Scalping, Sybil attacks, and IB-client collusion are among the most common ways brokers lose money they should have earned. Here's how intelligent broker defense stops them.
Anti-scalping protection is not about restricting legitimate trading — it is about ensuring the trading relationship is economically sustainable for both sides.
Rather than blocking trades outright, the system adjusts IB commission paid based on how long a position was held: under 3 minutes earns 0% commission, 3-10 minutes earns 50%, over 10 minutes earns 100%. This removes the financial incentive for IBs to specifically recruit ultra-short-duration traders without creating any client friction — the trader still executes every trade.
A Sybil attack in the broker context means a single person creates multiple fake accounts to generate artificial trading volume and earn IB commissions on their own trades. IP clustering detects accounts sharing network characteristics: same IP address, same device fingerprint, correlated trading patterns, same payment method across multiple accounts. Flagged accounts go to admin review rather than automatic action — preventing false positives on legitimate family members sharing a network.
An IB and a trusted client coordinate hedged positions across multiple accounts to generate IB commission without market risk. Detection relies on pattern analysis: accounts in the same IB network consistently opening opposite positions simultaneously with matching lot sizes. The statistical probability of this occurring naturally is extremely low.
When fraud is confirmed, the Ban Matrix provides three independent restriction levers without deleting account data: Withdrawal Lock (cannot withdraw funds, trading continues), Transfer Lock (internal transfers blocked), and Login Lock (account access suspended). Full account history is preserved for regulatory and legal purposes.
All three layers — time-based anti-scalp logic, IP clustering, and the full Ban Matrix — are built in. Configuration is per-broker. View the CRM
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