10 Best Scalping Forex Brokers for 2023

A scalping forex broker refers to a Forex (foreign exchange) brokerage firm that allows and is particularly suitable for the trading strategy known as scalping.

Scalping is very popular first in Forex, but is also used by many traders in trading CFDs (Contract For Difference), Cryptos and Stocks.

Forex scalping is a strategy used by traders to profit from very small price changes in currency pairs. A scalper will place anywhere from 10 to a few hundreds trades in a single day, with the aim of gaining a few pips per trade. These trades are typically opened and closed within a short time frame, often just a few seconds or minutes.

Not all forex brokers allow scalping. Some brokers consider it against their policy due to various reasons like the added cost of supporting such high-frequency, low-latency trading, or the potential for manipulation and abuse.

In this article we have grouped together some of the best scalping forex brokers, which not only allow it, but where the trading conditions are most favourable for this particular strategy.

To choose the brokers we have taken into consideration a number of factors:

• The orders execution speed of the broker
• The maximum leverage allowed on forex
• The overall commissions when scalping on forex
• The platforms made available from the brokers

Round-up

What are the best scalping brokers?

Below is our curated list of the best scalping brokers both for forex and CFDs. Included in this listing are ECN, low-spread non-ECN brokers, and fixed spread brokers.

All of these support scalping and are the top broker choices we have found in the industry.

How to choose the best broker for scalping

It is necessary to find a broker presenting the following basic features to best suit scalping:

• Choose a broker with extremely low spread on forex, raw spreads from 0 pips are best.
• Check the availabilityty of high liquidity assets
• Possibility to analyze markets with several indicators, possibly customizable and/or using custom coded indicators
• “Market depth” visibility is optional, but very useful. cTrader platform has this feature
• No dealing desk execution such as the one offered by ECN and STP brokers is best because it’s faster and with lower spreads compared to the dealing desk one
• High leverage (above 1:30 if possible) can be useful to amplify the market exposure, but it will make scalping even more risky than it already is. Only professionals should think about using high leverage, especially when scalping
• Choose a forex broker regulated by regulations such as FCA, NFA, ASIC or european watchdogs such as CySEC

Given the peculiarities of scalping, not all forex brokers encourage it. Some even forbid it.

How does forex scalping work?

Forex scalping aims to capture small price movements in the currency market by holding positions for very short durations, often minutes or seconds.

Forex scalpers need quick decision-making, concentration and psychological solidity as scalping strategies require the traders to open many trades throughout the day, with the goal of staking tiny profits from each and cutting losses to a minimum.

To take advantage of the continuous price variations, scalpers must dedicate several hours of activity to graphs, keeping a steady and constant focus and carrying out many operations. It isn’t rare to see scalpers performing even more than 100 operations in just a day’s trading.

Forex Scalping: ECN vs Non-ECN vs Fixed Spreads

As mentioned, the listing of top brokers for scalping above includes some ECN, non-ECN, and fixed spread brokers. Here is a look at some of the positives of each, and who they may suit best for trading with.

The positives of an ECN broker are that you will typically find lower spreads. These will often be combined with deeper liquidity making it fast and easier to execute trades at good prices.

On the downside, the low spreads are floating so there can be some uncertainty as to the exact cost when opening and closing your positions. This can be a challenge in scalping. 

Best choice: The best choice for scalping with an ECN broker from us is Pepperstone.

Non-ECN: When it comes to a non-ECN broker these will vary. This depends on the individual broker with some offering ECN characteristics on liquidity and costs. With that said, though they may be similar in these areas, they do not often match up as well as ECN brokers but can still provide very fast trade execution at a low cost.

Best choice: Forex.com is a DMA broker and our favored choice if you are looking to scalp with a non-ECN broker.

Fixed spreads: These brokers will often have higher spreads than floating spread brokers. The upside though is that since fixed spreads do not change, they can provide you a good degree of certainty over cost when opening and closing trades. Fixed spreads are usually offered by market makers brokers and you should also take note of any other costs or fees they may have. 

Best choice: AvaTrade is a well-known market maker broker and our top choice if you are looking to scalp with fixed spreads.

How to choose the best broker for scalping

It is necessary to find a broker presenting the following basic features to best suit scalping:

• Choose a broker with extremely low spread on forex, raw spreads from 0 pips are best.
• Check the availabilityty of high liquidity assets
• Possibility to analyze markets with several indicators, possibly customizable and/or using custom coded indicators
• “Market depth” visibility is optional, but very useful. cTrader platform has this feature
• No dealing desk execution such as the one offered by ECN and STP brokers is best because it’s faster and with lower spreads compared to the dealing desk one
• High leverage (above 1:30 if possible) can be useful to amplify the market exposure, but it will make scalping even more risky than it already is. Only professionals should think about using high leverage, especially when scalping
• Choose a forex broker regulated by regulations such as FCA, NFA, ASIC or european watchdogs such as CySEC

Given the peculiarities of scalping, not all forex brokers encourage it. Some even forbid it.z

How does the Scalper Trader profit from the market?

Scalpers profit from the market by finding trading opportunities through technical analysis and extremely advanced risk-return ratio risk analysis.

Professional traders aim at having a good risk/returns ratio (from 1:2 up), which allows them to sustain even smaller percentages of success, even below 50%, still generating profits. However, this isn’t the case for scalpers. Taking profits after such short times, the risk/returns value tends to be quite low, which forces scalpers to keep an extremely high percentage of winning trades to constantly generate profits.

This activity isn’t for anyone. Besides having solid technology assets (such as PC, monitors, etc.) and a fast, stable connection, scalping requires extremely high self-discipline and concentration.

Furthermore, obviously, it is necessary to work with a good scalping forex broker, preferably one from the list.

How much money does scalping require?

Scalping forex brokers typically require $200 to open a trading account, however, much less money can be used to open scalping orders.

To open a scalping order, a base amount of $1000 (equivalent to 1 micro lot) is usually recommended. But, the actual money needed depends on the broker’s offered leverage. For instance, with a leverage of 1:100, you’d only need $10 ($1000 divided by 100) to open an order.

The best financial assets for scalping

For scalping to be effective, trading assets that offer high liquidity are essential. High liquidity ensures swift entry and exit from the market and reduces chances of slippage or requotes. The best assets for scalping include Major forex pairs, major indices and derivatives such as CFDs.

Scalping forex brokers FAQs

Which forex broker is best for scalping?

The best broker choice, if you are interested in scalping, is Pepperstone. They can offer a great combination of low spreads, excellent rebates for professional scalpers, and really deep liquidity to ensure your orders are executed quickly at the best prices.

What type of account is best for scalping?

The type of account you will find suitable is really an individual choice that will depend on your trading needs and goals. With that said, many find ECN forex scalping accounts to offer the best environment and conditions.

Which MT4 forex broker is the best for scalping?

When it comes to MT4 scalping forex broker choices, IC Markets is considered one of the best. They are a very popular choice among algo-traders in particular and provide an extremely low spread trading environment which, when combined with their ECN liquidity, makes them an ideal choice.