Some people have a notion that scalping is simply used by beginners. Don't get me wrong. Scalper also requires high concentration to profit in the forex market movesquickly. The quick movements can also lead to losses, so that a scalper must be trained and ready with this risk. There are many things to watch out for the trader if want to try scalping techniques. One of them is choosing the right broker to run supershort term trading strategies.
Not all brokers allow scalping techniques because by using this strategy, a trader could have shut down many positions at the same time. It can be aggravating labor broker server, in addition to also complicate risk management broker.
Best brokers for scalping must meet several criteria, including:
1. Allow Scalping techniques
Scalping techniques that open and close positions in large quantities and in a short time become inefficient for brokers. Therefore some brokers tend to dislike the scalping method will slow down access to the system or even prohibit the technique to be used. Traders who wish to use scalping techniques should understand very well the rules of broker.
2. A Non-Broker Dealing Desk (NDD)
Traders tend to use scalping techniques should choose a Non-broker Dealing Desk(NDD). Broker type of NDD, order the client will be directly forwarded to the markets, financial institutions, major banks or broker type of NDD. This means traders will trade directly with the real market conditions. Spread on broker NDD will vary in accordance with the actual market circumstances. A broker is a brokerage NDD have ECN (Electronic Communication Network), STP (Straight Throught Processing) and DMA (Direct Market Access).
ECN forex broker is the kind where traders can be directly linked to the market without intermediaries nor the intervention of a broker or dealer (dealing desk). STP is the broker that connects traders with other big brokers or brokers with ECN type with a certain likuiditor. DMA is a type of broker broker ECN broker resembles the way it works. The difference, DMA broker contract with certain liquidity providers.
3. A regulated
Traders who use scalping techniques should avoid brokers that are not regulated correctly. The brokers are not regulated generally called the bucket shop broker or broker. Brokers like this often outwit clients who still lay and haven't learned very well the mechanisms of trading the forex market. A lack of this kind of broker execution order is likely to be slow, requote order, and servers are often down or falters
In addition to the above reasons, the trader must also be wary of brokers who claim to be ECN but often manipulate clients. The most secure way of choosing a broker is looking at the regulations first. Regulator with high credibility and true, among others: the CFTC and NFA (United States), FSA (United Kingdom), (Australia) ASIC and CySEC (Cyprus). Traders should pay attention to the form of regulation of each broker before you start trading with scalping techniques.
4. Provide high Leverage
The enormity sufficient leverage to affect traders who use scalping techniques because the scalper profit does not collect how big, but if added will be the value that quite a lot. However, the results in a few weeks sometimes unsatisfying compared tothe wasted power. To overcome this scalper will use some measure of leverage while trading. Of course in accordance with the regulation of the broker where they trade.
The greater the leverage, then the margin (collateral trading) will be getting smallerand this will make the trader could use a lot more. For traders who are just learning to use scalping techniques, it's good to use the little leverage in advance when earlytrading until it finds the appropriate method and tested for use. After the right scalping methods have been tested, leverage can be improved little by little. However, do not forget to always use a setting of stop loss and profit target.
5. Low Spreads
The spread is the cost that must be paid on the broker to trader's good when pelayannnya profit or loss. For traders who have been successful with their trading strategy, the cost spread is considered still reasonable and can be tolerated. However, traders who use scalping techniques should open and close a position a dozen times within a short period. Do not cover the possibility of a scalper will open and close a position more than a hundred times per day. This spreads the cost must be considered carefully in order not to disadvantage the scalper.
A high spread may be detrimental to the results obtained by the scalper during trading. Scalper will open and close positions in a number of lots and in tempo short hope won the little profit but if combined would be a lot. However, with the opening and closing positions then spread will be doubled and reducing results collected. It could even make the result became minus. Therefore a trader with scalping techniques must choose a broker with spreads as low as possible, particularly for illiquid currencies.
Wherever The Best Broker For Scalping?
The following is a list of the best brokers for scalping that can be used by forex traders:
1. Exness
Exness is the broker that provides broker ECN account type. Exness has regulated by CySEC license number 178/12. Because it provides leverage up to 1:2000 and spread 0.0 for ECN account, then Exness is definitely one of the best brokers for scalping.The broker also does not limit the use of expert advisors and any trading strategy.
2. IC Markets
IC Market is a broker who has been regulated by ASIC with license number 335692.Original broker Australia also offer ECN account types with maximum leverage 1:500 and spread from 0.0 pip. IC Markets have no restrictions in tradinng including no limit minimum distance order, scalping, automated trading and hedging. In addition IC Markets also provide rebates for 21% for each trader live account opening for ECN.
3. Pepperstone
Pepperstone is also the origin of Australia and a regulated broker by ASIC. Provides the standard STP accounts with spreads ranging 1.0 pips and leverage up to 1:500. Pepperstone allows all kinds of trading techniques scalping EA, termassuk as well as full hedging. And if you are interested to trade with a deposit in a currency other than u.s. dollars, Pepperstone willing to accept deposits in 11 currencies: AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, CAD, SGD and HKD.
4. ThinkForex
ThinkForex is a Non-broker Dealing Desk (NDD) who provides spread 0.01 and leverage up to 1:500. ThinkForex regulated by ASIC under AFSL licence and Australia. Asthe best broker for scalping more on this list, they allow the use of a variety of trading strategies. Extra benefits if trade with Thinkforex is the availability of trading signals autochartist can recognize the patterns formed on the chart in real time and sends a signal when there is trading opportunity.
5. FXTM
FXTM licensed by International Financial Services Commission (IFSC) with license number IFSC/60/353/TS and the IFSC/60/345/APM. Scalping is only allowed on the type of execution market execution on ECN accounts alone, while for instant executionis not allowed the use of scalping. Spread 0 to 0.5 depending on account type trader ECN. The leverage provided by brokerage FXTM up to 1:500.
6. Hirose
Hirose has licensed United Kingdom FCA as Hirose Financial UK Limited with the number 540244. Hirose is a broker using NDD STP without requotes. With a leverage up to 1:1000 and low spreads for couples cross the Yen started 0.7 pips. Scalping is also allowed by this broker along with other trading techniques. Better yet, Hirose offers execution with sophisticated tech made in Japan.
7. FXPro
Fxpro regulated by CySEC and FCA. With 0 pips spread and leverage up to 1:500, FXPro also allows the use of various trading strategies including scalping. The account type disesiakan by FXPro not system but based on the trading platform. Fxpro MT4,MT5 platform provides, and cTrader.
8. FXCM
FXCM provides accounts of Non Dealing Desk with the leverage 1:400. 1.3 the spread on various forex pairs. FXCM broker listed on the New York Stock Exchange(NYSE) and won numerous prestigious awards. Unfortunately, access to this brokerare blocked by the regulator in Indonesia.
9. Orbex
Orbex has leverage 1:1000 and spreads as low as 0.6 on account of his ECN type. CySEC regulated brokers allow scalping strategy. They also have earned numerous awards from different leading Forex Show and a global poll. His name may be less known, but in fact its already long enough, because it used to exist with the name AFBFXbefore rebranding becomes Orbex.
10. FXOpen
Fxopen provides the leverage from 1:100 to 1:500 and floating spreads start from 0pips. As such, it includes the best brokers for scalping which you can choose. Plus, if you've got the competitive soul, then you can follow the competitions held forex broker nor bonuses and promotions regularly.
Are you interested in scalping? Choose a broker who complies with the criteria above. Note the correct classification of each broker so you can bertading use scalping techniques safely and comfortably.
Best Broker For Scalping Forex Trading
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Renvin Nelwan
