So your trading style conflicts with the way
the Broker would like you to trade. You trade too often, you do not hold the
trade long enough. If a Broker who has Dealing Desk and is trading against you,
one whiff that you know what your doing and are profitable won't sit well with
the less reputable. They want the easy meat in this Forex Safari, better all
round if you move on. Scalpers are indisputably the least favorite
clients for Forex brokers, where brokers hedges against their clients. Forex
brokers have already seen the dangers of a successful scalping, where traders
were able to create thousands of dollars out of $50-$100 in starting capital in
just several weeks. Mind-blowing for us, mere traders, and a nightmare for a
dealing desk broker! I should add that only real ECN brokers are immune from
scalping dangers, because ECN brokers don’t trade against their clients, they
send your deals to the real interbank marketplace. The rest of the brokers,
trust me, take every precaution to ensure they’re protected from scalping
disasters: they evaluate clients’ trades, check how long clients hold positions
open, how frequently they trade, how successful they are with the short term
trades, whether they use any expert advisors and so on. Forex brokers, who will
not tolerate scalpers, mention scalping rules and restrictions in their Terms
& Conditions, which traders rarely read, by the way, when opening trading
accounts. Under such scalping restrictions, brokers can charge penalties and
commissions to those traders who fall under the scalping category.
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