Forex Brokers for Scalping are FX brokers that allow their traders to use scalping while trading the financial markets. This trading strategy is not beneficial for most brokers so they tend to ban such activity from their trading servers. Nevertheless, some of the top Forex brokers in the industry allow their clients to use scalping with specific market conditions.

What is Scalping?

Scalping is a trading strategy that Forex traders use to manipulate very small market movements within very small time frames. Traders who use this strategy usually open five to a couple of hundred positions in a single trading day. The main goal of this strategy is to buy or sell an instrument at the bid or ask price and then quickly close the position to make profit. Traders who use this trading strategy are called Scalpers. The profit for each transaction is based only on very few pips. That makes scalpers to use this strategy when there are large amounts of capital combined with the use of high leverage or when there are currency pairs with narrow spreads.

The viability of scalping as a trading approach depends on several contributing factors and inputs:

  1. Low transaction fees from the broker.
  2. The ability to efficiently enter and exit the market fast, usually with the use of automated trading tools and high end computers.
  3. Reducing Slippage to a minimum. This also depends on the Forex broker.
  4. Identifying the possibility for a high volume of trades.
  5. Markets with a high degree of liquidity

Another famous trading strategy is hedging. Please visit our simple guide to Forex trading and learn more about the trading strategies out there.

List of Forex Brokers For Scalping

Scalping is a rare trading strategy that most FX brokers do not provide since it could negatively the broker. However, the best brokers that offer scalping are OctaFX, and IC Markets.

Broker
Description
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Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


NSBroker
NSBroker
Regulation: MSFA, BaFin, FCA,
Min. Deposit: $250
Leverage: 1:100
Spreads: Low as 1.2 pips

Review
XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review

Things You Need To Know About Scalping

Forex brokers with the option of scalping apply their own rules so that they can protect themselves and provide traders with what they need. However, traders who use the scalping trading strategy are in control of their strategies and have freedom over their trading decisions. Traders get to decide their stop-loss and their profit orders, along with the time-frame to choose to start and end trading. The only thing that a trader who scalps cannot decide is the stability of the market, the spreads, and the broker’s general idea on the practice of scalping.

There are some brokers who do not even permit scalping as an available trading strategy for their traders to use. Traders who allow scalping are most commonly operating with an ECN platform, or Electronic Communications Network. ECN platforms are susceptible to scalping because of its high speed in performance and that it can establish an environment of no slippage. ECN Forex brokers with scalping find it beneficial since they are able to generate profit from the trade commissions.

As a trader, you have to make sure that the broker you will invest in has the proper and suitable regulations for you to be able to execute scalping properly.

Pros and Cons of FX Brokers with Scalping

With every other trading strategy and style, scalping has its pros and cons that need to be considered. When it comes to a big amount of trading and high transaction costs, scalping is not included in that particular trading situation; scalping does not follow the basics when trading in a short period of time.

In regards to the advantages of scalping, the first advantage is that there are various trading signals throughout the trading day, on short time-frames. The second advantage is that traders will not face any overnight financial risk; all trading losses and revenues will be collected by the end of the trading day and not later than that. The third and final advantage is that the fundamental elements of trading are not required to be followed during short periods of time, where scalpers only concentrate on technical analyses.

As for the drawbacks of scalping, there are also three drawbacks that need to be highlighted. The first deficiency in scalping is that the large number of trades will gradually lead to the increase of transaction costs, when it is evaluated to longer-term trading strategies. The second drawback is that all trades must be constantly managed and traded actively during the time-frame where the financial market is most liquid. The third and final drawback is that any unexpected news can cause a massive market reaction, which could lead to a negative result to a scalping trade.