Is scalping even possibly profitable? fees eat up everything

Beginner Questions
1

hi guys, sorry not sure under which section should I post this.

my question is, is it even possible to make profit out 1min scalp?. In my case I’m not scalping ticks, but 1min bars, so my duration in a trade can be anywhere from 1min to under 5min (i guess thats still scalping and not intrady right?)

anyways, i’m noticing that unless I have something like 80%+ winning strategy, there’s no way it’s gonna end well. I’ve tried various brokers, ranging from very small spreads, to 0 spread+commissions. All of them end up with similar outcomes more or less.
Since I’ll have to trade with a higher capital (or leverage) the commissions will rise up.

on average the “best” fees i’ve found knocks out around 30-50% out of profits (and obviously adds 30-50% to the losses since commissions still needs to be paid) so thats gonna through away the 1:1 risk reward by a mile. Anything over 1:1.5 starts showing profit but thats a bit too wide for scalping and also the % winrate starts dropping.

so in conclusion, am i missing some magic broker or platform? cause its quite frustrating knowing that you are “winning” just to see everything draining out to the brokers… (not to mention there’s Mr.Taxation in the queue as well to have their share with whatever is left)

2

First off, not meaning to quibble but scalping only has one meaning - closing for a profit at the first profitable tick. Holding longer than one tick is day-trading.

Either way, I agree that, the smaller the stop-loss and take profit distances, the greater that costs are a factor per trade. Spread is bad enough but do you have to use a broker who also charges commission fees?

Obviously, I have to wonder how anyone in the world makes money day-trading off 1-minute charts. Maybe its just me, but I find it looks mostly like random price ups and downs.

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3

Congratulations in identifying the issue early.

As you identify - you have to start looking for bigger movements.

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4

Use zero spreads, small commission, cut trades that don’t immediately show profit, and let the profitable ones run. You’ll find a 20% win rate at most, but some pros make a living out of it.

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5

I would like to say that scalping works only if the spread is very tight and execution of the broker is good. I can recommend Coinexx, Saxo Markets and CMC markets. These brokers have very good spreads and outstanding trade execution. But Saxo market is little expensive so you can check out Coinexx and CMC markets as they are very pocket friendly brokers.

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6

I day trade and scalp - Tom Hougaard runs a very good Telegram live day trading channel (it’s free), he absolutely swears by Tradedirect365.com and he has researched many brokers. I use IG but I am looking at switching to Tradedirect. They are Australian but have an off shore set up with good leverage and low fixed spreads. Although they are off shore, funds are held in an escrow account at Barclays in London. Have a look and see what you think.

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7

Scalping may be extremely beneficial for traders who utilise it as their primary strategy or as a supplement to other types of trading. The key to turning little profits into large gains is to stick to a disciplined exit strategy.

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8

Though forex trading is highly risky, it can be profitable if your strategy is good and you can read charts like a pro.

With a good exit trading strategy, traders can earn quick profits. At the same time, they can lose too.

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9

Scalping can be very profitable if your broker provides tight spreads (the difference between the ask and bid price) for major currency pairs. Money management and discipline are essential elements for being a successful scalper.

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10

Scalping is beneficial if you have good money management skills and a lot of experience, but it is very important that you have a plan before you set out on the live market.

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11

Agreed with you mate! Trading skill matters a lot for this plus having a low commission broker with good trade conditions also matter alot.

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12

Scalping can be profitable if you follow a strict exit strategy, trade during highly volatile hours, focus primarily on major currency pairs and most importantly if your broker is one of the low cost brokers offering tight spreads and negligible or no commissions.

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13

Maybe if you know how to work the levels and allocate capital properly.

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14

Yes, making money from scalping is possible. It requires a workable exit strategy and good understanding of technical analysis. A trader should also know how to use complex indicators to analyse the charts better.

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15

If you feel it doesn’t give you control, don’t use it.
There are a huge number of approaches on the market, and you can definitely find yours.
Don’t panic and don’t pick something if it’s just popular.

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