6 Best Trading Platforms For Scalping in the UK December 2024

Scalp trading is a short-term trading strategy in which traders buy and sell assets with the aim of taking advantage of small price movements. The aim of scalping is to potentially reduce risk and exposure by reducing the amount of time for which trades are open. However, due to the nature of placing trades quickly, scalping can be very volatile and profits are not guaranteed.

In this guide, we will help you find scalping trading platforms that UK traders are accepted at in 2024.

What Is Scalping?

Put very simply, scalp trading is a strategy that involves profiting from short-term price movements. This is done over short timeframes, relying on the number of trades rather than the quality. This means that, instead of making a few high-profit trades, the trader makes several low-profit trades, thus spreading out the risk and minimising the possibility of losses.

This is done through the use of a methodical trading framework, where a trader pre-sets a collection of conditions and a universal set of securities that they are interested in trading. Whenever a security from the universal set satisfies their set of conditions, they open a trade and close it shortly thereafter. In such trading strategies, it does not matter if a few trades are closed on a loss, as long as the net figure is positive.

Most scalp traders use differing timeframes depending on their preferences and their level of expertise. There have been a few questions raised and allegations made as to whether scalping is illegal, but as long as it is done within legal parameters, it is 100% within the confines of the law. While the usual time to hold a trade for beginners is between 1 and 15 minutes, experienced traders sometimes only hold positions for a matter of seconds.

What Assets Can Be Used for Scalp Trading?

It is possible to do scalp trading with a variety of instruments however, the most popular asset for scalp trading in the UK is forex, or foreign exchange. The forex markets operate 24 hours a day, five days a week, providing traders with plenty of opportunities to capitalize on short-term price movements. With high leverage available in the forex market, traders can amplify their gains from small price fluctuations. However, it is important to note that forex trading involves significant risk due to the volatility of currency pairs.

Stocks can also be sued for scalp trading in the UK however, the stock market is not open 24/7. Stocks offer high liquidity, allowing traders to enter and exit positions quickly. Stocks also provide ample trading opportunities due to the constant fluctuation of prices. Traders often focus on highly liquid stocks with large trading volumes to avoid slippage and ensure smooth execution of their trades.

Common Scalping Strategies

While scalp trading itself is a strategy of trading that seeks to minimize risk by spreading it out among a variety of trades, there are several strategies within scalp trading that are employed to maximise the probability of profits. Some scalp trading strategies that are employed by traders at all levels of expertise have been discussed below in detail.

1 Minute Scalping Trading Strategy

This is a common strategy among scalp traders. As the name suggests, this strategy involves not holding positions for longer than a minute. This allows traders to open and close numerous positions within one trading day, maximizing profits. At the same time, it also reduces risk by reducing the timeframe in which the stock price can turn against you and result in a loss. The strategy is typically used alongside a signal or stock picking software to ensure that trades are backed by analysis.

RSI Scalping Forex Trading Strategy

This strategy uses the Relative Strength Index (RSI) indicator. This is a technical indicator that helps traders in identifying when securities are overbought or oversold, indicating that there is a high probability of a trend reversal. An RSI of above 70 indicates that the security is overbought and that the price might start falling soon, and an RSI below 30 indicates oversold security that might start rallying upwards soon.

There are several different scalp trading strategies that make use of the RSI. The simplest is to select a set of stocks, and trade whenever the RSI shows a number that’s below 30 or above 70. If the RSI is below 30, then traders might buy or go long on the security, and vice versa if the RSI is above 70.

Bid and Ask Market Making

This is a complicated scalping strategy. In this strategy, the trader places a buy and sell order at the same time, trying to benefit from the difference in the spread. Generally, the bid and ask prices of a security are not the same, and this difference is called the spread. It is one of the ways in which brokerage firms make money. In the Bid and Ask Market Making strategy, the trader tries to buy and sell the security simultaneously, and pocket the difference in the prices.

This strategy is not easy to apply, as there are several requirements for this. For starters, you need to use an ECN/STP broker as opposed to a market maker broker. At the same time, you also will need a broker that gives you access to the level 2 order book and offers zero spreads. High execution times are also absolutely crucial, as the entire strategy fails if your order does not go through in time.

Best Scalping Brokers in the UK Reviewed

Each of those brokerages and trading platforms discussed above are suitable for different types of traders. Traders should spend time researching the different platforms that are available before deciding which broker to use. This includes looking at the range of financial assets they let you trade, their fees, as well as how easy it is to withdraw and deposit money. Below, we have reviewed the best scalping forex brokers in detail.

1. XTB – Best scalping Forex broker with over 2000 instruments with low fees

In Europe, XTB Broker is a well-known scalping broker for stocks, currencies, and commodities that accepts a range of assets. The platform has more than 400,000 subscribers worldwide and has been available for more than 15 years.

In total, XTB offers more than 2100 trading instruments. For anyone looking to diversify their portfolio and broaden their market exposure, this makes it a tempting option. The website does charge overnight fees to those who hold positions after the market shuts.

Members of XTB can access a range of educational tools to improve their knowledge. There are also numerous tutorials and a whole trading academy included on the platform. Additionally, Users have access to in-depth market analysis to help them make trading decisions on XTB.

Additionally, XTB provides a demo account, a terrific method to test out the platform without risking any money. XStation 5 and XStation Mobile are the two trading systems that XTB provides. The second choice is suitable for mobile trading.

XTB offers fast execution speeds which can be used to place trades quickly. It is also worth noting that XTB has no minimum deposit requirement.

Visit XTB

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

2. Avatrade – One of the best high leverage forex brokers for scalping that is compatible with MT4

If you’re an experienced trader who is looking for a forex scalping option with advanced trading tools, high leverage trading, and access to a variety of financial assets, then Avatrade could be a potential option. Not only does Avatrade support MT4 and MT5 trading platforms, but it also a variety of automated trading tools such as DupliTrade, AvaSocial, and ZuluTrade.

Avatrade also offers high leverage for most trades. For example, on most currency pairs, it offers a leverage of 400x, making it suitable for experienced traders who are comfortable with the risk.

At the same time, Avatrade also has very tight spreads (0.9 pips for the EUR/USD pair and 1.6 pips for the GBP/USD pair) which are fixed throughout the day. It offers the opportunity to trade CFDs, thus allowing to trade on vanilla options with low fees on high leverage.

There is no guarantee that you will make any profits with this provider. Your money is at risk.

4. Admiral Markets – FCA regulated broker for scalping in UK

Admiral Markets is an online trading broker that specializes in scalping. Admiral Markets UK Ltd is regulated by the Financial Conduct Authority (FCA). Over 10,000 customers in over 80 countries are served by the company.

Admiral Markets, which was founded in 2001, is a pioneer in online foreign exchange trading. The broker provides MetaTrader 4 and MetaTrader 5 trading platforms. Admiral Markets also specializes in trading foreign currencies and CFDs. Customers can trade on a variety of markets, including indices, commodities, stocks, cryptocurrencies, and bonds, through the broker.

Admiral Markets provides extensive education and analysis services. The company hosts webinars and offers some free learning resources, such as an eBook, an economic calendar, and a forex trading guide. Admirals offers a wide range of features and trading tools, while also giving investors access to over 8000 assets. Over 3000 stocks, 370+ ETFs, 80 different currency pairs for forex trading, 43 indices, popular commodities, and treasury bonds for US and European countries are among the various CFD financial instruments.

Since 2020, Admirals has taken on carbon neutral status as a company and is committed to sustainability efforts worldwide, focusing on clean water and promoting ESG compliance. The company supports various green initiatives, including tree planting, reforestation, clean ocean initiatives, and generating clean water for underprivileged nations. Admirals believes in creating a cohesive financial trading world and transforming the world.

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74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

4. Pepperstone – Best forex broker for scalping with MetaTrader 4

Pepperstone is a regulated broker that works with popular trading platforms like MT4, MT5, and CTrader. Pepperstone was founded in 2010, but has expanded rapidly over the last decade, now providing services all over the world. The platform, which serves over 300,000 clients, is regulated by the FCA, ASIC, and BaFin.

Pepperstone offers over 1200 forex instruments, as well as other asset types available as CFDs, such as indices, commodities, cryptocurrencies, and shares. There is also a wide range of educational materials for beginners to learn to trade as well as market analysis reports for traders of all experience levels.

Pepperstone offers commission-free trading on its Standard account, with spreads averaging just 0.87 pips for EUR/USD, making very useful for scalping traders. Users can spread bet on stocks, commodities, indices, and currencies, as well as trade using MT4. This feature allows advanced traders to use custom trading strategies as well as automated trading systems.

Clients who use Pepperstone’s raw account have access to the market’s most competitive rates, with zero spreads on major currency pairs. This account type is especially beneficial for traders who frequently execute larger trades.

Pepperstone has no non-trading fees, which means no deposit, withdrawal, or inactivity fees, and offers 24/5 customer support via live chat, phone, or email.

Visit Pepperstone

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

5. Trade Nation – UK scalping broker and regulated signals provider

Trade Nation is a CFD and spread betting platform that supports forex scalping in the UK. The platform provides a range of educational resources and tools that can help traders to improve their scalp trading strategy and make informed decisions.

Trade Nation also provides a highly-rated signals service that is regulated by the Financial Conduct Authority in the UK. This tool can be used to guide scalp trading decisions and is particularly useful for less-experienced traders who don’t feel confident with research and analysis.

Traders can choose between the TN Trader platform or Meta Trader 4. Both charting tools offer a range of indicators and can be used on mobile and desktop devices. Trade Nation also provides a good range of educational resources for traders to use to improve their skills.

It is possible to practice scalp trading on Trade Nation for free through the demo account feature. Traders do not need to deposit any funds to use the demo account.

Visit Trade Nation

77% of retail investor accounts lose money when trading CFDs with this provider.

Key Features of a Scalping Forex Brokers in the UK

As mentioned earlier, traders should conduct research into the different scalping platforms available before making any decisions. Below, we take a look at the main features to look out for when researching potential scalp trading options.

Type of Broker

One factor to consider is the type of broker that a platform is – whether it is a market maker or an ECN/STP broker. Certain scalping strategies only work with either market makers or ECN/STP brokers. Market makers usually do not charge fixed fees and ensure an execution regardless of trading conditions. On the other hand, ECN/STP brokers provide access to the level 2 order book and create a much more transparent trading environment.

Execution Speed

As a scalper, you will often be opening and closing positions rapidly in that every second matters, therefore it is important that your broker provides the necessary execution speeds to avoid slippages and delays.

Leverage Ratio

Since scalping relies on making profits from very small movements in financial assets, leverage is a key feature of scalp trading platforms. It is important to look for a platform that provides an adequate level of leverage. The leverage should be compatible with your risk profile, since higher leverage also means higher risk.

Trading Tools and Features

The last factor to consider is the trading tools that the platform provides. As a scalp trader, you will often not be analysing securities very deeply, and will instead choose to rely on signals and pickers to present you with trading opportunities. Some UK scalp trading platforms offer built in features that aim to analyse the market on your behalf. These can be useful when placing trades quickly.

How To Do Scalping in the UK

Scalp trading is a trading method that has been used in the crypto space for a very long time. What exactly does this form of trading involve? Specifically, traders buy and sell a larger amount of assets, but hold the position for an extremely short period of time.  If you want to start scalping yourself, read the guide below for the steps you need to take.

You can start learning to trade with a range of products including CFDs and Options.

Conclusion

Scalping is a very short-term trading strategy that takes advantage of short-term price movements. Scalp traders use technical indicators and advanced trading tools to predict price movements and quickly place trades. While different trading requirements necessitate the use of different brokers, UK traders could opt for an FCA regulated scalping broker.

We have looked at 5 scalp trading platforms that can be used in the UK 2024. Each platform offers different features and is suitable t different types of traders. The platform that you pick should be down to your own research, risk-level and experience.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FAQ

References: 

• Scalping: Small Quick Profits Can Add Up
• Short-term trading strategies for beginners
• Matching Orders
• Security Analysis and Portfolio Management