Forex Brokers That Allow Arbitrage Trading

Most forex brokers ban arbitrage trading the moment they detect it. Accounts get limited. Withdrawals get delayed. Profits get confiscated.

Why? Because arbitrage creates what brokers call “toxic flow” — systematic losses that strain their liquidity and profit margins. According to industry research, latency arbitrage alone contributes to losses of up to $5 billion annually on global exchanges.

But not all brokers prohibit arbitrage. A small number of ECN and STP brokers explicitly allow it — or at least don’t actively block it. Finding them requires digging through terms of service, testing execution policies, and verifying with support teams.

This guide profiles forex brokers that allow arbitrage trading in 2026, covering:

• Which brokers permit latency vs. statistical arbitrage
• Verified account types, spreads, and minimum deposits
• How to verify broker policies before you risk capital
• VPS requirements for NY4, LD4, and TY3 locations
• Risk mitigation strategies to avoid account closure

Let’s start with the foundational question: why do brokers ban arbitrage in the first place?

Why Most Brokers Ban Arbitrage Trading (And What “Toxic Flow” Really Means)

Arbitrage isn’t illegal. But from a broker’s perspective, it’s unprofitable and destabilizing.

Here’s why:

1. Arbitrage Creates Direct Losses for Brokers

When you exploit price discrepancies or feed delays, you’re essentially betting against the broker’s pricing infrastructure. Brokers call this “toxic flow” because it’s unprofitable or damaging — every arbitrage win is a broker loss.

Market makers are especially vulnerable. If they’re on the other side of your arbitrage trade, they absorb the loss directly.

2. It Strains Liquidity Relationships

ECN and STP brokers route orders to liquidity providers (LPs). When LPs detect arbitrage patterns from a broker’s client base, they may:

• Widen spreads for that broker
• Impose stricter execution conditions
• Reduce or terminate the liquidity relationship entirely

This forces brokers to crack down on arbitrage traders to maintain LP relationships.

3. Brokers Now Have Advanced Detection Systems

In 2020-2022, major brokers publicly acknowledged AI systems designed to filter toxic flow. These systems analyze:

• Order-to-fill latency patterns
• Win rates correlated with news events or feed delays
• Cross-broker execution timing discrepancies
• High-frequency trade clustering

When detected, brokers respond with artificial delays, requotes, slippage, trading limits, or outright account closure.

Bottom line: Most brokers actively prevent arbitrage. The ones that allow it either operate true ECN models where they don’t take the other side of trades, or they’re transparent about permitting all strategies.

Latency Arbitrage vs. Statistical Arbitrage: What’s the Difference?

Before evaluating brokers, you need to understand which type of arbitrage you’re planning to trade. Broker policies vary significantly based on strategy type.

Aspect	Latency Arbitrage	Statistical Arbitrage
Definition	Exploits time delays in price feed updates between brokers or data sources	Relies on quantitative models to identify mispricings based on historical patterns
Execution Speed	Milliseconds — requires sub-5ms latency	Seconds to minutes — longer holding periods
Infrastructure	Ultra-low latency VPS, co-located servers, FIX API	Standard VPS, analytical software, backtesting platforms
Skill Set	Technical/infrastructure focus, high-frequency trading expertise	Quantitative analysis, statistical modeling, coding
Broker Stance	Almost universally banned — considered toxic flow	More tolerated by ECN brokers if executed properly
Detection Risk	Very high — AI systems easily identify patterns	Moderate — harder to distinguish from skilled trading

Latency arbitrage exploits technological gaps, while statistical arbitrage relies on analytical edge. Most brokers that “allow arbitrage” are referring to statistical methods, not latency exploitation.

Forex Brokers That Allow Arbitrage Trading: Complete Profiles

Here’s the verified list of brokers that explicitly allow or don’t prohibit arbitrage trading. Each profile includes account types, spreads, platforms, and verification status.

1. Tickmill — Most Transparent About Arbitrage Policy

Arbitrage Type Allowed: All strategies (latency, statistical, triangular)

Platforms: MetaTrader 4, MetaTrader 5

Minimum Deposit: $100

Regulation: FCA (UK), CySEC (Cyprus), FSCA (South Africa), FSA (Malaysia)

Account Types & Spreads:

• Classic Account: Spreads from 1.6 pips, no commission
• Raw Account: Spreads from 0.0 pips, $3 per side commission ($6 round-turn)

Why Tickmill Stands Out:

Tickmill is one of the few brokers that explicitly states they allow arbitrage in their policy documentation. They support all trading strategies including arbitrage, EAs, hedging, and scalping without restrictions.

According to their FAQ: “Tickmill is proud that they have no restrictions on trading and no requotes. They also allow scalping, hedging, arbitrage, EAs and algorithms.”

Their Raw account earned ForexBrokers.com’s Best in Class award for Commissions & Fees in 2025, making it cost-effective for high-volume arbitrage traders.

Verification Status: Confirmed via official FAQ and terms of service.

Best For: Traders who want explicit policy transparency and strong regulatory oversight.

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2. RoboForex — Permits Statistical and Latency Arbitrage

Arbitrage Type Allowed: Statistical arbitrage and latency (with conditions)

Platforms: MetaTrader 4, MetaTrader 5, cTrader

Minimum Deposit: $10

Regulation: Multiple regulators including FSC (Belize), CySEC (Cyprus)

Account Types & Spreads:

• ECN Account: Spreads from 0.0 pips, commission-based pricing
• Prime Account: Spreads from 0.0 pips, $20 per million commission
• Pro Account: Spreads from 1.3 pips, no commission

Why RoboForex Allows Arbitrage:

RoboForex operates as an ECN/STP broker and allows statistical arbitrage and latency strategies on their ECN accounts. Their infrastructure supports cTrader in addition to MetaTrader, giving arbitrage traders more platform flexibility.

The $10 minimum deposit makes it accessible for testing arbitrage strategies with minimal capital at risk.

Important Note: While RoboForex technically permits arbitrage, extreme latency exploitation may still trigger monitoring. Their own blog acknowledges that “latency arbitrage is aimed at making a profit on receiving data quickly” — suggesting awareness of the strategy.

Verification Status: Reported by multiple sources; recommend confirming with support before large-scale deployment.

Best For: Traders who want multi-platform support (including cTrader) and low entry requirements.

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3. IC Markets — Leading ECN Broker for Arbitrage

Arbitrage Type Allowed: Statistical arbitrage (latency discouraged but not explicitly banned)

Platforms: MetaTrader 4, MetaTrader 5, cTrader

Minimum Deposit: $200

Regulation: ASIC (Australia), CySEC (Cyprus), FSA (Seychelles)

Account Types & Spreads:

• Raw Spread Account: Spreads from 0.0 pips, $7 per lot round-turn commission
• Standard Account: Spreads from 1.0 pips, no commission

Why IC Markets Works for Arbitrage:

IC Markets is rated as the top forex arbitrage broker, established in 2007 with 18 years of operation. They stream raw interbank spreads starting from 0.0 pips with no requotes or price manipulation.

Their execution infrastructure is optimized for speed. According to 2025 ECN benchmarks, IC Markets delivers fills in under 40ms on major markets with minimal slippage.

IC Markets operates a true ECN model where they profit from commissions, not from trading against clients — reducing conflict of interest around arbitrage.

Verification Status: Does not explicitly state “arbitrage allowed” but does not prohibit it in terms. Many arbitrage traders report sustained use without issues.

Best For: Serious arbitrage traders who need reliable execution and deep liquidity.

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4. FP Markets — Fast Execution for Arbitrage Strategies

Arbitrage Type Allowed: Statistical arbitrage, cross-market strategies

Platforms: MetaTrader 4, MetaTrader 5, cTrader, TradingView

Minimum Deposit: $100

Regulation: ASIC (Australia), CySEC (Cyprus)

Account Types & Spreads:

• Raw Account: Spreads from 0.0 pips, $6 per lot round-turn commission
• Standard Account: Spreads from 1.0 pips, no commission

Why FP Markets Supports Arbitrage:

FP Markets stands out as an ideal candidate for arbitrage enthusiasts due to lightning-fast trade execution supported by high-tech infrastructure. Their top-tier regulatory compliance from ASIC and CySEC ensures a secure trading environment.

Their MT4 and MT5 platforms provide real-time pricing and advanced charting tools essential for identifying arbitrage opportunities quickly.

Verification Status: Recommended by arbitrage trading communities; confirm policy with support.

Best For: Traders prioritizing execution speed and regulatory safety.

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6. Vipro Markets — Now Part of Tickmill

Arbitrage Type Allowed: All strategies (now under Tickmill policies)

Note: Vipro Markets was acquired by Tickmill and has been fully merged. If you’re looking for the Vipro brand specifically, you’ll now trade under Tickmill’s infrastructure and policies.

Vipro previously operated as a true STP/ECN broker and was confirmed to allow arbitrage trading alongside ICM and Tickmill in trader discussions.

Current Status: Redirect to Tickmill for arbitrage-friendly trading.

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Brokers to Avoid for Arbitrage

Not all ECN brokers allow arbitrage. Here’s one notable example:

ICM Capital — Arbitrage Explicitly Prohibited

Despite operating as an ECN/STP hybrid broker, ICM Capital explicitly prohibits arbitrage in their client agreement:

“In cases of any indiscretion in trading, overleveraging, misuse of orders where ‘scalping’ or ‘sniping’ or ‘hedging’ or ‘arbitraging’ may be involved, such transactions will not be taken into consideration and will be treated as prohibited activity and may even be removed from participants accounts.”

This highlights the importance of verification. ECN execution model does not guarantee arbitrage acceptance.

How to Verify a Broker’s Arbitrage Policy Before You Trade

Broker policies change. What’s allowed today might be banned tomorrow. Here’s how to verify before risking capital:

Step 1: Read the Terms of Service Thoroughly

Search the broker’s legal documents for these keywords:

• “Arbitrage”
• “Latency”
• “Toxic flow”
• “Price manipulation”
• “Prohibited strategies”
• “Scalping” (often banned alongside arbitrage)

Pay special attention to sections on prohibited trading strategies. Many brokers bury arbitrage restrictions in dense legal language.

Step 2: Contact Support and Get Written Confirmation

Email or chat with the broker’s support team. Ask specifically:

“Does your broker permit latency-based or statistical arbitrage strategies, including those executed via EAs? Are there any restrictions on cross-broker arbitrage or triangular arbitrage?”

Request a written response. Save the email or chat transcript. If they’re vague or evasive, consider it a red flag.

Step 3: Test With a Small Live Account

Before deploying significant capital, test with a small live account to observe execution behavior:

• Are fills instant or do you experience artificial delays?
• Do you receive requotes on fast-moving markets?
• Is slippage consistent with market conditions or suspiciously high?
• Does the broker contact you about your trading style?

Monitor for 2-4 weeks with real arbitrage trades before scaling up.

Step 4: Monitor for Policy Changes

Brokers update terms regularly. Set a calendar reminder to re-check every 6 months. Watch for:

• Email notifications about updated terms
• Changes in execution speed or requote frequency
• Community reports of accounts being limited

Remember: Even brokers that technically allow arbitrage may restrict accounts if your trading creates excessive losses for their liquidity providers.

VPS Requirements for Arbitrage Trading: NY4, LD4, and TY3 Explained

Arbitrage profitability depends on execution speed. A home internet connection with 50-150ms latency eliminates most arbitrage opportunities. You need a low-latency VPS.

Here’s what you need to know:

Why VPS Location Matters

Your VPS must be located in the same data center (or as close as possible) to your broker’s trading servers. When co-located in the same facility, traders commonly experience latency below 5 milliseconds — often in the 1-3ms range.

The three major forex trading hubs are:

1. Equinix NY4 (Secaucus, New Jersey)

Equinix NY4 serves as a crucial hub in the global forex trading ecosystem, housing the matching engines and trading infrastructure of major forex brokers and liquidity providers. Located just 11 miles from Manhattan’s financial district, NY4 is the primary location for North American forex infrastructure.

Typical Latency: 1-3ms to major brokers (IC Markets, Pepperstone, FTMO, etc.)

Best For: US session trading, cross-broker arbitrage involving US-based liquidity

2. Equinix LD4 (London, United Kingdom)

Equinix LD4 serves as the primary hub for forex trading infrastructure in Europe, hosting trading servers and matching engines of major forex brokers, banks, and financial institutions. London sessions account for approximately 35% of daily forex trading volume.

Typical Latency: 1-5ms to European brokers

Best For: European session trading, EUR pairs, FTSE trading

3. Equinix TY3 (Tokyo, Japan)

Equinix TY3 represents one of Asia’s premier financial data centers and a crucial hub for forex trading in the Asia-Pacific region.

Typical Latency: Under 1ms to Asian brokers

Best For: Asian session trading, JPY pairs, crypto arbitrage

VPS Specifications for Arbitrage

Minimum recommended specs for latency arbitrage:

• CPU: 4 vCPU cores (dedicated, not shared)
• RAM: 8GB minimum
• Storage: NVMe SSD (not SATA)
• Network: 1Gbps or higher
• OS: Windows Server 2019 or newer

For strategies like latency arbitrage, advanced setups like cross-connects — where VPS and broker servers are linked within the same data center — can reduce latency to as little as 0.1 milliseconds.

At NYCServers, we offer 1ms latency or less to most popular brokers across NY4, LD4, and TY3 locations with pre-installed MT4/MT5 platforms ready to trade.

Risk of Account Closure: How to Mitigate Detection

Even brokers that allow arbitrage may limit accounts if your trading creates problems for their liquidity providers. Here’s how to reduce detection risk:

1. Avoid Extreme Latency Exploitation

Pure latency arbitrage that exploits feed delays is the easiest to detect and most likely to get banned. Brokers use AI systems that watch for red flags including:

• Consistently high win rates (>70%)
• Trade execution clustered during high-volatility periods
• Order patterns matching known arbitrage EAs
• Rapid succession of trades across uncorrelated pairs

2. Mix in Non-Arbitrage Trades

Don’t make 100% of your trades arbitrage-based. Mix in directional trades, swing positions, or other strategies to create a more natural trading profile.

3. Use Statistical Arbitrage Over Latency

Statistical arbitrage based on quantitative models is harder to distinguish from skilled trading. It’s less likely to trigger automated detection systems compared to pure latency exploitation.

4. Stay Within Reasonable Position Sizes

Extreme position sizing draws attention. Keep lot sizes proportional to account equity and avoid maxing out leverage on every trade.

5. Maintain Communication With Broker

If the broker contacts you about your trading style, respond professionally and transparently (within reason). Some brokers will work with you if you’re upfront about your strategies.

Warning Signs Your Account May Be Flagged:

• Increased execution delays or requotes that weren’t present initially
• Withdrawal requests taking longer than normal
• Support requests for account verification or strategy explanation
• Sudden changes in spread or commission structure
• Trades being cancelled or adjusted post-execution

If you notice these signs, consider reducing position sizes or diversifying to another broker while you investigate.

Is Forex Arbitrage Still Profitable in 2026?

The short answer: yes, but it’s harder than ever.

As we covered in our detailed arbitrage profitability guide, arbitrage opportunities have narrowed significantly due to:

• Tighter spreads across the industry
• Faster broker execution systems
• AI-powered toxic flow detection
• Increased competition from institutional HFT firms

But opportunities still exist for traders who:

• Invest in proper infrastructure (co-located VPS, fast execution)
• Use brokers that explicitly allow arbitrage
• Focus on less-competitive arbitrage types (triangular, cross-broker during news)
• Maintain small, sustainable position sizes
• Continuously adapt strategies as market conditions evolve

One experienced trader shared: “I’m doing arbitrage trading since 2017 and have made good profits trading arb with brokers. I’m a programmer and have developed my own arb-based algo robots. But these days, MT4 is totally wiped out and only MT5 has few chances.”

Translation: It’s still possible, but you need technical skills, proper infrastructure, and the right broker relationships.

Frequently Asked Questions

Is arbitrage trading legal in forex?

Yes, forex arbitrage trading is legal. However, individual brokers have the right to prohibit it in their terms of service. While the strategy itself isn’t illegal, brokers can ban accounts or void profits if arbitrage violates their policies. Always verify your broker’s stance before trading.

What’s the difference between latency arbitrage and statistical arbitrage?

Latency arbitrage exploits time delays in price feed updates between different brokers, requiring millisecond execution and advanced infrastructure. Statistical arbitrage relies on quantitative models and historical data patterns to identify mispricings, allowing longer holding periods and more analytical approaches. Latency arbitrage is more commonly banned by brokers.

Why do most brokers ban arbitrage trading?

Brokers ban arbitrage because it creates “toxic flow” that results in systematic losses for them. Arbitrage traders exploit technological gaps and price inefficiencies, straining broker liquidity and creating direct financial losses. Research shows latency arbitrage contributes to losses of up to $5 billion annually on global exchanges.

How can I verify if a broker allows arbitrage trading?

Review the broker’s terms and conditions thoroughly, searching for keywords like “arbitrage,” “latency,” “scalping,” and “toxic flow.” Contact support directly and request written confirmation about their arbitrage policy. Test with a small demo or live account before committing significant capital, and monitor for execution delays or requotes.

What VPS location is best for arbitrage trading?

Your VPS should be located in the same data center or city as your broker’s servers. The three major hubs are Equinix NY4 (New York), Equinix LD4 (London), and Equinix TY3 (Tokyo). Co-location in the same facility can reduce latency to under 1ms, which is critical for latency arbitrage strategies where milliseconds matter.

What are the risks of arbitrage trading with forex brokers?

Major risks include account closure without warning, profit confiscation or trade cancellation, artificial execution delays and requotes, withdrawal restrictions, and permanent blacklisting from broker networks. Even brokers that technically allow arbitrage may limit accounts showing consistent arbitrage patterns if it impacts their liquidity providers.

What spreads and commissions should I expect with arbitrage-friendly brokers?

ECN brokers that allow arbitrage typically offer raw spreads starting from 0.0 pips with commissions ranging from $6 to $7 per round-turn lot. For example, Tickmill charges spreads from 0.0 pips on Raw accounts, IC Markets offers 0.0 pip spreads with $7 commissions, and RoboForex provides spreads from 0.0 pips on ECN accounts.

Arbitrage Trading Requires Ultra-Low Latency Infrastructure

Whether you’re exploiting triangular inefficiencies or cross-broker delays, arbitrage lives and dies by milliseconds.

A home internet connection with 100ms+ latency eliminates most opportunities before you can execute. You need a VPS co-located with your broker’s servers.

NYCServers provides 1ms or less latency to major brokers across three strategic locations:

• NY4 (New York) — Equinix Secaucus, 11 miles from Wall Street
• LD4 (London) — Europe’s primary forex hub, 35% of global volume
• TY3 (Tokyo) — Asia-Pacific’s premier financial data center

What you get:

• Pre-installed MT4/MT5 platforms — ready in 30 seconds
• Enterprise-grade AMD EPYC hardware with NVMe storage
• 100% uptime guarantee during trading hours
• 24/7 support from traders who understand arbitrage requirements
• 14-day money-back guarantee

Check your latency to specific brokers with our free latency checker tool, or get started with a VPS plan optimized for your broker’s location.

Final Thoughts: Choose Your Broker (and Infrastructure) Carefully

Arbitrage trading in 2026 isn’t dead — but it requires precision, infrastructure, and broker transparency.

Most brokers ban arbitrage the moment they detect it. The brokers profiled in this guide represent the small minority that either explicitly allow it (Tickmill), operate ECN models that reduce conflict of interest (IC Markets, Pepperstone), or tolerate it under specific conditions (RoboForex, FP Markets).

Before you trade:

1. Verify the broker’s current arbitrage policy in writing
2. Test with small capital before scaling up
3. Deploy your EA from a co-located VPS in NY4, LD4, or TY3
4. Monitor execution quality and watch for warning signs of restrictions
5. Diversify across multiple brokers to reduce single-point-of-failure risk

Arbitrage isn’t a beginner strategy. But for experienced traders with the right tools, broker relationships, and execution infrastructure, it remains a viable approach in 2026.

Trade smart. Verify policies. Invest in infrastructure. And always have a backup plan.