Their trading conditions are good but spreads are not so tight as on Hotforex. That’s why if you look for place for scalping you’d do better research as this is crucial part of success.
Thank you. Got your point, as far as scalping is concerned, tight spreads are extremely important.
Yes, also in addition to that, scalpers value low commissions, and ECN brokers are the best to look for.
Agree, I decided to switch to ECN brokers completely because they win competition with STP brokers in terms of transaction costs. For example I trade with Hotforex and Tickmill which are pure ECN brokers with advanced liquidity provision.
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True, being a scalper myself I know the importance of tight spreads. Luckily, commissions with turnkey forex and trader’s way are low too along with fast trade execution. Scalpers must look to trade with ecn brokers for better results.
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I was reading a very interesting thread on trading cost of brokers - How much do you factor in other trading costs, beside low spreads and low commission, before you select a broker?. What factors do you consider besides spreads and commission? Would like to know your opinion.
Well there are four types of transaction costs in trading - spreads, commission, slippage and swaps. Depending on trading strategy and the time you are in position on average swaps can be the biggest cost you incur (swing trading) or the rest are more important to consider (in case of scalping).
Choose the broker that provides tools and trading platforms that are compatible with your trading style.
@Epeelidan Some brokers also charge withdrawal fees. You should consider reading there T&C before committing to the broker.
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For scalping I also try to incorporate average slippage during backtesting because many trading entries will have this additional cost. They are hard to predict but averaging their expected costs helps to understand the size of your trading edge, i.e. should you proceed with this trading strategy or abandon it.
The low-cost brokers, in my opinion, are Skilling and FP Markets. They have a minimum opening balance of $100 AUD with a commission cost of $7 per round lot in Skilling and $6 for FP Markets without any extra commission during withdrawals or deposits.
Some brokers do charge withdrawal fee, but luckily, I’m not trading with any such broker, maybe because I’ve read t&c before choosing fxview and pepperstone. Haven’t paid any withdrawal fee, and my requests have mostly been processed in a couple of hours.
For most payment system withdrawals at my broker Hotforex are free, however they warn that the agent that processes payments may charge some fee. That’s why I use Skrill.
Yes right I also prefer those brokers who charge no fees on withdrawal and deposit.
I think we can continue with the strategy especially when the market is more volatile. This can give a more clear idea of the expected overall trading costs, which sometimes goes unnoticed.
Absolutely! quite glad I don’t pay any such fees with coinexx - helps save a lot in the long run!
Being a scalper or day trader, it is important to find a broker with low trading costs. But also consider other features like execution speed, quick withdrawals and responsive customer support.
Also consider the trading environment offered by the broker while looking for low cost broker.
I’m glad @ontario mentioned trading edge, it’s one of the most undervalued trading concepts don’t you think? It’s good to start with popular strategies but with time a trader has to start customizing their strategy - the only way to seemingly win over the market
@Morphology Agreed! Traders should surely customise their trading strategy according to their trading style and the market environment. Also traders must choose the same broker for both demo and live trading.