Why your Forex brokers don’t like your trading style? - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

Header Ads

Why your Forex brokers don’t like your trading style?

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.