Scalping the forex

5 Best Scalping Forex Brokers in 2022.


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Huzefa Hamid.


| Updated on December 26, 2022.


Scalping is one of the most favored trading strategies, but not all Forex brokers allow it. As with any trading strategy, traders need to understand what it is and how it works. See below our favorite scalping brokers.


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The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.


Best all around broker.


High floating leverage + fast execution.


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The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.


ECN-style trading.


Daily market research and Autochartist access.


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The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.


Trade 1,000+ financial instruments.


Experience low, competitive spreads.


Multiple funding and swift withdrawal options.


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The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.


Solid broker for scalping and hedging.


Institutional-style trading opportunities for retail traders.


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The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.


High level regulation in multiple jurisdictions.


Impressive range of tradeable assets including vanilla options and gold options.


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FXTM.


5.0/5 in this category.


In Summary.


Best all-around broker with high floating leverage and fast execution.


In Summary.


Best all-around broker with high floating leverage and fast execution.


FXTM remains at the top of any list dedicated to the best Forex broker for scalping. The $10 minimum deposit makes it accessible to all traders , while the maximum leverage of 1:2000 is one of the most defining tools for scalpers. There are no restrictions on trading strategies, and over 2,000,000 traders manage their accounts at FTXM, which established itself as a market leader for emerging markets and enjoys a growing presence in frontier markets. The 30% deposit bonus, available to most non-EU clients, provides an additional boost to new retail traders with smaller deposits. FTXM is also one of the most transparent and trustworthy online brokers in operation.


FXTM Pros & Cons.


Excellent commission-based Forex pricing environment and transparency.


Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app.


Quality market research and educational content for beginner traders.


FP Markets.


5.0/5 in this category.


In Summary.


ECN trading with leverage up to 1:500.


In Summary.


ECN trading with leverage up to 1:500.


FP Markets has been serving traders since 2005 and grew into one of the most recognized Australian-based multi-asset brokers. It operates under the oversight of the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). Most global clients will trade with the unregulated international business company (IBC) registered with St. Vincent and the Grenadines Financial Services Authority (FSA). FP Markets has no restrictions on any Forex scalping strategy. The no dealing desk (NDD) execution model and execution speed below 40 milliseconds offer the technology that infrastructure scalpers require to succeed. The 36 industry awards confirm the excellence of this broker.


FP Markets Pros & Cons.


Choice of trading platforms and auxiliary trading tools.


Very competitive cost structure and excellent asset selection.


Low minimum deposit requirement and leverage of up to 1:500.


Eightcap.


5.0/5 in this category.


In Summary.


Competitive pricing + excellent daily videos.


In Summary.


Competitive pricing + excellent daily videos.


EightCap, also known as 8Cap, is a safe forex and CFD broker with over ten years of experience in the industry. The company is based in Australia and was established in 2009. Two major regulators license EightCap including the Australian Securities and Investments Commission (ASIC) as well as the Vanuatu Financial Services Commission (VFSC) . EightCap is popular, particularly with newer traders thanks to its low minimum deposit requirements (with no extra fees for depositing or withdrawing) and relatively high leverage of up to 1 to 500 . They also feature a competitive ECN cost structure , and have an excellent range of quality educational content, which includes a demo account, top class technology infrastructure and low forex fees.


EightCap Pros & Cons.


Low minimum deposit and high leverage of up to 1:500.


Competitive cost structure.


Excellent technology infrastructure and seasoned management team.


BlackBull Markets.


4.5/5 in this category.


In Summary.


Best ECN trading environment, with scalping and hedging.


In Summary.


Best ECN trading environment, with scalping and hedging.


BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia . BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification .


BlackBull Markets Pros & Cons.


ECN/NDD execution model with deep liquidity.


Institution-grade pricing for retail traders via proprietary price aggregation.


ZuluTrade and Myfxbook for social trading.


AvaTrade.


4.5/5 in this category.


In Summary.


Highly regulated, choice of fixed or floating spreads.


In Summary.


Highly regulated, choice of fixed or floating spreads.


Irish-based AvaTrade provides scalpers with a choice of fixed and floating spreads from a commission-free trading account. While this broker does not grant ideal conditions for Forex scalpers, it remains one to consider amid its deep liquidity. The minimum mark-up is 0.9 pips, above the range most successful scalpers prefer, and less competitive than most well-established brokers. This market maker does not note any restrictions on trading strategies and maintains technology infrastructure to handle high-volume and high-frequency trading strategies. The cost structure does discourage scalping to a certain extent. Some scalpers may take advantage of fixed spreads during market-moving events to avoid slippage.


AvaTrade Pros & Cons.


High-quality educational offering via SharpTrader.


Excellent choice of trading platforms catering to various trading needs.


Broad asset selection and cross-asset diversification opportunities.


Top Scalping Forex Brokers.


What is Scalping?


Scalpers, as traders are known who use scalping as their preferred trading strategy, favor large trading volumes and minor price movements. While the basic principle of scalping remains simple, implementing it is far from easy. Many new retail traders attempt to scalp the Forex market, as capturing a minor price move, sometimes as little as 1.0 pips or less, in theory, requires less of an effort than maintaining a low-volume trade over a prolonged period. Scalping remains the shortest form of short-term trading, and those who utilize it successfully can reap the benefits of it daily, adding to its growing popularity.


While all traders must practice discipline, scalpers require it even more. One of the most defining aspects of Forex scalping is psychology. Many new traders overlook it, as scalpers maintain positions for a short period and might place hundreds of trades daily, but unless a trader masters the psychology of trading, each strategy, including scalping, will fail. Scalping Forex pairs can also be one of the most exciting and rewarding ways to trade, but it also carries higher risk. Most associate the added risk to leverage, which is an incorrect assessment. Traders who wish to learn how to scalp successfully must learn how to accept losses. Scalpers rely on trading volume, trading frequency and leverage. Therefore, there can be hundreds of small profits and losses throughout the trading session. Executing any scalping strategy with the wrong type of broker is as devastating as not knowing how to scalp.


Scalping refers to placing high volume trades to profit from small price movements. Scalpers often conduct dozens or hundreds of transactions per day and require tight spreads, maximum leverage and excellent liquidity. A Forex scalping strategy is the highest-volume trading strategy available, and many scalpers seek a broker with a cash rebate program to boost their revenue stream. Small profits can add up to a respectable amount at the end of the trading session, but scalpers must strictly follow an exit strategy to avoid one loss from wiping out a series of minor profits. Usually, scalpers close all positions at the end of the trading day and avoid unexpected price spikes and swap rates on leveraged overnight positions. Trading psychology and precise entry levels represent essential tools for successful scalpers, who rely exclusively on technical analyses and prefer high-volume fundamental events due to the liquidity spike that surrounds them. The most sophisticated scalpers will use automated trading solutions and expert advisors (EAs) in the MT4 and MT5 trading platforms. Scalpers prefer to trade liquid major currency pairs while avoiding more illiquid minors and exotics.


The Risks of Scalping in Trading Forex.


Psychology and discipline remain two primary risks for scalpers. Since scalping Forex involves placing hundreds of trades daily, there will be many small profits and losses. Scalpers must follow their strategy precisely while also understanding when to make swift adjustments to dynamic market conditions. Learning how to accept losses remains paramount to earn profits, especially as a scalper. Allowing a losing position to run can swiftly wipe out a daily profit and lead to more errors. The longer a scalper holds a trade, the greater the chances it will become unprofitable. Scalping from an insufficiently funded trading account is another risk, especially for new traders.


The Best Times for Forex Scalping.


Since scalpers require liquidity and prefer volatility, scalping just before and after economic data announcements is one of the best times for Forex scalping . The first hour of the London trading session is another one, together with the first hour of the New York session, and the last hours of official trading in London and New York, respectively. It also depends on the currency pair, with Japanese yen traders showing activity during the first and last hour of the Tokyo trading day.


Why Should You Select a Broker Who Allows Scalping?


Many of the brokers that allow scalping have the necessary infrastructure in place to enable a profitable Forex scalping strategy. While the MT4, MT5, or cTrader trading platform, all of which support automated trading strategies, are available at most brokers, scalpers must consider liquidity, execution, and costs . Another reason to select a broker that allows scalping is to ensure that traders do not violate the terms and conditions of the client-broker agreement. Violations can result in the loss of accumulated profits, a warning, and ultimately the return of the initial deposit together with the closing of the account. Therefore, traders interested in scalping must read the terms and conditions. Usually, a reference to scalping or trading strategy restrictions is available. Should it be missing, customer support can clarify the position of the broker regarding scalping.


The Regulations Concerning Scalping.


Most global regulators leave the applicable rules up to brokers, but the US Securities and Exchange Commission (SEC) prevents traders with less than $25,000 in capital executing a scalping strategy. It falls in the category of pattern day trading, and those in violation of it will have their account suspended until raising the equity threshold to satisfy the requirement. The $25,000 rule applies to US equity markets only. Futures and Forex traders do not face it, leaving it up to individual brokers to set rules and regulations.


Broker Policy Towards Scalping.


Each broker maintains terms and conditions, where traders can locate the policy towards scalping. Given the popularity of Forex scalping, many brokers answer the question directly in their FAQ section. Always make sure to scalp with a broker that allows it, and while many place no restrictions on it to attract more traders, the cost structure discourages it. Others may implement restrictions on the number of allowed trades per day, open positions, or total lot size, all of which can negatively impact scalpers.


Is the Scalping Broker Using an ECN Platform?


Usually, ECN brokers permit Forex scalping as they are not the counterparty to client positions and charge a commission per transaction. Unlike market makers, who are the counterparty with direct exposure to client profits and losses, ECN brokers have none. Therefore, the higher the trading volume, the higher the revenues for ECN brokers. It also ensures top-tier liquidity and access to raw spreads, a requirement to scalp consistently with a profit. The technology infrastructure also remains superior, resulting in competitive trade execution and price improvements.