Are you a veteran or beginner in the forex market, and you would like to try scalping as a strategy to earn more profits? It’s worth trying out since the technique has gained popularity among investors as it helps them maintain a safe position.
However, you need to find a good broker to help you get great rewards. There are many firms with varying attributes that you can consider making a wise decision. To learn more about scalping and some of the top brokers, continue reading.
FP Markets is a global forex trading service, founded in 2005 with a head office in Australia. It’s regulated by the Australian securities, Cyprus securities, Exchange Commission (CySEC), and Investment Commission (ASIC).
The platform offers courses in the education section with eBooks, webinars, and tutorials. They help you to learn the basics of trading with some weekly video recordings that cover market analysis.
You can trade a variety of instruments in several markets like indices commodities and currencies. If you are a CFD or Forex trader, the Meta trade 4 and 5 are suitable, while those who like trade equities can use Iress. FP Markets also allows access to the Autocharist suite to give you more control over your trading activity. Further, you can enjoy a free VPS via depositing $500 or trade for 10 to 20 lots.
- Easy account opening
- Low forex fees
- Fast withdrawal
- High CFD fees
EasyMarkets is an online broker that began operation in 2001 with over 200 tradable assets. It’s headquartered in Cyprus and operated by Easy Forex Trading Ltd. The broker is regulated by Australian securities, CySEC, and ASIC; thus, they cannot manipulate market prices. Further, they honor all withdrawal requests to maintain the regulation status.
It offers six different ways to trade, including Forex, indices, commodities, Crypto, CFD, and shares. If you are a beginner, you can sign up for the demo account to learn about the platform. For other levels, you can opt for a standard account for at least $100 or a VIP account for a minimum of $2500 or the Meta Trader4.
It has a Mobile app for more flexibility and customer service for inquiries whenever you have a question.
- Professional customer support
- Has innovative features
- No withdrawal fees
- No VPS
- High spreads
Pepperstone is an Australian forex firm that was founded in 2010. It’s regulated by the Dubai Financial Services Authority (DFSA), Financial Conduct Authority (FCA), the Australian Securities and Investment Commission (ASIC). On the platform, you can trade in Social trading, CFDs, and Forex, but they may vary in different countries.
The deposit and withdrawal procedures are straight forward and free. You can choose between two accounts, the razor, and standard. The later has more prominent spreads with no commission, while the former has a commission of seven currencies per lot with more narrow spreads. Additionally, it has the famous MT4, MT5, and ECN trading platform with a minimum deposit of $200.
It also comes with exceptional features for upgrades, including the cTrader Automate, Social trading partnerships, and Smart Trader Tools.
- No inactivity fee
- No CySEC regulation
- 24hr customer support
IC Markets is an established online trading broker with a great reputation since it was founded in 2007. International capital markets own the firm, and it’s based in Sydney, Australia. It’s regulated and licensed by the Investment Commission and Australian Securities. Additionally, it’s a member of the Financial Ombudsman Service (FOS) that helps resolves complaints faster.
Most brokers prefer it since it offers low fees, spreads, and more. It primarily focuses on forex trading and provides you with choices in indices, futures, and commodities. You can work on three platforms, including Meta Trade4, Meta Trade5, and C Trader. Moreover, it gives you a variety of tools and analysis techniques to facilitate trade execution. Also, the broker has a multilingual 24hrs customer support to handle all queries.
- Multiple withdrawal options
- Has low spreads
- Advanced brokerage tools
- No bonuses offered
Avatrade is an established CFD and Forex brokerage that has been in existence since 2006. The main headquarters is in the Republic of Ireland, with other entities spread in different nations. It’s regulated by the central bank of Ireland, UAE, BVI, ASIC, FSA, and IIROC.
The broker is licensed to offer both professional and retail trading services. Therefore, you can trade with different currency crosses and pairs, including stocks, CFDs, Indices, Cryptocurrencies, and shares. You can also use the MT4, MT5, ActTrader, Zulutrade, and Proprietary platforms depending on your preference with a minimum deposit of $100.
Avatrade offers an education section with several articles to help you learn the concepts and techniques of trading. You can use your Android or iOS-enabled devices to trade, and in case of any question, contact customer support.
- Flexible trading platforms
- It features Autochartist
- No commission fees
- No variable spreads
- No US clients
What is Scalping
Scalping is a trading strategy that you can use as a trader in commodities, securities, and foreign exchange markets. You engage in buying and selling of multiple shares while holding each position within a very short time in a day. The goal is to take advantage of fluctuation so that you can have high volumes, accumulated in small yields.
As a scalper, you have to trade faster and have a keen interest in price charts for long periods. You should be a quick thinker and have the ability to change bias within a short time. The long moments may be stressful since they need your patience. Additionally, the strategy works, if you dislike waiting for daily long trades. Therefore, you need access to real-time indicators and analysis tools to help you take positions faster since it’s a high-risk trading option.
Are There Rules and Regulation For Scalping
Scalping is considered as a legal strategy in trade regardless of the market or region you trade. However, it governs by a set of rules and regulations aimed at protecting clients and firms. As a scalper, you only choose your trading time frame, stop loss, and profit orders. Moreover, you don’t have a lot of control over the techniques you apply, spreads, or server stability.
Note that different brokers have varying discretion about the technique, and some are against it. However, most of the forex platforms will permit you to use the scalping strategy and hedging. In case you want to automate the procedure, you will need to use third-party software or forex trading bot. You also need to confirm whether the two systems are compatible and if your broker allows it.
What to consider when Choosing a Broker for Scalping
The number of forex brokers has been on the rise with great promises of offering quality services to clients. Some firms are focused on making profits at your expense, while others offer good services. Therefore, you need to look into some critical characteristics to make a wise choice of the brokerage you want as discussed below;
One of the essential elements to check in any broker is regulation since it makes you feel protected. As you engage in trade, you have nothing to worry about; knowing that there is a government agency looking over every process.
Further, regulation differs in every country since some are more stringent such as in the USA, UK, Japan, EU, Germany, France, and Australia. Some have deposit protect insurance; thus, in case of bankruptcy, you will still recover your account balance.
Good Trade Execution
When you choose a broker with excellent trade execution, you are assured of getting the best deals. It guarantees you get the best market rates on time for your orders. You can then choose from two types of brokers; those with dealing desks or those who engage with the interbank market.
High data Security
When opening an account with a forex platform, you provide personal data and financial information. You may send your passport, bank account details, and credit card numbers. In case that information gets to the wrong hands, you will be at risk of identity theft and trade disruption. Therefore, conduct due diligence to make sure that your brokerage has the right security features.
As a trader, you aim at gaining as much profit as possible at the end of the day. However, your goal may be affected by high trading costs; thus, you need to take your time and choose a firm that offers quality services at an affordable fee.
It would be wise to choose a trading platform with easy and powerful features that meets your expectations. You can try out the demo account since it gives you a taste of what to expect once you sign into the real account. Therefore, test every aspect and on all platforms to see if its what you expect.
Customer service is usually overlooked, yet it’s critical in helping you whenever you are stuck. You may need assistance in critical areas such as in account opening, choosing the right software, and understanding how a platform works.
Educational Material and Trading Tools
It is important to use a broker that offers educational material and essential trading tools. As a beginner, you will quickly learn from the articles, videos, courses, seminars, eBooks, and webinars a no extra cost. However, various firms have different quality levels in the tools and learning materials they offer; thus, take your time to choose the best among them.
Deposit and Withdrawal
A good forex platform allows you to deposit and withdraw without much hassle. Note that your broker only holds money to make the trading process seamless. Therefore, getting your earnings shouldn’t be a hard task. Ensure that you use a broker that utilizes smooth and speedy methods.
Note that not all forex brokers allow scalping; thus, go through the terms and conditions to know if you can use the technique. On the other hand, some make the practice very difficult to implement or unprofitable to discourage scalpers.
Why Choose a Broker that Allows Scalping
Once you choose to become a forex trader, you decide to be a day or positional trader. For the latter, you must use a long-term strategy since hold time may last for weeks or months. When you choose to be a scalper, the holding period can be last from seconds to minutes or a few hours to earn your profit.
Additionally, most brokers who allow scalpers have a distinguished track record, making them preferred by many traders. They also use the best features and up to date technology to ensure that they handle large amounts of trades.
Tools for Scalping
Scalping is like watching thriller movies where you are expected to make a super-fast decision. Your concentration is vital in ensuring that you get the expected profits; thus, if you don’t have a friendly interface, it may affect your productivity levels. Therefore, brokers for scalping utilize top-notch technical software for the platform to be highly efficient and fast.
As a scalper, you will opt for a firm with excellent visuals, keeping in mind the concentration span required throughout the process. Further, good software ensures that there are constant data updates, especially on the latest price movements.
Learn More About Trading Software Here
The pros and cons of Scalping
Here are the pros and cons involved:
- As a trader, you are vulnerable to short-term market volatilities only.
- No systematic risks involved.
- Capitalizing on small market moves is more profitable in stationary markets.
- Small fluctuations are enough to achieve profitability.
- You may miss out on large profits due to short-term plans.
- Performance may be inhibited if you focus on long term profits.
- Increased use of leverage may lead to potential liability.
In the above guide, it’s clear that the scalping strategy is legal, provided you are in the right jurisdiction. The practice is continually becoming a common method for many brokers in pursuit of sustainable long term benefits.
Therefore, you need to learn the technique, and don’t forget to choose a platform based on the above attributes. Moreover, be patient and maintain high levels of discipline to be a successful scalper. You can choose among the discussed brokers to start your forex trading journey.
Dov is a Blockchain and Forex trading enthusiast, who spends most of his time trading and examining software who are related to cryptocurrencies and forex trading. You can follow on Dov’s reviews and articles here on CoinRevolution and across the web.