Top 10 Best Scalping Forex Brokers with ECN or Market Maker model

logomark Filippo Ucchino calendar Last Updated: May 2021 timer 14 min read
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Are you interested in scalping as a forex trader?

If the answer is yes, then you are probably looking for the best scalping forex brokers in the industry. With these brokers you will find many features and benefits suited to scalping effectively.

While there are many forex brokerage houses available for you to choose from, you need to make sure that they both support scalping, and have positive features for scalpers.

This is exactly what you will find here as we look at not only many of the ECN Forex Broker top 10 within this list but also other brokers that are ideal for scalping. Below you can expect to find:

  • ECN scalping brokers
  • Non-ecn scalping forex brokers
  • Additional information on scalping

With all that in mind, let’s take a closer look at the top10.

Table of contents

Top 10 best Scalping forex brokers, both ECN and Market Maker

Here is a look at the best scalping brokers we have found. 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.

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74-89% of retail investor accounts lose money when trading CFDs

1. Pepperstone

A relatively new broker, operating since 2010, it has quickly become one of Australia’s best forex brokers (with many awards confirming this), highly appreciated by Asian traders and investors. Pepperstone is one of the few forex brokers to offer, in addition to the access to an ECN, a DMA (Direct Market Access) execution. The trust shown in this broker is further bolstered by their solid regulation put in place by both the FCA and ASIC to protect traders.

Trading through Pepperstone, on top of the best execution, you will find 2 distinct account types available in the form of the Pepperstone Razor and Standard accounts. Both offer an accessible minimum deposit amount of $200 and a great starting spread that starts from 0 pips on the Razor account. This along with a great value active trader program help to reduce trading costs significantly.

90
Rated: Excellent
Security 94
Cost 75
Trading 100
Education 71

Platforms: cTrader desktop, cTrader web, ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms regulations: FCA, MIFID-ESMA, ASIC, DFSA, CYSEC, Offshore Minimum Deposit: 0
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74-89% of retail CFD accounts lose money

2. IC Markets

By many, IC Markets is considered to be the best MT4 forex broker for scalping. IC Markets offers access to liquidity from a select pool of tier-1 banks but also non-bank market makers so that the ECN accounts are more than suitable for scalping, having only $3 per lot as commission and tight spreads. IC Markets uses “feeds” liquidity from over fifty different banks and dark pool sources, creating an ECN environment many other brokers envy. Beyond this, their regulatory environment can be very well trusted with oversight from both ASIC and CySEC.

The availability of all the top trading platforms like MT4, MT5, cTrader, and Webtrader contribute to their reputation as a top broker for trading forex. That, added to the very low spreads starting from 0.1pips make it a perfect environment. There is also no minimum deposit which can be attractive to new traders with CFDs available on indices, commodities, stocks, futures, bonds, and crypto.

92
Rated: Excellent
Security 93
Cost 91
Trading 100
Education 66

Platforms: cTrader desktop, cTrader web, Mirror Trader, ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web regulations: ASIC, CYSEC, Offshore Minimum Deposit: 0
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72.68% of retail investor accounts lose money

3. HotForex

One of the leaders in the industry, HotForex offers various types of trading accounts to suit all trading styles. For an ECN account, the MT4 is the perfect choice with $4 commission per traded lot and spreads as close to zero as possible. All these make HotForex one of the best ECN Forex brokers for scalping financial markets. The broker are also active around the world with availability of multiple base currencies and a range of deposit methods that ensures trading here is accessible to all and at a very low minimum deposit.

At HotForex you will choose between a total of 6 account types including a micro account where a minimum deposit of just $5 makes for a very attractive proposition even to beginners in trading. They also have a special account aimed at stock trading with a $10,000 minimum deposit so there is variety available for all at HotForex.

81
Rated: Excellent
Security 94
Cost 86
Trading 69
Education 70

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web regulations: MIFID-ESMA, CYSEC, Offshore, FSC (Mauritius) Minimum Deposit: 5
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76% of retail investor accounts lose money

4. Admiral Markets

With a robust technology sitting at the core of Admiral Markets orders execution, this broker is one of the best ECN Forex brokers for scalping. Aggregating flows from different banks and venues into one single liquidity pool allows Admiral Markets to offer incredible spreads for most currency pairs. The ECN order execution provided here also means that you will have the best chance of never missing out on any market movement. Backed by the trusted regulation of both the FCA and CySEC, the broker attracts traders thanks to this transparency.

You will find more than 4,000 assets available to trade including bonds, ETFs, and cryptocurrencies through 2 account types, Both with a minimum deposit of just $100 and the top MT4, MT5, and Webtrader trading platforms available. The spreads are attractive for scalping too. They start at 0 pips on a Prime account, and 0.5 pips on a Standard account.

80
Rated: Excellent
Security 94
Cost 71
Trading 73
Education 78

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MAC Platforms regulations: FCA, MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 100
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74-89% of retail CFD accounts lose money

5. Vantage FX

Vantage FX are another highly trusted ECN forex scalping broker based in Australia. The very tight spread offered together with the availability of very distinct ECN account types make this an ideal broker considered one of the best for scalping. They are also well regulated by ASIC, FCA, and CIMA that inspires confidence.

Trading and scalping alike can take place here through both the MT4 and MT5 trading platforms offered. The account types mentioned that are ideal for cfd scalping with Vantage FX are the Raw ECN and Pro ECN with $500 and $20,000 minimum deposits respectively helping attract a wide spectrum of traders. Vantage FX provides trading in more than 150 CFD markets including 40 forex currency pairs and all at a great forex spread starting from 0 pips. A top rated Islamic account is also offered.

75
Rated: Excellent
Security 93
Cost 70
Trading 65
Education 57

Platforms: ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms regulations: FCA, MIFID-ESMA, ASIC, Offshore Minimum Deposit: 200
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74-89% of retail CFD accounts lose money

6. FP Markets

FP Markets are another top-rated Australian forex broker among scalpers attracted by their fast and efficient ECN style and STP execution. They have been around since 2005 and have quickly developed into a broker of choice for those who want to trade and scalp with a trusted broker. They are well-regulated by both ASIC, and CySEC.

Those interested in forex scalping with FP Markets are also attracted by the excellent value on offer with extremely competitive spreads starting from 0 pips helping to keep trading cost ideal for scalping. You can trade through the major platforms of MT4, MT5, and Webtrader with this broker. Newer traders to forex trading and scalping are also motivated by the low minimum deposit of $100 to get started trading with FP Markets.

85
Rated: Excellent
Security 93
Cost 64
Trading 100
Education 47

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, Proprietary Desktop Platform, MAC Platforms regulations: ASIC Minimum Deposit: 100
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74-89% of retail CFD accounts lose money

7. OctaFX

Operating since 2011, OctaFX has been awarded the “Best ECN Broker in Asia – 2014” by the Global Banking and Finance Review, and the “Best Broker in Central Asia – 2014” by the Forex Report Magazine. The broker offers a wide range of assets, is highly liquid and ideal for scalping. They also offer great promotions, such as their trading contests, carried out through their demo accounts, which do however include real money prizes. Their 50% bonus on deposits is also extremely appealing as is the low minimum deposit of just $100 to start trading.

The costs too are kept low, with variable spreads from 0 pips perfect for scalping. Fixed spreads from 2 pips, or 0.2 pips with a $500 minimum deposit to open an MT5 account may also be attractive to many scalpers with this helping calculate costs at the same time as keeping them low.

79
Rated: Excellent
Security 94
Cost 79
Trading 69
Education 59

Platforms: cTrader desktop, cTrader web, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms regulations: MIFID-ESMA, CYSEC Minimum Deposit: 5
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77% of retail investor accounts lose money

8. Forex.com

Forex.com is a very well-known and trusted name in the industry. They are a DMA broker who can provide some of the fastest execution speeds, and lowest spreads around thanks to this execution style. If you are looking for one of the best us forex brokers for scalping, then Forex.com is a great choice.

You can open a Forex.com DMA account with a $20,000 minimum deposit for great conditions to get scalping in a variety of different markets all of which offer very deep liquidity that the broker is known for. The spreads too are excellent for scalping. These start from 0 pips on major assets. Forex.com also remains very accessible even to newer traders or those interested in starting scalping thanks to a $100 minimum deposit on other account types that comes with only slightly higher spreads.

82
Rated: Excellent
Security 95
Cost 73
Trading 75
Education 82

Platforms: MT4 Dekstop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform regulations: FSA, FCA, CFTC, MIFID-ESMA, IIROC, SFC, CYSEC, Offshore Minimum Deposit: 100
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79% of retail investor accounts lose money

9. AvaTrade

Avatrade is next on our list of top brokers for scalping and the Irish-based market maker broker does not disappoint here. A favorite among European-based scalpers, the broker is globally operated and regulated. In fact, it is the perfect place for scalping with fixed spreads since that is what they offer at Avatrade.

The great value fixed spread starts from just 1.3 pips on forex with scalpers and traders alike attracted by this and the low barrier of a $100 minimum deposit, great for a top broker. Once you are inside, you also have a great selection of markets that includes 60 forex pairs all available for scalping. With all of the trading taking place through MT4, or MT5, traders know they can trust this broker. A further attraction, particularly for new traders, is the AvaProtect feature that temporarily shields you from losses. An amazing feature from any top broker.

82
Rated: Excellent
Security 94
Cost 78
Trading 75
Education 72

Platforms: Mirror Trader, ZuluTrade, MT4 Web, MT5 Web, Proprietary Web Platform, MAC Platforms regulations: FSA, MIFID-ESMA, ASIC, IIROC, FSCA, Offshore, FSC (British) Minimum Deposit: 100
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61.41% of retail CFD accounts lose money

10. Roboforex

With ECN accounts having spreads as low as zero (depending on the currency pair and market conditions), RoboForex stands out as one of the market leaders in this field. Having a maximum leverage of 1:300 and minimum deposit of $10, the ECN account offered by RoboForex is perfect for cfd scalping strategies. The ECN STP brokers lightning fast execution also means that you will never miss a scalping opportunity as the market moves. RoboForex are also very well-trusted with both CySEC and IFSC regulations in place.

Scalpers and other types of forex traders alike are bound to be further attracted by the great value spread offered here. These spreads start from just 0 pips and a deposit bonus is available for those based outside the EU. For European traders there is a great active trader program to lower trading costs.

84
Rated: Excellent
Security 93
Cost 92
Trading 74
Education 75

Platforms: cTrader desktop, cTrader web, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, Proprietary Web Platform, MAC Platforms regulations: MIFID-ESMA, CYSEC, Offshore Minimum Deposit: 10

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.

ECN pros: 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.

Best Broker for Scalping Pepperstone Forex.com AvaTrade
Broker Type ECN DMA Market Maker
Minimum deposit $0 $100 $100
Avg EUR-USD spread* 0,16 pips 0,30 pips 0,90 pips
Deep liquidity Yes Yes Yes
Algo Trading Yes Yes Yes
VPS Yes Yes Yes

*As of May 12th 2021

How does scalping work?

The old (and correct) adage “let profits run, cut losses short” isn’t particularly relevant to scalping, at least as regards letting profits run. The scalper takes advantage of the market’s micro-oscillations, which have a set duration in time, from a few seconds to a few minutes, which is why it bears slim profits.

People who use this technique settle for small, yet fast, profits, continuously opening new positions on the market, trying to exploit its many oscillations, 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.

How does the Scalper Trader earn?

As we’ve already mentioned, given the nature of scalping, the profits earned with just one operation are quite slim, ranging from a couple of pips to a few tens, at most.

So, for scalping to produce real profits, traders must focus on two things:

  1. finding many trading opportunities throughout the day;
  2. having a high percentage of trades closed with profits.

Other categories of professional traders, generally speaking, 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 below.

How much money does scalping require?

In addition to the high psychological capital, scalping normally requires a certain amount of financial resources. Having to profit from small market investments (a few pips or points at a time), to have noteworthy profits, the investment volume must be kept high.

Therefore, scalpers must have an appropriately funded account, or else work on a high financial leverage, which however does notably increase risks.

The best financial assets for scalping

High liquidity assets are among the preferred scalping markets, to avoid that the lack of buyers and sellers increases the spread between purchase and sell price to an excessive amount, making profits harder to achieve over the short term.

Highly capitalized and traded assets are therefore favoured, such as indexes, forex trades, and other assets which tend to have a good quantity of variations over the trading day.

The forex broker features for scalping

Given this peculiar activity, it is necessary to find a broker presenting the following basic features:

  • Availability of extremely low spread on forex
  • Availability of high liquidity assets (high capitalized assets, index and exchange rates);
  • Possibility to analyze markets with several indicators, possibly customizable;
  • “Market depth” visibility;
  • Direct market visibility such as the one offered by ECN and STP brokers, not an “artificial” version of it (dealing desk);
  • Exclusive intermediation activity, possibly directly on the market;
  • Swift order execution;
  • A high leverage forex broker;
  • Bare-boned brokerage fees;
  • Easy trading platforms, fast and intuitive.

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

Best ECN 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.



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