best brokers for forex scalping-seven steps to forex scalping success
Which are the best brokers for forex scalping ?I will try to point to the correct direction today.There is a global law for anything:
you get what you pay
The other general principal for our accounts is:
the more capital you have the better services , the less commissions and spreads you pay.
As bullet point we can mention what we are looking for in a broker
1. Brokers must allow all trading including scalping techniques
2. Non Dealing Desk / ECN
3. Clearly regulated.
4. Offering high leverage.
5. LOW SPREAD
6. No bad reports (Such traders do not get paid, etc.).
Many people don’t understand this vital difference so I will explain it as simple as I can.
Firstly, you must know that almost all of the MT4(metatrader platform) brokers are running a “bucket shop”.
So when you are trading with an MT4 broker, your order is not appeared in the international interbank market, but it appears in the dealing desk of your MT4 broker.
Basically you are trading either with the server, or with someone in the dealing desk of your broker.
So while in demo you might be profitable but when you deposit real money for your live account ,”mystery spikes”,(or re quotes,slippage,no executions) not appearing in any other broker close your positions with loss(stop loss hunting)
So your broker is earning from the spread and from the above “unexplainable spikes and events”.
An ECN broker is giving you the interbank feed as it is delivered by the ECN network and he is charging commissions for each transaction.
So the broker earns only this commission and the feed you see is not manipulated.
If you want to see a pure feed you must pay a separate feed with monthly subscription.
The spread you will pay depends from the volatility and the pair in the specific moment.Pure demand and supply.You can see zero spread in EURUSD and some times in EURJPY.
The higher the capital you have in your live account, the lower the commissions will be.
Commissions vary from one ECN broker to another and if you are trading a lot of lots each month you can negotiate the commissions with your broker.
The lower the commissions you pay the higher the minimum of lots you are obliged to trade. e.g. Institutional accounts.
If you need any clarifications, I will be happy to answer.