An exchange for scalping or Forex? An honest comparison based on 5 main criteria

Exchange for scalping or Forex: what to choose for comfortable and profitable trading? Both options are in high constant demand from millions of traders around the world. Let's compare Forex and the stock exchange according to the criteria that are important for scalping in order to figure out where your trades will feel great and where they will be a C. The answer is in the article.

The information partner of the material is the broker NPBFX, which has been providing services since 1996.e 1996.

Which market should a scalper choose?

In theory, scalping is suitable for Forex and for the stock exchange, because quotes of trading assets are in constant dynamics on each trading platform throughout the day. Quotes may change due to external factors, macroeconomic indicators, statistics or news.

But in practice, the difference between the sites can still be significant. Let's start with the external and legal aspects. To access the exchange in a number of residences, you may need to obtain a special permit, which may include an investor's qualification certificate or the status of an individual entrepreneur. Do not forget about other important factors of accessibility of stock trading. For example, during the period of sanctions restrictions on many European and American stock exchanges, the registration process itself will be impossible for citizens of a number of countries, including the Russian Federation. If you still manage to find an exchange where there will be no problems with access, then carefully study the rules for depositing / withdrawing funds, minimum deposit requirements. Pay attention to the availability of CFD contracts for the trading instruments you are interested in if you intend to trade a scalping strategy rather than engage in real stock buying/selling.

You will not encounter any of these problems in the Forex market. Forex is open to everyone around the clock (24/5), it does not require compulsory economic or financial education. You can get the necessary experience without risks and your own investments on a demo account, which acts as a simulator and fully corresponds to the functionality of a real trading account. Let's delve into the comparison of the stock exchange and the Forex market for scalping by narrower criteria. But first, let's fix a few theses about scalping as a strategy.

What is "scalping"?

Scalping is a type of active intraday trading on a five—minute and minute timeframe. Some traders choose even smaller timeframes for scalping.

The feature of scalping is a huge number of trades and their quick closing after making a profit, positions are held from milliseconds to several minutes maximum.

What is scalping based on?

Scalping works on minor price fluctuations and frequent entry into the market during a trading session. The number of transactions can reach several dozens (and even hundreds!) in the case of manual trading, and even more so if a robot is working.

Why would a scalper open so many trades?

With a large number of trades, traders can expect to make a big profit, as the goal is often to remove the "top" from the market, the "scalp" is a few pips on the deal. Therefore, scalping is particularly sensitive to the fees charged by a Forex broker or exchange. For example, a multi-market broker NPBFX welcomes the use of scalping strategies. Clients are offered flexible conditions with margin leverage and favorable tariffs: 0% brokerage commission, low spreads with the ability to connect up to 60% Cashback.

What trading conditions are important for scalping?

Like any other strategy, scalping requires compliance with certain requirements. This way you can ensure a competent, comfortable and profitable trade.

Among the important conditions for scalping:

- low spreads/commissions,
- high liquidity,
- high-quality execution of transactions without delay,
- wide range of assets,
- leverage.

Exchange for scalping and Forex - 5 criteria for comparison:

* High liquidity and low spreads

Traders with any strategy prefer to trade liquid instruments, because the higher the liquidity, the lower the spread and commission on trading conditions. This statement is true for many brokers if you open any contract specification.

As noted above, low spreads are crucial for a scalper trader. Because spreads are paid with each trade, and the number of transactions in scalping can exceed hundreds. In order not to pay additional costs, traders choose the Forex market.

The liquidity on Forex is higher than on the stock exchange, because Forex is an over-the-counter market and unites millions of traders around the world with different levels of capital, which includes major players such as banks, hedge funds and others. For example, NPBFX's liquidity providers are the largest Tier 1 banks, ECN systems, JPMorgan, Goldman Sachs, and others. The daily turnover of the Forex market is estimated at trillions of dollars. The figure is growing every year. The stock exchange has a smaller capital capacity, it is more tied to the time zone, has a strict schedule, and is subject to the influence of national regulators, which act as authorized government agencies. Forex has no "nationality". So, a trader from the Russian Federation can trade Forex both through Russian brokers and earn money with brokers from other jurisdictions. The choice remains with the trader.

* High-quality execution of transactions

Trading on the stock exchange is associated with the probability of unsuccessful execution of transactions. For example, there may be delays, slippages, and sudden pauses in the trading process. And of course, this can result in major losses for a scalper.

On Forex, a trader trades with direct access of transactions to the interbank market. If you have chosen a broker, be sure to check its transaction execution technology. Ideally: STP, DMA, NDD, ECN. They minimize the chance of slippage.

If a scalper strives for high execution speed, then he chooses Forex. High-frequency scalping will be beneficial if trading is provided with instant transaction processing and execution of trading goals. In NPBFX, the execution speed is ultra–fast - 300-600 ms.

* Wide range of trading assets

It is important for a scalper to choose a platform with a wide pool of trading instruments. This is due to the task of quickly switching between assets, choosing the most suitable one for trading at the moment. Forex brokers offer not only stock trading tools, but also currency pairs and crypto assets, which allows you to diversify risks. The most popular Forex trading platform is the licensed trading and analytical terminal Meta Trader 4, where even the basic functionality is equipped with many options for market analysis and building informed trading forecasts. The terminal is available for free use online, and you can also download it to your computer or manage your account through a mobile application. The terminal is available in the Russian version, so there will be no "translation difficulties" when mastering the technical capabilities of the interface.

* Leverage

Scalper traders prefer to use leverage. And the larger it is, the more flexible settings are available for account management and risk control. At NPBFX, the leverage is up to 1:1000. Leverage opportunities on stock exchanges are usually much more modest.

After the comparison, you can return to the question, which is better: an exchange for scalping or Forex?

The impression of trading on the stock exchange can be spoiled by delays in execution, slippage, or blocking access to the account due to sanctions. Traders on the stock exchange are forced to adhere to the opening and closing hours of the site. The time for earning is limited, it may not be enough to work according to the trading plan.

Forex has a 24-hour opening time, which does not depend on the opening hours of the exchange. There is always a part of the market in the world where a trading session is open and which a scalper can join.

Therefore, we advise you not to take risks, but to immediately try scalping on Forex: with high-quality execution of orders, with a guarantee of profit withdrawal.

Recommended broker for scalping

Not all brokers allow you to trade scalping strategies. In order not to make a mistake with the choice, carefully study the trading conditions of each company

We recommend select a trusted STP broker NPBFX.

The company has been present on the market since 1996 and during this time has gained the trust of customers and an impeccable reputation. Until 2016, the clients were served by Nefteprombank JSC with a license from the Central Bank of the Russian Federation. After the rebranding in 2016, the broker retained the achievements of the banking period in terms of security and service standards, while expanding the range of trading products. Today, the company has scaled up and provides services to clients from different regions of the world: the EU, Asia, Africa, Latin America and the CIS. Traders from the Russian Federation consistently trade in NPBFX: deposits and withdrawals are available in 20+ ways, including Russian cards.

The broker is regulated by the Financial Commission, which guarantees a compensation fund of 20 thousand euros for each client with a deposit. The company has also received numerous industry awards in the field of fintech.: "The best order management", "The best STP broker", "The smartest platform". You can find the rest of the awards on the broker's website.

All clients have access to a free multifunctional Analytical portal, where trading recommendations on the most promising instruments are published daily, and scalpers can use accurate trading signals with timeframes from M1 to D1. The signals are generated using IT technologies based on data from the top 10 technical indicators. More than 10,000 traders have already installed the Google Play portal mobile application to increase their comfort level and improve their trading results.

NPBFX offers optimal conditions for scalping: favorable tariffs, fast and high-quality execution, intra-spread trading is possible, and there are no "freeze" levels. Scalpers use not only the broker's standard STP accounts with narrow spreads and a 0% trading turnover fee. Zero accounts are also available to clients, where the spread is not debited, but a fixed commission is charged.

How do I start trading in NPBFX?

1. Click on link to the company's website.ebsite.

2. Register a Personal account.

3. Open the selected trading account for trading.

Start trading from $10 with a trusted NPBFX broker.