To find the best broker for your trading needs, you need to make a number of considerations to ensure that the platform is suitable for scalping.

Scalping

First and foremost, you need to evaluate the types of spreads that the broker charges. For those who don't know, this is the difference between the buy and sell price of a particular forex pair. For example, let's say the buy price for GBP / USD is '1.3117' and the sell price is '1.3120'.

With the difference between the two prices set at 3 pips, this means that you need to make at least 3 pips to break even. The wider the spreadThe more you need to earn to place your trade in the green, the more important it is that you choose a broker that offers tight spreads.

This couldn't be more important when scalping, as you will be trying to make ultra-small profits. The spreads charged by brokers can vary significantly depending on the type of forex pair you are trading. For example, majors will always come with the tightest spreads - as liquidity and volatility are low and trading volume is high.

Trading Commissions

In addition to the spread, you need to make some considerations about trading commissions. This, in turn, directly affects your ability to make small profits throughout the day. Therefore, you need to examine the underlying fee structure of the broker. This is usually calculated as a percentage of the trade sizeand is charged at both ends of the trade.

For example, let's say you place a trade worth £2,000 and the broker charges a commission of 0.1%. This means that you have to pay £2 to place the trade. If you then sell the order worth £2,200, you will pay a fee of £2.20. Ultimately, you will need to turn to a broker that charges low trading commissions.

Note: Although a number of brokers operating in the online Forex space in mt4 offer commission-free trading, you need to proceed with caution. This is because the broker may not charge per-word commissions, but is likely to charge a really high spread.

Order execution

Tight spreads and low commissions are equally important metrics when choosing a forex broker for scalping - as is the order execution process. This is the time it usually takes a forex broker to execute your order from the moment it is placed.

You should choose a broker that is able to execute your scalping order in microseconds. This will ensure that you receive your order at the required price. Brokers usually publish this information on their website, along with the actual process used in matching buyers and sellers.

Advanced charting tools

Scalping trading requires high-level research and analysis to be successful. After all, you want to predict which direction the markets will move almost minute by minute. The only way to do this effectively is to understand exactly how advanced charting tools and technical indicators work.

Without them, you won't have the tools you need to determine which way the markets will move. Therefore, you need to use a forex broker that offers dozens of well-known indicators. This should include Exponential Moving Averages, Bollinger Bands, Relative Strength Index and Fibonacci Retracement Levels.

Regulation

You also need to assess the regulatory standing of your chosen Forex broker. The broker should have at least a license from a reputable financial institution. For example, if you are based in the UK. The broker must be authorized and regulated by the Financial Conduct Authority (FCA).

In addition to the actual license, you should spend some time exploring the broker's reputation. You can do this by reading online reviews that are publicly available.