I wrote a few brokers and asked them if they allow scalping here is what I got for an answer. The one from Oanda, a broker I was seriously considering to trade with, not any more though, had their own definition for scalping.
Investopedia defines scalping as:
A trading strategy used by forex traders to buy a currency pair and then to hold it for a short period of time in an attempt to make a profit. A forex scalper looks to make a large number of trades and earn a small profit each time.
IBFX gives a good indication in that they say they do not interfere with their clients trades, so those brokers who do not allow scalping interfere with client trades. Trader beware. I hope this is helpful to some one.
Thank you for contacting us today in regards to scalping. In accordance with our no dealer intervention business model it is not the policy of IBFX to police the trading style and activities of our clients. However, as a general rule we recommend that clients remain in trades for a duration of at least 90 seconds. Please feel free to contact us via live chat on our website, or by phone at the numbers below if you have further questions.
MG Forex answer:
Yes, we do.
Please do not hesitate to contact me if you have further questions.
Sincerely,
Sent: Wednesday, August 13, 2008 5:14 AM
Subject: scalping
I am interested in knowing if mg forex permits scalping by its clients?
Thanks and have a great Day
Jonathan
Oanda Answer:
Thank you for your inquiry.
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.
On the rare occasions when we have believed a customer has been trading in this manner, we try to contact them and ask them to stop. Usually this is effective, but in the few cases this has not been effective, we start to reverse the trades that were executed unfairly. If necessary, we also close the account.
Thank you for your email.
Your trading style you informed us about is not considered as scalping.
Please feel free to contact us anytime.
Any thoughts?