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.
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|
|Avg EUR-USD spread*||0,16 pips||0,30 pips||0,90 pips|
*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:
- finding many trading opportunities throughout the day;
- 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.