Best Brokers for Scalping in 2024

Scalping is a thrilling, intense and electrifying method of dealing with financial markets. Scalping has some unique requirements. In this article, we will show you how to scalp, what factors are crucial for success and which financial instruments can be used. We will also give you the keys for selecting and finding a good scalper broker.

We have tested many online brokers and analyzed them all. The ones shown in the table are our top brokers for scalping.

What is Scalping?

Scalping is a style of trading that involves closing and opening positions quickly. It can be used in financial investment and trading. A trader seeks to make small profits by closing and opening positions in the market quickly, often several times per day.

Scalping trades may last as little as a few seconds. Scalping trades can end at any time. However, there is no way to know when intraday trading (which has a longer duration) will begin. A scalping position can usually last between a few seconds and ten minutes.

Scalpers are traders who trade in this way. These traders use charts that have a short timescale (or time frame) of less than one minute. The charts used are typically Japanese candlesticks, as they are intuitive and complete. They aim to make small profits on every trade given that movements in the financial market are often very slow during these periods.

They may perform multiple operations during the trading day depending on what the market offers them. The position seeks to outperform the market by a few percentage points. They are more likely to focus on one financial asset at a time (a currency, stock, or commodity). They have a clearly defined trading strategy, which is important as we will see.

Scalping is a trading strategy that requires nerves and iron discipline. Scalping is a volatile trading style that can cause financial assets to move in a very short time.

Scalping is also more affected by the day-to-day financial news. This type of trading requires that traders, before they start their day, consider the economic calendar, the news of each day, the publication times, and the potential impact. If a news item is published, it is not recommended to be present in the market. The market can react violently unless your trading strategy is based on this news.

Scalping has many advantages

Scalping offers many advantages over other trading styles, including the potential to make quick profits.

• The market exposure is very low. By holding a position for a brief period, the trader reduces his risk of being in an open position in the case of an unanticipated event or news shock.
• Positions cannot be held for longer than one day. “Overnight” operations are those that are open from one day to another. There are a number of disadvantages to these overnight operations, including the potential gaps the financial asset could make between trading sessions. The broker also avoids applying the Swap commission and overnight premium, which are characteristic of CFDs.
• You can profit from small movements that occur more often.

A broker can be used for scalping, but it is not against algorithmic trading. Scalper can use Expert Advisors (EAs), or automated trading programs, to develop his trading activities.

Example: What is the procedure for executing a scalping operation?

This style of trading is quite common when working with Forex brokers, as certain currency pairs are extremely active at specific times. This market is known for its “ultra short term” movements.

Scalping is the act of opening a position. A trader must identify a signal to buy or sell according to technical analysis and indicators. Scalping has fewer variables, which is one advantage. However, technical analysis requires some knowledge and experience.

Because the market is very volatile, it is important to be alert at all times. The trader is prepared and has a plan for the day. You have a clear understanding of the economic calendar and are aware of any news that could affect the price of the asset (and when it will happen).

It’s as easy as clicking the mouse on the trading platform of your broker to access the market when the time is right. Once the expected movement occurs, you can quickly close the position to take your profit. It’s back to business as normal.

What is a scalping broker?

A trader needs to open an online account in order to perform scalping. CFDs are an excellent financial product that allows you to quickly open small trades. We’ll discuss their benefits later. Most CFD brokers generally allow scalping.

A broker is a company that specializes in financial intermediation. They are responsible for executing trades on behalf their clients, in accordance with the buy or sell orders they receive from their clients. They are an essential agent to invest in the financial markets in any form or term. A broker is needed to help traders access the market.

CFDs allow traders to scalp, but not all online CFD brokers permit this type of trading. This type of trading is typically offered by ECN/STP brokers.

ECN/STP brokers connect to other liquidity providers, traders and brokers (also banks and financial institutions) and can place orders in this market. They usually offer the lowest spreads available at any given time. Here is a comparison of brokers with the lowest spreads.

Markets Makers brokers are the opposite. Because they provide the counterparty, they are called Markets Makers brokers. They are the ones that sell when the trader is looking to buy. They guarantee the liquidity of trades and do not permit scalping.

It is essential to open an account at a scalping broker, or any broker that is suitable to scalping. The next step is to learn how to choose the right broker for your needs.

The scalping broker usually offers the trading platform free of charge. The platform allows traders to view the markets live, conduct technical analysis, launch trading orders, and manage all aspects of capital and risk (such managing the balance of their trading account).

The most important factors to successful scalping

It is not easy to capitalize on market movements in such short time periods. This requires you to test yourself. It requires your full attention and all the resources necessary. It is important to remember that success and failure can be determined by a variety of factors.

Infrastructure that is adequate:

Scalper is a fast-moving trader. This requires sufficient computing power and a stable internet connection.

An equipment failure or an internet connection problem can endanger a trade. There is very little time for it to develop. You may also be delayed if you’re not quick enough to launch orders. These are the consequences:

There will be no trading opportunities.
It is possible for the market to turn around before an exit order becomes effective. A winning trade could become a losing trade.

This is true even if you want to do scalping on a mobile device. It is important to have the proper infrastructure and logistics in place.

Many brokers that specialize in automated trading and scalping offer the option to have the platform installed on a VPS server. This reduces latency and ensures the highest availability, without having to depend on the trader’s internet connection or computer equipment.

Understanding technical analysis

As we have mentioned, scalping offers a short exposure to the financial markets. A trader watches a market and places an order when his strategy says to buy or sell. The market is quickly closed once it has moved a few more points.

This makes trading much easier as you don’t need to know all the variables. Other than the impact of economic news on day-to-day (especially when forecasts are not met), fundamental characteristics of financial assets such as dividend yield, corporate earnings, political situation, and so forth, also have an impact. These are irrelevant in short timeframes. These short time periods are dominated by supply and demande.

A scalper should therefore be able to use the tools that analyse demand and supply, i.e. Technical analysis. He should be able to read and interpret the indicators. ).

You won’t be able to determine when an investment opportunity exists and when it is time for you to close the trade if you don’t have a deep understanding of technical analysis.

You will need to have a lot of practice and a lot of knowledge in addition to your knowledge.

A clearly defined trading strategy

Technical analysis is only part of the equation. Scalping is not possible without the right knowledge.

Which policies should we adopt to get on the market?
How do you get out?
Which financial instruments can we trade?
Which technical analysis tools can we use?
What amount of money can we invest in each trade and how much will we spend on the day?
Which stop loss policy (stop-loss order) should be implemented?
Are we or are we not allowed to trade on economic news
Similar questions.

A strategy is useless if there is no clear direction. It is essential to have a clear trading plan when scalping. Scalper’s enemies include haste, indecision, and doubt.

Establish a timetable

The trading strategy, in a broad sense, is the decision of the scalper when and how long to trade. It can be exhausting to scale for long periods of time. Over-trading can cause fatigue, and result in mistakes that drain capital.

Scalping is a common practice. Traders tend to pick the opening hours of the markets because it is when there is most activity and therefore the best opportunities. The price moves faster and more strongly.

According to Spanish peninsular time, the following are the best times for scalping:

• Operate with European assets (opening hours and first hours of session in Europe): From 09:00 to 11:00.
• Trade American assets (opening hours and early hours in the session in the United States).
• You might be able to trade at the end of the US session, between 20:00 and 22:30.
• The Asian session takes place at 2:00 AM.
• Maintain discipline

A scalper trader must have a very orderly trading style and be able to act with unwavering discipline. It is not easy to be able to accept small losses and not feel the need to take revenge. Only enter and exit the market when it is indicated by strategy.

A lack of discipline can also be manifested by trading above our capital levels. This is when traders get carried away by potential gains.

A well-defined strategy is useless if it isn’t maintained. Scalping is fast and requires little thought. The trading plan must be executed immediately.

How to choose the best financial assets

Some financial instruments may not be suitable for creating a trading style within a very short time. They must be liquid assets with the goal of quickly entering and exiting markets. They must also be able to fluctuate while being liquid. Assets with very little fluctuation in their day are not acceptable. Scalping brokers today offer traders a variety of financial instruments to help them choose the best for their trading needs.

A scalper should focus on only a handful of financial assets that match these characteristics. There is not enough time to monitor many markets so the trader should be limited to a few. Some of these assets could include:

EUR/USD
GBP/USD
GBP/JPY
DAX
SP 500
Crude Oil

We will provide some tips to help you choose the right scalping broker because of its importance. It is a key factor in scalping success.

Operating commissions are another aspect to be aware of. Scalping involves multiple small trades, and each trade is subjected to commissions. These commissions are less important than in other types of trading, but you need to look at the conditions and fees when choosing a scalping brokerage.

The best financial tools for scalping

CFDs were mentioned as one of the most common financial instruments used for scalping when we discussed what a broker is.

CFDs offer many advantages over traditional trading.

• Trades can be made both short- and long-term.
• Traders can profit from all fluctuations, up or down.
• These are products that can be leveraged. (More info: Brokers with high leverage)
• You can make small profits if you manage your risk well and follow the rules with discipline. Because these trades are so quick, you will need to have a lot of capital if you want to scalp with non-leveraged product.
• These allow you to access a wide range of financial markets
• These instruments are highly liquid.
• They allow for efficient and agile trading which is essential for scalping operations.
• The trader’s requirements will dictate the size of the operation. They can be flexible when it comes investing, and there are many types of contracts.
• There are other financial instruments available, however they don’t have the same characteristics as CFDs and cannot offer the same benefits.

This type of trading can be done with physical purchases of shares and other assets. It does not have the financial leverage required to invest large amounts of capital. It is also not easy or quick to trade short and take advantage of market drops. Effective scalping can’t be done without financial derivatives, such as CFDs.

There are many other derivatives that can be used for this purpose, including futures and financial options. These financial instruments can only be traded on an official market. They require standardised contracts. The transaction volume and consequently the margin that must be posted are higher.

How to choose a good scalping broker in 2024?

This list of elements must all be considered when choosing a scalping broker. A scalping broker must be evaluated as a whole by the trader to determine if it is suitable for his investment style and needs.

Reliability and regulation of brokers

A regulated broker can guarantee it doesn’t act fraudulently. Client funds are secure.

To legally offer their services, online brokers must have a license. The regulatory body (financial regulator), issues the licence.

It has the sanctioning power to ensure compliance with regulations and best practice in investor relations. It is essentially responsible for protecting the interests of traders.

A broker that isn’t regulated is also not legally operating. It is not guaranteed and can commit fraud or swindle.

Online trading platform

The online trading platform is at the heart of a trader’s business. It’s where markets are analysed and decisions are made. Orders are placed. Capital is managed.

To be able trade effectively, you need to understand it in detail. However, scalping operations make it even more crucial because you don’t have the time or resources to study its functions. It should be intuitive and easy to use, and it should be quick to execute orders.

Available financial instruments

A broker should offer a variety of financial assets that are suitable for scalping. It is advantageous if the broker offers multiple markets. This will give you access to more opportunities.

Scalping brokers often make available financial instruments that are suitable to scalping to their clients. These are usually currency pairs but also others such as stock indices.

Customer service

Efficient customer service is another important factor in choosing a broker for scalping and other trading types. What is effective customer service?

Its long opening hours are a good thing. Many scalping brokers provide a 24-hour service, although some financial markets do not close. It is sufficient to ensure that support is available at all times.

Contact must be made quickly via chat or telephone. It is better if it can be offered in the trader’s language.

It is also important that brokers have trained staff that can offer solutions to any problems or questions that might arise.

Demo account

It is also important to consider brokers with demo accounts. The demo account is a virtual simulator that allows traders to practice in real-world conditions. There is no risk of losing capital.

Demo accounts allow us to get familiar with the trading platform and to test it firsthand. It is also a great tool to gain experience in the financial market (completing the training).

Many scalping brokers offer a demo account for free.

This post is also available in Spanish: brokers scalping, German: broker scalping