Another reason could be the lack of scalability if you are scalping.

Some brokers are great for execution for the first 3 lots for examples, then afterward it may affect performances.

I actually use 4 different brokers. Why? Because I like to have my money not only on one broker. The same goes for banking accounts. I also have more than just 1 banking account. It's more safe for your own money; you never know what will happen, especially during a crisis.

FLCFX posted:
saurabhsuman003 posted:
@FLCFX wow! thats something i've never heard of.

can u name such brokers and explain this problem in some detail.


I'm referring to using scalping... if you are only generating 1-3 pips per trade, speed of execution might not be fast enough and may cause negative slippage.. In that sense, it may not be scalable

Lots of brokers are not even allowing scalping, arbitrage and other extreme 'short term profit makers'.

@marco_mmbiz broker and bank accounts are different things my friend. We use more than one bank account for security purposes, ease of use, to get more than one debit and credit cards, to have different joint accounts with persons of choice and various reasons. It's like having more than one set of clothes. While you stick to one or two brokers at max cause using more than one only increases hassles, those who know trading will be successful in any platform. You can't keep on switching accounts or use 3-4 computers and simultaneously trade in all of em. Since you brought up scalping, none can possess all styles of trading Viz day trading, swing trading , scalping etc etc, so if you are a scalper get a suitable broker and stick with it. And at the times of crisis your money will be gone irrespective of your broker. To prepare for that you can only stock your bucks under your bed.
Brokers are registered and their trades are reported every Tuesday. Get to the details of CFTC data if you wish. Whichever broker u use, contributes to that data. So none of them are gonna fall down alone.

@marco_mmbiz when you say few brokers aren't showing'extreme short term profit makers' you don't get why they do that.

We use leverage, our broker pays on our part at the exchange to get Ur the required amount of foreign exchange. Ofc this money is insured because the broker won't allow us to trade beyond our margin capacity. But to let us take trade or broker needed to pay the difference amount at the first hand.

Your so called 'extreme short term profit makers' run on ultra high leverage.
So if your broker is a small firm and is not having enough capital the. It can't help you take such trades by paying on your behalf.