Slippage is a big issue with many brokers. So, do check your broker’s execution speed to be sure that you won’t ever face any latency issues with them.
Low costs often lead you to scam brokers. Consider the security features used by your broker to keep your money and personal details safe.
Thank you! Well, i have one small question…Do you cut your losing trades early, even if you’ve already set a stop loss?
Besides low cost, check the regulation as well. I trade with two brokers, fxview and xm, both having a minimum deposit requirement of $5, so you can try them out.
@slade_456 If you don’t mind, I would like to share my approach. For me, it depends on how much money I can afford to lose. When there is no potential for further gains, then that is when I approach with stop loss in my trade to reduce the trading losses. But that is just one of my approach.
Is anyone familiar with the trading conditions at fxtm?
Low cost is definitely an important aspect, but equally important is the regulation. The best approach would be to find a broker that is both regulated and offers low-cost trading.
Started with AAAFx for $10. Pretty good broker!
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.
1 Like
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.
1 Like
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.
1 Like
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.