-up to the quoted price, and this markup applies regardless of whether your trade made or lost money. So FXCM is compensated by commissions rather than managing the other side of client positions. This is why we welcome scalpers. If you open the trade and close it seconds later, we’ve earned the commission regardless of the profit or loss on your trade.
-Jason
hi
you have account ecn for the scalp