Best Scalping Forex Brokers UK

Scalping allows traders to make profits out of small price movements. We have listed the best forex brokers in the UK that can be chosen for scalping in the forex market.

Scalping is a trading strategy in which traders venture into capital markets to make profits from small price movements. It is a common trading strategy in the forex market followed by many experienced and new forex traders.

To make the most out of slight price movement, traders need a trading account with a narrow spread. Commission-based pricing structures with very little spread are better suited for scalping.

We have listed the best forex brokers in the UK that are good for scalping. If you wish to trade forex predominantly through scalping, these brokers can be an ideal choice.

It must be noted that this is an honest and unbiased opinion to assist the traders in the UK. We do not promote any broker particularly. These brokers have been selected after a thorough comparison based on 12+ factors.

#1 CMC Markets – Best Low Spread Scalping Broker

CMC Markets can be a good choice for beginners in scalping as they do not charge a trading commission while the spreads are also lower than many forex brokers. The average typical spread for EUR/USD at CMC Markets is 0.7 pips.

They allow trading on the MT4 trading platform along with a proprietary platform named NextGeneration. Both the platforms are ideal for scalping however, the charting and trading tools at the NextGen platform are better suited for scalping.

They do not have a lower cap on deposit amounts and accept multiple methods for transactions including local bank transfers. Most scalping-friendly trading instruments are available at CMC Markets.

#2 Pepperstone – Best Scalping Broker with Multiple Trading Platform

Traders can choose between the pricing structure of spread only and spread plus commission with two account types namely standard and Razor respectively. For scalping, the Razor account is an ideal choice as the spreads with this account type are as low as 0.1 pips.

Another advantage of choosing Pepperstone is that it allows traders to choose a suitable trading platform. They support MT4, MT5, and cTrader trading platforms. Traders can choose the platform that suits them the most with the preferred pricing structure.

Traders can start scalping at Pepperstone with any amount but the max leverage is capped at 1:30. It is a good choice for multiple types of traders due to different variations in account configuration.

#3 IC Markets – Scalping Forex Broker with High Leverage

The only reason we have placed IC Markets on our list is that they can offer high leverage of up to 1:500. All the FCA-regulated forex brokers are restricted to offer a maximum leverage of 1:30.

IC Markets is ideal for scalpers who wish to scalp with a small deposit and are ready to take the high risk. They offer 2 different types of trading accounts with different pricing structures. The spread-only account is ideal for small volume traders while most scalpers prefer commission-based accounts with negligible spreads.

IC Markets allow trading on MT4, MT5, and cTrader with a minimum deposit of $200. It must be noted that trading with IC Markets is risky but it is one of the best brokers that is not regulated by FCA.

Traders must only choose IC Markets if they are certain of taking the high third-party risk and high leverage risk for scalping.

#4 AvaTrade – Scalping Forex Broker Not Regulated by FCA

Avatrade allows trading on various financial instruments through MT4 and MT5 trading platforms. They offer a maximum leverage of up to 1:400 as they do not comply with FCA guidelines.

They do not offer commission-based trading as the trading fee is built into spreads starting from 0.8 pips. The average typical spread for EUR/USD at AvaTrade is 0.9 pips. They offer a rich variety of research and education tools and a good copy trading platform.

Traders and scalpers who wish to open their trading account with Avatrade can do so for the high leverage but it will involve high risk. AvaTrade is safe but it is riskier than any other FCA-regulated broker in the UK.

#5 Exness – Best Low-cost Scalping Broker Regulated by FCA

Exness (UK) Ltd is authorised and regulated by the Financial Conduct Authority (FCA) under registration number 730729. Exness is also regulated by the FSCA of South Africa, CySEC of the European Union, and the FSA of Seychelles. Hence can be considered safe for trading in the UK.

Exness offers multiple account types with different pricing structures. The standard accounts can be opened with a minimum deposit as low as $10. The average spread with the standard account for EUR/USD is 1 pip with no commission.

There are three professional accounts at Exness namely Raw Spread, Zero, and Pro. All these accounts require a minimum deposit of $500. The Raw spread accounts for a very low spread with a $7 commission for a round-turn trade of a standard lot. The Zero Spread account has a fixed spread starting from 0 with the variable commission. The Pro account does not involve any commission and the spreads are very low.

Exness allows trading through MT4 and MT5 trading platforms on various instruments. GBP can be chosen as the base currency of the account. Deposits and withdrawals are free through local bank transfers and various other methods.

What is Scalping?

Scalping is a trading strategy in which the trader takes advantage of small price movements. A scalper aims to make a profit in a small duration of time in liquid capital markets.

The profit amount in scalping is small but trading positions are opened and closed multiple times during a trading session to take advantage of small oscillations in price. Scalping is ideal for traders who have high account equity and trade on bigger volumes.

Scalping is an advanced trading technique that requires several hours of analysis and study of graphs. Traders need to be comfortable with technical analysis with sound knowledge of resistance, support, and trends to make better outcomes from scalping.

Pros and Cons of Scalping

How to Choose a Broker for Scalping?

To start scalping on forex pairs in the UK, traders need to open an account with a forex broker that allows a convenient scalping strategy on financial instruments. The following are the significant aspects that traders must look out for while choosing a broker for scalping.

1) Regulation

Regulation of the broker and the safety of the traders is the most important factor while dealing in capital markets online. The Financial Conduct Authority (FCA) is the financial authority that regulates financial service providers in the UK.

Traders must always check the authenticity of the FCA license along with the license number before checking anything of a broker. The details can be cross-checked through the online financial register at the official FCA website.

2) Low Spreads

Scalping involves making profits out of small price movements and it will be very difficult to make money if the spreads are high. The best-suggested pricing structure for scalpers is a low or negligible spread with a trading commission.

Trading fees built only into the spread are not suitable for scalping as the price needs to move more than the spread to generate profits. However, scalping can be done with spread-based pricing. Traders need to seek a broker with scalping-friendly pricing and compare it with other brokers before opening their accounts.

3) Leverage

Scalping becomes easier with high leverage but high leverage also increases the risk factor. Trading positions with a small volume will generate very small profit while scalping. To make decent profits in each position, the volume needs to be high.

Bigger positions can be opened with the help of leverage or by making a higher deposit. Those who can take higher risks use high leverage while more conservative and experienced scalpers make higher deposits to book decent profits.

The maximum leverage ratio in forex trading as per the regulatory compliance of the Financial Conduct Authority (FCA) is 1:30 for major pairs and 1:20 for minor pairs. Brokers not regulated under FCA can offer a much higher leverage ratio to scalpers but it is not recommended as traders will be exposed to high leverage risk and third-party risk.

4) Fast and User-Friendly Platform

In scalping, trading positions need to be opened and closed rapidly to make the most out of price oscillations. The trading platform supported by the broker needs to be fast and user-friendly which allows quick execution of trade with easy availability and accessibility of all features.

5) Indicators and Patterns

Scalpers need to have a good command of technical analysis and must be comfortable with indicators and patterns. Trend analysis plays an important role in scalping out the small oscillations in price.

Make sure your broker offers adequate tools for technical analysis and education tools to enhance the knowledge and trading skills of the traders.

6) Financial Instruments with High Liquidity

Not all instruments are ideal for scalping trading strategy. Financial instruments that have low liquidity in the market tend to have less frequent and small price movements. This is because they are exchanged less compared to liquid instruments. EUR/USD is the most liquid currency pair and is the best-suited forex pair for scalping.

Comparison of Best Scalping Forex Brokers UK

 

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