[Overseas Forex] Is Arbitrage Profitable? A Beginner-Friendly Explanation of Methods and Prohibited Practices

"Is it really possible to make money through arbitrage in overseas forex trading?"
"What if it's illegal, or I unknowingly break the rules?"
"There are rumors of withdrawal refusals and account freezes, so I want to start with a broker I can trust."

Are you feeling anxious and finding it difficult to take that first step?

While arbitrage is theoretically considered a low-risk method, using it in violation of broker terms and conditions or misunderstanding the trading conditions can lead to account freezing or withdrawal refusal.

This article explains, in an easy-to-understand way for beginners how to utilize arbitrage legally and efficiently

■What you will learn from reading this article

1. Arbitrage is not illegal, but some brokers prohibit it in their terms of service
2. Tips to avoid account freezing and withdrawal refusal, and low-risk methods
3. Four practical arbitrage techniques and their differences
4. Overseas forex brokers that are easy to use for arbitrage and how to choose them
5. Strategic design and specific procedures for maximizing profits

By reading this article, you'll transform your perception of arbitrage from "it seems difficult" to "I could probably start doing this myself," allowing you to take the first step towards safely and efficiently aiming for profits

Please watch until the end

, we recommend you read this complete guide for overseas forex trading beginners

What is arbitrage? It's prohibited in overseas forex trading, but is it illegal?

When considering arbitrage in overseas forex trading, the first thing you need to understand is, "What exactly is arbitrage?"

This section explains the basics of arbitrage and the reasons behind its prohibition and illegality in overseas forex trading

Arbitrage is a method of profiting from price differences

Arbitrage refers to the practice of profiting from price differences between financial instruments of the same value (e.g., currencies)

For example, if the USD/JPY exchange rate is 100.00 yen at FX broker A and 100.05 yen at broker B at a given moment, you can buy at the lower price and sell at the higher price to make a profit from the difference

This method is theoretically considered a "low-risk, low-return" strategy because it can reduce the risk of currency fluctuations to almost zero, making it particularly easy for beginners with little knowledge of the market to adopt. The biggest appeal of arbitrage is that it allows you to aim for profits without predicting market movements .

However, it requires skills and tools to find price differences in real time, as well as the ability to manage multiple accounts, so while it may seem simple, it's actually quite difficult to implement

Is arbitrage prohibited in overseas forex trading? Is it a violation of terms and conditions, or is it illegal?

Arbitrage itself is not illegal . It is not an act explicitly prohibited under the Financial Instruments and Exchange Act or other laws, but rather it is treated as a prohibited act in terms of the terms and conditions

In other words, if an overseas forex broker explicitly states that "arbitrage is prohibited," violating that rule penalties such as account freezing, profit forfeiture, or refusal of withdrawals . Arbitrage using bonuses is particularly strictly cracked down on by brokers, so caution is advised.

Withdrawal refusals and account freezes in overseas forex trading can occur for a variety of reasons, so it's a good idea to check in advance withdrawal refusals and account freezes

Furthermore, since trading tools such as MT4 and MT5 are standardized, unnatural patterns in IP addresses and trading timing can sometimes be automatically detected . Violating terms of service is not something that can be excused with the attitude of "it's okay as long as I don't get caught," so it's crucial to check the terms of service beforehand and choose a broker that is lenient towards arbitrage.

important to note that something might be legally permissible, but violate the terms and conditions .

The Illegality of Overseas Forex Trading: A Thorough Explanation of Financial Services Agency Warnings, Legal Perspectives, and How to Consult about Problems

Four methods of overseas forex arbitrage

There are several arbitrage techniques, but four main types are practiced in overseas forex trading. Here, we will explain the characteristics, mechanisms, advantages, and points to note for each in an easy-to-understand way

1. Swap arbitrage
2. Inter-broker arbitrage
3. 3-currency arbitrage
4. Bonus Arbitrage

① Swap Arbitrage

Swap arbitrage is a method of profiting by utilizing swap points (interest rate differences between currencies)

In FX trading, there are "swap points" that are generated daily by holding a currency pair

These swap points vary from broker to broker, and by taking advantage of this, you can simultaneously hold positions of "buying with a broker with high swaps" and "selling with a broker with low swaps," and the difference becomes your profit

For example, if you have a buy swap of +200 yen at company A and a sell swap of -190 yen at company B, your net profit per day is +10 yen

However, since swap conditions fluctuate daily, you need to check the spread, fees, and the timing of swap reflection in order to earn consistently

The appeal of this method lies in its ease of use, even for beginners, as it can be handled entirely manually

Please check the article below for brokers with high swap rates or those offering swap-free trading

A thorough comparison of swap points for overseas forex brokers: Calculation methods and introduction of swap-free brokers

② Inter-company arbitrage

Inter-broker arbitrage is a trading strategy that profits from differences in currency rates (price discrepancies) that occur between multiple FX brokers. Because FX is an over-the-counter (OTC) transaction, there are moments when the rates for the same currency pair differ slightly from broker to broker, and this presents an opportunity for arbitrage

For example, there may be a time lag between the rates of broker A and broker B, as shown below:

Example of a time lag in rate reflection between brokers A and B

time	08:00:00	08:00:01	08:00:02	08:00:03
Overseas FX broker A	100.00	100.15	100.30	100.35
Overseas FX broker B	100.00	100.05	100.10	100.30

In this example, at 08:00:02, Company A's price is 100.30 yen and Company B's is 100.10 yen. Theoretically, by taking advantage of the 0.20 yen price difference and buying and selling simultaneously, it is possible to obtain profits with reduced risk

However, during times when price differences tend to widen, such as when economic indicators are released, the risks of rapid spread widening, slippage, and order rejection also increase, so beginners should avoid trading manually

Therefore, to capitalize on these split-second discrepancies, using both an EA (Expert Advisor) and a VPS environment is almost essential.

③ Three-currency arbitrage

Three-currency arbitrage, also known as triangle arbitrage, a trading strategy that profits from the small differences in exchange rates between three currencies .

In the foreign exchange market, very short-term "price distortions" can occur between different currency pairs depending on the timing

For example, let's assume the following rates were offered (exchange rates as of April 2025):

• Japanese Yen to US Dollar: 1 dollar = 152 yen
• US Dollar to Euro: 1 dollar = 0.92 euros
• Euro to Japanese Yen: 1 Euro = 167 Yen

In this case, let's assume we exchange 10,000 yen as follows

Step	Currency conversion	calculation	Amount of money
①	Yen → Dollar	10,000 yen ÷ 152 yen	Approximately $65.79
②	Dollar → Euro	$65.79 × €0.92	Approximately 60.53 euros
③	Euro → Yen	60.53 euros × 167 yen	Approximately 10,106 yen

As a result, 10,000 yen becomes 10,106 yen, generating a profit of 106 yen.

However, these opportunities are usually over in an instant, so speed in judgment and action is essential.

Therefore, the ideal approach is to use EAs (Expert Advisors) or specialized software in conjunction with trading to create an environment where you can trade without missing any opportunities

However, this method is flexible enough to be implemented manually, and is characterized by its greater degree of freedom compared to other arbitrage methods

④ Bonus Arbitrage

Bonus arbitrage is a trading strategy that involves obtaining deposit bonuses from multiple FX brokers and using those bonuses to offset losses in one account while still generating profits .

▼ Transaction flow (example)

1. Deposit 50,000 yen into FX broker A → Receive a bonus totaling 100,000 yen
2. FX broker B also made a deposit → Total 100,000 yen
3. Take a buy position with company A and a sell position with company B (hedging)
4. The winning side retains their profits, while the losing side absorbs their losses with a bonus

The appeal lies in its seemingly risk-free structure, where no losses are incurred on one's own capital, and only one party's profits remain

However, this is prohibited by many overseas forex brokers, and fraud may be detected through checks of order history and IP address

If a violation is discovered, you may face penalties such as account freezing or refusal of withdrawals, so be aware that there are significant risks involved

Summary: Comparison Table of 4 Overseas Forex Arbitrage Strategies

Method name	risk	Difficulty	Profit stability	Risk of violating terms of service	The necessity of EA	Beginner-friendly
Swap arbitrage	low	Medium	Medium to high	low to medium	Not required (manual OK)	★★★★☆
Inter-broker arbitrage	Medium	high	Medium	Medium	Required	★★☆☆☆
3-currency arbitrage	Medium	high	Medium	low	Having one would be advantageous	★★★☆☆
Bonus Arbitrage	low	low	High (theoretically)	very	unsuitable	★★☆☆☆

How to Choose a Broker Suitable for Arbitrage and 5 Recommended Overseas Forex Brokers

The success of arbitrage largely depends on which broker you use

This section will introduce key points to consider when choosing a broker to conduct arbitrage trading while minimizing risk, as well as four recommended FX brokers .

Four checkpoints for choosing a broker to avoid failure in arbitrage trading

Arbitrage may be prohibited by the terms and conditions of the broker

Therefore, to avoid risks such as account freezing, be sure to check the following points

• Holds a financial license (e.g., FSA, CySEC, etc.)
• There are few cases of withdrawal refusals or other problems
• Narrow spreads and high execution speed
• The terms of service do not explicitly state that arbitrage is prohibited

In particular, you should avoid brokers that explicitly state that "arbitrage is prohibited." Even if it is not stated, you should operate cautiously to be prepared for any eventuality.

What kind of trading environment makes it easier to profit from arbitrage? [Explained from a specifications perspective]

Arbitrage relies on accurately capturing even small price differences, so the quality of the FX broker's "trading environment" (i.e., the systems and conditions they provide) greatly influences the results

In this context, "trading environment" refers to the trading servers, trading methods, and infrastructure performance of the FX broker

The three points that should be given particular emphasis are as follows:

1. Server response speed (execution speed) : Orders being executed without delay is directly linked to the success of arbitrage trading.
2. Trading Method (NDD/STP) : This highly transparent method, which involves no dealer intervention, is well-suited for arbitrage.
3. VPS compatibility : When performing arbitrage with automated trading, a stable environment that can operate at all times is required.

Many companies list this specification information on the "Terms of Service" page of their official website , and it can be further understood by using comparison sites and review sites.

Some vendors may not list all their information, so contacting customer support is a good option if you have any questions

Checking the exact specifications in advance is also crucial for the stable operation of arbitrage strategies

Top 5 Overseas Forex Brokers Suitable for Arbitrage [EA Compatible & No Trading Restrictions]

Arbitrage trading is considered a violation of the terms and conditions by many overseas forex brokers, but it seems that some brokers do not explicitly state that arbitrage is prohibited, or that it is actually being traded without any problems

Here, we introduce that meet the criteria of being EA compatible, allowing scalping, and having no explicit restrictions making it easy to implement arbitrage strategies

1. FXGT | A mid-sized broker with attractive EAs and high leverage environments

• Arbitrage information: Not specified (however, some restrictions may apply)
• Countermeasures: Swap arbitrage, inter-broker arbitrage
• EA usage: possible
• Note: Hedging strategies involving bonuses and trading at extreme timings tend to be viewed with caution.

FXGT Reputation and User Reviews | Independent Investigation into Safety and Rumors of Withdrawal Refusals

2. ThreeTrader | Narrowest spreads x highly flexible arbitrage trading possible

• Arbitrage statement: Not mentioned (There is no explicit prohibition against arbitrage trading)
• Methods used: Inter-broker arbitrage, triangular arbitrage, swaps (including reports on the operation of arbitrage EAs).
• EA usage: Possible (compatible with both cTrader and MT4)
• Caution: Be careful with high-speed scalping immediately after economic indicator announcements.

Threetrader's Reputation and User Reviews | Thorough Investigation of Withdrawal Rejection Cases and Security (Threetrader)

3. Exness | One of the few brokers that officially allows arbitrage trading

• Arbitrage is mentioned: There is no explicit prohibition, and it is explicitly stated as acceptable in the official FAQ.
• Methods used: Swaps / Inter-broker arbitrage with other companies / Triangular arbitrage (all)
• EA (Expert Advisor) Use: Fully supported (fully automated trading tools can be used)
• Important Note: When combining accounts with other companies, be careful not to violate the terms and conditions of the other company.

A thorough investigation of Exness's reputation | From safety to rumors of withdrawal refusals

4. Tradeview | A flexible strategy in an A-book environment that is tolerant of arbitrage trading

• Arbitrage description: No restrictions (zero trading restrictions)
• Supported methods: All methods (arbitrage, swap, latency, custom EAs included)
• EA use: Officially permitted. Scalping is also welcome.
• Note: There are no bonuses, so initial funds are required. Suitable for intermediate to advanced players.

5. IS6FX | Some say that the trading environment is geared towards Japanese users and that there is a tendency to tacitly approve of such practices

• Arbitrage information: Not explicitly stated (support gave a vague response)
• Method of handling: Swaps/inter-broker transactions (EA reports available)
• EA usage: Possible (MT4/5)
• Note: It is safer to refrain from using bonuses for trading, as they may be considered a prohibited activity.

IS6FX Reviews and User Feedback | Thorough Investigation of Safety and Withdrawal Refusal Cases

Comparison Chart: Top 5 Overseas Forex Brokers Suitable for Arbitrage

Company name	Arbitrage entry	Countermeasures	EA usage	Features and points to note
FXGT	Not specified	Swap / Inter-broker	Possible	A mid-sized broker. Caution is advised regarding excessively fast arbitrage trading
ThreeTrader	Not specified	Triangle / Between vendors / Many EA uses	Possible	Excellent execution speed. Keep short-term scalping to a minimum
Exdefine	Acceptance indicated	Supports all arbitrage transactions	Possible	Highest degree of flexibility. Caution when combining with other companies' products
Tradeview	No restrictions	Complete freedom (A-book environment)	Possible	Excellent execution capabilities and transparency. Suitable for those with sufficient capital and experience
IS6FX	Not specified	Swaps between brokers (tacitly accepted)	Possible	Many Japanese users. Caution is needed when using bonuses

The advantages of using arbitrage in overseas forex trading

Arbitrage is a trading method that "profits from price differences," and is characterized by its ease of use even for those who are not good at predicting market movements. Here, we will introduce three main advantages of using arbitrage in overseas forex trading

1. Low risk and almost guaranteed profits

The biggest appeal of arbitrage is you can aim for profits without predicting market fluctuations . Because the system involves buying at the lower price and selling at the higher price the moment a price difference occurs, theoretically, it is possible to make trades with a "100% win rate".

For example, if a certain currency pair is priced at 100.10 yen at broker A and 100.15 yen at broker B, you can buy it at A and sell it at B at the same time, and your profit will be the price difference of 0.05 yen

Of course, there are things to be aware of, such as server delays, fees, and discrepancies due to order timing, but the gambling-like risks associated with trading in the market are significantly reduced .

2. There are profit opportunities even with little market volatility

In general trading, "large market movements" present opportunities, but in arbitrage, it's the opposite

by targeting temporary price distortions that occur when the market is stable

In particular, with swap arbitrage and triangular arbitrage, even a difference of a few pips can lead to steady profits through repeated trades

a valuable option for making money even in markets where the direction is unpredictable .

3. No advanced skills are required

Arbitrage is not about predicting whether a price will rise or fall, but rather about finding price differences or differences in conditions. Therefore, specialized knowledge such as technical analysis or fundamental analysis is not required

Basically, a structured trading method that's easy for beginners .

Furthermore, using an Expert Advisor (EA) allows you to automate price difference detection and entry points, making it suitable for those who don't have time to monitor the market .

Why you'll get caught using bonuses to engage in hedging and arbitrage in overseas forex trading

While bonus arbitrage and hedging strategies are often thought to be "okay as long as you don't get caught," the reality is that in most cases, the operators see .

Here, we will explain three reasons why fraudulent activities are detected

Because the trading pattern is different from the usual

FX brokers monitor each user's orders and open positions in detail using their systems. Hedging and arbitrage trading are likely to be detected as unnatural order patterns that differ from typical discretionary trading.

For example, behaviors such as "using only bonuses to open large lots and closing them quickly" or "always taking positions in only one direction" are clearly different from those of a normal trader who is taking on risk

When such unusual transactions are detected, they are more likely to be flagged by the platform's monitoring algorithms

Because the same trading platform (MT4/MT5) is used

Most overseas forex brokers use MetaTrader, such as MT4 or MT5

Because these platforms are standardized, they have the characteristic of recording IP addresses and account behavior in a similar format across different providers

As a result, it has become easier to detect simultaneous orders, hedging, and high-leverage linked transactions between multiple brokers .

Because multiple FX brokers share information

Some FX brokers, as part of their AML (Anti-Money Laundering) and fraud prevention measures, manage trading logs and IP information in cooperation with other brokers .

In particular, it seems that user behavior may be cross-checked between group companies or between businesses using the same platform

This increases the risk that fraudulent transactions, even those intended to be conducted using a different vendor, could be discovered in unexpected ways

Points to note and tips for using arbitrage in overseas forex trading

In the previous section, we touched on the mechanism of "why you get caught," but here we will introduce practical precautions and tips for avoiding detection in "how to trade without getting caught."

While arbitrage offers the potential for low-risk profits, it also carries risks such as violations of terms and conditions and account freezing

This section will explain the topic from four particularly important perspectives

1. Risk of being prohibited from using bonuses
2. Points to note regarding business-to-business transactions
3. Penalty risks for violating the terms of service
4. Lot size adjustment to maximize profits

This is essential reading for anyone looking to profit from arbitrage, so please take a look

Using the bonus is prohibited

*【Supplementary Note】We previously touched upon "bonus-related risks," but here we will delve deeper into the reasons why they are prohibited and practical measures to avoid them

Many overseas forex brokers prohibit arbitrage using deposit bonuses or account opening bonuses

This is because profiting without using one's own funds or taking on any risk goes against the intentions of the business

For example, if you deposit the same amount of money into both Company A and Company B, and then use the bonuses from each company to place buy and sell orders simultaneously, such transactions are highly likely to be detected by the system and may result in profit forfeiture or account freezing.

If you want to take advantage of bonuses, it's safer to choose a broker that allows their use for arbitrage purposes, or to invest in an account that is not eligible for bonuses from the start

is updated regularly on this overseas forex latest bonus campaign ranking page

Transactions between businesses are often prohibited

This section explains specific actions and countermeasures to be aware of regarding "transactions involving multiple vendors."

Inter-broker arbitrage, which aims to profit from rate differences between multiple FX brokers, is an effective strategy, but many brokers explicitly prohibit it in their terms and conditions

In particular, hedging strategies such as holding opposing positions at the same time, and linked orders using Expert Advisors (EAs), are subject to monitoring

In addition, between affiliated group companies or providers using the same servers, their behavior is easily cross-referenced, and transactions that appear easy to overlook can be discovered through records

As a workaround, the basic approach is to first select brokers that do not prohibit inter-broker arbitrage, and then develop a strategy that does not constitute prohibited activity

If any fraudulent activity is discovered, your account may be frozen or withdrawals may be refused

Continuing to engage in transactions that violate the terms and conditions may result in severe penalties such as account freezing, forfeiture of profits, and refusal of withdrawals

Typical arbitrage behaviors, especially those involving bonus usage, hedging between brokers, and frequent instant settlements, tend to accumulate in the system and may be retroactively penalized several days to several weeks later

Once your account is frozen, it becomes difficult to get your funds back even if you file a claim, so it is crucial to read the terms and conditions and important notes carefully from the start

It should be noted that you may also find posts about real-life experiences with arbitrage and reports of account suspensions on X (formerly Twitter), message boards, and personal blogs

However, since the veracity of the information and the posting conditions are often unclear, it should only be used as a reference, and ultimately, it is best to prioritize the terms of service and the support response when making a decision.

What are the reasons for withdrawal refusals in overseas forex trading and how to deal with them? Tax and tax filing information is also explained

The key to making a profit is to trade in large lots

Finally, I will introduce a practical approach to "how to maximize profits" in trading situations

Because arbitrage involves trading with small price differences, the profit per trade is limited to a few pips to a few tens of pips. Therefore, to make a sufficient profit, it is necessary to trade efficiently with a certain number of lots

However, increasing the lot size also increases the risk of slippage and order rejection, so the following approach is more practical

• Initially, test the trading with a small amount (around 0.1 to 0.5 lots) to check for spreads and slippage.
• Gradually increase lot size, targeting the time period when rate differences are stable (the overlap of the European and London markets)
• Using a broker with low spread fluctuations and high execution speed makes it easier to increase lot sizes without sacrificing profits

For more information on choosing a broker suitable for arbitrage, please see the previous section "5 Recommended Brokers for Overseas Forex Arbitrage."

Selecting the right vendor is a crucial factor that directly impacts profit efficiency

Thus, considering not only the lot size but also "when, with which broker, and at what timing to initiate the trade" is a practical point for maximizing profits in arbitrage.

A comparison list of maximum and minimum lot sizes for overseas forex brokers | Including recommendations for large traders and how to calculate appropriate lot sizes

Designing a strategy to actually make a profit from arbitrage in overseas forex trading

Arbitrage is theoretically a trading method with a near 100% win rate, but in reality, several strategic perspectives are essential, such as "timing" and "choosing the right currency pair."

Here, from a more practical perspective, we will introduce three key points for profiting from arbitrage trading

Practical strategies for selecting the best time zones and currencies to profit from exchange rate differences

Arbitrage is most likely to succeed during times when market liquidity is high and there are significant differences in the speed at which rates are updated .

In particular, price differences tend to emerge between dealers during the period from 9 PM to 1 AM Japan time, when the London and New York markets overlap

The basic rule for currency pairs is to choose "major currencies with high trading volume and stable spreads." Specifically, USD/JPY, EUR/USD, and GBP/USD tend to generate stable price differences.

It's safest to exclude minor currencies and currencies that tend to have wide spreads

Examples of suitable time zones and currency pairs for arbitrage

Time zone (Japan Standard Time)	Features	Suitable currency pairs
8:00〜10:00	The Tokyo market is showing some stability as it starts	USD/JPY, AUD/JPY
15:00〜18:00	London market opens. Price differences are likely to occur	EUR/USD, GBP/USD
21:00〜25:00	The London and New York markets overlap, resulting in maximum liquidity	USD/JPY, EUR/USD, GBP/USD

What are the trading hours for overseas forex? What are the most profitable times and points to be aware of?

Addressing the risk of price differences not being resolved and designing profit-taking lines

Arbitrage is based on the premise that there is a difference, but this difference is not necessarily resolved immediately

Exchange rates between brokers can sometimes remain divergent for unexpectedly long periods, which can affect profits and losses

To avoid such situations, it's important to have clear criteria before entering a trade, such as "close the position if the price difference exceeds ○ pips."
Also, be mindful of the possibility of slippage and order rejection when setting limit and stop orders.

As a result, prior risk simulations help avoid losses

Differences between manual and automated trading and how to choose between them

Price differences between brokers often change in less than a second, making manual trading impossible in some situations

For this reason, the use of EAs (Expert Advisors/automated trading systems) seems to be the mainstream approach in arbitrage.

With automated trading, you can monitor multiple brokers simultaneously and execute orders the moment a rate difference arises

On the other hand, methods that do not involve much price fluctuation, such as swap arbitrage, can be handled perfectly well manually.

Choosing a style that suits your individual strategy can significantly improve trading efficiency

Q&A about arbitrage in overseas forex trading

We have compiled frequently asked questions regarding arbitrage in overseas forex trading

1. What is the difference between hedging and arbitrage?
2. Is arbitrage possible with automated trading?
3. Can arbitrage be done using only a smartphone?
4. Is it true that, theoretically, you can't lose?
5. What should I do if my arbitrage account gets frozen?
6. How much of a price difference would make it a worthwhile opportunity?

Let's check the items that interest you

Q. What is the difference between hedging and arbitrage?

Hedging is a trading strategy where you simultaneously hold both buy and sell positions in the same currency pair

It is used to diversify risk or fix profits and losses. On the other hand, arbitrage is a strategy that aims to profit from price differences between different brokers or currency pairs

For example, this could involve buying USD/JPY cheaply at company A and selling it at a higher price at company B. The difference becomes clear when you remember that hedging is for risk adjustment, while arbitrage is for profiting from the price difference

Q. Is arbitrage possible with automated trading (EA)?

Yes, it is possible

Especially in trading methods like inter-broker arbitrage, where it's necessary to capture rate differences in real time and place orders immediately, common to use a dedicated Expert Advisor (EA) .

However, there is a risk of malfunction due to the EA's performance or incorrect settings, so it is safer to start with a small amount of money for testing before moving on to full-scale operation

Furthermore, some brokers prohibit the use of EAs altogether, so checking the terms of service is essential

Q. Can arbitrage be done using only a smartphone?

In conclusion, it's difficult to complete everything using only a smartphone.

While simple swap arbitrage is possible, instantly judging rate differences between brokers and placing orders across multiple accounts is overwhelmingly easier on a PC

Furthermore, when using automated trading EAs, it is generally assumed that they will run on a PC or VPS server. Smartphones should realistically only be used as a supplementary monitoring tool

Q. Is it true that you can't lose in theory?

Arbitrage is a type of trading that profits from the difference in price between two assets of the same value. In theory, it is always profitable, so many people believe that it is impossible to lose

While it's true that it's difficult to lose, it's wrong to say that it's "absolutely unbeatable."

Arbitrage trading also carries the risk of losses, as changes in political situations or legal regulations can suddenly disrupt correlations

Furthermore, holding many positions requires significant spreads, which could ultimately lead to losses

As you can see, even arbitrage can result in losses if done incorrectly, so be sure to anticipate the risks before investing

Q. What should I do if my account gets frozen due to arbitrage?

If your account is frozen or your withdrawal is refused, first contact the service provider's support to check the situation

However, once a "violation of the terms and conditions" is determined, negotiations often become difficult, and you must be prepared for consequences such as the forfeiture of profits

To prevent this from happening in the first place, it's necessary to take measures such as choosing a broker that doesn't list any prohibited activities, not involving bonuses, and avoiding unnatural transaction patterns

Once it freezes, it's too late, so preventative measures beforehand are everything

Q. What price difference is needed to create an arbitrage opportunity?

As a general guideline, you can consider executing arbitrage if there is a price difference of 2 to 5 pips or more

However, it's important to note that when you factor in spreads, fees, and slippage, a smaller difference in price can actually make it harder to generate profits

Especially in real-money trading that doesn't support bonuses, whether there is a "real profit remaining ." Even if you see a price difference, arbitrage is not successful if there is no actual profit remaining.

Summary: Is arbitrage profitable? We've explained the methods and prohibited practices in an easy-to-understand way for beginners

While arbitrage in overseas forex trading is not illegal, some brokers prohibit it

To practice arbitrage safely, choosing the right broker and reviewing their terms and conditions are paramount. Be sure to consider both the benefits and risks, and utilize arbitrage in the correct way.

Summary of key points about arbitrage

1. It is not illegal under the law
2. Be careful of violations of the terms and conditions by the service provider
3. Choose a service provider that is safe to use
4. Easy for beginners to get started
5. Selecting the right broker is key to successful EA (Expert Advisor) trading
6. Strategically consider lot size and time of day

If you understand the rules and trade accordingly, arbitrage can be a low-risk way to aim for stable profits. Follow the terms and conditions and use overseas forex trading wisely

Top Recommended Overseas FX Brokers Ranking | Thoroughly Introducing the Best Trading Environments by Category