If brokers were turning every trade with the market maker, it would stand to reason that they would not care about scalpers, because indeed, they would earn a 'turn' from every trade.

So, why do they not like scalpers? Because you, as a scalper, are not playing by their rules and what is more, probably causing them to lose money!

It is rumoured that some brokers 'fix' the scalper by creating a feed that deliberately 'spikes' the trader. I say 'rumoured', because I have not been presented with hard evidence.

The fundamental problem is, that you, as a private investor, are not getting the 'true' interbank rate. This is the rate available on the EBS Interbank system. You won't get this because the market makers do not want you to see it. Even Reuter's rates have a delay (due to the distribution - about 30 seconds behind the real events). Therefore you are a) not working in real time and b) subject to the prices your broker wants to show you.

There are many Interbank traders and futures markets participants who 'scalp'. In fact, an open outcry market probably would not function without the liquidity provided by scalpers.

This 'price delay' it is claimed, works to the disadvantage of brokers, and they do not like, nay, will not tolerate price arbitrageurs. That is, you have three connections open on the Net to 3 brokers. You see 50-53 on FXCM, 50-53 on Saxo, and 55-58 on ACM. So you sell with ACM because ACM has not changed the price.

Certain brokers have told me that their market makers refuse the trades therefore they are not a charity. This is very funny, because a certain Swiss broker is proud of showing that they are members of the ACI, the professional Interbank traders association. In the model code of the ACI, it says

"A dealer quoting a firm price, either through a broker or directly to a potential counterparty is committed to deal at that price in a marketable amount provided the counterparty name is acceptable"

In other words, if you quote a price, you stick to it, or get out of the game. I don't believe that serious banks who are the market makers, refuse to trade on their prices. They would lose all credibility if they did.

Otherwise, it would seems that some brokers have not read the rule book of the organisation that they are so willing to (illegally) flaunt the logo of on their home page

If the problem is with the delay on the Internet, brokers should offer to their clients that they can trade on the phone. You should demand this. This will stop any nonsense about the 'delay causing losses'.

So there you have it. Heads they win, tails you lose. They want you to be 'normal', that is trade to make them profit. It is definitely not a level playing field.