Good Home for a Forex Scalper?

[5umBloke]

Hi peeps,

Looking for some advice on SB brokers for a specific forex strategy.

I used to work in the market (LSE) back in the late eighties, traded options, bonds and stocks for private and institutional clients. Also worked in M&A. I'm therefore reasonably savvy but I split from the market after not many years and went washing dishes and working in ski resorts, travelling and general fun, etc.

For reasons I won't bore ya with I've ended up physically disabled and don't have oodles of cash, despite my promising career start but I do have a grand spare to party in the spread betting market with (and too much time on my hands).

For two weeks I've been practicing a trading regime on the DFMarkets dummy account - I trade about five times a day using no more than 50% of the margin I'll be funding whatever account I might open.

I'm usually in and out of the market in 5 -15 minutes on each trade and making reliable daily profits I'm happy with. Occasionally I'll let a trade run longer but I'm ruthless about cutting losses.

I've decided to take the plunge and go live with this strategy but reading this thread am wondering about which SB company to go with as, from some comments herein, it seems I'd be classed as scalping and not welcomed at every door. Trying to research firms on the net seems like wading through treacle for some reason.

The DFMarkets platform has been working for me - I've yet to wade through their full T&C's to check if my trading would be acceptable to them and I've found it hard to find recent reviews/recommendations for them.

I've also looked at Alpari who offer SB accounts trading on MT4 - look OK but again need to read/wade through the full T&C's.

Does anyone have any comment on either of the above brokers please? Or, any specific recommendations of SB brokers who will not object to the kinds of trading described above?

Any helps and advice gratefully received.

 

[NVP]

plenty of threads/ comments comments around T2Win on brokers 5.............and some broker reps as well

also why not phone up the ones you like and greill them ............also try to negociate down the spreads and anything else you want .......

good luck
N

 

[postman]

Hi peeps,

Looking for some advice on SB brokers for a specific forex strategy.
...

I'm usually in and out of the market in 5 -15 minutes on each trade and making reliable daily profits I'm happy with. Occasionally I'll let a trade run longer but I'm ruthless about cutting losses.

I've decided to take the plunge and go live with this strategy but reading this thread am wondering about which SB company to go with as, from some comments herein, it seems I'd be classed as scalping and not welcomed at every door. Trying to research firms on the net seems like wading through treacle for some reason.

...

Does anyone have any comment on either of the above brokers please? Or, any specific recommendations of SB brokers who will not object to the kinds of trading described above?

Any helps and advice gratefully received.

Some people claim SB's have T's and C's to disallow scalping but I've never seen any, just crack on.
If anyone posts on here that they do, you would think they would post a link to it otherwise its a 'heard it down the pub' comment.

 

[5umBloke]

Thanks NVP - having found some dire forums and blatant advertorial sites I've now realised this one's a bit of a gem and I'm digging through the archives.

postman - thanks also. The comments in this thread rather put me off as it seems people had bad experiences. Also I've read on the forum that IG don't like scalpers. Would you put this down to sour grapes?

 

[Splitlink]

Some people claim SB's have T's and C's to disallow scalping but I've never seen any, just crack on.
If anyone posts on here that they do, you would think they would post a link to it otherwise its a 'heard it down the pub' comment.

I have heard that it is not wise to use the SB firms own charting service, so it might be a good idea to have another source for comparison.

I am not an advocate for full time trading, so many lose their shirt. We, all, think that we are the exception to the rule and, who knows?

I trade as a pastime. Not very good, just good enough to keep up my interest. Perhaps that is the reason for my doubtful attitude on going fulltime.

 

[postman]

I have heard that it is not wise to use the SB firms own charting service, so it might be a good idea to have another source for comparison.

....

I'm curious to know which 'Bar' you heard that in?
Did the other chap give a reason for this when he said it?

 

[Splitlink]

I'm curious to know which 'Bar' you heard that in?
Did the other chap give a reason for this when he said it?

I think that it was Aag. An opinion, but a valid one considering the effort and sincerity that he puts into his thread-

Forex trading is easier to keep a check on than index trading. I have checked Forex, myself, and don't find any difference between prices--at least. for my purposes.
However, a full time trader must check out all ideas, for and against and better before. than after.

 

[SuddenDeath]

I think that it was Aag. An opinion, but a valid one considering the effort and sincerity that he puts into his thread-

Forex trading is easier to keep a check on than index trading. I have checked Forex, myself, and don't find any difference between prices--at least. for my purposes.
However, a full time trader must check out all ideas, for and against and better before. than after.

Hi Splitlink

what is "aag" ?

thanks

 

[5umBloke]

Thanks for all the feedback guys. Have found numerous claims of people being put on dealers or spreads widening.

Alpari have a spread of 2.6 which is pretty hefty but they make no markets and everything is hedged. Customer service seems good so far. Going to keep looking around.

 

[Stargunner]

MT4 and Alpari - No frills, but good customer service and allow scalping.

Only reason I no longer trade with them is because my strategies have changed to purely individual stocks and indices.

 

[Sonicscooter]

Some people claim SB's have T's and C's to disallow scalping but I've never seen any, just crack on.
If anyone posts on here that they do, you would think they would post a link to it otherwise its a 'heard it down the pub' comment.

I agree, after several chats regarding this, the answers where the same, ie do whatever you like on the online platform, but don't try it on if calling the dealing desk...........not sure how you would use the dealing desk if scalping though.....:?:

 

[Splitlink]

Hi Splitlink

what is "aag" ?

thanks

Aag100.

 

[Stargunner]

http://www.financial-spread-betting.com/Scalping-spreadbetting.html

 

[Sonicscooter]

Well he contradicts himself, in such a short clip.

 

[postman]

Thats NOT scalping, thats taking advantage of your SB's crappy system.
Scalping can be done on any market including SB's.

Does anyone have a letter or email from their SB saying "We closed your account because your a scalper" :whistling

Please share it with us if you do.

 

[Stargunner]

If you trade 5 min charts, you're fine.
They might stick you on dealer referral if you open and close trades in seconds doing tick data or something. But afaik, that's all they'll do, because that will scupper your strategy.

 

[12WBT]

Thats NOT scalping, thats taking advantage of your SB's crappy system.
Scalping can be done on any market including SB's.

Does anyone have a letter or email from their SB saying "We closed your account because your a scalper" :whistling

Please share it with us if you do.

Been trying for a few years now.
No joy.

 

[highbury fx]

Some people claim SB's have T's and C's to disallow scalping but I've never seen any, just crack on.
If anyone posts on here that they do, you would think they would post a link to it otherwise its a 'heard it down the pub' comment.

Some people do claim some SB firms have T&C to outline their scalping policy but just because you've never seen them it doesn't mean they don't exist. My comments regarding scalping policies were intended to help the poster understand that SB companies are not going to allow clients who they feel are trading in an unfair style continue to milk them for easy pips. That doesn't mean I agree with them or condone it, it was purely meant to help, just like all my posts are.

I'm not going to presume anything about you but from your comments you say a lot without much basis and in my world that counts for nothing. You may have experience from your perspective but you don't understand that a SB company should be your partner and the better you both get on and appreciate the need for you to both have a fair opportunity to make money from each other the easier ride you as the client will have. Both you and the SB co have choices if you are unhappy with each other, you can close your account without reason and trade elsewhere and the SB firm can close your account without reason also. That's how it is.

I don't need to justify myself to you. I know 100% that I have far more operational experience in this industry than you have or are ever likely to have but I am happy to throw you a bone and point you to at least one major UK S/B firm that does have a scalping policy in their T&C's to show you that not everyone on this forum is talking crap or knows less than you. Take a look here at the ETX conditions, specifically point 11 which they have camouflaged by calling it 'Scalping Policy' lol, its too easy. I'll wait for your next conspiracy theory or reasons why I am wrong and you are right.

http://cdn.monecor.com/ETX-F5/pdf/terms.en.pdf?resourceVersion=47

 

[postman]

Some people do claim some SB firms have T&C to outline their scalping policy but just because you've never seen them it doesn't mean they don't exist.
Yes, thats right its not possible to prove a negative, which is why I suggested someone post a link if theyd seen one. This does not however mean that all other brokers engage in this kind of practice. The SB in question probably has a slow platform which is vulnerable during fast market changes and so rather than fix the problem they put conditions in to protect themselves, stay away from these dodgy types. Check out the reviews on T2W
http://www.trade2win.com/reviews/brokers/218-etx-capital
My comments regarding scalping policies were intended to help the poster understand that SB companies are not going to allow clients who they feel are trading in an unfair style continue to milk them for easy pips. That doesn't mean I agree with them or condone it, it was purely meant to help, just like all my posts are.

I'm not going to presume anything about you but from your comments you say a lot without much basis and in my world that counts for nothing. You may have experience from your perspective but you don't understand that a SB company should be your partner and the better you both get on and appreciate the need for you to both have a fair opportunity to make money from each other the easier ride you as the client will have. Both you and the SB co have choices if you are unhappy with each other, you can close your account without reason and trade elsewhere and the SB firm can close your account without reason also. That's how it is.

I don't need to justify myself to you. I know 100% that I have far more operational experience in this industry than you have or are ever likely to have
I think that counts as presumption.

but I am happy to throw you a bone and point you to at least one major UK S/B firm that does have a scalping policy in their T&C's to show you that not everyone on this forum is talking crap or knows less than you. Take a look here at the ETX conditions, specifically point 11 which they have camouflaged by calling it 'Scalping Policy' lol, its too easy. I'll wait for your next conspiracy theory or reasons why I am wrong and you are right.

http://cdn.monecor.com/ETX-F5/pdf/terms.en.pdf?resourceVersion=47

Thanks for finding the link to a scalping policy, I have learnt something today. My dog appreciates the bone.

 

[highbury fx]

Thanks for finding the link to a scalping policy, I have learnt something today. My dog appreciates the bone.

they all have policies that can protect them under any circumstance and point to a clause that can be interpreted as relevant for their defence of your strategy if they need to. they may not all call it a scalping policy as ETX do but they all have an opinion on scalping and will protect themselves from clients who do it well.

think of it in a common sense way without any bias because its how you make money. If a business makes its money on assuming risk it needs a certain mass of clients to succeed. It will need some clients to have the opposite view of each other so they either directly hedge each other or they trim the exposure of the risk book without the s/b firm needing to hedge in the underlying. S/B firms will analyse their flow and identify profitable clients. They can then manage that client differently (usually by A booking them) and make money not from capturing the loss but from capturing the difference in pips from the clients deal and the s/b firms hedge. This breaks down when a client is a scalper using a very small timeframe. If the client for example sells £20 point EURUSD at 1.3100 the s/b co (if the client is A book) will try and sell the equivalent of £20 EURUSD in to the underlying at somewhere like 1.31002. It may only be a £4 profit but this is a business based on mass and volume and lots of £4's add up. But if before the S/B co has a chance to hedge the client, he buys his £20 EURUSD back at 1.3098. He has in seconds taken £40 off of the s/b co. S/B firms don't mind running risk and losing deals to clients if the client is acting reasonably but they cant stand clients taking money from them without them having any chance to make some back.

secondly, if the client is A book and his scalped trades do give the S/B co enough time to do the hedge they still need to contend with their liquidity providers. Liquidity providers will bear the brunt of the hedged trade and just like the S/B com they don't like not being given an opportunity to run the risk and make some money before the scalper exits his trade. Liquidity partners provide pricing so S/B firms can publish tight prices to tens of thousands of clients to deal in a normal manner without interference from them, they do not want to ruin that by sending toxic trades down the line to corporations they need to support them.

IMO people like you who manage to make some money scalping and stay under the radar are quite special, you are far from normal and those people who try to encourage (or convince) noobs to scalp without any consideration for the purse you're taking the money from is novice and not a business model that will last for long at any one broker.

Most scalpers lose just like most retail clients and the S/B firm wont have a problem with them. This is why policy and t+c's don't always say scalpers not welcome. they cant really put a policy up that says winning scalpers are not welcome but in effect that's what their t+c's will say in some form or another.