The trade duration too short violation scam is a deceptive tactic employed by unethical brokers to cancel profitable trades or deny withdrawals based on the alleged breach of a minimum trade time rule. In this scam, the broker enforces vague or hidden policies stating that trades closed too quickly—often in just seconds or minutes—violate the platform’s execution policy, especially if they are profitable. This allows the broker to void trades, confiscate gains, or restrict account access, penalising efficient and fast trading strategies like scalping or news trading.

This is not about platform integrity—it’s a backdoor to deny payout to profitable clients.

How the Scam Works

1. Trader Uses a Fast Execution Strategy
You might be:

• Scalping the 1-minute chart
• Using a high-frequency EA
• Trading news with tight stop-losses
• Closing trades within 30–60 seconds after entry

Your method works, and you begin generating consistent profits.

2. Broker Flags Your Account for ‘Unusual Trading Behaviour’
After a successful streak, you receive an email or platform notice:

“Your recent trades were closed in a timeframe shorter than our minimum allowable duration. This is a breach of our fair execution policy.”

Or:

“Short-duration trades are considered system exploitation and violate our liquidity provider agreement.”

3. Profitable Trades Are Reversed or Denied
The broker proceeds to:

• Cancel or “adjust” short-duration trades
• Remove profits earned from trades closed under a certain time
• Deny withdrawal requests citing policy violations
• Freeze or terminate the trading account altogether

4. Terms and Conditions Contain Vague Language
If you check the user agreement, you may find something like:

“The company reserves the right to cancel trades deemed harmful to platform stability, including trades closed in abnormal durations.”

No specific time threshold is listed. It’s a loophole designed to protect the broker, not the trader.

Real Case: Profits Erased for Closing Trades Within 30 Seconds

A trader runs an EA that scalps EUR/USD, consistently closing trades within 20–40 seconds. After withdrawing $3,000, they request an additional $2,000. The broker freezes the account, claiming:

“Over 75% of your trades were closed within 1 minute. This is considered abnormal trading activity.”

All profits are removed. Only the initial deposit is refunded.

Why This Scam Is So Dangerous

The trade duration too short violation scam is especially harmful because:

• It penalises traders for strategic efficiency
• It allows brokers to selectively cancel winning trades
• It’s enforced only after profit is made—never before
• It removes any guarantee of payout on fast strategies
• It relies on vague legal wording to avoid accountability

It’s not about protecting the platform—it’s about protecting the broker from paying you.

How to Identify the Risk

1. No Specific Duration Is Listed in the Terms
If the broker claims a minimum trade time exists but won’t disclose the exact number of seconds or minutes, it’s a red flag.

2. Strategy Works Fine Until You Try to Withdraw
Short-duration trades are executed, filled, and appear profitable—until withdrawal. If profits are then cancelled, the rule is retroactively enforced.

3. Rule Is Only Applied to Winning Trades
Losing trades closed in seconds are never reversed—only winners. This shows the policy is used selectively to prevent losses to the broker.

4. The Broker Blames Liquidity Providers Without Proof
Statements like:

“Our LPs do not support ultra-short-term trading.”
“Profit reversal was due to internal hedging conflict.”

…are unverifiable and typically false.

How to Protect Yourself

1. Ask About Trade Duration Policies in Writing
Before depositing, ask support:

• “Is there a minimum duration requirement for trades?”
• “Will scalping or fast trading lead to cancellations?”
• “What is your policy on trades under 1 minute?”

If they won’t give specifics, walk away.

2. Use Regulated Brokers Who Permit Scalping
Brokers licensed by FCA, ASIC, or CySEC must:

• Honour all executed trades
• Provide transparent execution terms
• Avoid cancelling trades without hard evidence of abuse

3. Withdraw Profits Frequently
If your short-duration trades begin making money, withdraw early to minimise loss if the broker enforces the rule after the fact.

4. Document Every Trade Duration and Fill Time
Keep logs of:

• Entry and exit timestamps
• Profit per trade
• MT4 journal and execution reports

If the broker reverses trades, this becomes your proof.

5. Report Any Trade Cancellations to Regulators
Send documentation of trade reversals due to “short duration” to:

• The broker’s regulator
• Payment provider or bank (for chargeback support)
• Online trader protection forums and whistleblowing portals

Regulatory Expectations

Properly regulated brokers must:

• Clearly define all trade restrictions upfront
• Allow scalping unless explicitly prohibited in writing
• Honour executed trades unless there is fraud or technical failure
• Avoid retroactive enforcement of vague policies

Cancelling trades due to arbitrary or undisclosed duration rules violates best execution standards, transparency laws, and fair treatment principles.

Conclusion: Speed Should Be a Strategy, Not a Punishment

The trade duration too short violation scam is a post-profit penalty designed to invalidate your edge. If a broker welcomes your fast trades when you’re losing—but deletes them when you’re winning—they’re not a broker. They’re a counterparty in disguise.

To learn how to protect scalping and short-term strategies, verify trade legitimacy, and avoid brokers who rewrite rules after the trade, enrol in our Trading Courses. We’ll show you how to trade fast—and get paid, not punished.