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. By reducing the amount of time for which they are in any particulate trade, they reduce their risk and exposure to losses.
In this guide, we will help you find the best scalping trading platforms in 2021.
In This Guide
Scalping is an extremely popular scalp trading strategy among short-term traders, and therefore, there are a lot of platforms that are suitable for this purpose. Here is a list of some of the most popular scalp trading platforms in the UK, below which we have reviewed some of the top platforms in detail.
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A list of popular scalp trading platforms was provided above. Each of those brokerages and trading platforms is suitable for different types of traders. In order for you to be a successful scalp trader, it is important for you to be able to choose the right brokerage platform. 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 top 4 scalp trading platforms in detail.
If you’re looking for a user-friendly and convenient platform to begin scalp trading, then eToro is the perfect choice for you. It is the largest and most popular social trading network in the world and allows you to trade over 2400 assets, which includes 45+ currency pairs, stocks, indices, cryptocurrencies, and commodities.
An additional advantage that eToro has is that it offers CFD trades, which means that you do not have to pay any fees at all. For scalp traders, who open and close positions very regularly, this no-fee trading option is definitely one of the primary attractions that eToro offers.
They also allow you to trade on leverage on a variety of assets. For example, they offer x30 leverage for most major currency pairs, x20 for minor currencies, and x15 for most major commodities.
While trading through eToro, you can use their web portal or download their mobile app, allowing you to monitor your trading positions on the move. Setting up an account on eToro is a quick and easy process, and you not only get access to a social trading network with over 17 million members but also to the different CopyPortfolios. This will allow you to mirror the trades of more successful and experienced traders, including the most successful scalpers.
eToro is also highly regulated and insured by several agencies worldwide, making it highly trustworthy to trade financial assets. To get started, you need to set up an account and add a minimum deposit of $200, after which you can then begin trading right away.
Low to no fees Tight spreads Huge range of assets to trade – including stocks, indices, ETFs, cryptocurrencies, currencies, and commodities Social trading and copy trading tools are available Regulated by the UK FCA
Does not support signals for forex trades Not suitable for traders who use advanced charting tools
Another very popular trading platform among scalp traders, especially those who trade forex pairs, is capital.com. It provides one of the largest varieties in currency pairs, with over 138 FX pairs available to trade including some of the most exotic ones. The platform also allows you to trade with leverage of up to 100x. It offers extremely tight spreads, such as 1.3 pips for GBP/USD and 0.8 pips for the EUR/USD pairs.
When trading through capital.com, you have two options. You can either use their own scalping trading platform, which offers a wide range of tools and features. The platform also utilises artificial intelligence and machine learning capabilities to offer forex trading signals and advice based on your patterns.
The other option is to use the MT4 trading platform in conjunction with capital.com’s brokerage service. MT4 is more suitable for experienced traders who wish to analyse forex pairs using a variety of charting and statistical tools. MT4 also supports several trading bots and automated trading strategies.
Capital.com is also highly regulated by a variety of global regulatory agencies, such as the FCA in the UK. they have a very low minimum deposit requirement, just 20 EUR/GBP/USD depending on what country you’re located in.
138 FX currency pairs, including some of the most exotic trading options Leverage of up to 100x Choice of trading platforms, compatible with MT4 Low minimum deposit requirements Highly insured and regulated Uses AI technology for trading recommendations
Does not support signals
Libertex is easily among the oldest and most trusted scalp trading platforms that support a variety of asset classes including stocks, commodities, and currencies. It is best known for being the best broker to trade with through the MT4 and MT5 platforms, therefore its forex trading is regarded very highly.
It allows you to trade over 51 currency pairs with leverage as high as 30x. It is the ideal scalp trading platform because it offers 0 spreads, which means you can buy and sell the asset instantly at the same price. On every trade you make, you only have to pay a commission of 0.006%, making it the ideal platform for scalp traders.
If you are a professional trader and meet their requirements for being considered experienced, then Libertex will allow you to trade with leverages as high as 1000x on some currency pairs, easily the highest in the industry.
Like with Capital.com, even though Libertex is compatible with MT4 and MT5, you can also use their own trading platform which has a wide range of tools including market sentiment analysis, a built-in news feed, and different customizable signals services.
Supports both MT4 and MT5 High leverage, up to 1000:1 for professional traders Very low minimum deposit – as little as 10GBP Regulated and insured by CySEC Very low fees and commissions
Low execution times render it not ideal for high-speed scalp trading
If you’re an experienced trader who is looking for advanced trading tools, high leverage trading, and access to a variety of financial assets, then Avatrade is the right choice for you. Not only does Avatrade support MT4 and MT5 trading platforms, but it is also among the best forex scalp trading brokers. It supports a variety of automated trading tools such as DupliTrade, AvaSocial, and ZuluTrade.
However, perhaps the biggest USP of Avatrade is that it offers extremely high leverages for most trades. For example, on most currency pairs, it offers a leverage of 400x, making it extremely popular 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.
Regulated in 6 different jurisdictions and in compliance with UK regulatory requirements Supports FX vanilla options and has a professional desktop platform Compatible with both MT4 and MT5 for advanced analysis Tight spreads combined with low fees Leverage of up to 400x Very low minimum deposits – as little as 100 USD/GBP
Has a comparatively limited choice of financial assets to trade on
In order to be able to make the best choice, below you will find a tabular comparison of the different scalp trading brokerage platforms that you can use, alongside their spreads for major forex pairs.
Put very simply, scalping trading is a strategy that specializes in proofing from short-term price movements in the prices of a security. 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 the recommended parameters, it is 100% within the confines of the law. While the recommended time to hold a trade for beginners is between 1 and 15 minutes, experienced traders sometimes only hold positions for a matter of seconds.
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 of the most popular scalp trading strategies that are employed by traders at all levels of expertise have been discussed below in detail.
This is one of the most popular and easy-to-implement strategies 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.
While this is a highly reliable trading strategy, it is important for this to only be used with a good signal or stock picking software, to ensure that you are making the right trades. Low risks do not help if you’re on the wrong side of a trade more often than you’re right, therefore it is important to choose your trades wisely.
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 and most straightforward 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 you should buy or go long on the security, and vice versa if the RSI is above 70.
This is a highly complicated scalping strategy that is also highly effective and has a higher profitability rate than the other two. 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. While there are several brokers that are suitable for implementing this strategy, VantageFX is the clear winner if you wish to trade FX pairs.
As mentioned earlier, your choice of the right scalp trading platform is very crucial, and will often make the difference in whether or not you’re profitable. For example, even if you’re making the right trades and netting a profit, choosing a broker that either has very high spreads or very high commissions will mean that you eventually make a loss anyway. There are 4 main things that you should keep in mind while choosing a broker for scalping, and these have been discussed below.
One of the most important factors for you to consider is the type of broker it is – whether it is a market maker or an ECN/STP broker. Each of them has its own set of pros and cons, therefore it is important for you to be aware of this before you begin trading. For example, 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.
Another crucial factor to consider while choosing a broker is the execution speed. As a scalper, you will often be opening and closing positions so quickly that every second matters, therefore it is extremely important that your broker provides the best execution speeds to avoid slippages and delays.
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 that you choose 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, and should also enable you to maximise your profits.
The last factor that you need 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. Therefore, it is important for you to choose a broker that allows you to do so. The best scalping brokers will allow you to use different charting methods and technical indicators.
In order to begin scalp trading through eToro, all you need to do is follow 5 easy steps and set up an account, after which you will have access not only to over 2400 financial instruments but also to their CopyTrading and social trading tools and services.
The first step is to set up an account with eToro – head over to the website and click on “Join Now” at the top right corner. You will then see a registration form that will ask you to set up your login credentials and add your contact details.
The next step is to verify your identity. To set up your account on eToro, you need to submit an ID proof as well as an address proof. This is to ensure that your account is compliant with the regulations imposed in your country. Once you have uploaded the requisite documents, eToro has a very quick response time in verifying your account.
The third step is to deposit funds into your account. In general, the minimum requirements are 150 GBP. you can add funds to your eToro account through PayPal. debit/credit cards, bank transfers, or Skrill.
Since scalp trading is a highly technical trading strategy that requires a certain level of practise and experience from the trader, it is highly recommended that you initially start with a demo account where you can perfect the strategy you wish to employ. Only after you are confident should you begin risking and trading with real money.
Once your account is funded and verified, all you have to do is to enter the instrument you wish to trade in the search bar and begin trading.
Scalping is a very short-term trading strategy that takes advantage of short-term price movements. It is highly technical and very profitable if the right broker is used. While different trading requirements necessitate the use of different brokers, in general, the best overall brokerage and trading platform for scalp trading is eToro.
67% of retail investor accounts lose money when trading CFDs with this provider.
In order to scalp trade, the first thing that you need to do is find a reliable and good broker that meets all your requirements. Then you need to decide on a universal set of securities you will be trading and set a set of conditions that the trade has to satisfy.
Like with any other trading strategy, there is a certain degree of risk involved with scalp trading. However, if your plan is solid and you manage your risk effectively, the probability of you being profitable is quite high.
Depending on the broker you use, you will have to deposit a different amount of money to start trading. While some brokers have minimum requirements as low as GBP 10, eToro and other regulated brokers usually have higher requirements like GBP 150.
The times of highest volatility are usually the best times to scalp trade. Therefore, if you are trading major currency pairs, then the best time for you would be when both the US and UK markets are open because traders in these countries are the cause of a lot of trading volume.
This depends entirely on your requirements, level of experience, and the instruments you are looking to trade. However, in general, the best broker for scalp trading in the UK is eToro.
I'm a second year Accounting and Finance student at the University of Warwick, in addition to being an incoming Trading Analyst at Morgan Stanley. I'm passionate about the financial markets and all things finance.
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