Best Broker for Scalping: Top Recommendations

In this article, we delve into the best broker for scalping, providing clarity on what scalping entails and the crucial factors for executing this trading strategy effectively, ensuring you make an informed choice for your specific needs.

best broker for scalping

What is scalping?

“Scalping” refers to short-term trading, where traders buy or sell assets on hourly, minute, or even second timeframes. Essentially, scalpers profit from very small price changes.

To engage in scalping effectively, specific conditions from brokers are necessary. The most sought-after conditions by scalpers include high liquidity, low spreads, and, most importantly, the broker's reliability and solvency.

What are the must-have features of a scalping broker?

Here's what to look for in a broker if you want to implement a scalping strategy.

Reliability and solvency

Security is paramount. Ensure the broker is reliable and financially stable. Look for brokers regulated by the FCA rather than those in tax havens with lax regulations.

Trading platform

A strong trading platform is crucial. It should be user-friendly and intuitive, even for experienced traders. Test a broker's demo account before opening a live one.

Here is a detailed round-up of the best trading platforms.

Customer service

Customer service is closely tied to the reliability of the broker. When issues arise, especially when our money is at stake, we require prompt and effective resolution, making good customer service essential.

Evaluating customer service can be done both before and after creating an account.

Low costs

Costs are often overlooked by novice traders, but they become increasingly important in shorter-term operations. When you profit off very small and quick trades, high trading fees can easily wipe off your gains and even generate losses.

Ideally, you should opt for the best commission-free brokers with tight spreads. In the end, we must look for:

High liquidity

High liquidity is crucial for short-term operations when selecting a broker. We need a substantial number of buy and sell orders (i.e., high liquidity) to efficiently execute our trades. Otherwise, we may encounter issues such as incomplete executions or trades at undesired prices – a significant frustration in scalping, where precision matters greatly.

For this reason, not all assets are suitable for scalping, even with the best brokers. It's essential to focus on the most liquid assets in the market, typically including the S&P 500, Nasdaq, DAX, gold, and the Euro/Dollar. When trading cryptocurrencies like Bitcoin and Ethereum for scalping, it's common to use specialised cryptocurrency exchanges rather than traditional brokers due to their unique liquidity characteristics.

Execution speeds


Execution speed is crucial in short-term operations, especially when employing a scalping strategy on 1-minute charts – a common choice among scalpers. In such cases, even a few seconds' delay in executing a desired position can result in an entry price different from what we intended.

These issues tend to be more pronounced during periods of heightened market volatility, which some traders find attractive for capitalising on market movements. Such volatile periods often occur during market openings and when trading around the release of news or economic data.

The 4 Best Broker for Scalping

Here is our list of the best brokers for scalping:

  • IG
  • ActivTrades
  • Interactive Brokers
  • eToro
BrokerLicensed byDemo accountPlatformsCostsMore information
IGFCAYesProprietary
MetaTrader 4
ProRealTime
Tight spreadsIG review
ActivTradesFCAYesProprietary
MetaTrader 4 MetaTrader 5
Variable spreadsActivTrades review
Interactive BrokersFCAYesTrader Workstation0.005$/share
(min 1$)
Interactive Brokers review
eToroFCAYesProprietaryVariable spreadseToro review

IG scalping

  • Approximate execution speed of 0.013 seconds
  • ✅ MetaTrader 4 and ProRealTime platforms.
  • ✅ Tight spreads

ActivTrades scalping

  • Order execution speed of 0.4 seconds
  • ✅ Regulated by the best supervisory authorities, FCA (United Kingdom), CSSF (Luxembourg for Europe), ASIC (Australia), SEC (USA)
  • ✅ Tight spreads.
  • ✅ Wide range of financial products

Interactive Brokers scalping

  • Order execution speed of 0.9 seconds.
  • ✅ Low costs, especially for the US market.
  • ✅ Excellent platform for advanced strategies, such as scalping
  • ❌ Platform somewhat difficult to understand for novice scalpers.

eToro scalping

  • ✅ Intuitive platform
  • ✅ Simplicity when sending orders
  • ✅ Provides Popular Investors to follow (copy the trades of successful scalpers)
  • Order execution speed greater than 1 second
  • ❌ Higher spreads

Probably, eToro is not the best option for scalping. However, the fact that it is more intuitive and easy to use makes it the perfect platform for all those traders who are looking to get started with scalping or learn from master traders thanks to the social trading feature.

Learn more about trading

Conclusion

In this article, we have selected only some of the main and best broker for scalping that, according to many traders, meet the criteria that make them suitable for this type of strategy.

However, it's worth highlighting that every trader must carry out their own analysis and research before making trading or investment decisions.

FAQs

What assets are commonly scalped?

Scalpers typically focus on highly liquid assets such as currency pairs (forex), stock indices (like S&P 500), commodities (e.g., gold), and occasionally cryptocurrencies (e.g., Bitcoin and Ethereum).

How do scalpers make profits?

Scalpers make profits by capturing small price fluctuations. They buy low and sell high or sell high and buy low in a very short timeframe, capitalising on these quick price changes.

What are the risks associated with scalping?

Scalping involves high-frequency trading, which can result in higher transaction costs due to spreads and commissions. Additionally, the fast-paced nature of scalping requires precise execution, making it susceptible to slippage.

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