Introduction
To become successful in Forex trading requires having a strategy that you are familiar with. Scalping is one of the most used strategies in Forex trading. Searching for a reliable Forex broker that offers scalping can be difficult because there are a few things to consider when choosing the best US or non US broker that allows scalping. Some traders prefer using scalping as their primary trading strategy which means such traders will have to seek Forex brokers who are willing to embrace a trader closing hundreds of position with near-zero profit or loss.
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
Best For High Leverage
US Citizens not Accepted
Minimum Deposit : 1 USD
Maximum Leverage : 1:3000
Metatrader 4,metatrader 5, web,mobile
What is Scalping?
Scalping is one of the
shortest of the short-term Forex trading strategies. Scalping can be defined as
a Forex trading strategy that targets small profits on a frequent basis
throughout the day. It involves the opening and closing of about hundreds of
trades daily based on real-time technical analysis. The main goal of scalping
is to make profits as quickly as possible, gaining a few pips at a time rather
than holding a position for longer periods.
Scalping has different
meaning to different brokers, what this means is that what will be permitted or
not permitted by different brokers that allow scalping will be slightly
different since each broker have their different rules and guidelines. It is
therefore important for a trader to find out how his broker defines scalping to
see how this affects your own individual scraping strategy.
In summary, a trader who
uses scalping strategy needs to understand the chart patterns, candlesticks,
financial factors, and economic indicators. Scalping is not advisable for
beginners because it is a high-risk strategy despite it being used as
ashort-term Forex trading strategy.
How
to Scalp in Forex
There is no best time for
scalping even though most traders usually scalp currency pairs using a time
frame between 1 and 5 minutes. For traders who scalp within 1 minute they
probably earn profit of around 5 pips per trade, while for 5 minutes scalp it
should provide you about a profit of around 10 pips per trade. Therefore, for a
trader who would love to scalp, you will need to develop a trading strategy
that is based on technical indicators as well as a currency pair with high
volatility and good trading conditions.
Additionally, it is
important to pick up a pair that is volatile when you are selecting currency
pairs for your scalping strategy. However, volatility should not be the only
thing to consider when choosing a currency pair. You should equally look for a
cheap currency pair to trade on. This means currency pair with the lowest
spread.Also, it is important for you to select a broker that offers STP or ECN
execution because they accommodate scalping.
PROS & CONS OF OANDA.COM Pros Ability to make frequent gains Scalping is compatible with major Forex pairs that benefit from high liquidity When stop-losses are installed scalping is a low-risk strategy Scalping is an effective strategy for traders who are more of an expert in a particular currency pair It limits the potential liability of each trade Cons Gains are usually ultra-small Takes a lot of time to master the strategy of scalping Scalping allows a trader to continuously miss out on trends and huge profits
Pros
Ability to make frequent gains
Scalping is compatible with major Forex pairs that benefit from high liquidity
When stop-losses are installed scalping is a low-risk strategy
Scalping is an effective strategy for traders who are more of an expert in a particular currency pair
It limits the potential liability of each trade
Cons
Gains are usually ultra-small
Takes a lot of time to master the strategy of scalping
Scalping allows a trader to continuously miss out on trends and huge profits
Best Forex currency
pairs for Scalping
It
is important for traders to know the currency pairs that are best suited for
their scalping strategies. Also, it is recommended for traders interested in
scalping to use the most traded currencies as they have the highest liquidity
in the market. Additionally, the most traded currency pairs are not prone to
very sharp movements and this makes them more predictable.
Consequently,
for the inexperienced traders, major currency pairs such as EUR/USD, GBP/USD,
AUD/USD, as well as minor currency pairs including the AUD/GBP, should be
considered for scalping. This is because these currencies have the tightest
spreads to minimize losses and the highest trade volumes. Contrarily, most
experienced traders may prefer to scalp minor or exotic pairs, simply because
they have higher volatility than major currency pairs but the exotic pairs
often carry greater risks.
Things to consider
when choosing the best US broker for scalping
ü Broker’s Policy:
There is no established broker without an official policy that allows scalping
techniques to be practiced by traders. Some brokers refuse scalping techniques
while others even make scalping unprofitable for traders. This makes it very
important to find out the broker's policy on scalping before investing with them
if you want to make scalping your trading strategy.
ü Broker’s jurisdiction: A
broker’s jurisdiction is quite important to consider when choosing the best
Forex broker for scalping. This is because there are regulations as regards
scalping that are already set by the regulating bodies which determine the
extent to which a broker allows scalping.
ü Broker’s Platform:
Brokers who use ECN platforms (Electronic Communication Network) are known to
allow scalping. ECN brokers are usually among the fastest in the Forex world.
ECN brokers offer scalping and lower spreads as well as lower fees. Similarly,
brokers who also make use of the ECN platform also have a high level of
transparency as they have access to price information which helps to prevent
what can be termed as price manipulation. There are other things to consider
about ECN brokers which include:
- Execution
- Spreads
- Account
size
ü Execution Speed:
Scalping involves trading multiple times in a short time frame. Hence, a trader
needs to receive the latest quotes as timely as possible. Therefore, it is
important to consider how fast the price feeds of a broker are. Traders using
scalping need to be able to trade smoothly without any delay or slippages. This
is because scalping is a high intensity trading strategy that requires a good
platform and an efficient brokerage firm.
ü Spread: As
a trader, you need to assess the types of spreads that the broker charges. For
beginners, this is the difference between the ‘buy’ and ‘sell’ price of a
particular Forex pair. The larger the spread, the more you need to make to get
your trade-in the green. Therefore, it is important for you to go with a broker
that offers tighter spreads. This could not be more important in the case of
scalping, as you will be looking to make ultra-small gains. Kindly take note
that the spreads charged by brokers can vary considerably depending on the type
of Forex pair you’re trading.
ü Leverage: Leverage
basically affects all trading strategies, including scalping. When it comes to
scalping, leverage is an important factor to consider. Scalping requires using
a bit more than the regular leverage, that is, it requires higher leverage.
Leverage can either boost your profit or at the same time magnify your losses.
Other
things to consider when choosing the best Forex broker for scalping are:
· It is important to know if a
broker charges any trading commission. This is because some brokers might offer
commission-free trading but might likely have a high spread. Trading
commissions is usually charged as a percentage of the trade size. As a trader, you will need to make considerations as regards trading commissions.
· Scalping requires good
research and analysis to be successful in Forex trading. Since scalping
involves being able to predict the markets on a minute’s basis and this requires
you to understand how advanced charting tools and technical indicators
functions.
Scalping Trading Tips
Forex
scalpers pay attention to precise movements that occur in the currency market.
You need to have the appropriate tools, strategy, and discipline to take
advantage of these movements. Volatility and unpredictability help to
determine successful scalping. Here are some trading tips for a successful
Forex scalping:
1) Trading Discipline
Making a profit in the Forex market is
dependent on a trader’s ability to control their emotions, maintain their
composure as well as have mental endurance. Lots of times when traders have made
bad trading decisions it has been attributed to poor emotional responses.
2) Defined Goals
Understanding that scalping will bring you
small profits matter a lot, which is why you should select a style that you
are comfortable with it. Being successful with scalping requires having a
well-defined and flexible strategy.
3) Market Conditions
Currency trading is dependent on the market
conditions. Scalping occurs within difficult market conditions which makes it
important for a trader to study and understand the ever-changing nature of the
market.
4) Risk management
Scalping requires using a bit more than the
regular leverage, that is, it requires higher leverage. Leverage can either
boost your profit or at the same time magnify your losses. Using leverage
higher than the regular leads to higher risk and this, therefore, calls for risk
management.
Successful scalping requires a trader to understand the market conditions as well as the risk involved in Forex trading. Traders should not take huge risk while trading, it is better not to risk money you cannot afford to lose.
Fxchoice is well known for allowing best practices in their dealings. Fx choice is a MetaTrader-only broker regulated by the International Financial Services Commission (IFSC) of Belize. It offers the popular MetaTrader 4 (MT4) and MetaTrader5 (MT5) platforms. FXchoice offers 50 instruments, which include 38 forex pairs, and CFDs on seven indices, two energy contracts, two metals, and on bitcoin.
Pros
They offer commission discounts for active traders
Provides MQL5 trading signals to help beginners make profit conveniently
Impressive and easy to navigate platform.
Fxchoice.com offers numerous rewards for increased volumes of trading
They offer a wide range of deposit methods which include: Skrill, Neteller, Bitcoins, Fasapay, Perfect Money, ePayments and Qiwi
Cons
Fxchoice offers no educational tools to help beginners in the Forex market
Fxchoice.com has high stock CDS fees
IC Markets is a Forex broker situated in Australia and founded in 2007. The broker is regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the Seychelles Financial Supervisory Authority (FSA).
IC Markets offers to traders the MetaTrader 4, MetaTrader5 and cTrader trading platforms. These platforms are available both on the web trading platform and mobile platform. The broker offers to customers over 60 currency pairs, indices, stocks, cfds, gold, silver, and cryptocurrencies for trading and investment. Also, you can choose from 10 base currencies for your account, which are: USD, EUR, GBP, CAD, SGD, NZD, JPY, CHG, KHD, AUD
The broker provides three account types, which are: Standard, True ECN, and cTrader ECN. Additionally, on IC Markets, you can use trading styles that include: Scalping, Hedging, and News Trading.
Pros
They offer commission discounts for active traders
Provides MQL5 trading signals to help beginners make profit conveniently
Impressive and easy to navigate platform.
Fxchoice.com offers numerous rewards for increased volumes of trading
They offer a wide range of deposit methods which include: Skrill, Neteller, Bitcoins, Fasapay, Perfect Money, ePayments and Qiwi
Cons
Fxchoice offers no educational tools to help beginners in the Forex market
Fxchoice.com has high stock CDS fees
Talking about one of the best Forex brokers for all round scalper, Pepperstone is definitely a force to reckon with. Situated in Australia, and established in 2010, Pepperstone has carved its niche in the Forex trading industry. The broker is regulated by the Australian Securities and Investments Commission (ASIC) and the UK’s Financial Conduct Authority (FCA).
Pepperstone offers three trading platforms to customer, which are; MetaTrader4, MetaTrader 5, andcTrader. Traders can choose from 9 base currencies on this platform, and operates on two different account types (standard and Razor). Additionally, the broker offers over 60 currency pairs, cryptocurrencies,cfds, gold, silver, and other commodities.
By offering a number of useful risk management features, such as stop losses (with trailing stops), limit orders, negative balance protection, price alerts, and much more,
It must be noted that Pepperstone accepts customers from all over the world. However, US, Canada, New Zealand, and Japan are exempted.
This broker is an excellent choice for scalpers as a result of its tight spread and fast execution speeds.
Pros
No deposit fees
Fast and easy account opening process
Low trading and non-trading fees
Fast and easy deposit and withdrawal process.
Cons
Limited product selection
No investor protection for non-EU clients
Slow live chat support
Hugosway provides a secure ECN trading environment which permits traders to trade exclusively online. The broker offers the trading of over 150 assets which includes Forex, indices, metals, stocks, commodities and cryptocurrencies. Hugosway offers an impressive asset index, which includes cryptocurrencies. They also offer the MetaTrader 4 Forex trading platform, over 50 Forex currency pairs, CFDs, stocks, indices, gold, silver, oil and cryptocurrencies for your trading options and personal investment.
Pros
No requotes
Diverse deposit and withdrawal methods
Low trading and non-trading fees
Cons
only offers Forex and CFDs
no provision for investor protection for non-EU traders
Fxchoice is well known for allowing best practices in their dealings. Fx choice is a MetaTrader-only broker regulated by the International Financial Services Commission (IFSC) of Belize. It offers the popular MetaTrader 4 (MT4) and MetaTrader5 (MT5) platforms. FXchoice offers 50 instruments, which include 38 forex pairs, and CFDs on seven indices, two energy contracts, two metals, and on bitcoin.
Pros
They
offer commission discounts for active traders
Provides MQL5 trading signals to help beginners
make profit conveniently
Impressive and easy to navigate platform.
Fxchoice.com offers numerous rewards for
increased volumes of trading
They offer a wide range of deposit methods which
include: Skrill, Neteller, Bitcoins, Fasapay, Perfect Money, ePayments and Qiwi
Cons
Fxchoice offers no educational tools to help
beginners in the Forex market
Fxchoice.com has high stock CDS fees
FREQUENTLY
ASKED QUESTIONS
1. Is
Forex Scalping Strategy Profitable?
If mastered perfectly,
scalping can be a profitable strategy to scalpers as long as the scalper
understands the concept, and have a strict exit strategy
2. What
type of broker is best for Forex scalping
Any broker that offers “tight
spread, fast execution, and no reqoutes” is suitable for scalping.
3. Why
aren’t most of the US brokers suitable for scalping?
This is mostly as a result
of low leverage, high spread and US regulation.
4. How
much money does scalping require?
A scalper needs a huge amount of money in order to handle the leverage amount needed to make substantial profits in the short and small trades.
Adopting Scalping as a
Forex trading strategy requires the need to understand the chart patterns,
candlesticks, financial factors, and economic indications. While beginners are
not advised to adopt scalping as a trading strategy, nevertheless, it can be
adopted if such trader has sufficient knowledge of it.
It is important for a
trader to choose a US Forex Broker that has the policy, and platform that
supports scalping. Additionally, the broker commission charges should be put
into consideration as well when choosing the best US Forex Broker that allow
scalping.
