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Attachments: scalping - commissions and lower spread vs spread all included
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scalping - commissions and lower spread vs spread all included

  • Post #1
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  • First Post: Dec 15, 2016 4:29am Dec 15, 2016 4:29am
Hi all,
I'm looking for a broker for scalping, and my question is : would you choose a broker with better spread and commissions fees or a broker with higher spread including commissions ? the second one even if spread is higher you will win more for a winning scalp and loose less for a loosing scalp (see pic below), so choice seems easy but not really because with the first one you will also got better execution because of the lower spread so in some case tp will be reached with the 1st one and not with the second one
Your opinion scalpers ?!

btw the 2 brokers are regulate 1 in London one in Australia
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There is no way to happiness , happiness is the way.
once you leave the limited playground of the majors, mainly EurUsd and UsdJpj, where spreads tend to be lowest,
the choice gets a lot clearer.
an interesting aspect would be the real test of the average slippage you get from your broker, and execution speed.
never mind what they advertise, do your own test and conclusions.
there is always, always another trade!!
Your comparison is tricky (and you have an error)..
It is really simple: you compare the typical cost of trading:
typical spread for "no-commission" brokers, versus typical spread plus commission (commission to spread) for commission based brokers.
As I see it, spread-based brokers tend to have higher cost of trading.
..
Quoting rockit
Your comparison is tricky (and you have an error).. It is really simple: you compare the typical cost of trading: typical spread for "no-commission" brokers, versus typical spread plus commission (commission to spread) for commission based brokers. As I see it, spread-based brokers tend to have higher cost of trading.

Yes sorry for the mistake, but not so simple as for the cost of course it is evident that broker 1 with higher spread and no commission is low cost trading, but as because lower spread even the cost is more important this broker can also give better result, if you see illustration below as sample. if we enter at the same point with a TP +4 the broker with the most expansive cost will probably get is TP with his spread of 0.2 and the cheaper broker will not TP because with his spread of 0.9 the ask will not reach this point and the stop loss could probably be reached, so not so simple as the cheaper the better while scalping of course
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Click to Enlarge Name: EU tp.jpg Size: 253 KB
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There is no way to happiness , happiness is the way.
Quoting profitfarmer
once you leave the limited playground of the majors, mainly EurUsd and UsdJpj, where spreads tend to be lowest, the choice gets a lot clearer. an interesting aspect would be the real test of the average slippage you get from your broker, and execution speed. never mind what they advertise, do your own test and conclusions.
yes this will be a nice comparison but not so easy to be done, for me i mean and i m just trading the majors.
There is no way to happiness , happiness is the way.
  • Post #6
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  • Last Post: Jun 2, 2017 6:33pm Jun 2, 2017 6:33pm
I would say, go and do a research through Google or Youtube about the types of brokers and platforms that they offer.
Find out the difference in terms of:

  1. ECN,
  2. Market Makers,
  3. STP

The type of brokers and their platforms help to determine whether you can use Expert advisor's or only manual trading. Then when you find out how the brokers operate then you will understand where the pricing comes from and how the broker operates with your orders. This will be well needing information in choosing your broker. Next thing is the spreads, since scalping requires tight spreads. You should also look to see which one supports scalping because not all of them support it. The type of deposit that you are looking to start with is also another thing.

Cheers...I hope this helps.

R:R "Percentage Focus"
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