Who would be the best Forex broker for scalping?
Parameters we consider important are:
- no dealing desk
- proper regulation
- fast execution in combination with sufficient number of liquidity providers
- scalping should be fully allowed
Broker
|
No dealing desk
|
Regulation
|
Min. deposit
|
Scalping allowed
|
Alpari UK |
ECN/STP & MM |
FSA UK, NFA, CySEC
|
$20 000 |
scalping fully allowed on ECN |
AxiTrader |
ECN/STP & DMA/STP |
ASIC in Australia
|
$200 |
scalping fully allowed |
BMFN - Boston Merchant Financial |
ECN/STP & MM |
ASIC, FFMS in Russia, FSC in Bulgaria
|
$200 |
scalping fully allowed |
BNFX |
ECN/STP & DMA/STP |
FSRP, FSCL, FMA (NZ)
|
$100 |
scalping fully allowed |
CIM Bank |
ECN/STP & STP |
SBA, FINMA, Bank license
|
$5000 |
scalping fully allowed |
Direct FX |
ECN/STP & STP |
ASIC in Australia
|
$500 |
scalping fully allowed |
Divisa Capital (DCFX) |
ECN/STP |
FSPR, FSCL in New Zealand
|
$2500 |
scalping fully allowed |
Finotec |
ECN/STP & STP |
FSA UK
|
$200 |
scalping fully allowed |
FXCC |
ECN/STP |
CySEC, FSA UK
|
$1000 |
scalping fully allowed |
Hirose Financial UK |
STP |
FSA UK
|
$20 |
scalping fully allowed |
IBFX |
DMA/STP + MM |
NFA, CFTC, ASIC
|
$1 |
scalping fully allowed |
Pepperstone |
ECN/STP & DMA/STP |
ASIC in Australia
|
$200 |
scalping fully allowed |
TADAWUL FX |
STP |
FSA UK, CySEC
|
$50 |
scalping fully allowed |
ThinkForex |
ECN/STP & DMA/STP |
FSPR, FSCL in New Zealand
|
$250 |
scalping fully allowed |
If you had a different experience with any of the above brokers, or were punished for scalping, please do let us know by leaving a comment below.
Scalping - everyone does it or tried it
The subject of scalping sooner or later concerns every trader.
Scalping, which is generally described as quick in/out trading in a matter of 1-2 minutes, is in fact a fully defined stand-alone trading technique.
If more than 50% of your trading orders are opened and closed within few minutes - your Forex broker will consider you as an aggressive scalper.
If you occasionally close a trade shortly after opening and it doesn't create a stable pattern in your trading orders history - then you'll be categorized as a normal trader.
The hunt for aggressive scalpers is a never ending battle between Forex brokers and traders. However...
Your trading style and technique must not worry Forex broker at all, if there is no conflict of interest involved, in other words a broker is not running a Dealing desk, and thus couldn't care less if you lose or win, as it doesn't impact their profits.
If at any time you receive a note from your broker warning you about "unacceptable trading techniques", such as scalping, you can immediately conclude that a broker is running a Dealing desk one way or the other, and that the broker is not interested in seeing you win over the time.
Scalping policy
Here only one advice can be given:
Simply ask your broker: "What is your scalping policy?"
If you receive an answer: "We allow all types of trading, including scalping", or "We don't have a scalping policy, you can scalp with us". Then it's a green light for scalping.
If, however, you receive a complicated non-straight forward reply, where normally a broker will explain that "under certain circumstances we reserve the right to review your trading tactics...", or "Scalping is not generally a problem, however... [conditions and lots of terms given further]", then it's unlikely you'll be able to scalp with this Forex broker.
More tips on scalping & brokers at: Unlimited Scalping Forex Brokers
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I spoke with IC Markets and they seemed to allow any sort of scalping with no issues. Can you include them on this list also?
Tadawul FX is now known as Liquid Markets isn't it?