Best Brokers for Scalping Stocks

Scalping is a short-term trading strategy where traders aim to profit from small price movements in trading. It involves opening and closing multiple trades within a single day, sometimes in seconds or minutes. This is a common trading strategy among stock traders around the world. 

Notably, it requires quick decision-making, fast execution, and emotional control. More importantly, traders need to partner with a reliable and efficient broker for the best scalping experience. In this comprehensive review, we are going to explore some of the best brokers for scalping stocks. We will assess what makes them stand out and ensure they meet the needs of scalpers.

Key Features of The Best Brokers for Scalping Stocks

Before diving into the specific brokers, let's outline the essential qualities to look for in a scalping broker:

• Lightning-Fast Execution Speed - Fast execution speeds are crucial for scalpers. Remember that market conditions can change in milliseconds. For the best experience, traders should select brokers that offer advanced trading platforms with lightning-fast execution speeds.
• Low fees - Scalping involves numerous trades daily. High trading fees can significantly eat into profits. Look for brokers that offer competitive fees, particularly on popular stocks.
• Strong Regulation - Scalping requires significant capital at stake. Choose a broker regulated by a reputable financial authority to ensure a level of fund safety.
• Diverse Stock Collections - Choosing a broker that offers a deep collection of diverse stocks ensures that traders can spread their investment across multiple assets.

Now let’s look at some of the best brokers for scalping stocks with these features in mind.

Pepperstone

Pepperstone is a popular broker for scalping stocks CFDs. For starters, Pepperstone features a deep collection of stocks from different stock exchanges around the world. Clients of Pepperstone have access to stocks in the US, the EU, the UK, and Australia, among others. Additionally, Pepperstone has some of the fastest order execution speeds in the market today, making it suitable for scalping. Most orders are executed in under 30 milliseconds with Pepperstone Group Limited and under 60 milliseconds with Pepperstone Limited. 

Further, Pepperstone offers CFD Stock trading with some of the lowest trading fees available anywhere. As an example, US shares have a minimum commission of $0.02 per side per share. Shares from other regions have similarly low commission requirements. On another note, this broker offers a lineup of advanced trading platforms that investors can use to trade stocks. These include MetaTrader 4, MetaTrader 5, TradingView, cTrader, and Pepperstone Trading Platform. Aside from stocks, investors also have access to CFDs on forex, indices, commodities, cryptocurrencies, currency indices, and ETFs.

Finally, Pepperstone is regulated across multiple jurisdictions by reputable authorities. It is licensed by the ASIC in Australia, the FCA in the UK, the BaFin in Germany, the CySEC in Cyprus, and the CMA in Kenya, among others. This is an impressive array of regulatory credentials, to say the least.

75.9% of retail CFD accounts lose money

FP Markets

FP Markets is one of the best brokers for scalping stocks in the market today. It offers the perfect mix of fast execution, competitive fees, and diverse trading options. On the FP Markets broker site, investors have access to more than 10,000 Australian and international share CFDs alongside stock CFDs and indices across 4 continents. Additionally, this broker also provides CFDs on other market products including forex, indices, metals, commodities, ETFs, cryptocurrencies, and bonds.

There are two main options for trading stocks on the FP Markets broker site. Option one is using MetaTrader 4 or MetaTrader 5. When using these two platforms, traders gain access to slightly over 1,000 shares and stock CFDs. However, MT4 offers a more limited selection of stocks and shares compared to MT5. 

The other option is to use Iress. This trading platform allows investors to access more than 10,000 Australian and international CFDs on stock exchanges across several continents with Direct Market Access. The Iress offering is only available to traders in Australia and requires a minimum deposit of at least AUD 1,000. Furthermore, using the Iress platform requires traders to pay a monthly fee of AUD 60 to use it. They also need to pay an extra AUD 25 for ASX data per month.

The fees for trading the various shares and stocks are fairly low on the FP Markets broker site. As an example, stocks from the NYSE have a commission of $0.2 per side per share. In terms of regulation, FP Markets is highly credible. It holds licenses from the ASIC in Australia, the CySEC in Cyprus, and the FSCA in South Africa, among others.

72.92% of retail CFD accounts lose money

Exness

Exness is a top-tier broker that caters to scalpers with its combination of fast execution, low trading fees, and robust trading infrastructure. It offers access to a broad range of stock CFDs across various global markets. There are four main accounts that traders can use to trade stocks on Exness. These include the Standard, the Pro, the Zero, and the Raw Spread accounts. 

The standard, the pro, and the raw spread accounts are all commission-free when trading stocks. Only the zero account charges a commission. As an example, the stock AMZN (Amazon) has a spread of 0.7 pips on the standard account, 0.5 pips on the pro account, and 0.4 pips on the raw spread account, all without a commission charged. In contrast, the zero account features a spread of 0.1 pips on the AMZN stock with a commission of $1.8 per side per lot.

To trade the stock CFDs, traders can use various trading platforms. These include MetaTrader 4, MetaTrader 5, the Exness Trader app, and the Exness Terminal. Exness delivers ultra-fast execution speeds on these platforms with most orders executed in milliseconds. Moreover, these platforms come with a suite of tools that scalpers can use for technical analysis. To further diversify their portfolios, stock scalpers on Exness can also trade CFDs on forex, metals, cryptoсurrencies, energies, and indices.

From a regulatory perspective, Exness is well-established and operates under strict oversight in multiple jurisdictions. It is licensed by the FCA, the CySEC, the FSCA, the FSA in Seychelles, and the CMA. While Exness is regulated in the UK and EU, it is important to note that it does not accept retail clients from these regions.

Remember that forex and CFDs available at Exness are leveraged products and can result in the loss of your entire capital.
Please ensure you fully understand the risks involved.

Forex.com

Forex.com offers its traders a collection of more than 5,500 different stocks to trade and scalp. Excitingly, this broker provides this service to traders around the world, including in the US. Traders from most countries around the world have access to stocks as CFDs while traders in the US can trade the various stocks as real underlying assets through StoneX Securities Inc.: StoneX One. Forex.com offers competitive trading fees when investing in stocks. 

The broker charges a commission which varies depending on the market. For most US stocks it is 1.8 cents per share, and 0.08% of the trade for most UK, EU, and Asian stocks. The minimum commission rate is 10 of the stock's base currency.

Execution speed is a key feature of Forex.com, with its advanced technology ensuring trades are processed efficiently. The average order execution time listed by the broker sits at merely 0.06 seconds. The broker further lists on its site that 99.38% of trades are executed within 1 second. To trade on this broker site, traders can choose from a variety of platforms. These include MetaTrader 4, MetaTrader 5, TradingView, and Forex.com Trader.

Other than stocks, there are other global market products available to trade on Forex.com. Traders outside the US can access CFDs on forex, indices, cryptocurrencies, commodities, and precious metals. In contrast, traders within the US have access to forex, futures, and futures options.

On regulations, Forex.com has one of the most impressive regulatory backgrounds of any broker. Its parent company, StoneX, holds licenses from the FCA, the ASIC, the CySEC, the CIRO in Canada, and the CFTC and NFA in the US.

74-76% of retail investor accounts lose money when trading CFDs with this provider.

XM

XM provides access to a wide range of stock CFDs across global markets, making it an attractive option for scalpers who seek variety and flexibility in their trading. One of the key highlights of XM is its low trading fees. The broker features tight spreads that can be as low as 0.34 points, with no hidden charges. Additionally, XM alongside the other brokers mentioned in this article, operates with negative balance protection, adding an extra layer of security for traders.

XM supports multiple trading platforms, including MetaTrader 4 and MetaTrader 5. Execution speed is a priority feature at XM, with trades executed in less than one second on average. Aside from stocks, investors on XM can also invest in other global markets such as forex, indices, commodities, precious metals, cryptocurrencies, and energies.

Finally, XM is a well-regulated broker operating under the oversight of multiple financial authorities. It is licensed by the CySEC, the ASIC, and FSC in Belize.

74.12% of retail investor accounts lose money when trading CFDs with this provider.

XTB

XTB is a reputable online broker that offers a compelling proposition for stock scalpers. For starters, XTB provides access to a wide range of stocks from various global exchanges both as CFDs and as real assets. This allows for portfolio diversification and strategic scalping opportunities. Additionally, scalpers benefit significantly from XTB's low trading costs. 

XTB allows traders to invest in stocks with a 0% commission on monthly turnovers of up to 100,000 EUR (or the equivalent in other currencies) per account. For investments exceeding this amount, a commission of 0.2% (minimum 10 GBP) applies. Note that a currency conversion fee of 0.5% may be charged where applicable.

The broker supports its proprietary trading platform, xStation 5, which is renowned for its user-friendly interface. In addition to stocks, XTB offers scalping CFDs on forex, indices, commodities (such as Gold and Silver), cryptocurrencies, and ETFs, allowing traders to explore diverse market opportunities. Furthermore, XTB operates under the regulation of several authorities. These include the FCA, the CySEC, and the KNF in Poland.

74-76% of retail investor accounts lose money when trading CFDs with this provider.

Tickmill

Tickmill is a well-established broker offering a good environment for scalping stocks. The broker provides access to a range of stock CFDs, enabling traders to diversify their portfolios with global equities. Here, investors can trade the stocks of renowned companies including Apple, Amazon, Goldman Sachs, Nike and McDonald’s, among many others.

In terms of fees, Tickmill charges no commissions on stocks and promises some of the lowest spreads possible. The spreads on stocks are floating depending on market conditions.

Tickmill supports trading through industry-standard platforms like MetaTrader 4 and MetaTrader 5. These platforms give traders a ton of investment options alongside stock CFDs. On this broker site, investors can trade and scalp also CFDs on forex, metals, bonds, commodities, and cryptocurrencies. This provides top stock scalpers with diverse opportunities to trade various instruments in highly liquid markets.

Finally, Tickmill has regulatory oversight in different jurisdictions. It holds licenses from reputable authorities, including the FCA, the CySEC, the ASIC, and the FSA in Seychelles. This level of regulatory oversight instils confidence in its safety and transparency.

72% of retail investor accounts lose money when trading CFDs with this provider.

Final Comments

Selecting the right broker is a critical step for successful stock scalping. The ideal broker should combine fast execution speeds, competitive fees, a wide range of tradable stocks, and strong regulatory oversight. The brokers we featured here each offer unique advantages tailored to meet the needs of scalpers. 

However, we understand that this is not an exhaustive list. As such, we advise every trader to do their own research before committing any of their money to a broker. It is important to also consider other factors beyond those mentioned in this review, such as account minimums, margin requirements, and customer service. Remember, scalping is a high-risk trading strategy. It's crucial to develop a solid trading plan and risk management strategy.