Latency arbitrage accusations: staying inside the T&Cs

[FXS London Scalper]

Every so often a scalper gets an email from their broker saying their trading has been flagged as "latency arbitrage" or "abusive", profits removed, account closed. Sometimes the trader really was exploiting stale prices. Sometimes they were just a fast, profitable scalper.

What brokers usually mean by latency arbitrage:
- Trading on price feeds that are faster than the broker's own, profiting from the delay.
- Using tools that detect stale quotes and trade them automatically.
- Consistently entering milliseconds before a price move that was already visible elsewhere.

What generally isn't latency arbitrage:
- Discretionary scalping with short hold times.
- News trading (though some brokers restrict it separately).
- High trade frequency on its own.

How to stay safe:
1. Read the terms, specifically sections on "abusive trading", "minimum hold time" and "arbitrage".
2. If unsure, ask support in writing whether your style is allowed. Keep the answer.
3. Avoid EAs marketed as "latency" or "arbitrage" tools.
4. Keep records of your strategy logic.

Has anyone had profits reversed for scalping? How was it resolved?