No wonder these brokers do not allow scalping. My broker tells me I can’t close a deal in less than 60seconds, it has to be 1 minute and above. If I close a deal in 1 minute 2 seconds every time, could this be regarded as scalping?
As for scalping, I think that on ECN, if you trade a large amount of money, they do transfer it to the interbank, cause it may be profitable for them either. Though, there may be slippages and worsening of performance (transferring takes some time)
Interesting facts you’ve written!! However, not all brokers worry about scalpers.
I’m thinking of starting with $500. Not really for profit but to get a feel of how everything works. Then I plan to gradually increase the amount.
That is the best thing to do. $500 is a low capital, but it can be carefully managed get a good amount of return per month. I have managed to keep a fix 50 usd per week from a low capital like this. Just make sure you trade on a platform that does kill your profits with slippages and high commissions. Some traders don’t care about this because they have huge capital to cope with the pressure.
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That would be a good idea. Don’t forget to use a Micro or nano account, else your feel of the market will only last a few days. Go for 0.01 micro lots on each trade and you will be able to get more experience using a live account. You may even end of making some money 
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To the contrary, actually. A much much larger account will likely attract an increase in slippage ‘costs’ due to the size of an order and the liquidity of the market at that point in time - a problem that you would never face with a much much small account balance.
Commission is also relative, the larger the trade the larger the commission paid - in most cases directly proportionate to what you would pay with a much much smaller account balance (the only exception here is commission tiers / rebates)
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This is exactly right, and is one of the reasons why you so often see threads in trading forums where people are bemoaning their luck because something that worked well on a nano-account or micro-account promptly turned into a loser when tried on a fully funded account.
The more frequently the method enters trades, and the quicker the time frame, the greater the relative effect of the problems RISKonFX mentions.
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It’s quite possible to start trading successfully with a smaller sum than 550 bucks. Another question is that the earnings won’t be so big if you follow the money management rules.
Good observation! I would suggest profit compounding for such a small capital. Or one can increase capital as time goes on and still retain the use of a Micro account. When you trade micro lots, it would be less noticeable and brokers might not come after your trades. Just saying…
Do you think this guy has even noticed that he’s made three different, equally pointless, no-value replies to the same question, over a 9-month period? Or maybe he’s hoping to win something for the “treble”?!
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Still, what is the best strategy for short term trading besides Scalping. Something a little bit more hands on and would not pose any problem with my broker.
Just for fun, with money you can afford to part with -
Buy EUR/USD at the open if the 50EMA is sloping upwards. Exit at the close. Set a stop at the previous day’s low. Adjust position size to 10% of your capital.
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No one risk money for fun. I mean a real strategy where there is a high percentage of success.
$500 is enough amount to start forex business. One can make good profit out of it. With his capital it is not necessary we always use standard lot , high leverage or multiple earning . Use this amount in a planned manner take less leverage proper lot with management techniques then growing your capital will be possible.
According to me, there is no amount which is suitable for starting Forex trading even if it is $5000. It can be vanished within very short time if there is no trading plan and risk management. For that reason before starting trading it is important to make certain some inevitable part of trading as like minimum completing preschool + demo account experience at least 3 month. Otherwise it could be dangerous despite of having grand capital.
Well, if you are an experienced trader, a nominal amount of even a $100, would be enough earn from the Forex Market, but if you are just an amateur, then you would be needing quite a lot of money to have a hold on the Forex Market, but never give up as you could learn and become a well-trained trader.
Sorry I missed this post, For your 411 the big S just won the prestigious Dewy, Cheatum, and How award from the King Umballa Balla, school of finance in Nigeria. So I think you should retract your post.
The Ever Rightious VIPER
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Experienced trader can earn profit by means of minor trading balance, its true. But why you don’t think an armature trader also able to increase his balance gradually just if he passed some inevitable parts of trading with controlling emotions. With experienced traders beginners also can lead a healthy trading life according to his balance if he could maintain his trading discipline with stopping revenge trading. because newcomers attacked maximum time by revenge trading.
Yeah, the experience trader got quite a nice strategies and they do keep changing it, as if they don’t they won’t be able maximize their profits. Forex Trading would be the best option, but you need to figure it out about how you gonna do that.