Best Forex Brokers for Scalping (2019)

Require a broker that offers scalping? Scalp the markets with best online forex brokers that offer fast execution and very low spreads on the major currency pairs. Pepperstones Razor Trading Account & XM's Zero Account are excellent platforms for Scalping the Forex market

best metatrader broker platform, awarded the Best FX broker in Europe 2018
4.6
Rating Score
Spread
Eur/Usd

1.6

Spread Type
  • - Fixed
  • blue TickVariable
Account Type
  • blue TickDemo
  • blue TickMicro
  • blue TickStandard
Platforms
  • blue TickMetaTrader 4
  • blue TickMetaTrader 5
  • blue TickApp & Tablets
Fees
  • -Deposit Fee
  • -Withdrawal Fee
  • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • - Futures
  • blue TickIndices
  • blue TickMetals
  • blue TickStock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: 69.45% of retail investor accounts lose money when trading CFDs with this provider. 

    Trust Rating

    A

    Min Deposit

    £50

    Max Leverage

    30:1

    Competetive Spreads
    Customer Support
    Security & Regulation
    Best CFD trading platform for UK traders, Award winning xStation5 trading platform
    4.6
    Rating Score
    Spread
    Eur/Usd

    2

    Spread Type
    • blue TickFixed
    • blue TickVariable
    Account Type
    • blue TickDemo
    • - Micro Account
    • blue TickStandard
    Platforms
    • blue TickMetaTrader 4
    • blue TickMetaTrader 5
    • blue TickApp & Tablets
    Fees
    • -Deposit Fee
    • -Withdrawal Fee
    • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • - Futures
  • blue TickIndices
  • blue TickMetals
  • blue TickStock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: CFDs are leveraged products & 73% of traders lose money when trading CFDs.

    Trust Rating

    A

    Min Deposit

    £250

    Max Leverage

    200:1

    Competetive Spreads
    Customer Support
    Security & Regulation
    Award winning Top Australian CFD broker for Best Customer Service and Lowest Spreads
    4.4
    Rating Score
    Spread
    Eur/Usd

    1.2

    Spread Type
    • blue TickFixed
    • blue TickVariable
    Account Type
    • blue TickDemo
    • - Micro Account
    • blue TickStandard
    Platforms
    • blue TickMetaTrader 4
    • blue TickMetaTrader 5
    • blue TickApp & Tablets
    Fees
    • -Deposit Fee
    • -Withdrawal Fee
    • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • blue TickFutures
  • blue TickIndices
  • blue TickMetals
  • - Stock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: 78% of retail investor accounts lose money when trading CFDs with this provider.

    Trust Rating

    A

    Min Deposit

    £200

    Max Leverage

    30:1

    Competetive Spreads
    Customer Support
    Security & Regulation
    Best Australian ECN broker with spreads starting from 0.0 pips
    4.4
    Rating Score
    Spread
    Eur/Usd

    1.1

    Spread Type
    • blue TickFixed
    • blue TickVariable
    Account Type
    • blue TickDemo
    • - Micro Account
    • blue TickStandard
    Platforms
    • blue TickMetaTrader 4
    • - MetaTrader 5
    • - Android App & Tablets
    Fees
    • blue TickDeposit Fee
    • -Withdrawal Fee
    • -Inactivity Fee

  • blue TickCommodities
  • blue TickCryptocurrency
  • blue TickForex
  • blue TickFutures
  • blue TickIndices
  • - Metals
  • - Stock
  • blue TickCFDs
  • -Options
  • -Social Trading
  • Risk Warning: Retail investor accounts lose money when trading CFDs with this provider. 

    Trust Rating

    A-

    Min Deposit

    £200

    Max Leverage

    500:1

    Competetive Spreads
    Customer Support
    Security & Regulation

    Best Forex Brokers for Scalping (2019)

    Scalping is a specific style of trading used by the traders. Irrespective of the fact you are new to trading or have enough experience, scalping can offer you a lot of profit in a very short period of time. It’s the style that helps you gain profits/multiply your capital account very quickly or in reverse it can completely blow your account if you do not properly manage risk. 


    Whether you are trading Forex, Commodities or Stocks it’s important to understand that as a trader that scalps you are actively seeking for small price fluctuations/movements. As we know that fractional movements in any instruments are measured in PIPs (percentage in points). For example, let’s say if you are trading Forex and you are particularly interested in trading the EURUSD (euro dollar) and you spot a nice trade setup. Imagine the EURUSD price is 1.1353, the values that every trader will be concerned about is the 53 (the 3rd and 4th decimal places). If this 53 goes up to 54, then this is actually what we call a ONE pip differential or gain by one pip. In real terms it means the euro gained & strengthened by one pip (one point) versus/relative to the US dollar. 


    Many traders ask the same question- How much should my profit/stop loss targets be for scalp trading? The simple answer is that there is no definite percentage gain, particular profit or pip range targets for scalp trading. According to ukspreadbetting.com, a maximum of 10 pips should be the target. As with the Foreign Exchange Market especially around highly volatile news events such as the NFP (Non-Farm Payroll) range can burst literally 40-50 pips in less than a minute. It’s totally dependent on an individual’s appetite for risk. The core ideology of scalping is that a trader liquidates his position will small range targets notably in the 20 pip range in a fairly short time frame ranging from 10 seconds to 10 minutes. Scalp traders normally analyse and assess the 1min, 5min and 15-minute chart timeframes for potential setups.

    We can ascertain that the scalping involves taking multiple positions in the region 20+ trades.  According to Tradingsim.com, scalp traders take on average 100+ trades per session hence taking its title as the style that carries the highest risk. XM Global broker (our recommended broker) offers the XM Zero Trading Account that allows traders to open a maximum 200 positions (dependent on capital account size) at once and with very low spreads. 

    Five Fundamental Requirements for Scalping

    1. Determine your risk profile or appetite for risk
    2. Determine your risk strategy
    3. Adequate capital allocation
    4. Go with a broker that offers low spreads
    5. Go with a broker that offers Fast Execution

     

    Determine your risk profile 

    There is a saying that your trading style can be determined by your personality. If you have a cautionary approach to life in terms of investment, money decisions i.e. someone who takes the risk averse approach, then scalping may not be for you. When scalping you are continuously making quicker decisions than a trader that takes positions in the medium term (swing trading). If you are slightly indecisive when making decisions, then that trait can be overtly relatable to your style of trading. Traders that scalp have to execute and liquidate their positions in a very short time frame, therefore must be sure and perpetual in regards to their analysis and strategy implementation. 

     

    Determine your risk strategy 

    When it comes to positional or swing trading you only hear of the 1% or 2% risk trading rule. This rule basically means you only risk 1% or 2% per trade on your overall capital account size hence it’s fairly manageable because you won’t be taking that many trades per month. An average swing trader (holds trading positions for 1-5 days) will place on average 10-30 trades per month.  You can control your risk to some degree without thought of blowing or burning your whole trading account. 


    Now the difference here is that with scalping you are going to place 10-50 trades or even 100 trades per day. In no way you can use the 1% per trade rule. You will be at the mercy of blowing your full trading account very quickly. The average number of 10-50 trades per day (mentioned above) is only average. One of the main concepts of strategy trading is that you only trade based on your formula derived from your trading plan therefore it could mean you may only have 5 potential setups on a particular day. You should calculate your overall risk profiling very carefully if you are thinking about scalping. 

     

    Adequate Capital Funding

    Scalping unlike other styles of trading requires adequate capital funding i.e. larger trading account. Your broker requires a margin for trading. So if you place multiple trades i.e. 10+ trades at the same time; your broker therefore requires a larger margin for trading. ‘Margin’ in effect covers any potential loss that a broker may incur in the event of you losing out on a trade. 

     

    Choose a broker with Low spreads

    Choosing to trade with a broker that offers low spreads is critical factor scalping (compare forex brokers with low trading spreads). As your scalping you may want look to close trades at 4/5 pips profit therefore if you execute the trade on low spreads you won’t be in loss. GBPUSD is considered as one of the major FX currency pairs because of the sheer volume trader per day. The more trading volume per particular instrument the more volatility can be expected. If you trade of a normal standard trading account, then you can expect spread to be 2-3 pips per trade. Trading of a normal standard account may suit swing/positional traders that have a longer term view of their trading bias and projections. This means when you execute a trade you will automatically give 2-3 pips to the broker and in loss of 2-3 pips. 


    If you are scalping and only looking to gain 8-10 pips it seems illogical place a trade and give up 2-3 pips as you are looking for that small increment in price change. Therefore, going for a broker that offers low spreads is vital. XM Brokers’, XM Zero Trading account and Pepperstone Brokers’ Razor Trading Account are amongst the best for offering low spreads. 

     

    xm zero account vs xm standard account

     

    Open XM Xero Account

     

    Choose a broker that provides fast execution

    Choosing a broker that offers fast execution service allows trades to be executed inѕtаntlу, tаking аdvаntаgе оf livе, streaming, best еxесutаblе рriсеѕ in thе mаrkеtрlасе, with immеdiаtе confirmations. 

     

    Differences between Scalping and Day Trading?

    When it comes to trading, there is no method that can be termed as wrong or right. Day Trading and Scalping being two different methods of trading, have their own benefits and pitfalls. As you gather more experience, you learn to use these methods side by side to make your profits go high.  With experience, you learn how to mix them in your strategy to make sure you do not lose a lot of money, rather win a big amount at the end of the day. But still to use them properly, you will need to understand what they are and how they differ in their style so that you can utilize them properly.


    Time Frame: This is the most important of the factors that differentiates these two strategies from one another. Scalping, as you know already, involves a lot more frequent trading and it’s all about making small but definite profit. So, basically it involves not much of a specific time frame. You can trade at any moment after a particular stock starts to go up whereas in case of Day Trading, you will have to wait till a stock reaches its potential profit point. In this route to its probable destination, the stock may go high or down, but you will have to be patient and wait until you get a good profit ratio over a longer period of time.


    Experience: If you think about the two strategies, well, scalping does not really ask for a lot of experience. Rather, it’s the real time data that gets the priority to earn you a good amount of profit in a short period of time. But in case of Day trading, it’s not at all same. To be a day trader, you will have to know your stocks, expected time for it go up, and the expected or potential peak value it can reach. And this you cannot learn in just one day. You will have to take time and then only you will be able to make a perfect decision at Day Trading.
     

    Top Three Featured Brokers

    best metatrader broker platform, awarded the Best FX broker in Europe 2018
    4.4
    Rating Score
    XM review is one of few brokers that have over 1 million clients registered. They are regulated by the FCA (Financial Conduct Authority) and are well known for fast order execution and have stats recorded to executed over 150 million orders executed with zero requotes. Thi... Read more

    Best CFD trading platform for UK traders, Award winning xStation5 trading platform
    4.4
    Rating Score
    With more than 14 years’ experience, XTB is one of the largest stock exchange-listed FX & CFD brokers in the world. They have offices in over 13 countries including UK, Poland, Germany, France and Turkey. XTB is also regulated by the world's biggest supervision authoriti... Read more

    Award winning Top Australian CFD broker for Best Customer Service and Lowest Spreads
    4.4
    Rating Score
    Pepperstone Broker has been established for over 8 years and has grown into one of the leading forex broker today offering great platform for trading CFDs, Forex, Cypto & Commodities. In 2013, Pepperstone's Razor trading account was ranked among the top 100 innovations in ... Read more

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