Question: Any restrictions on trading method in GBE brokers MT4? I am worried about if there could be profit cancellations later on.
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No, GBE brokers does not restrict any trading methods. You are allowed to trade scalping, EAs and News time trading etc.
Basically, GBE brokers only prohibit latency arbitrage tradings especially on CFDs.
GBE brokers is a 100% broker
GBE guarantees that the broker does not act as a Market Maker, but as a broker in its website.
This means a lot for traders, and this is one of the reason we, Hercules recommend this broker.
Being a 100% broker means that:
- The broker does not cover(hedge) clients’ orders
- There is no conflict of interest
- Traders have got DMA(Direct Market Access)
- No irrational profit cancellation
For your information, some brokers restricts trading methods and even cancel profits of traders in order to avoid its losses, because the brokers are covering trades of its clients and acting as a Market Maker.
GBE brokers wants traders to earn more and continue its tradings so both the traders and brokers can benefit from it.
What is arbitrage?
Arbitrage trading is often prohibited by many brokers, even the brokers are STP model.
Arbitrage trading is a trading method to give unauthorized advantages to traders to trade without risks by abusing the system and other trading conditions.
For example, an arbitrage trading to abuse bonus promotions are relatively popular so traders can lose only the bonus amount and earn profits in another accounts.
It is now a classic arbitrage method and brokers who offer bonus promotions are keen to find these traders at all times.
In case of GBE brokers, they basically prohibits latency arbitrage.(especially on CFD tradings)
What is latency arbitrage?
Latency arbitrage trading is also related to HFT(high frequency trading) in some ways.
It is a trading method to earn profits by the price difference of the same financial instruments.
The price difference is caused by the system, when there is a second or less time difference depending on the systems.
So it is basically a trading where you know the future price(about 1 or 0.1 second later), and trade HFT(extreme scalping trades) so you can earn profits which is small but for sure.
Please note that accounts that rely on arbitrage strategies may be subjected to intervention, which may include widening the spreads on your account.
You can find the full trading conditions in the official website.
Profit Cancellation by GBE brokers
There shouldn’t by any irrational profit cancellations by GBE brokers, nor we have never informed by its traders regarding to this before.
As GBE brokers allow all kinds of trading methods and there is no conflict of interest between traders and GBE brokers, there can’t be any profit cancellation as long as you don’t trade latency arbitrage with them.
Arbitrage trading is the only trading method which is prohibited by GBE brokers, so if you think your main trading method may be categorized as an arbitrage, please contact your account manager and find out more details of the conditions.