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Best Scalping Forex Brokers
Scalping is an interesting and simple trading strategy, which is used by a lot of traders in Forex brokers, but far not all brokerage companies allow it. Forex scalping is a form of trading that is normally used by traders to buy and sell currency pairs where the trader gets to hold the currency for a while waiting for it to accumulate in profit. The scalper then proceeds to make the maximum number of trades while earning a small profit for each trade at a time. Since the scalper is targeting small amounts of profit from several trades, they may hold on to the trades for moments as brief as seconds.
Mostly, forex scalping involves leverages of large sums and this means that any small change in currency rates translates to a substantial amount of profit. To allow you using the best ForexBrokers for Scalping in your work, TopBrokers.com has prepared this list for you. It includes the most proven and reliable Scalping Forex brokers for trading.

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Company  #  Logo  Forex broker  Founded  Regulated  Reviews  Payment systems  Broker type(?)  Min. Deposit  Max. leverage  Live spreadEUR/USD  Live spreadGBP/USD  Live spreadUSD/CHF  Live spreadUSD/CAD  Live spreadUSD/JPY  Live spreadAUD/USD  Live spreadNZD/USD  Live spreadEUR/AUD  Live spreadEUR/CAD  Live spreadEUR/CHF  Accepting US traders?  Account  

Forex.com  1  Forex.combest broker  2001  27  ECN, MM  100 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  1  
IG  2  IG  1974  11  DMA, MM  0 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  1  
Saxo Bank  3  Saxo Bank  1992  9  ECN, STP  10000 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  1  
LMFX  4  LMFX  2015    23  NDD  50 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
OANDA  5  OANDA  1996  9    0 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  1  
Interactive Brokers  6  Interactive Brokers  1977  7  MM  10000 $  1:40  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  1  
City Index  7  City Index  2001  ASIC, FCA  4  NDD, ECN  250 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FxGlory  8  FxGlory  2012    8  NDD, MM  1 $  1:3000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
XM.COM  9  XM.COM  2009  69  MM  5 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Capital.com  10  Capital.com  2016  30  MM  20 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
RoboMarkets  11  RoboMarkets  2012  CySEC  10  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
EXNESS  12  EXNESS  2008  FCA, CySEC  69  0 $  1:2000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Libertex  13  Libertex  1997  CySEC  62  STP, MM  100 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AXITrader  14  AXITrader  2007  ASIC, FCA  10  NDD  0 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
JustForex  15  JustForex  2012  IFSC  15  ECN, STP  0 $    N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
XTB.com  16  XTB.com  2002  FCA, CNMV  3  NDD, STP  250 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
RoboForex  17  RoboForex  2009  IFSC  14  0 $  1:2000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Forex4you  18  Forex4you  2007  FSC  29  NDD, STP  20 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
NordFX  19  NordFX  2008  SEBI, VFSC  97  0 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FxPro  20  FxPro  2006  66  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FXCM  21  FXCM  1999  ASIC, FCA  17  NDD  0 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Admiral Markets  22  Admiral Markets  2001  FCA, CNMV  18  NDD, ECN  0 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AVATrade  23  AVATrade  2006  57  NDD  100 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
IQ Option  24  IQ Option  2013  FSA  4  NDD  10 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FxGiants  25  FxGiants  2015  FCA  3  50 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Vantage FX  26  Vantage FX  2009  ASIC  3  ECN  200 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Instaforex  27  Instaforex  2007  RAUFR  70  NDD, ECN  1 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AlfaForex  28  AlfaForex  2016  CBR  12  NDD  0 $  1:40  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FIBO Group  29  FIBO Group  1998  FSC, CNMV  15  NDD, MM  0 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Alpari  30  Alpari  1998  38  ECN  0 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Markets.com  31  Markets.com  2006  CySEC  6  NDD  100 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FXOpen  32  FXOpen  2005  ASIC, FCA  64  1 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
GrandCapital  33  GrandCapital  2006  CySEC  12  STP  10 $  1:2000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AMarkets  34  AMarkets  2007  FSA  60  100 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Dukascopy Bank SA  35  Dukascopy Bank SA  1998  FINMA  11  ECN  1000 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FP Markets  36  FP Markets  2005  ASIC, CySEC  5  DMA  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Just2Trade  37  Just2Trade  2006  CySEC  24  ECN, STP  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
IFC Markets  38  IFC Markets  2006  FSC, CySEC  29  STP  0 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
HotForex  39  HotForex  2010  CySEC, FSC  63  NDD  5 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
IC Markets  40  IC Markets  2007  ASIC  14  NDD, ECN  0 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FXDD  41  FXDD  2002  MFSA  3  NDD, ECN  250 $  1:50  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AAFX Trading  42  AAFX Trading  2014  ASIC, FSA  177  NDD, ECN  100 $  1:2000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
LiteForex  43  LiteForex  2005    33  ECN  10 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
BCS Forex  44  BCS Forex  2006  FSA  2  1 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Fortrade  45  Fortrade  2013  4    100 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
EasyMarkets  46  EasyMarkets  2001  ASIC, CySEC  11  MM  100 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Hantec Markets  47  Hantec Markets  2009  FCA  3  NDD  1000 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
ForexChief  48  ForexChief  2014  VFSC  86  ECN, STP  1 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
ICM Capital  49  ICM Capital  2009  FCA  3    200 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Octa FX  50  Octa FX  2011  FCA, FSA  25  ECN  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Fort Financial Service  51  Fort Financial Service  2010  IFSC  1  5 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
BMFN  52  BMFN  1988  10  NDD, DMA  0 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
NPBFX  53  NPBFX  1996  IFSC  6  NDD, STP  10 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FreshForex  54  FreshForex  2004  KROUFR  34  NDD, MM  0 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
City Index Singapore  55  City Index Singapore  2006  MAS  2  MM  100 $  1:50  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
GO Markets  56  GO Markets  2006  ASIC  3  NDD  200 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Forex.ee  57  Forex.ee  2004  FSA  2  10 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Tickmill  58  Tickmill  2014  FCA, SIBA  9  NDD  25 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Yadix.com  59  Yadix.com  2010  FSC  34  ECN, STP  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FXPRIMUS  60  FXPRIMUS  2009  CySEC, VFSC  10  STP  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Swiss Markets  61  Swiss Markets  2012  CySEC  2  STP  200 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
ICE FX  62  ICE FX  2015    2  STP  30 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
TrioMarkets  63  TrioMarkets  2014  CySEC  4  ECN, STP  500 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
iOCBCfx  64  iOCBCfx  2004  MAS  1  NDD  1000 $  1:35  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
UOB Kay Hian  65  UOB Kay Hian  2000  MAS  1  NDD  0 $  1:50  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
KE Forex  66  KE Forex  1972  MAS  2  NDD  0 $  1:50  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Haitong  67  Haitong  2010  MAS  2  0 $  1:50  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FXCitizen  68  FXCitizen  2010  VFSC  2  NDD, ECN  10 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Land FX  69  Land FX  2013  3  NDD, ECN  300 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Pepperstone  70  Pepperstone  2010  ASIC  6  ECN  200 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
PhillipCapital UK  71  PhillipCapital UK  1975  ASIC, FCA  6  NDD  200 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Ak Investment  72  Ak Investment  1996  SPK  2  1000 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
InvestAZ  73  InvestAZ  2010  FSP, SPK  1  ECN  100 $  1:1000  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AbshireSmith  74  AbshireSmith  2011  FCA, FSCS  3  STP, DMA  500 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
ArgusFX  75  ArgusFX  2000  CySEC  2  STP  0 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Ayondo  76  Ayondo  2008  FCA, BaFin  1  NDD  100 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Bacera  77  Bacera  2009  ASIC  2  MM  0 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
BogoFinance  78  BogoFinance  2006  CySEC  2  NDD  100 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Capital Index  79  Capital Index  2014  1  NDD, STP  100 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Core Liquidity Markets  80  Core Liquidity Markets  2012  ASIC, FSA  3  NDD  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
CMG  81  CMG  2015  ASIC  9    250 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Colmex Pro  82  Colmex Pro  2010  CySEC  1  NDD, ECN  2000 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Darwinex  83  Darwinex  2012  FCA  6  STP, DMA  500 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
eTrader  84  eTrader  2014  CySEC  5  NDD  100 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Flatex  85  Flatex  1999  BaFin  1  NDD, MM  0 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Fullerton Markets  86  Fullerton Markets  2015  FSP  8  ECN, STP  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FX88  87  FX88  2016  CySEC  1  ECN  100 $  1:50  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FXCC  88  FXCC    FCA, CySEC  41  100 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FX Choice  89  FX Choice  2010  IFSC  5  NDD  100 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FxGrow  90  FxGrow  2008  CySEC  3  ECN, STP  100 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
GMG Markets  91  GMG Markets  2015  FCA  1  NDD, STP  200 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
HMS Markets  92  HMS Markets  1972    1  NDD  1000 $  1:40  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Infinox Capital  93  Infinox Capital  2009  FCA  1  ECN, STP  100 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
iTrader  94  iTrader  2012  IFSC  3  NDD  250 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Mex Exchange  95  Mex Exchange  2012  ASIC  2  NDD, ECN  200 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FXPCM  96  FXPCM  2007  1  NDD, ECN  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Rakuten Securities Hong Kong  97  Rakuten Securities Hong Kong  2002  SFC  1  NDD, STP  0 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
RietumuFX  98  RietumuFX  1992  FCMC  2  NDD  1000 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
TFI Markets  99  TFI Markets  1999  CySEC  2  NDD  50 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Tradealot  100  Tradealot  2010  FCA  2  STP  2000 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
FinmaxFX  101  FinmaxFX  2017  CROFR, VFSC  7  MM  250 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Finam Forex  102  Finam Forex  1994  2  NDD, DMA  0 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AMP Global  103  AMP Global  2018  4  STP  100 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Ingot Brokers  104  Ingot Brokers  2004  ASIC  2  ECN  100 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Alvexo  105  Alvexo  2014  CySEC, SIBA  2  ECN  0 $  1:300  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
AETOS  106  AETOS  2007  ASIC  4  NDD  250 $  1:200  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Arum Capital  107  Arum Capital  2017  CySEC  1  ECN, STP  0 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
ATFX  108  ATFX  2015  FCA  9  NDD  0 $  1:400  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Key to Markets  109  Key to Markets  2010  3  ECN  100 $  1:500  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
Trading.com  110  Trading.com  2018  FCA  1  ECN  5 $  1:30  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  
ATC Brokers  111  ATC Brokers  2005    1  ECN  2000 $  1:100  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0 
We will help you make the right choice with Scalping Forex Brokers
Basically, scalping on a shortterm basis entails making tens, hundreds or even thousands of trades every day while attempting to scalp tiny profits per trade by utilizing the bidask spread. Scalping is effective because the volatility of currency pairs varies with time. What scalpers do in order to generate profits from nonmoving pairs is usually to sell them for a profit when they fluctuate in a positive direction. By doing this, the tiny profits add up and eventually accumulate.
There exist both manual and automated system strategies in Forex scalping. In a Manual scalping strategy, a trader has to always be on standby at the computer screen looking out for signals and determine the right trade to make usually whether it is ripe to buy or sell. Automated scalping, on the other hand, is whereby the trader programs software on what signals to look out for and what interpretations to deduce from them.
Over the years, automated scalping has become prevalent because of the rapid growth and development of technology. Today it is preferred by many traders because it is seen as a preferable alternative to involving human psychology in the torturous environment of trading which gives traders a hard time. Manual forex scalping done by individuals has significantly reduced as quant traders have innovated systems which can do thousands of trades every single day, this explains why the era of manual scalping has come to an end.
Forex scalping is a very lucrative especially during periods when the market is highly volatile and when there are special moves. Due to the popularity of scalping, there are usually periodical data releases, for example, the U.S. employment report and Federal Reserve meetings.
There are risks involved in scalping if a trader enters a position where they cannot exit they can be left vulnerable and lose a lot of profits even the principle of their investment. Any experienced scalper can attest to the fact that rushing to scalp after newsbreaks, or when the market is experiencing high volatility is similar to collecting coins on a railroad for a living. A determined collector can create a sizable income from this exercise with persistence and patience and takes reasonable risks which could turn out to be very costly if not insulated against. The risk obviously is being run over by the approaching train of market shock and losing all profits or even hope of making them in future. Whether it is a valid negotiation or a compromise depends on the trader’s personality and approach to life generally. The downside is that a scalper cannot utilize “idle volatility”, or the directionless fluctuations commonly found in ranging markets. Since the market is strongly directional, he must find a way of identifying the trend and exploiting it with several smallsized orders
What Markets Favor the scalping Strategy
Most traders who use the scalping strategy prefer strongly trending forex markets. The rationale behind this approach is that scalpers thrive in volatile markets, markets with high trends cause a lot of volatility creating several trading opportunities. One must keep in mind the fact that while scalping, any little misplaced or miscalculated trade could easily wipe out the gains of tens of successful trades. Above all, a scalper must be consistent more than anything else. Besides discipline in determining trades, when to take profit and stop losses, and also they must be skeptical towards opportunities that arise, all these are important components to consider for one to succeed in this trading strategy. One must ponder on which kind of markets can these strategies be employed in best. The question is whether scalpers would thrive in strongly trending and volatile markets, or relaxed markets where activity is subdued and volatility is low? Obviously, the best conditions would be found in the relaxed market. Here’s why the calm market allows traders to exploit small fluctuations over a period of time with fewer risks and handsome profits. On the other hand, trending markets shift suddenly with ever expanding and contracting spreads, this means exiting a position before it attains full potential can be risky also staying calm and composed is not that easy.
There are several articles online which suggest that scalping is best in strongly trending, liquid, volatile markets, and it is unbelievable that so many traders believe these lies. This attitude can be attributed to the fact that traders who write the articles lack enough experience in scalping or maybe they used the strategy on a trend following scheme. Following the trend is not very useful for novices because they tend to choose the scalping style to make quick profits without having enough information or analysis on how it works.
Advantages of Scalping in Forex Trading with a Scalping Forex company
The main advantage of scalping is that the trade is less susceptible to risk this is because it has less time in one position to be affected since it is easiertoobtain moves and more opportunities to realize tiny profits. There really are no perfect strategies in trading, most forex trading platforms prohibit scalping and will levy a fee for making above ten trades per day. For this reason, a trader must confirm whether scalping is allowed on the particular platform they’re using.
In scalping in order to realize a maximum profit in the shortterm, a substantial amount of capital must be invented. Leverage is necessary to increase profits from even very small price moves. It is crucial to have a strategy of exit in place before proceeding to scalp, this is because it only needs one large loss to eliminate the whole day’s profits. By utilizing a one minute chart a trader can have a better idea of what are the right trades to make and those to avoid.
The biggest advantage that comes with Forex scalping is that the trader can make more money in the shortest time if the trades are successful. A good illustration is if a scalper uses 1 Standard Lot in trading aiming to make 20 trades a day gaining profits of 3 pips for each trade could accumulate $600 a day, or $12,000 a month. If a trader is successful with his scalping strategy then that’s a very good run. There are traders who have multiplied amounts as low as $300 to $32,000 in scalping. However, certain traders are satisfied with “a bird in hand” closing out profits made in minutes, by using large trade volumes and targeting tiny pip profits. Other traders are however nervous and can’t stand the long wait. For one to be successful in scalping they should know when to trade and when not to for better results
Disadvantages of the Scalping Strategy with a Forex broker
It requires high emotional intelligence to make successful trading decisions. For an amateur trader, scalping definitely is not the best trading style. It demands constant presence, concentration and strict observance of its principles. Given that trades are small in size and quick means that the trader must be very methodical about trade sizes. Trading irregularly makes it difficult to determine the performance of an account and makes it hard to achieve a smooth, regularly rising trading account. A real scalper does not fear the emotional issue, unlike the case with many other types of trading. Because the risk involved per trade is very small, and it is possible to exit a position without much difficulty, the chances of the account being wiped out are significantly after a single trade are low. One of the greatest challenges faced by scalpers is overtrading and agitation.
Scalping is very slow and requires plenty of patience. The trader is required to open many positions in the course of an hour of any given day. Many times the slow accumulation of profits can frustrate a trader. The trader can easily be disillusioned and regret spending much time trying to gain profits from negligible price fluctuations. It may appear as though much effort is being put in yet bearing little fruit. This among other factors may lead to disappointment and cause the trader to be in an agitated state of mind. This is the most dangerous state of mind for any scalper to be in. He must be able to click the right buttons, enter the correct prices, and place the proper decisions throughout the several trading hours of the day. Being uneasy and nervous makes a trader commit blunders that are too costly. Nervousness makes a scalper feel like he’s fighting the markets leading to many unjustified and harmful trading decisions.
A scalper must know the right time to stop and yet if they’re nervous they’ll be unable to decide at the right time. Going on a spree with the belief that the next trade will be the successful one because ‘luck’ can’t go wrong so often” may quickly bankrupt the trader and it is very dangerous with the scalping technique. It is wise to halt scalping activity as a trader if one feels that the emotional burden of it is too much for them at any given moment. One mustn't fight in the market but rather suspend trading for a little while. This compared to losing your wits trying to profit by battling the market is much better than trying to improve by worsening your situation.
What Are The Different Types of Scalping?
The scalping system has been categorized into three different styles which are:
Market Making
This type of scalping is where a trader or an algorithmic / market making machine tries to capitalize on the spreads by buys lower (creating bid prices) and sells higher (creating ask prices). This strategy is only available for largescale retail traders.
Manual Buy & Sell FX Trading
This is the traditional style of buy and sell where the trader purchases huge quantities of currencies which he proceeds to sell for gain on the small price movement.Usually, the trader enters a large volume position and waits for a change in the move. Manual buy and sell require high liquidity in order to be able to quickly enter and leave the market with ease.
Automated FX Trading
This third style is based on using forex algorithms and highfrequency trading systems or scalping expert advisors. Today it is possible to code an automated trading strategy (expert advisor) as they are called in the MetaTrader 4 platform. By using the MQL language (which is the programming language of the MetaTrader 4 trading platform. However, when using more advanced trading platforms, higher coding skills are required. This especially in case one wants to create forex algorithms of highfrequency trading systems.
Scalping techniques have gained popularity in the forex trading world and there are several traders who are employing this strategy and making neat profits. Having considered the pros and cons attributed to it any trader looking to make some profits should try it out well aware of the risks involved. The forex business is all about knowing when to and when not to risk.