In the beginning, let’s try to understand what is trading on scalping strategy. Scalping – it is primarily a short-term opening of a position with a large lot in order to make a profit only a few points, and in some cases up to two dozen points. In one day, the scalper may have several dozen done deals. In Forex market, this method of trading has long been very popular, both among experienced traders and beginners. According to experts, scalping is one of the most difficult types of trade, because it requires a lot of psychological tension for a long time, lightning-fast reaction, clear and correct actions.
Brokers For A Scalping
Not all brokers are suitable for scalping. Some trading platforms right in the conditions of trading write that prohibit the strategy of scalping, other brokers in every way interfere with trading on this strategy (use requots, slip orders, delays, extended spreads and other unpleasant obstacles). It comes to the point that even if the trader starts to earn in unfavorable conditions, then his trading begins to interfere to lead to losses. It is necessary to read the terms of trade very carefully, especially the minimum duration of the open position is important. If there is a limit of a few minutes, it is very likely to expect the cancellation of a large number of your profitable warrants, and such a decision of the dealing center will be difficult to appeal.
There are several reasons why some dealing centers don’t like scalpers. The first reason – the trading strategy scalping due to very frequent inputs and outputs quite significantly loads the broker server, but with the development of server equipment with this problem learned to cope. The second reason – very many brokers do not bring your transactions to the world market, but process them on their server, which is satisfied with the appearance of real trade, here your profit is a direct loss of the broker. Such grief brokers in the people called “kitchens”.
Choosing A Broker
Based on what you have written above, you can decide on some criteria when choosing a dealing center and account type:
- The spread must be floating as the market is variable and cannot have fixed values.
- When choosing a broker, preference is given to trading sites with the lowest spreads and opening fees.
- The number of characters in the price must be 5 digits after the comma or 3 digits for the currency pair with Jena.
- Fast execution, lack of requots (usually such quality is provided by ECN or STP accounts).
- No limit on minimum open item time, minimum possible profit, and maximum number of open items per day.
- A broker must be licensed by one of the developed, civilized countries. The license of CIS countries is not an argument when choosing a broker.
- It is very important to read the reviews about the dilling center in various popular forums.
- An important factor is the relatively long presence of Forex services in the market, measured for years.