Scalping is a trading style in which the trader opens and closes positions within minutes or seconds of each other. Scalping can be done manually by retail traders, and is also used by high frequency traders who use algorithms to achieve the entries and exits that are desired.
Scalpers have special needs in the market, and these must be met by the brokers so their scalping clients can perform their trades as required. These needs are defined below.
Now that the needs of scalpers have been identified, the next step is to discuss forex brokers that have provided trading conditions that match the needs identified above. Here are the best 5 scalping forex brokers.
FP Markets is a is a forex brokerage that satisfies many conditions required for scalping in both forex and various CFDs. For scalping with more than just a small amount of capital, the broker’s ECN Raw Account is most likely the best option. This account offers tight spreads starting from 0.0 pips and competitive commissions of USD 3 per lot (100,000 units). And with leverage going as high as 1:500, FP Markets allows traders to scale up their game to a level where it is possible to make meaningful profits even without a large amount of capital.
FP Markets is also well-known for offering a huge selection of single stocks for trading, making it ideal for scalpers who like to follow the stock market, in addition to forex, commodities, and other markets. This sets it apart from many other brokers that typically offer a very limited selection of stocks, and instead focus mainly on forex trading.
Pepperstone is a fully regulated forex & CFD broker based out of Australia and the UK. The broker offers trading in a large number of forex pairs, in addition to CFDs based on cryptocurrencies, stock indices, as well as precious metals and various other commodities. Overall, the spreads with this broker are tight, starting from 0 pips on the EUR/USD pair on the “Razor” account. Meanwhile, commissions on the same account type are currently at AU$ 3.50 per lot traded, which is also highly competitive.
A special thing to note about Pepperstone is that this broker has also received praise for its work from the outside over the years. For example, it was awarded the “Best Forex ECN Broker” as well as having the “Best Forex Trading Conditions” by the UK Forex Awards in 2018. What this shows is that Pepperstone may in fact be well-suited for scalpers who trade on the very short-term and therefore need the very best trading conditions.
Tradeview offers ECN trade conditions via the cTrader and Currenex platforms. Tradeview also features its proprietary price aggregator software known as Innovative Liquidity Connector. What this software does is that it harnesses bid-ask prices from the various banks that Tradeview gets its liquidity from. This allows the scalper to choose the best bid prices to sell at, or the best ask prices to buy at. The lowest spread is seen on the EUR/USD which is 0.8 pips. The featured cTrader and Currenex platforms are great for retail and professional scalpers. If you also manage accounts, Tradeview offers Multi Account Management (MAM) software for free. Add these features to the sound regulation from the Cayman Islands Monetary Authority (CIMA) and account segregation, and you have a perfect setup for a scalper to trade and make some profits from.
Rakuten Securities operates in Japan, Australia, Malaysia and Hong Kong. The first thing that hits you when you visit the website of Rakuten Securities is the announcement of the reduction of gold spreads by 50%. What an appetizer for an intending scalper looking to add gold to the mix of FX assets to scalp on this broker’s platform. This broker prides itself in the “game-changing spreads” it offers traders. Spreads on the EUR/USD and the AUD/USD are as low as 0.5 pips on a standard account. The broker is regulated in all four jurisdictions where it operates. Maintenance of clients’ funds in segregated accounts with triple-A rated banks ensures safety of the scalper’s funds. Trading on Rakuten Securities is commission-free. Several add-ons such as the Autochartist tool and this broker also offers a desktop version for Mac users and mobile apps for Android and iOS-backed devices.
Renesource Capital is based in Riga, capital city of Latvia. The broker offers scalpers the opportunity to trade in FX & CFD markets with very low spreads and fast executions. However, Renesource Capital falls under the market supervision of the European Securities and Markets Authority (ESMA). This means that scalpers cannot get generous leverage provisions as is the case with the other 4 brokers reviewed above. Leverage is capped at 1:30 for FX majors.
That notwithstanding, Renesource Capital has great features which are perfect for scalping. These include:
Now that the needs of scalpers in the forex market have been identified and the brokers that can match these needs have also been listed, you can go and open an account with one of them and start scalping today. Many of them now offer lower minimum deposit requirements than was the case a decade ago.