Scalping is a game of capturing the market indications and earns profits in smaller duration of time. Scalping is the second name of earning profits in second so a good forex scalper is a person who can take quick and right decisions based on his knowledge and skills. Forex broker act as your spokesperson who helps you in fulfilling your orders according your needs and demands so select a broker who can earn a handsome profit in short time.
There are hundreds of brokers operating in the retail forex market today; naturally, each has a technical capability, and business model suitable to a different trader profile. But each broker is not fit for scalping. The main features of a good broker for scalping are :
Spread must be low:
Most brokers charged their fees on the basis of spread. So spread is an important decision variable for selecting a broker. An ordinary trader opens one or two trades in a day but a scalper opens dozens of traders in a short span of time. So spread can also change the balance sheet position of a trader. In simple words, before selecting a broker for scalping you must ensure that he offers minimum spread.
Currency pair offered:
Forex scalping is a system of earning small profits but in more number of times. Select a currency pair which you can easily trade in the market. The most favorable characteristics that a currency should have for scalping is its liquidity and its volatility.
High leverage is favorable:
Leverage depends on the return on capital and the level of risk you are ready to tolerate. The scalper wants to make quick profits. So to earn a reasonable profit on every trade, a good forex broker always provide a high leverage to its traders.
Fast execution of orders:
forex market is the world market so it can change in 0.1 second. Time is an important player in scalping. Select a broker who is capable to execute orders in less than one second. In scalping small moment are important so a broker should be such who can judge that moment and also has an ability to execute your order in seconds.
The Risk to Reward Ratio:
It is quiet common for scalping systems to risk a lot for a little profit because it is the game of seconds or minutes. So you must choose such broker for which this ratio is favorable.
Strong analysis tools:
Market is totally unpredictable in scalping. Scalping involves technical trading because the time period is short in scalping so mostly the market does not follow the fundamental principles. The selection of analysis tools is an important step in forex market. A good analysis tool must possess the characteristics of judgment so that when a short moment occurs in market the system can judge it easily.
The commission charged should be low:
A good broker always charge a small commission for every trade because in scalping you are earning small profits but in greater number of times. Commission should be less than the profit because through this you can get benefit from your trade.
Must have strong software support:
Scalping is one of the most popular strategies, and it involves selling almost immediately after a trade becomes profitable. So it is very difficult for brokers to sit all the day in front of the trading screen and wait for a favorable moment. A good broker for scalping is one who uses computer software. The computer software himself make the trades when the short term moments occur in the market.
Forex scalping system is the name of visualizing the market indications and earn profit in a short span of time but in greater number. A good forex broker for scalping always offer the low spread and high leverage. A good broker for scalping is one who concentrates on the market behaviors and tries to execute the orders fast.