Spreadbetting firm that allows scalping

J

jonsjon

Junior member
Messages
12
Likes
1
Any brokers that allow scalping or trading news with spreadbetting?

All I hear is that scalpers are rejected by most brokers, and best try is to use an ECN broker. What is an ECN broker and where can I find one? Or rather, where can I find a reliable and thrustworthy ECN broker?

Help is appreciated :)

Also, what can be constituted as scalping? For my trades I scale out alot.. so my firsts are always 5-10 pips only.. and rest are runners. Is that still constitued scalping? Or if you trade price action, trading without scalping is near impossible?!
 
jonsjon said:
Any brokers that allow scalping or trading news with spreadbetting?

All I hear is that scalpers are rejected by most brokers, and best try is to use an ECN broker. What is an ECN broker and where can I find one? Or rather, where can I find a reliable and thrustworthy ECN broker?

Help is appreciated :)

Also, what can be constituted as scalping? For my trades I scale out alot.. so my firsts are always 5-10 pips only.. and rest are runners. Is that still constitued scalping? Or if you trade price action, trading without scalping is near impossible?!
Click to expand...

what do you sell?
 
I am not sure if you're talking at cross-purposes. Scalping is a very defined style of trading.
 
Forgive my ignorance but what is the difference from scalping and daytrading?
Is there a difference ?

Regards
Shaun
 
What people normally think of as scalping is just ultra short term trading. In and out really quickly, from a couple of seconds to a few minutes. What the brokers define as scalping, I understand, is looking for pricing errors and taking advantage of them. That's why brokers reject the order or close the account. You would, too!
 
shadowninja said:
What people normally think of as scalping is just ultra short term trading. In and out really quickly, from a couple of seconds to a few minutes. What the brokers define as scalping, I understand, is looking for pricing errors and taking advantage of them. That's why brokers reject the order or close the account. You would, too!
Click to expand...

Nah, to a spreadbet company, a scalper is just someone who makes lots of trades and is consistently profitable. If you're obviously trading cluelessly, I daresay you wouldn't be classified as a scalper even if you opened hundreds of bets a day.
 
So my question to you is as a successful daytrader/scalper a spreadbetting firm is not a viable source of income as ultimately after taking some decent profits your account would be closed as you would be termed as a scalper taking advantage of pricing when in reality you are just to successful.

Does anyone have a figure in my mind in respec of what a firmwould allow in terms of profits before they considered you as a scalper?
 
Don't think it's that simple. Rather than close your account, thereby cutting off a potential source of profit, the SB co will just make things difficult by rejecting trades that go in your favour immediately. That way they can claw back a bit of money before the client realises what's going on and gives up.
 
Phil Mibbutz said:
Don't think it's that simple. Rather than close your account, thereby cutting off a potential source of profit, the SB co will just make things difficult by rejecting trades that go in your favour immediately. That way they can claw back a bit of money before the client realises what's going on and gives up.
Click to expand...

Better still. Don't let them claw back anything. Stop trading with that spreadbet company the moment you realise you have been flagged and move on to another one. There are plenty of casinos out there :D
 
Shaun12uk said:
So my question to you is as a successful daytrader/scalper a spreadbetting firm is not a viable source of income as ultimately after taking some decent profits your account would be closed as you would be termed as a scalper taking advantage of pricing when in reality you are just to successful.

Does anyone have a figure in my mind in respec of what a firmwould allow in terms of profits before they considered you as a scalper?
Click to expand...

Scalping (to the SBs) is very quick trades (in seconds) taking advantage of price discrepancies between the cash market and spreadbetter's price which is why they don't like it. They don't care if you have winning trades, it's just the scalping/arbitrage they don't like. Here's an article about it (surprised shadowninja doesn't remember it?):

Scalping and DayTrading
 
Last edited:
Neoripley said:
Scalping (to the SBs) is very quick trades (in seconds) taking advantage of price discrepancies between the cash market and spreadbetter's price which is why they don't like it. They don't care if you have winning trades, it's just the scalping/arbitrage they don't like. Here's an article about it (surprised shadowninja doesn't remember it?):

Scalping and DayTrading
Click to expand...
Not surprisingly, it is Simon Denham from Capitalspreads viewpoint on this issue. Once again I have to say it, you cannot according to EU MiFID financial directives "discriminate" clients by individual flagging them, based on their trading style. This solely in order to limit their trading success. If the SB got problem with a lagging price feed, they need to correct it. If they offer a price quote, they should execute on that price given, not blame it on network latency and no time to hedge the position. If they cannot handle a fixed spread, they should apply a variable price spread model. If the market is too volatile for them, they should not be in this business at all. The traders should not be accused of trading on that price action, which is a part of the overall movement of the market. Trading the DMA this is not a problem, you don't expect to get filled all the time. SB intervention by a dealer, on the other hand, in order to restrict your trading success is a real and extensive problem, that urgently need to be addressed by the industry. Otherwise strict regulation by the regulators is waiting around the corner, and I am quite sure the industry like to avoid this kind of action taken by the financial authorities.

I don't accept flagging as a legal way of handling "uncomfortable" clients. A much fairer way would be to close down the clients account. At least then, they would not go against the rules set out by the regulators.
 
Last edited:
gle101 said:
I would say this would be true if they hedge every single trade, but they don't, (except for Prospreads.com).
Click to expand...

Yes, the more you lose, the more they gain, with the spread being a bonus (for them).

re. Mr CS's comments about customers with fast data feeds having an unfair advantage seem a bit ridiculous. Could it really be true that a company making profits of millions can't make its platform work as quickly? I tend to suspect that SB prices are deliberately slow so the bookie has time to decide whether to take a bet. The Prospreads (part of the same company, strangely enough) platform is lightning fast because they actually make their profit on the commission (extra spread).
 
Phil Mibbutz said:
Yes, the more you lose, the more they gain, with the spread being a bonus (for them).

re. Mr CS's comments about customers with fast data feeds having an unfair advantage seem a bit ridiculous. Could it really be true that a company making profits of millions can't make its platform work as quickly? I tend to suspect that SB prices are deliberately slow so the bookie has time to decide whether to take a bet. The Prospreads (part of the same company, strangely enough) platform is lightning fast because they actually make their profit on the commission (extra spread).
Click to expand...
He is just trying to justify, what is in fact on the border of illegal practice by them. Really, you have no advantage today. I can say this because, I have been following their price feed against the live futures for 4 years now. A couple of years back this might have been possible, but today with the improved technology, you have nothing to gain by having a fast data feed. Could it be that Mr. Denham is getting a little bit greedy as the years go by?
 
gle101 said:
Not surprisingly, it is Simon Denham from Capitalspreads viewpoint on this issue. Once again I have to say it, you cannot according to EU MiFID financial directives "discriminate" clients by individual flagging them, based on their trading style. This solely in order to limit their trading success. If the SB got problem with a lagging price feed, they need to correct it. If they offer a price quote, they should execute on that price given, not blame it on network latency and no time to hedge the position. If they cannot handle a fixed spread, they should apply a variable price spread model. If the market is too volatile for them, they should not be in this business at all. The traders should not be accused of trading on that price action, which is a part of the overall movement of the market. Trading the DMA this is not a problem, you don't expect to get filled all the time. SB intervention by a dealer, on the other hand, in order to restrict your trading success is a real and extensive problem, that urgently need to be addressed by the industry. Otherwise strict regulation by the regulators is waiting around the corner, and I am quite sure the industry like to avoid this kind of action taken by the financial authorities.

I don't accept flagging as a legal way of handling "uncomfortable" clients. A much fairer way would be to close down the clients account. At least then, they would not go against the rules set out by the regulators.
Click to expand...

All true what you say above.

Gle101, you have the style that you could write a book on the subject.:clap:
 
You must log in or register to reply here.

Similar threads

E
mbt scalping
Replies
3
Views
4K
JP1966
J
B
Forex Brokers that Allow Scalping: Research and Results
Replies
0
Views
3K
Black Swan
B
john_almighty
ECNs account or bucket shops?
Replies
0
Views
2K
john_almighty
john_almighty
S
ECN Forex based in the UK
Replies
4
Views
2K
ibex666
ibex666
K
Is it possible to have a different data feed provider from a ECN broker I trade forex
Replies
5
Views
18K
KILI01
K
Top