This article looks at the Australian forex brokers that you use for scalping.
There are a lot of traders who look at the use of scalping on the forex market. If you want to scalp on the market you need to consider the best Australian forex brokers for this. The Australian forex brokers that you use will determine how successful you are with scalping. There are a number of points that you have to consider when you look at the broker. When you consider these points you will be able to find the broker that is right for your trading.
There are a number of ways that brokers will limit the scalping that is done on their accounts. The most common method that brokers use is to have a minimum period of time for each trade. This amount of time us generally 5 minutes because scalping requires you to hold your trade for less than 5 minutes.
The Currency Pairs the Australian Forex Brokers Offer
There are certain currency pairs that are better for scalping than others. These currency pairs will be the ones that are highly liquid. The more liquid the currency pair the easier it should be to trade with them. If you are not looking at a liquid pair then you could have greater problems with unexpected movements in the market.
You need to verify that the broker you want to use offers the currency pairs that you want to trade with. All brokers will offer a different combination of currency pairs. Some brokers will have more pairs on offer than others and you need to consider this.
The Spreads You Get
The short-term nature of scalping increases the importance of the spreads that you get. The small profits that you make in the period of time that you have your trade open will be greatly impacted by the spreads. The brokers that you use when you scalp should offer you very tight spreads. The more consistent the tight spreads are the better for your trading.
The Order Execution
The order execution that you get with the broker should also be considered. In order to successfully scalp the market you need to get the prices that you want. This means that you need the smallest amount of slippage possible. When you have high slippage your trades will execute at a different price to the one that you used to place the order. Slippage with scalping can cause a lot of problems and could be the difference between making a profit with your trades and making a loss.