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:
- Low transaction fees from the broker.
- The ability to efficiently enter and exit the market fast, usually with the use of automated trading tools and high end computers.
- Reducing Slippage to a minimum. This also depends on the forex broker.
- Identifying the possibility for a high volume of trades.
- Markets with a high degree of liquidity
Here is a list of forex brokers that allow scalping through their trading platform
MAS, JFSA, DIFC