OANDA - Best Forex broker for scalping
Top Forex brokers for scalpers:
OANDA - Avg. EUR/USD spread 0.15, Supported currency paires - 90
FOREX.com - Avg. EUR/USD spread , Supported currency paires - 80
Interactive Brokers - Avg. EUR/USD spread 0.2, Supported currency paires - 80
RoboForex - Avg. EUR/USD spread 0.2, Supported currency paires - 40
Eightcap - Avg. EUR/USD spread 0.1, Supported currency paires - 40
Exness - Avg. EUR/USD spread 0.1, Supported currency paires - 96
In the fast-paced world of forex trading, scalping stands out as one of the most intensive and aggressive strategies, requiring traders to make quick decisions and act swiftly. For scalpers, low spreads, high liquidity, and specialized software are paramount.
Many brokers catering to scalpers offer not only tight spreads and high liquidity but also specialized trading platforms and tools. For example, the cTrader platform offered by many ECN brokers provides not just market pricing but also enhanced bot integration, trading from the TradingView terminal, and many other features.
Traders Union has compared the best brokers for scalping based on multiple criteria to offer you the best option in a convenient comparative table format.
Warning:
There is a high level of risk involved when trading leveraged products such as Forex/CFDs. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
| Broker | ECN account fee ($ per lot) | Avg. EUR/USD spread | Avg. GBP/USD spread | MT4 | cTrader | TradingView | |
|---|---|---|---|---|---|---|---|
3.5 |
|||||||
2 |
|||||||
2 |
|||||||
3 |
|||||||
3 |
|||||||
2.5 |
|||||||
3 |
|||||||
3 |
|||||||
3 |
| Broker | Minimum deposit | Regulation | Trading platforms | Min Order | Instruments | Margin Call/ Stop Out |
Liquidity provider |
|---|---|---|---|---|---|---|---|
No |
FSC (BVI), ASIC, IIROC, FCA |
MetaTrader 4, WebTerminal MT4, MT5, fxTrade |
WebTrader, MetaTrader4, Mobile platforms, MetaTrader5 |
Stop Out - 50% |
J.P. Morgan, Deutsche Bank AG, Royal Bank of Canada |
||
$1000 |
CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC |
МT5, МТ4, Forex.com (proprietary platform) |
FOREX.com, MT4, MT5 |
N/a |
N/a |
||
No |
SEC, FINRA, SIPC, FCA, NSE, BSE, SEBI, SEHK, HKFE, IIROC, ASIC |
IBKR Mobile, TWS for PC, IBKR API, Portal of clients |
Trader Workstation, IBKR Mobile, APIs |
Depending on the asset |
n/a |
||
$10 |
FSC |
МТ4, МТ5, R StocksTrader, R MobileTrader, R WebTrader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
40% / 10% - 60% / 40% |
n/a |
||
100 USD |
ASIC, SCB, CySEC, FCA |
MetaTrader 4, MetaTrader 5, and TradingView |
MT4, MT5 |
80%/50% |
No |
||
$10 |
FCA, CySEC, FSA (Seychelles), FSCA, BVI FSC, FSC (Mauritius), CBCS, and CMA |
MetaTrader 4/5 (desktop, web, and mobile), Exness Terminal (web), and Exness Trade App (mobile) |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
Standard: 0%/60% |
FXCM Pro and ADS Securities |
||
$5 |
MISA |
Pocket Option (web and mobile); |
Pocket Option, MT5, MT4 |
30%/50% |
No |
||
€10 |
CySEC |
MetaTrader 4, MetaTrader 5, FBS Trader |
MT4, MobileTrading |
40% / 20% |
Currenex |
||
From 0 US dollars |
МТ4, МТ5 |
MT4, MobileTrading |
100% / 20%; 100% / 40%; 100% / 60% |
MarketPlace |
|||
From 0 USD |
BVI FSC |
МТ4, Forex4you, МТ5 |
MT4, MobileTrading, MT5 |
50-100%/10-20% |
MarketPlace (unique aggregator) |
The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.
Forex.com is a company owned by GAIN Capital Holdings, Inc. (NYSE: GCAP) and has earned a reputation as a reliable broker in the trading industry for its transparent work and high quality of services. The company cooperates with clients in 140 countries. The broker is registered in the Cayman Islands and supervised by CIMA (Certified Institute for Management Accountants). The license number is 25033. The parent company of the Forex.com broker is registered in England and Wales under the number 1761813 at the UK Companies House. It is licensed by one of the most reputable regulators in the world, FCA (No. 113942).
Interactive Brokers is among the best-known US investment companies, operating since 1977. The broker offers to trade currency pairs, but its basic instruments are stocks, CFD, indices, metals, ETF, futures, and other exchange market assets. You can also trade cryptocurrencies on Interactive Brokers. The company is regulated by the US Securities and Exchange Commission (SEC), the US Financial Industry Regulatory Authority (FINRA), the UK Financial Regulatory Authority (FCA), and other international financial regulation commissions. In 2020, the broker was awarded the "Best Online Broker” (Barron's) and "Best Broker for Economical Investments" (NerdWallet) titles and got five stars in the Online Stock Trading for Traders category (Canstar). Also, the broker is popular in other countries. Here you can read reviews of Interactive Brokers in Canada, Singapore, Australia, Hong Kong, Ireland.
For scalping, brokers who provide ECN, DMA, STP accounts, with a floating/variable spread, and market execution of orders are suitable. Dealing desk brokers who offer opening orders based on the Instant Execution principle, with a fixed spread, are not usually suitable for scalping. This is due to volatility and the constant requotes that can occur with dealing desk, or “market maker”, brokers. Under these conditions, the trader simply will not be able to carry out this strategy properly.
Scalping brokers provide their clients with certain trading conditions. It is important for the trader to check for the following conditions for scalping:
Do you prefer watching videos? Then watch the video summary of this article.
Below you will find all the information.
When it comes to scalping, it's important to pay attention not only to the availability of an ECN account and specialized software but also to many other parameters. For example, traders should look into reviews of customer support. Are there real technicians who can help fine-tune a bot? The speed of order execution, liquidity providers, and many other nuances also play a crucial role. In this regard, it's better to collaborate with large brokers that are among the world's leaders in trading volume and have excellent IT and hardware infrastructure.
Are you wondering how to choose the best brokers for scalping? Here are some tips to help you on your way:
Scalping in Forex requires a platform that is fast, reliable, and offers advanced tools. The three most popular platforms—MT4, MT5, and cTrader—each have unique features that cater to scalpers. Here's a detailed review of each platform:
MetaTrader 4 (MT4) is a well-established platform known for its stability and user-friendly interface. It offers a wide range of technical analysis tools, such as charts, indicators, and drawing tools, making it suitable for scalping strategies. MT4 also supports automated trading through Expert Advisors (EAs), allowing traders to automate their scalping strategies.
👍 Pros
• Extensive range of indicators and charting tools, supports automated trading, widely used and supported by many brokers.
👎 Cons
• Limited order types compared to newer platforms, older technology may lead to occasional lags during high volatility.
MetaTrader 5 (MT5) is the successor to MT4 and offers several improvements, including enhanced charting tools and a wider range of markets to trade, such as stocks and commodities. MT5 also supports more order types, including market, pending, stop, and trailing stop orders, providing more flexibility for scalpers. Like MT4, MT5 supports automated trading through EAs.
👍 Pros
• Improved charting tools, more order types compared to MT4, supports a wider range of markets.
👎 Cons
• Less popular among brokers and traders compared to MT4, fewer community-developed indicators and EAs available.
cTrader is known for its intuitive and user-friendly interface, making it easy for traders to navigate and execute trades quickly. cTrader offers advanced charting and analytical tools, including a Level II pricing feature that provides greater transparency into market liquidity. The platform also supports algorithmic trading through cAlgo, allowing traders to create and backtest their own automated trading strategies.
👍 Pros
• User-friendly interface, advanced charting and analytical tools, Level II pricing for better market depth visibility.
👎 Cons
• Less widely used compared to MT4 and MT5, fewer available plugins and automated trading options.
In conclusion, all three platforms—MT4, MT5, and cTrader—can be suitable for scalping, depending on the trader's preferences and trading style. Traders should consider factors such as platform familiarity, speed of execution, and availability of scalping-specific tools when choosing a platform for scalping.
Scalping costs primarily consist of spreads and commissions. The best brokers for scalping offer ECN accounts with spreads as low as 0.1 pips for major pairs like EUR/USD, but typically closer to 0.15 pips for top brokers. Additionally, brokers may charge commissions per lot traded, usually ranging from $1.5 to $3 per lot.
However, the cost of scalping is a complex issue that extends beyond spreads and trading commissions. Traders should consider factors such as the broker's liquidity, which is crucial for minimizing slippage and spread discrepancies during volatile market conditions. For professional scalpers engaging in high-frequency trading, investing in professional equipment and software may also be necessary, with investments starting from $10,000.
It's important to note that manual scalping or using simple bots can be challenging due to the increasing role of algorithms in trading. Major investment banks invest millions in automation, making it challenging to compete. However, with the right strategy and skills, successful scalping is not impossible.
The best Forex pairs for scalping are those with the highest liquidity, such as EUR/USD, GBP/USD, and USD/JPY, among others. In scalping, there is a general rule that the higher the liquidity, the better. However, there are various strategies that can also profit from expanding spreads.
High liquidity in these major pairs ensures that traders can enter and exit positions quickly, with minimal slippage. This is crucial for scalping, where traders aim to capitalize on small price movements. Additionally, these pairs often have tighter spreads, reducing trading costs for scalpers.
While major pairs are popular for scalping, some traders also look for opportunities in less liquid or exotic pairs. These pairs may have wider spreads and higher volatility, offering potential for larger profits but also carrying higher risks. Traders employing scalping strategies on such pairs should be aware of these risks and adjust their strategies accordingly.
Scalping (pipsing) is a common trading strategy where traders open trades for only a short time, from several seconds to several minutes.
Scalping, like any other strategy, has several advantages and disadvantages.
👍 The advantages of scalping:
• it can be used by a beginner, as only basic technical analysis is required for scalping
• you only need a small deposit
• ability to open a large number of trades during a trading session (up to 1,000 trades per day)
• You can trade with any trend or in a flat, ranging market
👎 The disadvantages of the strategy:
• minimum profit margin
• not all brokers provide scalping conditions
• requires a certain mindset
Scalping in trading can be challenging and is often not recommended for beginners or those with limited experience. It involves making rapid, short-term trades to profit from small price movements, often within seconds or minutes. The difficulty arises from the need for quick decision-making, discipline, and a deep understanding of market dynamics. If you're interested in scalping as a beginner, here are five tips to help you succeed.
Start with a solid foundation. Before attempting scalping, make sure you have a good grasp of the basics of trading, technical analysis, and risk management. Gain experience with longer-term trading strategies to develop your skills and understanding of the markets.
Choose the right market and instruments. Scalping is typically associated with highly liquid markets, such as Forex, major stock indices, or liquid cryptocurrencies. Stick to a few instruments you are comfortable with and understand well. Avoid illiquid or volatile assets such as penny stocks, which can be difficult to scalp.
Utilize technical analysis. Scalpers rely heavily on technical analysis, focusing on short-term charts, patterns, and indicators. Develop a scalping strategy that includes technical tools like moving averages, RSI, MACD, and support/resistance levels to identify potential entry and exit points.
Set strict risk management rules. Scalping can be highly risky due to the frequency of trades and small profit margins. Set tight stop-loss orders to limit losses and never risk more than a small percentage of your trading capital on a single trade. Maintain a disciplined approach to risk management and avoid making any emotional decisions.
Practice with a demo account. Before trading with real money, use a demo account to practice your scalping strategy. This allows you to become familiar with the platform, test your approach, and gain experience without risking your capital. Only transition to live trading when you consistently demonstrate success in your demo trading.
Remember that scalping can be mentally and emotionally demanding due to the rapid decision-making required. It's essential to stay focused, and disciplined, and avoid overtrading. As a beginner, consider other longer-term trading strategies initially and transition to scalping when you have a solid foundation and feel comfortable with the associated challenges.
When searching for the best brokers for Forex scalping, you should take some time to make sure the broker offers RAW/ECN accounts, low fees, tight spreads, free VPS servers, and other useful resources - and also that they offer strong liquidity from leading providers, and, of course, that scalping is allowed by the broker.
The best time frame for scalping varies by individual preference and market conditions. However, shorter intervals, such as the 1-minute or 5-minute time frames, are commonly utilized for their immediacy in reflecting price action.
Scalping is allowed in Forex trading, but it can depend on the broker and their specific terms and conditions. Some brokers may have restrictions on scalping, such as minimum trade durations or limits on the number of trades that can be executed within a certain period.
It's important for scalpers to carefully review a broker's policies regarding scalping before choosing to trade with them. Additionally, traders should be aware of any potential costs associated with scalping, such as higher spreads or commissions, and ensure they have a solid understanding of the risks involved.
Yes, automated Expert Advisors (EAs) are permitted when scalping Forex on various broker platforms.
The best times can vary, depending on various factors. However, generally speaking, many experts assert that the best trading time is the 8 a.m. to noon overlap of the New York and London market sessions. This is because these two trading centers account for more than 50% of all Forex trades.
Scalping can be challenging for beginners in Forex trading due to its fast-paced nature and the need for quick decision-making. While scalping can be profitable for experienced traders, beginners are advised to start with longer-term trading strategies to gain experience and develop their trading skills before attempting scalping.
