Scalping is very popular for traders. However, not every forex broker is suitable for this trading strategy. What is scalping and which broker is suitable for it? What should I put attention on?
Scalping at a glance:
- With scalping, trades are only open for a few seconds or minutes
- Suitable for currency pairs with high volatility
- Use low spread or low spread forex brokers
- With high spread, scalping does not work in the forex market!
What is scalping?
Scalping is a trading strategy in which trades are opened and closed again within a short time. It is therefore important to use the appropriate trading hours. And currency pairs with high volatility. This is the only way to have the right movements in the market.
Find the right broker for scalping
Many forex broker are not suitable for this trading strategy. Since you make quick trades, market maker brokers are usually not suitable! Because they cannot hedge the order quickly enough in the form of the opposite position. The broker can suffer losses as a result. Therefore, you should definitely look out for an ECN broker. These only extend the trading position and do not have to hedge themselves.
Here I would like to introduce you to a suitable broker. FXGlobe has provided us a suitable trading account for this. The main features:
- EU regulated
- reliable and fast
- low fees
Scalp Trading at FXGlobe
FXGlobe is a broker that specifically caters to the wishes of its customers. It’s active on the market for many years and is regulated accordingly by the EU. In addition to suitable trading accounts for day or swing traders, a suitable trading account has now been created for all scalpers.
The main argument lies in the low fees. Compared to the high spreads of other brokers (especially market maker brokers) you can fully exploit the advantages of scalp trading here. Apart from the low fees, all other requirements are also met. Fast execution of trades and real-time prices.
Why is scalp trading so popular?
The forex market has the highest volatility in the world. Therefore, this trading strategy is very suitable for this market. EURUSD, GBPUSD are popular pairs for many scalpers. Scalping with exotic currencies should be avoided. Because this is too risky.
Scalping at FXGlobe
With a trading account for scalp trading, the forex broker FXGlobe has created something suitable for its customers: