Best Broker For Scalping - 8 Characteristics It Must Have

Published: 19th June 2011
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If you are a scalper, you must realize that your broker also decides the success rate of your trading system. Find out how to spot the best broker for scalping by checking out these eight factors.

Scalping is the game of capture the market signals and earn profit in a short span of time. Scalping is the second name of earning profits in second so a good forex scalper is a person who can take quick and right decisions based on his knowledge and skills. Forex broker act as your spokesperson who helps you in fulfilling your orders according your needs and demands so select a broker who can earn a handsome profit in short time.

Of course just like any other market there are hundreds of forex brokers who are working today and each has its own capabilities and skills. But each broker is not fit for scalping. The main features of a good broker for scalping are :

Spread must be low:

Spread are the common base which is used to charge commissions in forex. So spread is an important decision variable for selecting a broker. An ordinary trader opens one or two trades in a day but a scalper opens dozens of traders in a short span of time. So spread can affect his balance sheet position. In simple words, before selecting a broker for scalping you must ensure that he offers minimum spread.

Currency pairs offered by brokers:

Scalping is the name of earning profit in small chunks of time. Select a currency pair which you can easily trade in the market. The most favorable characteristics that a currency should have for scalping is its liquidity and its volatility.

High leverage:

Leverage means the return and the risk you are ready to take. The scalper wants to make quick profits. So a good broker for scalping also offers high leverage to the traders so that they can earn a reasonable profit on every trade.

Fast execution of orders:

forex market is the world market so it can change in 0.1 second. Time is an important player in scalping. Select a broker who is capable to execute orders in less than one second. In scalping small moment are important so a broker should be such who can judge that moment and also has an ability to execute your order in seconds.

The Risk to Reward Ratio:

Commonly scalping involves a lot of risk for a little profit because the whole scalping is game of minutes or seconds. So you must choose such broker for which this ratio is favorable.

Provide strong analysis tools:

Market is totally unpredictable in scalping. There is no proper tone for short term moments because market does not follow the basic principles for short term moments. So a broker must possess some strong analysis tools so that he can easily understand the market. For success you must choose a well defied strategy because by using a well defined strategy you can increase your chance of beating the odds and strong analysis tools help you in achieving your objective.

The commission charged should be low:

A good broker always charge a small commission for every trade because in scalping you are earning small profits but in greater number of times. So the commission should be such that it is always less that profit.

Strong software support:

Scalping is counted as the most famous strategy the technique used in this method is that when a trade become profitable it is sold immediately without waiting and having desire to earn more. So it is very difficult for brokers to sit all the day in front of the trading screen and wait for a favorable moment. A best forex broker always use an up to date computer software to enhance its capabilities. The computer software himself make the trades when the short term moments occur in the market.

Scalping is a game of capturing the market indications and earns profits in smaller duration of time. A good forex broker for scalping always offer the low spread and high leverage. Concentrate on the market and trade in the most favorable moments are the important characteristics of a good broker for scalping.

Look at the top recommended ECN broker for scalping on top forex brokers. Check out the details of the most comprehensive scalping strategy in Forex Trading Made EZ review.

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