In our guide, we will go over the best brokers for scalping. Not all forex brokers allow scalping, so it is essential to choose a forex broker that allows it.
We base our research on various factors such as fees, security, regulation, minimum deposits, ease of use, trading platform, trading tools, maximum leverage, execution speeds, and more.
List of The Best Scalping Brokers 2023
The best brokers for scalping are listed below.
- Pepperstone – Best Scalping Forex Broker 2023 Overall
- FP Markets – Best Broker for High Leverage Scalping
- IC Markets – Best Scalping Broker for Trading Tools
- Admiral Markets – Competitive Spreads Scalping Broker
- HotForex – Tight Spread Scalping Broker
- Grand Capital – Good MetaTrader Scalping Forex Broker
- LCG – Good ECN Forex Scalping Broker
- VantageFX – Fast Execution Scalping Broker
Our Top 3 Picks
PFI Rating 4.9
PFI Rating 4.9
PFI Rating 4.8
PFI Rating: 4.9/5
Pepperstone – Best Broker for Scalping Overall
Pepperstone is our top pick as the best broker for scalping. Pepperstone was founded in 2010 and offers CFDs on Forex, Crypto, Shares, Indices, and Cryptocurrencies.
The minimum deposit is $0, and Pepperstone offers a wide variety of deposit methods. Pepperstone is a safe and reliable forex broker regulated by top-tier authorities.
Forex trading fees are low from 0.0 pips. Pepperstone offers two account types: Razor and Standard.
- Regulated by Top Authorities
- Low Spreads
- No Minimum Deposit
76.6% of retail investor accounts lose money when trading CFDs with this provider
PFI Rating: 4.9/5
FP Markets – Best ECN Scalping Broker
FP Markets comes in close second as the best scalping ECN forex broker. FP Markets was founded in 2005 and is regulated by top-tier regulators such as CySEC and ASIC.
The minimum deposit is $100, and FP Markets offers trading on 10,000+ assets.
Forex trading fees are low from 0.0 pips. FP Markets offers two account types: Raw and Standard. The maximum leverage available is 1:500 on the FP Markets Pro Account.
On FP Markets Official Website
PFI Rating: 4.8/5
IC Markets was founded in 2007 and is regulated by ASIC, CySEC, FSAS, and SCB.
Compared to Pepperstone and FP Markets, they have a higher minimum deposit amount. The minimum deposit is $200. Trading tools are better at IC Markets, while Pepperstone offers better market research tools.
IC Markets offers three account types: Raw Spread (cTrader), Raw Spread (MetaTrader), and Standard. Trading fees are low, with spreads as low as 0.0 – 0.6 pips and $0.0 – $3.5 commission per lot.
The maximum leverage is 1:200.
On IC Markets Official Website
PFI Rating: 4.7/5
Admiral Markets was founded in 2001 and is regulated by CySEC, FCA, ASIC, JSC, and FSCA.
Admiral Markets offers four different account types with various fees, spreads, and commissions.
Average trading fees are medium compared to other brokers on this list.
They offer trading 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.
On Admiral Markets Official Website
How Does Scalping Work?
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 to earn a profit.
Forex scalpers need to be fast and efficient. Scalping is a technique that takes advantage of small gains with each trade to make many smaller profits.
Forex scalpers will go through many trades in a Single Trading Day and will not hold trades for more than a few minutes. Many traders use automated strategies.
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. A Scalping Position can lose their profitability in a matter of seconds. If you scalping, you will need to pay extremely careful attention to your every move.
Regulation of Scalping
Generally, brokers want traders to buy currency at the offer and sell this at the bid instead of using a scalping method. Most trading platforms do not allow scalping on their platform, but certain brokers do allow it. Some Traders opt for Offshore Brokers.
These Scalping Brokers are regulated by top-tier authorities, such as the FCA or ASIC. So, scalping is legal and regulated, but not all brokers allow it.
Brokers' Policies on Scalping
Many brokers do not encourage scalping, but they will allow it occasionally and to a certain extent. This is because quickly adjusting and changing positions on a trade is normal for traders. The brokers we 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 daily trades, 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, with faster changes and a tighter timeframe.
Leverage in Scalping
Leverage plays an important role in scalping. Scalpers usually use leverage to ensure that positions are high enough to earn a decent profit. In scalping, you need larger position sizes for better results. This is why 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…
Forex scalping needs to be done through brokers that are properly regulated. Ensure 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 significantly affect your returns, so understand the fees before you start trading. We also have a guide where we compare the lowest cost Forex Brokers offering tight spreads.
Most of the time, scalping is only available on brokers that operate through Agency execution like with ECN brokers. With an Agency Execution Account, the broker charges a commission for entering and exiting trades (plus spreads) while the order is sent to a third-party market maker.
Market Makers are the other type of brokers that might allow scalping, but not often. This is because market makers are counter-parties to your trades and lose money if you make consistent profits with scalping.
We suggest choosing a broker that executes large trading volumes with an agency-execution account.
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. Some also use a DMA Broker or STP Brokers.
The type of customer support available can greatly impact your trading experience. Research whether your forex broker offers responsive 24/7 support.
What Can You Trade?
Besides forex, different brokers offer different tradeable products. This can include things like stocks, crypto, commodities, options, indices, precious metals, and CFDs.
The best trading platforms should offer extensive educational content for more informed trading.
Platforms offer various tools to help traders make better moves and stay protected. Consider the trading tools that your broker offers.
The minimum amount of capital to open an account varies between brokers. Make sure that the capital available matches your broker’s requirements.
Different brokers offer different deposit and withdrawal methods for their accounts. Make sure that this matches your method of banking.
Brokers offering higher research levels allow traders to make more informed decisions. Different platforms have unique research tools available.
Brokers offer different trading platforms for different trading needs and experiences. The most popular are in-house Proprietary Trading Platforms and third-party trading platforms. Most Scalping Brokers today offer Web-Based, Desktop and Mobile Trading Platforms. While many third-party Scalping Trading Platforms such as MetaTrader4, MetaTrader5 or cTrader allow Automated trading strategies, scalpers should consider costs, execution speeds, and more.
We hope you found this guide informative enough to ease your decision when picking a Scalping Broker. All things combined we picked Pepperstone as the best broker that allows scalping.