If you’re 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 aspects.
Scalping is a game of capturing the market indications and earns profits in smaller duration of time. Scalping is a game of seconds so best broker for scalping is one who must have up to date knowledge and skills so that he can trade in seconds. Normally the brokers are the representative of traders in the market so you must choose a broker who can easily fulfills your scalping needs and can earn a decent profit for you.
There are hundreds of brokers operating in the retail forex market today; naturally, each has a technical capability, and business model suitable to a different trader profile. 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 variable in deciding a broker for scalping. 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 short we must ensure that the broker we choose for scalping must have low spread.
Currency pair offered:
Forex scalping is a system of earning small profits but in more number of times. 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.
Timely execution of orders:
Forex is an international market which changes in fraction of second. Time is an important player in scalping. So choose a broker who has fast execution of orders so that he can trade more orders in just one second. Variations can occur in seconds so a good forex broker is one who can get full benefit from short moments and can execute your orders in seconds.
The ratio of risk to reward:
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.
Strong analysis tools:
Forex market is unpredictable for scalpers. There is no proper tone for short term moments because market does not follow the basic principles for short term moments. The selection of analysis tools is an important step in forex market. A good analysis tool must possess the characteristics of judgment so that when a short moment occurs in market the system can judge it easily.
Low commission:
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. To sit before the computer screen and wait for a favorable moment throughout the day is almost impossible for every trader. A good broker for scalping is one who uses computer software. 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. Low spread and high leverage are the most important features of a good broker for scalping. A good broker for scalping is one who concentrates on the market behaviors and tries to execute the orders fast.
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