Best Forex Broker For Scalping 2021 [UPDATED] – Public Finance International

Many forex traders depend on scalping in their trading strategy. Not all forex brokers allow for scalping, so it is important to choose a broker that caters towards this if this is how you plan on trading. 

If done correctly and at a large enough position size, scalping is a trading technique that can offer lucrative gains. 

If you are a forex trader looking to utilize scalping in your strategy, then be sure to check out our recommended brokers below. 

Best Brokers for Scalping 2021

Only certain forex brokers allow scalping, so you need to make sure that you choose the right broker for this trading strategy. Here are our top pick for brokers that allow scalping

  • Pepperstone – Best Scalping Forex Broker 2021 Overall
  • FP Markets – High Leverage Scalping Broker
  • IC Markets – Best for Low Scalping Fees
  • HotForex
  • Grand Capital
  • LCG
  • Admiral Markets
  • VantageFX
  • Titan FX
  • RoboForex

1. Pepperstone – Best for Scalping Overall

Pepperstone is a popular forex and CFD broker with a great online trading platform. Scalping is available on all Pepperstone accounts, but this technique is best suited towards the Razor account.

Forex traders can enjoy very low fees and plenty of useful tools for trading. There is a demo account available for new traders, as well as a wide range of currency pairs available. 

PROS CONS
Offers scalping on all account types The investment portfolio is fairly limited beyond forex and CFD trading
Great currency pairs available
A user-friendly trading platform
Low forex and equity index CFD fees

2. FP Markets – Best for High Leverage Scalping

This Australian brokerage focuses on forex and CFD trading and is regulated by ASIC and CySEC. FP Markets takes a more relaxed approach to leveraging, with leverages available as high as 500:1. 

FP Markets offers a wide range of market access for a diverse investment portfolio. This brokerage has over 60 forex pairs and crosses available. The FP Markets trading platform supports MT4, MT5, and IRESS.

PROS CONS
Offers wide-ranging market access Not the best desktop trading platform
Many currency pairs available
Low forex trading fees
Offers quality educational resources

3. IC Markets – Best for Low Scalping Fees

IC Markets is a broker that offers MT4 and MT5 trading platforms. There is no FIFO rule on IC Markets that allow traders to hedge positions. Traders can also place orders, including stop-loss orders, as close to the market price as they like. 

IC Markets has low fees on forex trading, and free deposit and withdrawal options. It is also easy to open an account, and the platform offers quality trading tools. 

PROS CONS
Low forex trading fees The investment portfolio is limited
An excellent trading platform available with great research tools
Good educational content
Free deposits and withdrawals

4. HotForex

HotForex Logo

HotForex Logo

HotForex is a brokerage offering an MT4 and MT5 trading platform. This versatile broker is appealing thanks to its low trading fees and easy account opening process. Forex traders can enjoy a wide range of currency pairs available. 

HotForex also offers social trading and a demo account on their platform. HotForex is a great option for active day traders, offering flexible leverage up to 1000:1.

PROS CONS
A high-quality trading platform Spreads are higher than many other brokers
Plenty of helpful research tools
Low forex trading fees
Plenty of currency pairs available

5. Grand Capital

Grand Capital is an MT4, MT5, and Web Trader broker that offers online trading of forex, CFDs, and cryptocurrency. This brokerage offers various accounts, with the ECN account (suitable for experienced traders) being the best option for scalping. 

The Grand Capital trading platform offers multiple trading order types and great analytical tools and technical indicators. This brokerage offers over 330 trading instruments spread over various markets. 

PROS CONS
Great analytics and research tools Wide spreads on basically all accounts
Offers wide-ranging trading instruments and market access Not as highly regulated as other brokers
A high-quality trading platform
Good leverage options for forex trading
Various bonuses available

6. LCG

London Capital Group Logo

London Capital Group Logo

London Capital Group (LCG) is a great broker for scalping. This web-based trading platform can handle a wide range of assets and offers access to over 7000 instruments over various asset classes. 

LCG is regulated by the FCA, CIMA, and CySEC. There is a $0 account minimum, as well as a demo account for practicing trading. LCG offers a fairly high minimum spread compared to other brokers. This brokerage offers the MT4 trading platform.

PROS CONS
$0 minimum deposit No VPS available
A well-regulated brokerage Fees and spreads could be better
Offers many investment opportunities
Client funds are segregated
Great mobile trading app

7. Admiral Markets

Admiral Markets Logo

Admiral Markets Logo

Admiral Markets is one of the best for scalping. This broker offers low spread scalping and free demo trading accounts for beginners. Admiral Markets offers four different account types with various fees, spreads, and commissions.

 Trading is through MT4 and MT5 with versatile tools available. There are some particularly good volatility tools available for skilled traders, as well as comprehensive educational content.

PROS CONS
Excellent research and analytics tools The mobile app doesn’t include all of the desktop trading features
Quality educational content Fairly slow customer support
Low forex trading fees
Great currency pair options

8. Vantage FX

VantageFX Logo

Vantage FX is one of the top forex brokers, offering large amounts of leverage to suit all kinds of trading strategies. Vantage FX is regulated by ASIC and offers scalping. 

Vantage FX offers MT4 and MT5 trading platforms and features low fees for forex traders. Opening an account is fast and easy, and there is plenty of quality research and trading tools.

PROS CONS
Low trading fees Offers a limited investment portfolio
Easy account opening process
Great educational content
Versatile trading tools

8. Titan FX

Titan FX logo

Titan FX logo

Titan FX is a New Zealand-based broker regulated by FMA. This global online financial trading platform with over 227 tradable assets. This platform offers forex trading, spread betting, social trading, and share dealing. Scalping is available for forex traders.

Titan FX offers a very user-friendly MetaTrader platform. There are various useful trading tools available, and the platform supports all trading strategies. Titan FX offers a particularly fast and up-to-date trading platform, and traders can access 500:1 leverage.

PROS CONS
A very user-friendly trading platform $200 account minimum
Great currency pairs available
Caters to all trading strategies

9. RoboForex

RoboForex Logo

RoboForex Logo

Roboforex is an online forex and CFD broker, offering trading opportunities in global markets. This broker is a great choice for scalping, which can be done effectively through the online trading platform. Roboforex uses MT4, MT5, and cTrader.

Roboforex offers tight spreads and very fast order executions. There are five account currencies available, 40currency pairs, as well as 100 instruments. Roboforex offers leverage of up to 1:2000.

PROS CONS
No deposit or inactivity fees There are no fixed spread accounts
A good range of currency pairs available
Great trading platform with good tools
Quality mobile trading app available

What is Scalping?

Forex scalping is a specific method of trading on the foreign exchange market. This is when traders buy or sell a certain currency pair, and they hold that currency for some time in an attempt to create a profit.

Forex scalpers need to fast and efficiently. Scalping is a technique that takes advantage of small gains with each trade to make many smaller profits. Of course, the number of profit changes with the size of the currency traded.

Forex scalpers will go through many trades in a single day, and will not hold trades for more than a few minutes.

Risks of Scalping

Forex trading always holds risks due to constantly changing markets. Forex scalping offers unique risks to trading, as prices are constantly moving. If a forex scalper holds the position for too long, the price may move out of the profitable range before they close the trade.

Scalping traders need to be incredibly fast and decisive. Positions can lose their profitability in a matter of seconds. If you are trading with this technique, then you will need to pay extremely careful attention to your every move.

Regulation of Scalping

Generally, forex brokers want traders to buy currency at the offer and sell this at the bid instead of using a scalping method. Most forex brokers do not allow scalping on their platform, but certain brokers do allow it.

These brokers are all regulated by top-tier authorities, such as the FCA or ASIC. So, scalping is legal and regulated, but not all brokers cater to it.

Brokers Policies on Scalping

Many forex brokers do not encourage scalping, but all brokers will allow it occasionally and to a certain extent. This is because quickly adjusting and changing positions on a trade is a normal thing for traders to do. The brokerswe have listed above all offer the top platforms that cater best to scalping.

ECN Brokers and Scalping

ECN brokers are typically the most common type of brokers to offer scalping. These are brokers that do not directly pass on orders to market makers. Rather, ECN brokers do an electronic matching of participants which are then passed over to liquidity providers.

Swing Trading vs Scalping

Swing trading is based on making fewer trades in a day, with more time to monitor the trades. This is monitored less frequently.

Scalpers focus on a much higher number of trades each day. These trades need much more careful attention paid to them, with faster changes and a tighter timeframe.

Leverage in Scalping

Leverage plays an important role in scalping. Scalpers usually use leverage to make sure that positions are high enough for earning a decent profit. In scalping, you need larger position sizes for better results. This is why the scalping brokers usually offer higher leverage amounts.

How to Pick a Broker That Allows Scalping

There are a few factors to keep in mind when picking a broker. Here is what you should consider…

Regulation

Forex scalping needs to be done through brokers that are properly regulated. Make sure that the broker has top-tier regulators that comply with the regulation standards in your country of trading.

Fees & Commissions

Different brokers offer unique spreads, fees, and commission structures. This can make a major difference to your returns, so understand the fee sizes before you start trading.

Is it an ECN broker?

There are various types of brokers, falling under dealing desk or non-dealing desk brokers. ECN brokers are typically the best choice for scalpers.

Customer Support

The type of customer support available can make a huge impact on your trading experience. Research whether your forex broker offers responsive 24/7 support.

What Can You Trade?

Besides forex, different brokers offer different trading portfolios. This can include things like stocks, crypto, CFDs, and so on. This can also be spread over various global markets.

Education Available

The best trading platforms should offer extensive educational content for more informed trading.

Trading Tools

Platforms offer various tools to help traders make better moves and stay protected. Consider the trading tools that your broker offers.

Account Minimums

The minimum amount of capital to open an account varies between brokers. Make sure that your capital available matches your broker’s requirements.

Deposit Methods

Different brokers offer different deposit and withdrawal methods for their accounts. Make sure that this matches your method of banking.

Research Available

Brokers that offer higher levels of research allow traders to make more informed decisions. Different platforms have unique research tools available.

Trading Platform

Brokers offer unique trading platforms for different trading experiences. This can include desktop and mobile applications with unique tools available.

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