Scalping is a very common term when it comes to Forex. This concept is connected to certain Forex trading strategies that are quite popular among currency exchange traders.
One of the best tips all experts refer to and can be rather useful for beginner traders is to choose a strategy, make a plan, and stick to it. So if you think scalping trading is for you, try it out and make a plan.
A good time to start testing out a strategy is while using a demo account. This is always the best way to try things out and see if it’s a strategy that matches your investing style and the time you have to dedicate to Forex trading.
When it comes to scalping we are talking about a fast strategy, ideal for day-traders. However, scalping also requires good knowledge of the signals that indicate a good entry point into the market. This means traders need to pay close attention to the market and be ready to make quick decisions if necessary.
But in order to be able to use this strategy, you have to make sure your broker offers the tools you will need. Choosing the right broker can be a tedious task that needs a lot of thorough research. If you are looking for a new Forex broker, you may want to check out the best ecn forex brokers for scalping.
What is scalping in Forex trading?
Scalping is an investing technique commonly used in Forex trading. It is based on real-time data, and it refers to a strategy that prefers short and smaller trades in a much higher number.
If scalping is done right, the goal is to make a profit in little time.
But scalping is possible only because the Forex market is extremely volatile and traders can take advantage of the constant fluctuations of the market in order to make an earning, that while it may be small if done in a large number, they can represent a good income done in minutes.
Why do scalping?
Scalping is interesting because while there is no way traders can earn more than maybe 10 pips, the risk of losing is also more controlled.
As with all trades, the more you diversify your portfolio, the more you can manage the risk that all deals come with. In the case of scalping, while the earnings may be low, the risk is also. Expert Forex traders will do hundreds of deals in a day, maximizing their chances to make a quick buck.
The best way to use scalping is to create positions at which to buy or sell currency. The process can be automatized. In any case, scalping required knowledge of the market in order to make predictions that will result in more successful trades and fewer losses.
Best Forex brokers for scalping
FP Markets. This Australian broker is a good option for those looking to develop their Forex trades with scalping. They have lower spreads and are excellent educational tools, but be aware of extra fees and higher spreads on certain accounts.
Swissquote. A very safe and regulated broker with excellent customer service and fantastic educational tools for newer traders.
Exness. An interesting choice for those looking into a variety of currency pairs and lower costs. They offer different platforms and pro accounts with a lot of benefits.
FXCM. This Forex broker has a few different trading platforms and an educational section for beginners. They also ask for a low initial deposit and have a lot of interesting trading tools available for free.