| Updated: October 21, 2024Scalping is a popular strategy allowing savvy forex traders to lock in profits from nominal fluctuations in currency pair prices. The technique could prove highly profitable for competent traders but, unfortunately, some forex brokers prohibit their customers from implementing it. The good news is our expert team compiled a list of the top brokers that allow scalping and offer favorable conditions to scalper customers. Their razor-sharp spreads, lightning-fast execution, high leverage ratios, and large libraries of trading signals render our top picks ideal for traders using this technique.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
Pepperstone75.5% of retail investor accounts lose money
BlackBull Markets
Global Prime74-89% of retail CFD accounts lose money
AvaTrade76% of retail investor accounts lose money
AxiThe vast majority of retail client accounts lose money
Eightcap76.09% of retail investor accounts lose money
Swissquote61% of retail investor accounts lose money
XM Group72.82% of retail investor accounts lose moneyTop 10 Brokers for Forex Scalpers
Fusion Markets is an ASIC and VFSC-regulated discount broker that takes clients from most countries worldwide. Launched in 2019, it quickly gained recognition for offering industry-leading spreads and excellent trading conditions. Fusion Markets’ commissions are approximately 36% lower than those of rival brokers. Its portfolio comprises over 250 instruments, including an impressive range of 90+ currency pairs.
The company delivers no dealing desk order execution and narrow spreads from zero pips. Fusion Markets has calibrated its services to fit all traders, including scalpers and hedgers. The broker imposes no restrictions on position hold times, stop-loss, and take-profit orders, allowing scalpers to exit trades as quickly as they like.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 2. FP Markets
FP Markets positions itself as a solid choice for customers looking to explore thousands of markets without strategy restrictions. This award-winning broker impresses with a superior product lineup that encompasses over 10,000 financial instruments. The company welcomes all customers regardless of their preferred strategies, allowing for scalping, hedging, and automated trading without restrictions on Expert Advisors (EA).
This well-regulated ECN forex broker accommodates scalpers with ultra-low raw spreads, single-click trading, VPS hosting, and high leverage capped at 1:500. It ensures low-latency order processing from Equinix NY4 servers with zero dealing desk intervention for direct access to interbank prices.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.92% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 3. Pepperstone
Pepperstone is a time-tested online broker (est. 2010) with plenty to bring to the table, including a broad range of supported platforms and competitive trading terms for 1,200+ financial instruments. The broker is ideally suited to the needs of scalpers as it not only allows this technique but ensures ultra-favorable conditions for those implementing it.
Scalper customers can trade major currency pairs with raw spreads from zero pips via Razor accounts. Requotes are almost non-existent at Pepperstone as the broker sources prices directly from first-tier banks and financial institutions. Scalpers will also appreciate Pepperstone’s lightning-fast execution speeds. The broker processes orders in under 30 milliseconds and boasts impressive fill rates of 99.90%.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 4. Global Prime
Global Prime leverages over a decade of experience to deliver superior online trading to retail customers from all walks of life. The ASIC-regulated broker caters to traders with exceptionally low commission rates, tight spreads for over 40 forex pairs, and free account funding options. More importantly, Global Prime is ideal for scalpers as it has no restrictions on position hold times and trading strategies.
Clients looking to capture profits from small price movements can choose from Standard and Raw accounts. Both account types allow for scalping, hedging, and algo trading. New customers can start scalping with an amount they feel comfortable with as Global Prime has no requirements for minimum initial deposits.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017. - 5. XM Group
XM is a solid broker that delivers a versatile range of tradable assets and account types. The company caters to customers from over 190 jurisdictions and holds licenses from the regulatory bodies of Cyprus, Belize, and Australia. The broker’s portfolio encompasses north of 1,000 financial products, including diversification instruments like thematic indices.
The online brokerage permits scalping across all available account types (micro, standard, zero). Scalpers at XM will benefit from super-low spreads, no requotes, and exceptionally high order fill rates. Depending on their region, scalpers can use maximum leverage of 1:1000 to amplify their profits from minuscule price movements.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 6. AvaTrade
A pioneer in online trading, AvaTrade has been delivering competitive conditions to global retail customers for over 18 years. The broker has obtained approval from nine reputable financial watchdogs, including ASIC, CySEC, and FSA. It facilitates low-cost trading with a full spectrum of over 1,200 instruments, including currencies, vanilla options, bonds, commodities, indices, stocks, and crypto.
AvaTrade is geared toward the needs of scalpers, offering ultra-tight spreads, high leverage, and many tools for automated trading. Scalpers based outside Europe, Canada, and Australia will benefit from default leverage of up to 1:400. The broker safeguards clients with negative balance protection and ring-fences their funds in segregated accounts.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 7. Eightcap
Licensed by ASIC, CySEC, the FCA, and the SCB, Eightcap is a reliable online broker that allows retail customers to trade over 800 markets with trust and confidence. The broker is renowned for its transparent prices, superior spreads, and intuitive platforms that can accommodate fledgling and seasoned traders alike.
Eightcap embraces all trading strategies, including scalping, hedging, algo, and copy trading. Scalpers can choose from Standard, Raw, and TradingView accounts where spreads range from 0.0 to 1.0 pips. Minimum deposits overlap across all three account types and start at $100. The broker processes orders without dealing desk intervention, relying on the ECN and STP execution models.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. With over a decade of industry experience, BlackBull Markets positions itself as a reliable option for customers looking for market diversity, tight spreads, and seamless order execution. Regulated in New Zealand and Seychelles, the broker caters to its customer base with an impressive variety of over 26,000 tradable assets, including more than 70 major, exotic, and cross currency pairs.
BlackBull Markets poses a great choice for algorithmic traders and scalpers, delivering median ECN execution speeds of under 20 milliseconds and VPS hosting services. Scalpers at BlackBull Markets will experience little to no slippage and benefit from sharp spreads as low as 0.1 pip. The broker supports multiple funding methods, including cryptocurrencies like Bitcoin and Ethereum.
- 9. Swissquote
With a history dating back to 1996, Swissquote is a wise choice for scalpers who value price transparency, security, and reliable order execution. The broker carries licenses from multiple tier-one regulators, including the FCA, CySEC, and FINMA. Its parent company is listed on the SIX Swiss Exchange, further adding to the credibility of Swissquote.
Customers can trade over 70 currency pairs but the broker also facilitates commodity, options, index, crypto, and stock trading. Swissquote is suitable for all trading styles, including scalping, swing, and day trading. The broker has a default leverage cap of 1:100 for forex majors, allowing scalpers to increase their exposure and extract more value from nominal price movements.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 10. Axi
Launched in 2007, Axi is a trusted and well-regulated broker headquartered in Sydney. It offers decent enough instrument coverage, providing customers with a choice from over 220 tradable instruments. Axi is a MetaTrader broker as it facilitates online trades via MT4 WebTrader and MT4 for desktop.
Registered clients will benefit from multilingual customer service, transparent pricing, and comprehensive educational content. Axi is ideal for scalpers as it partners with a large pool of top-tier liquidity providers to deliver institutional-grade raw spreads as low as zero pips. The broker permits full and partial hedging but prohibits all forms of arbitraging.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Comprehensive Comparison of the Top 10 Forex Brokers for Scalping
| Forex Broker | Min Deposit | Regulators | Platforms | Order Execution | FX Pairs | Commission | Spread | Avg Execution Speed | Inactivity Fee | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|---|---|
| 1. Fusion Markets | $0 | ASIC, FSA (Seychelles), VFSC (Vanuatu) | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade | NDD | 90+ | $0 Classic Account, $4.50 round turn on Zero Account | 0.9 pips Classic; 0.0 pips Zero | 37ms | No | 4.9 ⭐ |
| 2. FP Markets | $50 (AU$100) | ASIC, CySEC, FSA (Seychelles), FSCA | MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView | NDD, ECN | 70+ | $0 Standard Account; $6 round turn on Pro Account | 1.0 pips Standard; 0.0 pips Raw | 40 ms | No | 4.8 ⭐ |
| 3. Pepperstone | $0 | UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA | TradingView, MT5, MT4, cTrader | STP, ECN/STP | 90+ | $0 (Standard Account), $7 round-turn (Razor Account) | From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts) | 30 ms | No | 4.7 ⭐ |
| 4. BlackBull Markets | $0 (Standard)$2,000 (Prime)$20,000 (Institutional) | SFSA (No. SD045), FMA (No. FSP403326), FSA | MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade | STP, ECN/STP | 70+ | $0 Standard; $6 per lot Prime; $4 per lot Institutional | 0.8 pips Standard; 0.1 pips Prime; 0.0 pips Institutional | 20 ms | No | 4.6 ⭐ |
| 5. Global Prime | $0 | ASIC (No. 385620), VFSC (No. 40256) | MT4 Desktop, MT4 Webtrader, MT4 Android | NDD | 56 | $0 Standard Accounts; $7 round turn on Raw Accounts | 0.9 pips Standard, 0.0 pips Raw | 100 ms, 1 to 5 ms with VPS | No | 4.4 ⭐ |
| 6. AvaTrade | $100 | FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC(No.406684) | MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial, AvaOptions, DupliTrade | DD | 53 | $0 | From 0.9 pips (retail), 0.6 pips (pro) | 30ms | After 3 consecutive months - $/€/£50 | 4.4 ⭐ |
| 7. Axi | $0 | ASIC, FCA, CySEC, DFSA, FSA (Saint Vincent and the Grenadines) | MT4 Desktop, MT4 WebTrader, Axi Mobile | DD, STP | 80 | $0 on Standard Account; $7 round trip on Pro Account | From 0.0 pips (Elite and Pro Accounts), 0.9 pips (Standard Account) | 9ms | No | 4.3 ⭐ |
| 8. Eightcap | $100 | SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) | MT4, MT5, WebTrader, TradingView | Hybrid (ECN, DD) | 50+ | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts | 0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts | 14ms | No | 4.2 ⭐ |
| 9. Swissquote | $1,000 | FCA, MFSA, FINMA, DFSA, MAS, CySEC | CFXD, MetaTrader 4, MetaTrader5 | STP | 80+ |
| From 0.0 pips (Elite), 0.6 pips (Prime), 1.3 pips (Standard) | 9ms | $10 per month after 6 months of no activity | 3.8 ⭐ |
| 10. XM Group | $5 | (ASIC) (ref. No. 443670), FSC (license no. 000261/397), DFSA (ref. no. F003484), CySEC (license no. 120/10), MiFID, CFTC | MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal | Hybrid (DD, STP/ECN ) | 50+ | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account | From 0.0 pips (Zero Account), 0.6 pips (Standard and Micro Accounts) | <1000 ms | $10 per month after 90 days of no activity | 2.9 ⭐ |
Scalping Forex Trading Strategy Explained
Scalping is a popular strategy that allows traders to capture modest profits from small movements in market prices. It involves making multiple large-volume trades within short timeframes, often ranging from several seconds to a few minutes. Scalpers usually exit profitable positions when prices fluctuate slightly above their break-even point. Active scalpers sometimes go through hundreds of short-term trades within a single day.
The logic behind implementing this technique is that small price movements occur more frequently than large ones, with nominal profits adding up over time. The technique requires iron discipline as scalpers must exit their trades at very specific profit and loss levels. Another trait savvy scalpers commonly share is that they never hold positions overnight.
Scalping is a time-consuming technique as it requires almost constant monitoring of the forex markets. Many scalpers simplify this process by automating their trades with the help of trading robots like expert advisors. Scalpers frequently use excessive leverage to increase their market exposure and skim off larger profits with less capital.
What Makes a Good Forex Broker for Scalping
Traders should consider several factors when looking for solid forex brokers suitable for scalping. Here are the main aspects beginner scalpers should take into account.
Accurate and Instant Execution
Execution should be as swift and accurate as possible to mitigate market impact and reduce slippage. Slower execution can completely decimate what little profit scalpers have earned from small price movements. Opting for brokers offering level 2 prices and direct access to the interbank markets is highly advisable.
Low Spreads and Commissions
Spreads are also worth considering as the main purpose of scalping is capturing nominal profits from small price fluctuations. The best brokers suitable for scalping provide low spreads of no more than one pip. If commissions are in place, they should be equally competitive, although trading commission-free is optimal from a scalper’s perspective.
No Stop-Loss and Take-Profit Restrictions
Savvy scalpers commonly rely on stop-loss and take-profit orders to control their risk and lock in modest profits. A solid broker for forex scalping allows customers to set their stop-loss and take-profit orders at any percentage they like. Respectively, there should be no restrictions on position hold time.
Wide Range of Indicators and EAs
Active scalpers often enter and exit hundreds of trades per day. Many prefer to automate this process with the help of expert advisors (EAs) and other plug-ins for algo trading. Choosing a broker offering custom indicators, multiple timeframes, and a solid range of EAs is essential for successful scalping. Using these tools significantly increases the number of short-term trades scalpers can make.
Why Do Some Forex Brokers Prohibit Scalping?
As popular and widespread as scalping is, some brokers disallow this strategy because they associate it with greater risk. Market makers acting as counterparties to client trades are prone to prohibiting this technique to mitigate the impact of successful scalping on their bottom line.
Scalpers sometimes open hundreds of positions daily, resulting in an overload of the brokers’ systems. Bombarding a broker’s servers with hundreds of large-volume orders at such high frequency can potentially slow down execution and even lead to system outages in some cases.
Rather than explicitly prohibiting scalping, some trading sites thwart scalpers by imposing restrictions on minimum position hold times and the maximum number of daily trades. We recommend you closely acquaint yourself with the policies of your chosen broker before engaging in any scalping activities.
Popular Trading Platforms for Scalpers
Three platforms immediately come to mind when we discuss scalping, starting with cTrader. The cTrader platform offers a bevy of advanced features tailored specifically to scalpers, including 26 timeframes starting from one minute. Traders implementing this strategy will also benefit from the availability of one-click trading, which allows them to enter or exit positions in a flash of a second.
Another advanced feature enables you to reverse multiple open positions with a single click if the markets start moving against you. The cTrader platform supports algorithmic trading with algo bots, which is yet another advantage from a scalper’s perspective.
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) also pose great options for traders looking to implement the scalping strategy. Both cater to scalpers with a comprehensive selection of expert advisors and built-in indicators for technical analysis, although creating custom indicators from scratch is an option for code-savvy users. Single-click trading is available and so is trading directly through charts. MT5 is marginally better for scalping than MT4 as the former delivers slightly faster execution.
Who Is Scalping Suitable For?
Scalping requires firm discipline and sufficient knowledge of the financial markets, which renders it suitable for seasoned and competent traders. The technique is ideal for active traders who can afford to devote enough time to market monitoring and evaluation. Having good analytical skills is another prerequisite to becoming a successful scalper.
Quick decision-making is equally important as scalpers often exit trades within a few seconds. The strategy works best in forex trading and is frequently implemented by traders dealing in majors like EUR/USD and USD/JPY. Scalping is also applicable in commodity and stock trading, although people dealing in these asset classes are less likely to utilize it.