Best Broker For Scalping: Here’s How To Find It [2021]

(Credit: Unsplash)

The process of searching and finding a reliable brokerage service can be quite stressful, especially for new traders. This process can also be annoying for old school traders too though, especially if someone is searching for some specific feature in order to facilitate a specific strategy. 

That is also the case for scalpers, some of the most skilled traders present on the market.

Before we go through our article regarding the best broker for scalping, let’s take a look at what exactly is this technique, and why it’s important to choose the right broker and trading platform to do it.

Scalping: What Is it?

Scalping is a trading technique that requires you to make the quickest investment possible regarding opening and settling a position. 

Unlike other trading techniques, scalping does not require following market trends or holding stocks for long term strategy: it is the fastest technique to capitalize on the market. It’s so fast that not even day traders will have the same velocity, and no other trader will ever make the same amount of trades in a single day.

To put this in perspective, a scalper will usually have a rate that goes from 10 trades per day to 200 trades per day.

Their strategy is based on short-term price fluctuations predicted via technical analysis, it’s the fastest strategy available for trading, and a risky one, because of its large use of leverage.

Scalping: Regulation

It’s important to remember that not all brokers allow scalping, and usually those who are in search of the right brokerage service for scalping want to use an ECN platform.

Problems with scalping may occur also because of where you’re based as a trader, because forex brokers often are not allowed  (or are limited in this regard) to enhance scalping techniques on their platforms in many countries such as:

  • Australia
  • Cyprus
  • UK
  • US
  • Japan

In the aforementioned countries, you should be careful before opening a trading account for scalping purposes, because it may be illegal or impossible for you to do that.

Scalping & ECN Platforms

As we mentioned before, when you look for a scalping platform, your best option is always to search for an ECN platform.

These kinds of platforms are the fastest in the FX market and provide a marketplace where it is possible to place bids at a very competitive price, and with lowest spreads if compared to the competition. ECN platforms often also include extra trading time for flexibility and lower fees, which are critical due to the high amount of trades per day.

According to our research, we decided to present you with a short list of the best ECN brokers for scalping:

  • IC Markets: this broker offers a very appealing ECN account with 3 USD per lot as commission and some of the tightest spreads available today. These include spreads starting from 0.1pips and no minimum deposit needed to start trading. 
  • Pepperstone: another top brokering service with a Razor Account, which is extremely useful to start scalping with a 3.5 USD commission per lot. Additionally, they enhance on these account spreads, starting from 0 pips and many social trading features. In this case, a minimum deposit of $200 is required.
  • Admiral Markets: founded in 2021, it is a well-rounded regulated broker with tier-1 e tier-2 regulators in many jurisdictions. With Admiral Markets you have access to many different platforms such as MT4, MT5, Webtrader and cTrader with only a $3 per lot to cover in commissions and highly competitive spreads from 0.1 pips. It doesn’t require any minimum deposit.
  • FP Markets: this Australian broker Is a top-rated regulated brokerage service with licenses provided by important regulators such as ASIC and CySEC. Founds can be deposited via bank transfer, credit card or paypal. Scalping and hedging are both allowed and it offers a negative balance protection for their traders. To the ones who think to need more practice,  there’s also the chance of using a demo to practice their scalping skills. It requires a minimum deposit of $100.

Be Careful!

We want to close our guide by remembering you to be aware of the risks of trading, especially when it revolves around a risky technique such as scalping.

In fact, in order to make profits with scalping, scalpers tend to risk way more than regular traders. Plus, they must maintain a high level of concentration while being under pressure, and have at the same time quick reflexes to follow the rapidity of the market.

It goes without saying that such a practice is not for everyone, and you must think deeply regarding starting or not this new trading path. Otherwise, there’s a high chance of being overwhelmed by this situation and making bad choices. 

Meaning: losing money instead of making it.