Every trader has a trading style and trading techniques to perform on his favourite platform. One of the most advanced, and yet popular, style between those is scalping.
While being extremely famous and popular in the trader community, this technique is not for everybody.
A scalper must possess advanced trading skills, have a sharp mind, be focused all the time and, most of all, he must have a specific trading platform. The last point is extremely important, because a cutting edge platform is a requirement of extreme importance due to the insane speed required to scalp the market.
And those kinds of platforms can be provided only by a restricted pool of regulated brokers.
That’s why today we’re going to analyse point by point the requirements needed to be called the best broker for scalping today.
Be Aware Of The Regulation
This is the first and most important point of all when speaking about financial topics, and especially regarding this one: the regulation.
Scalping being allowed in your region or by your broker should not be given for granted. In fact, where are you based as a trader and the broker regulation may limit this practice. To do so, some brokers put a time limit between one operation and another one, which may pose a threat to future scalpers.
That’s because scalping is the fastest trading style available for traders, and it goes from “just” 10 trades per day to even 200 trades per day.
Fees And Commissions To Cover
While it may seem obvious that every trader wants to deal with the cheapest, more convenient broker available on the market, scalpers must be extremely awake regarding commissions and fees to cover.
Because of the high amount of operations opened and closed every day, scalpers must aim to come to brokers only which have fixed or competitive prices in terms of spreads and trading commissions.
Usually, a scalper can only rely on a certain kind of broker which enhances ECN trading platforms in their service.
ECN Trading Platforms Are The Best For Scalping
As we already mentioned in this article, scalpers will need the fastest technology available to keep the pace with the fast changing market and the amount of trades required to gain profits from scalping.
The fastest trading platform available today are the so-called ECN trading platforms. ECN is an acronym which means “Electronic Communication Network”, a computerized network used to facilitate financial trading outside of trading stock exchanges.
ECN platforms speed level have finally eliminated many problems which affected the financial markets for many time. One above all, the infamous re-quotation, the worst enemy for a scalper when the market was moving too fast for a platform.
Between the most important ECN brokers, we remember the following:
- IC Markets: ECN is available thanks to the high liquidity of this broker, which allows you to trade with a 3.00 USD commission per lot
- Pepperstone: ECN is available with the Razor account, which allows you to trade with a fixed rate of 3.5 USD commission per lot
- HotForex: ECN is available with MT5 trading and a fixed 4.00 USD per commission lot