Business and Finance

Interactive Brokers Forex Leverage

The topic of Forex Brokers allowing scalping is very hot. I was looking for answers in various forums, tried searching with keywords in search engines, tried reading policies and FAQs on the websites of different Forex brokers… It seemed like I had only guesses, but nothing solid to rely on. And then I came up with a simple solution – sending customer support inquiries to the different Forex brokers… My question to all of them was the same: “Do you allow scalping? By scalping I mean holding a position for less than 1 minute.” That’s it. Today, I’d like to share with you what my research has revealed. So, brokers allowing or not allowing scalping…

I’ve got the answers the same day from the next Forex brokers:

1. MG Financial Group Thank you for contacting MG Financial Group. In regards to your question, you may keep your position open for as long or short a duration of time as desired.
2. InterbankFx We do allow Scalping but it might become a problem with our liquidity providers and filling orders etc… We recommend that you stay in a trade for at least 93 seconds. If a customer engages in scalping and it somehow becomes a problem we will notify that person. Interactive Brokers Forex Leverage
3. MIG Investments MIG Investments does not require a minimum number of trades per month as neither we require a minimum pip value or open time for positions before allowed to close. We do accept scalpers but since it is difficult to cover such positions in the market, we would need to increase the spreads for clients with permanent scalping strategies. We consider an scalpers somebody who systematically pip hunts below 5 pips as average. All the cases are studied based on general performance and we do get in contact with our clients prior to take any related decisions. Update 13.08.2008: The new M I G Investments General Terms and Conditions are effective immediately (13.08.2008) and have been updated with reference to M I G’s current position on Scalpers: Due to the difficulties associated with covering such trades, M I G Investments does not accept scalpers.
4. OANDA The term scalping here primarily refers to latency trading, where clients unfairly exploit, to their advantage, delays that may occur due to the fact that FXTrade is Internet-based. OANDA does not have any restriction on the length of time a trade is held.
5. MB trading Got two short replies: Yes, scalping is allowed. Yes you can scalp with us.
6. Forex.com Yes, you can do that. As long as you have enough margin to open a position, you can close it at any time during our normal trading hours which is between Sunday 5 pm ET and Friday 5 pm ET.
7. Global Forex Trading Yes we do not have any restrictions to the length of time on holding positions.
8. West Capital Forex In answer to your question, Scalping is not recommended by our dealers and they actively discourage it. The next day I’ve targeted remaining on my list Forex brokers and got next replies:
9. CMC Markets You are able to hold a position for less than a minute, however, we do not encourage scalping.
10. United Global Markets Scalping is not an issue so long as you are not taking advantage of our price feed lag. We do allow scalping, news trading, grid traders and other in and out traders Interactive Brokers Forex Leverage