In recent years analyzing the trading results on our client accounts, we have found several factors that affect the arbitrage trading.

1. VPS or dedicated server;
2. Cross-connections;
3. Broker and account type;
4. Type of arbitrage software

Let's dwell upon each of them.

In the vast majority of cases, scalping and arbitrage strategies happen to be more profitable than any other strategy. As a consequence, brokers whose business model is based on the B-book and on making money off deposits lost by traders – such brokers are not interested in clients who use scalping and arbitrage methodologies in their trading. For that reason, brokers can resort to certain wily techniques that prevent traders from making money. They might, for example, require the trader to keep an order open for more than 5-10 seconds, sometimes even for minutes. Or they might use add-ons that allow the broker to increase the execution time of an order.

First of all, it’s worth bearing in mind that, when using arbitrage strategies, you periodically need to close your existing account and open a new one. How often should that be done? That depends on several factors. The first one is your trading preferences and purposes. Many traders leap into forex trading with the intention of striking it rich quickly. While arbitrage trading makes that possible, you have to realize that the bigger your monthly profits, the more unwelcome attention you can expect to get from your broker.