Scalping in overseas forex trading is an ideal style for traders who want to efficiently accumulate profits with a small amount of capital
This article thoroughly explains why overseas forex trading is suitable for scalping, and introduces recommended trading methods and brokers that are strong in scalping
If you want to steadily aim for profits in a short period of time by making the most of narrow spreads, high execution speed, and a high leverage environment, please refer to this information
Based on the results of research conducted by over 20,000 users, the MoneyChager editorial team can recommend truly excellent overseas FX accounts for scalping. Please look forward to it. We
also take safety into consideration, referencing the Financial Services Agency and the Financial Futures Trading Act
Contents
- 1 Comparison table of overseas forex brokers suitable for scalping
- 2 What is scalping?
- 3 Why overseas forex trading is ideal for scalping
- 4 Selection Criteria for Scalping Brokers in Overseas Forex Trading
- 4.1 Are there restrictions on scalping?
- 4.2 The maximum leverage is sufficiently high
- 4.3 With zero-cut protection in place, is there no need to worry about margin calls?
- 4.4 The forced stop-loss level is below 50%
- 4.5 The effective spread is narrow
- 4.6 We offer ECN-style accounts
- 4.7 They use either MT5 or cTrader
- 4.8 Narrow stop level
- 4.9 High slippage resistance
- 4.10 Less likely to result in order rejection (requote)
- 5 Overseas Forex: Recommended Account Ranking for Scalping!
- 5.1 Top-ranked overseas forex broker for scalping: Exness Zero Account
- 5.2 Recommended Overseas Forex for Scalping: #2 Axi Elite Account
- 5.3 Top 3 Recommended Overseas Forex Brokers for Scalping: Axiory Nano Terra Account
- 5.4 Recommended Overseas Forex for Scalping: 4th Place - ThreeTrader Raw Zero Account
- 5.5 Top 5 Recommended Overseas Forex for Scalping: TianFX Blade Account
- 5.6 Top 6 Recommended Overseas Forex Brokers for Scalping: XS.com Elite Account
- 5.7 Recommended Overseas Forex for Scalping: #7 MYFXMarkets Pro Account
- 5.8 Top 8 Recommended Overseas Forex Brokers for Scalping: Milton Markets Elite Account
- 5.9 Top 9 Recommended Overseas Forex Brokers for Scalping: HFM Zero Account
- 5.10 Top 10 Recommended Overseas Forex Brokers for Scalping: Vantage Trading ECN Account
- 6 Three scalping techniques you can use in overseas forex trading
- 7 Reasons why you might not be profitable with scalping in overseas forex trading and how to improve your strategy
- 7.1 I am using an account with an extremely wide spread
- 7.2 They are gambling based on their intuition
- 7.3 Many trades have poor risk-reward ratios
- 7.4 They are not strictly adhering to stop-loss orders
- 7.5 I am trading multiple currency pairs/instruments simultaneously
- 7.6 I only trade during periods of low volatility
- 7.7 I haven't decided on a profit-taking level
- 8 Prohibited actions regarding scalping in overseas forex trading
- 8.1 Arbitrage
- 8.2 Hedging across multiple accounts
- 8.3 Opening multiple accounts
- 8.4 Trading targeting only the gaps at the end of the week and the beginning of the next week
- 8.5 Trading that targets only the timing of economic indicator releases
- 8.6 High-frequency trading puts an excessive load on the server
- 9 Frequently Asked Questions about Scalping in Overseas Forex Trading
- 9.1 Is scalping possible with overseas forex trading?
- 9.2 What are the characteristics of people who are good at scalping in overseas forex trading?
- 9.3 Which overseas forex brokers are recommended for scalping?
- 9.4 Which overseas forex broker is recommended for gold scalping?
- 9.5 Which overseas forex brokers offer the narrowest spreads for USD/JPY?
- 9.6 Which is better for scalping: overseas forex or domestic forex?
- 9.7 Will my overseas forex account be frozen if I engage in scalping?
- 9.8 What are some recommended scalping strategies for overseas forex trading?
- 9.9 What currency pairs are recommended for scalping in overseas forex trading?
- 10 Summary of scalping in overseas forex trading
Comparison table of overseas forex brokers suitable for scalping
For those who want to know only about overseas forex brokers that are suitable for scalping, we have compiled a comparison table
◀You can scroll▶
| Company name | Maximum leverage | Effective spread | Stop level | Ordering method | Scalping restrictions |
|---|---|---|---|---|---|
| Exness Zero Account | Unlimited | Minimum 0.35pips | Stop level | Market execution | No restrictions |
| Axi Elite Account | 1,000 times | Minimum 0.175pips | 0 | NDD method | No restrictions |
| Axiory Nano Terra Account | 1,000 times | Minimum 0.3pips | 0 | NDD ECN method | No restrictions |
| ThreeTrader Raw Zero Account | 1,000 times | Minimum 0.2pips | 0 | NDD ECN method | There are no explicit restrictions |
| TitanFX Blade Account | 500 times | Minimum 0.35pips | 0 | NDD ECN method | No restrictions |
| XS.com Elite Account | 2,000 times | Minimum 0.4pips | 0 | NDD method | No restrictions |
| MYFXMarkets Elite Account | 500xrn | Minimum 0.3325pips | 0 | NDD method | No restrictions |
| Milton Markets Elite Account | 500 times | Minimum 0.4pips | 0 | NDD method | No restrictions |
| HFM Zero Account | 2,000 times | Minimum 0.3pips | 0 | NDD ECN method | There are no explicit restrictions |
| Vantage Trading ECN Account | 1,000 times | Minimum 0.3pips | 0 | NDD ECN method | No restrictions, but excessively frequent trading is not allowed |
When scalping with an overseas forex broker, it's important to choose an account based on trading conditions that are advantageous for scalping, such as narrow spreads and high maximum leverage
Detailed information on each company listed in the comparison table above can be found in Overseas Forex: Recommended Account Ranking for Scalping!
What is scalping?
Scalping is a trading method that involves making trades over short periods of time, ranging from a few seconds to a few minutes
Because each trade is completed in a short amount of time, scalping involves repeating multiple trades throughout the day to accumulate small profits
To capture small price movements, it's crucial to choose an overseas forex broker that offers narrow spreads and high execution speed
Overseas forex brokers tend to have higher execution speeds compared to domestic forex brokers. Execution speed refers to the ability to execute traders' orders accurately and quickly, and is especially important for short-term trading such as scalping
Why overseas forex trading is ideal for scalping
In fact, many overseas forex brokers offer trading environments that are ideal for scalping
Here, we will explain the three points mentioned above that make overseas forex trading ideal for scalping
Knowing the advantages of scalping in overseas forex trading allows you to trade in an environment where it's easier to accumulate profits in a short period of time
Compared to domestic FX, it has a higher execution rate
Many overseas forex brokers employ the NDD (Non-Dealing Desk) system, which offers superior execution speed
In the NDD ( Non-Dealing Desk) system, orders are processed directly by the system without going through a dealer, which means that slippage and order rejection are less likely to occur .
In scalping, split-second decisions determine success or failure, so high execution speed is essential. Overseas forex brokers generally tend to have high execution speeds, and most of them officially allow scalping
There are many overseas forex brokers with narrow spreads
Some of you may have seen reviews saying that scalping in overseas forex is difficult to profit from because of the wide spreads
We have compiled a table showing the average spreads measured by various overseas forex brokers
| Company Name Account Type | USD/JPY | EURUSD | GBPUSD | AUDUSD | XAUUSD |
|---|---|---|---|---|---|
| Exness Zero Go | 0.45 pips （0.1+0.35） | 0.45 pips （0.1+0.35） | 0.65 pips （0.2+0.45） | 0.6 pips （0.1+0.5） | 0.8 pips （0+0.8） |
| Axi Elite Account | 0.675 pips （0.5+0.175） | 0.575 pips （0.4+0.175） | 0.875 pips （0.7+0.175） | 0.475 pips （0.3+0.175） | 1.35 pips （1.0+0.125） |
| ThreeTrader Raw Zero Account | 0.7 pips （0.5+0.2） | 0.6 pips （0.4+0.2） | 1.0 pips （0.8+0.2） | 0.5 pips （0.3+0.2） | 1.0 pips （1.0+0） |
| HFM Zero Spread Account | 1.1 pips （0.8+0.3） | 0.7 pips （0.4+0.3） | 0.9 pips （0.6+0.3） | 0.6 pips （0.3+0.3） | 2.4 pips （1.7+0.7） |
| XS.com Elite Account | 1.3 pips （1.0+0.3） | 0.6 pips （0.3+0.3） | 0.8 pips （0.5+0.3） | 0.6 pips （0.3+0.3） | 0.9 pips （0.6+0.3） |
Even with overseas forex trading, the spread can vary significantly depending on the broker and account type you choose
If you don't choose an overseas forex account that specializes in low spreads, scalping tends to be disadvantageous
Even with overseas forex brokers, entirely possible to trade major currency pairs with spreads of less than 0.5 pips by choosing an account specializing in low spreads .
If you're looking for an overseas forex broker specializing in low spreads, which are essential for scalping, please refer to our Overseas Forex Spread and Fee Comparison List
Scalping and high leverage are a good match
Scalping and high leverage are a very good combination
When trading with high leverage, you need to keep your stop-loss range small in order to minimize risk
Because scalping targets small price movements, the stop-loss range tends to be narrow as well
Therefore, it is well compatible with high leverage of 1,000 times or more, like in overseas forex trading, making it ideal for traders who want to earn money starting with a small amount of capital.
Beforehand, be sure to check the tips and precautions for high-leverage trading
Selection Criteria for Scalping Brokers in Overseas Forex Trading
When choosing an overseas forex broker that is easy to use and advantageous for scalping, it is recommended to check the following points
- Are there restrictions on scalping?
- The maximum leverage is sufficiently high
- With zero-cut protection in place, is there no need to worry about margin calls?
- The forced stop-loss level is below 50%
- The effective spread is narrow
- We offer ECN-style accounts
- They use either MT5 or cTrader
- Narrow stop level
- High slippage resistance
- Less likely to result in order rejection (requote)
By choosing an overseas forex broker that meets these selection criteria, you can focus on trading under advantageous conditions for scalping
Are there restrictions on scalping?
First, it's important to check whether the overseas forex broker allows scalping
If you engage in scalping with an overseas forex broker that prohibits it, you may be subject to penalties such as the cancellation of profits (refusal to withdraw funds) or the freezing of your account
Even if scalping itself is permitted, some overseas forex brokers impose indirect restrictions such as "no closing positions within X seconds."
To avoid problems, it's important to check the terms of service to see if there are any restrictions on the holding period or lot size of positions, and to contact support if you have any concerns
The maximum leverage is sufficiently high
The high maximum leverage is the greatest weapon when scalping in overseas forex trading
Higher maximum leverage allows you to take on large positions with less capital, increasing the potential to grow your funds in a short period of time.
For example, overseas forex brokers offer a maximum leverage of at least 500 times, making it possible to trade up to nearly 5 million yen with just 10,000 yen in capital
Find a broker with high leverage our leverage comparison and recommended overseas forex broker rankings
With zero-cut protection in place, is there no need to worry about margin calls?
When scalping with overseas forex brokers, it's crucial to check whether they employ a zero-cut system that prevents margin calls
If you choose a company that does not offer zero-cut service,When scalping with high leverage, losses exceeding the account balance can occurThis will result in..
On the other hand, if a zero-cut system is in place, the FX broker will cover any losses exceeding your account balance, so you don't have to worry about incurring losses greater than the amount you deposited
One reason why many traders on social media are making large profits from small amounts of capital using overseas forex brokers is that zero-cut protection prevents losses from exceeding the account balance
This system allows you to aim for large profits by accepting the entire amount of a small amount of capital as risk upfront and trading with the maximum lot size you can hold
The forced stop-loss level is below 50%
A lower forced stop-loss level means a higher upper limit on the amount of unrealized losses you can tolerate
A larger acceptable amount of unrealized loss offers the advantage of broadening the range of strategies available when trading with a small amount of capital
Conversely, in an environment where the forced stop-loss level is high, even small price movements in scalping can trigger a forced stop-loss, limiting the range of strategies available
Generally, it's ideal to choose an overseas forex broker with a forced stop-loss level of 50% or less .
For essential knowledge about forced stop-loss orders, which are crucial when scalping with small amounts of capital, please refer to What is a Stop-Loss Order in Overseas Forex? Explanation of Meaning and Calculation Method
The effective spread is narrow
The narrowness of the spread is a major factor influencing the profitability of scalping
It's not just about having a narrow spread; the "effective spread," which includes transaction fees, is also important
For example, when converting trading fees to a spread, $1 per lot (one way) is equivalent to 0.1 pips
The lower the combined total of fees and spreads, the lower the costs and the easier it is to increase profits.
The spread results in an unrealized loss from the moment you take a position
Since the position only starts to turn into a profit after these unrealized losses are covered, in short, the narrower the spread, the easier it is to make unrealized profits
In scalping, the target profit margin is narrow, so an account with a narrow spread is overwhelmingly advantageous
For overseas forex brokers offering low spreads that allow for favorable trading prices in scalping, please refer to " Spread Comparison of Overseas Forex Brokers, " where we compare spreads based on actual measured data.
We offer ECN-style accounts
Advanced traders who trade large lot sizes using scalping should choose an overseas forex broker that uses the ECN system
ECN stands for Electronic Communications Network, and among FX brokers, it refers to a private electronic trading system
Through this private electronic trading system, can trade directly at the rates of financial institutions partnered with the FX broker
ECN accounts, which ensure high liquidity, make it easy to perform scalping even with large trades, making them indispensable for advanced traders
They use either MT5 or cTrader
If you're going to engage in discretionary scalping, it's preferable to use an overseas forex broker that employs MT5 or cTrader as its trading platform
First, MT5 was developed as the successor to the popular trading platform MT4, and it features improved performance and additional functions useful for scalping
For example, MT5 has a "mini chart" feature that allows you to view a 1-minute chart while simultaneously displaying a 15-minute chart on the same screen
Furthermore, because cTrader is specifically developed for the ECN (Electronic Communication Network) system, it offers advantages such as fast execution speeds.
For those who prefer discretionary scalping, we've compiled a list of recommended overseas forex brokers that support MT5 in our "List of Recommended Overseas Forex Brokers that Support MT5
Narrow stop level
A stop level is the minimum price difference that an FX broker must maintain between the order price and the market price
If this stop level is wide,Even if you try to accumulate small profits through scalping, you can't place orders or close positionsThese kinds of problems can arise
With a broker offering zero stop-loss levels, you can enter and exit trades flexibly, making it easier to employ scalping strategies that accumulate small profits
High slippage resistance
In scalping, minimizing slippage is just as important as minimizing order rejections (requotes)
Order rejection refers to the phenomenon where an order cannot be executed at the specified price, or where some or all of the order lot is not executed
Especially during periods of low liquidity, there is a risk of missing trading opportunities because you may not be able to enter or exit trades at your desired price
Scalping relies on split-second decisions and speed, so if there is a lot of slippage, the strategy itself becomes unsustainable
Less likely to result in order rejection (requote)
that boasts a 100% execution rate or one that clearly demonstrates its high execution speed .
Using a broker with high execution capabilities allows you to trade precisely at your target points, which can lead to stable profits through scalping
For overseas forex brokers with high execution speeds and a comfortable trading environment for large-volume scalping, please refer to Comparison List of Overseas Forex Brokers with High Execution Speeds
Overseas Forex: Recommended Account Ranking for Scalping!
The MoneyChager editorial team, comprised of active traders, has compiled the following ranking of recommended overseas FX accounts that are strong in scalping
◀You can scroll▶
| Company name | Maximum leverage | Effective spread | Stop level | Ordering method | Scalping restrictions |
|---|---|---|---|---|---|
| Exness Zero Account | Unlimited | Minimum 0.35pips | Stop level | Market execution | No restrictions |
| Axi Elite Account | 1,000 times | Minimum 0.175pips | 0 | NDD method | No restrictions |
| Axiory Nano Terra Account | 1,000 times | Minimum 0.3pips | 0 | NDD ECN method | No restrictions |
| ThreeTrader Raw Zero Account | 1,000 times | Minimum 0.2pips | 0 | NDD ECN method | There are no explicit restrictions |
| TitanFX Blade Account | 500 times | Minimum 0.35pips | 0 | NDD ECN method | No restrictions |
| XS.com Elite Account | 2,000 times | Minimum 0.4pips | 0 | NDD method | No restrictions |
| MYFXMarkets Elite Account | 500xrn | Minimum 0.3325pips | 0 | NDD method | No restrictions |
| Milton Markets Elite Account | 500 times | Minimum 0.4pips | 0 | NDD method | No restrictions |
| HFM Zero Account | 2,000 times | Minimum 0.3pips | 0 | NDD ECN method | There are no explicit restrictions |
| Vantage Trading ECN Account | 1,000 times | Minimum 0.3pips | 0 | NDD ECN method | No restrictions, but excessively frequent trading is not allowed |
This article will provide a detailed explanation of the trading conditions of accounts offered by various overseas forex brokers that are ideal for scalping, and the advantages they offer in accumulating profits in the market
Top-ranked overseas forex broker for scalping: Exness Zero Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $3.50 (0.35 pips) |
| Maximum leverage | Unlimited |
| Forced stop-loss level | 0％ |
| Stop level | none |
| Minimum deposit amount | $1,000 equivalent |
Exness's rules regarding scalping
A member of the MoneyChat editorial team actually contacted Exness to inquire about any restrictions on scalping
When I asked Exness, "Do you have any restrictions on scalping?", their official response was that there are no specific restrictions on normal scalping .
Scalping itself is permitted, and there will be no problem as long as you do not engage in trading that is prohibited by the terms of service, such as so-called arbitrage trading
merit
- Zero accounts offer low spreads, fixed at 0 pips in principle
- Ideal for small-scale scalping with unlimited leverage
- Maximizing capital efficiency by setting the forced stop-loss level to 0%
- There are many reports of large withdrawals, so you can earn money with peace of mind
Disadvantages
- A Zero account requires an initial deposit of $1,000
- There are leverage restrictions before and after the release of economic indicators and on weekends
- Transaction fees start at a relatively high $3.50
- No bonus campaigns will be held
The number one recommended account for scalping in overseas forex trading is "Exness's Zero Account".
Exness's Zero Account offers the perfect trading environment for those who want to make money through scalping with a small amount of capital
The appeal of Exness's Zero Account lies in its combination of unlimited leverage and a spread that is fixed at virtually 0 pips, allowing you to start scalping with a small amount of capital
With Exness's unlimited leverage, you can trade major currency pairs with a margin requirement of less than 1 yen per lot
If the market and trading methods align, it is entirely realistic to multiply a small initial investment several times over in a short period of time
Recommended Overseas Forex for Scalping: #2 Axi Elite Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $1.75 (0.175 pips) |
| Maximum leverage | 1,000 times |
| Forced stop-loss level | 20％ |
| Stop level | none |
| Minimum deposit amount | Total value of $25,000 |
Axi's rules regarding scalping
A member of the MoneyChat editorial team contacted Axi directly to inquire whether there are any restrictions on scalping
Axi's official response is that there are no restrictions on scalping, but trading that puts a heavy load on the server may be restricted
As long as there are no restrictions on scalping and you don't engage in trading that places an excessive load on the server, such as so-called HFT (high-frequency trading), scalping on Axi should not be a problem
merit
- Low-spread Elite account with a low trading fee of $1.75
- Major currency pairs and gold with leverage up to 1,000x
- With a 99.99% execution rate, scalping is incredibly smooth
Disadvantages
- An Elite account requires a total deposit of $25,000 with Axi
- Elite accounts are not eligible for bonuses
The second-ranked account recommended for scalping in overseas forex trading is "Axi's Elite Account".
characterized by its excellent balance of three factors required for scalping: .
With Axi, you can scalp highly liquid major currency pairs and precious metal CFDs like gold with leverage up to 1,000x, and with an Elite account, you can achieve an effective spread of as low as 0.175 pips
Axi is recommended for those who want to scalp in a trading environment with excellent overall capabilities
Many overseas forex brokers offer accounts with narrow spreads but low maximum leverage, or high fees for accounts with narrow spreads, but Axi's Elite account has no weaknesses in terms of trading conditions
Top 3 Recommended Overseas Forex Brokers for Scalping: Axiory Nano Terra Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $3 (0.3 pips) |
| Maximum leverage | 1,000 times |
| Forced stop-loss level | 20％ |
| Stop level | none |
| Minimum deposit amount | none |
Axiory's rules regarding scalping
A member of the MoneyChat editorial team actually checked whether there are any restrictions on scalping with Axiory and received the following response
Axiory does not have any restrictions on scalping
Even seasoned scalping traders can confidently perform their scalping trades with Axiory
merit
- Nano and Terra accounts offer low spreads starting from 0 pips
- Highly transparent execution capabilities with publicly available execution results
- We can handle simultaneous orders of up to 1,000 lots
- A staple for scalping traders who love using overseas forex
Disadvantages
- The transaction fee is $3.50, which is standard
- Maximum leverage is limited if your account balance is 500,000 yen or more
The third-ranked recommended account for scalping in overseas forex trading is "Axiory's Nano Account (Terra Account)".
Axiory is known as a popular overseas forex broker for scalping traders
They are characterized by their excellent execution capabilities with no delays, to the point that they even publish data on their own execution rate
It also supports cTrader, a trading platform popular among scalping traders
cTrader is a trading platform optimized for the NDD ECN model and is highly regarded by advanced traders
cTrader is a trading platform characterized by its high execution speed and transparency
It's especially ideal for scalping, and its ultra-fast order processing and order book display make it easy to execute high-speed trades targeting small price movements
Recommended Overseas Forex for Scalping: 4th Place - ThreeTrader Raw Zero Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $2 (0.2 pips) |
| Maximum leverage | 1,000 times |
| Forced stop-loss level | 20％ |
| Stop level | none |
| Minimum deposit amount | $1,000 equivalent |
ThreeTrader's rules for scalping
A member of the MoneyChat editorial team contacted ThreeTrader to confirm whether they actually impose restrictions on scalping
ThreeTrader's official response is that "there are no explicit trading restrictions on scalping."
however,Engaging in large-scale trading with low margin levels, especially during the release of economic indicators, may be subject to investigationThat was the response
Therefore, you should avoid scalping, which involves making large trades with high leverage, especially when economic indicators are being released
merit
- The Raw Zero account offers a low commission of $2 per transaction and a minimum of 0 pips
- Scalping with limited timeframes
- Major stocks can be traded with leverage up to 1,000 times
Disadvantages
- Minimum initial deposit is equivalent to $1,000
- There are no bonuses; only a points system is offered
The fourth-ranked account recommended for scalping in overseas forex trading is "ThreeTrader's Raw Zero account.
ThreeTrade is a relatively new broker, established in 2019, but it has gained popularity among many scalping traders due to its incredibly low trading costs
In particular, ThreeTrader's top-tier account type, the "Raw Zero Account," offers ultra-low spreads of as low as 0 pips with a trading commission of just $2.
I have been using overseas forex brokers for the past seven years. When ThreeTrader first appeared, the image of "overseas forex = wide spreads" was still prevalent, and I remember ThreeTrader's exceptionally low spreads becoming a big topic of conversation
For scalping traders who prioritize narrow spreads above all else, ThreeTrader's Raw Zero account is highly recommended
Top 5 Recommended Overseas Forex for Scalping: TianFX Blade Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $3.50 (0.35 pips) |
| Maximum leverage | 500 times |
| Forced stop-loss level | 20％ |
| Stop level | none |
| Minimum deposit amount | 5,000 yen |
TitanFX's rules for scalping
A member of the MoneyChat editorial team contacted TitanFX's Japanese support team regarding restrictions on scalping, and received the following response
TitanFX has stated that there are no restrictions on scalping
They also informed us that arbitrage trading, trading that exploits connection delays, rate errors, and differences in rate displays between brokers, which are generally prohibited by all FX brokers,
merit
- Trading is possible using the NDD ECN method, which is directly connected to financial institutions, including CFD instruments
- Leverage up to 500x is not restricted by account balance or economic indicators
- Low latency and stable communication environment thanks to proprietary technology
Disadvantages
- The maximum leverage for the main account is a relatively low 500x
- The transaction fee is a bit high at $3.50
- There are few bonus campaigns
The 5th best account for scalping in overseas forex trading is "TitanFX's Blade Account".
TitanFX is recommended for those who want to scalp in a stable trading environment
First, for scalping in overseas forex trading, a trading server and a lag-free communication environment are crucial. TitanFX provides a lag-free connection environment even from Japan thanks to its unique Zero Point Technology.
Furthermore, with the top-tier Blade account, scalping is possible not only for currency pairs but also for various CFD instruments using the ECN method, with no markups on the spread
In account types that specialize in low spreads, other companies often use the same spreads for CFD instruments as other account types
TitanFX's Blade account uses the NDD ECN method for all tradable instruments, allowing for scalping with low spreads and stable execution
Top 6 Recommended Overseas Forex Brokers for Scalping: XS.com Elite Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0.1 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $3 (0.3 pips) |
| Maximum leverage | 2,000 times |
| Forced stop-loss level | 20％ |
| Stop level | none |
| Minimum deposit amount | $500 equivalent |
XS.com's rules regarding scalping
When a member of the MoneyChat editorial team actually inquired with XS.com about whether there were any restrictions on scalping, they received the following response
I confirmed with XS.com's official support team that "there are no restrictions on scalping."
However, since arbitrage is prohibited, you should avoid scalping that aims to exploit delays or rate errors
merit
- Elite accounts allow scalping with a minimum profit of 0.1 pips
- Major currency pairs and gold are available with leverage up to 2000x
- Execution power is stable
Disadvantages
- There are leverage restrictions when economic indicators are released or at the beginning of the week or weekend
- CFDs other than gold have a maximum leverage of 100x or less
- There are hardly any bonus campaigns
The 6th best account for scalping in overseas forex trading is "XS.com's Elite Account".
XS.com is an overseas forex broker that offers optimal trading conditions for major currency pairs and gold scalping
First, highly liquid major currency pairs and gold can
Furthermore, the Elite account is suitable for scalping with its low spreads of as little as 0.1 pips and stable execution capabilities
XS.com is an overseas forex broker operated by a company that provides financial infrastructure to forex brokers and securities firms
Therefore, it is highly rated for its stable execution capabilities with no delays
Although it has a relatively short track record as an overseas forex broker for individual traders, its high-quality trading environment has made it one of the most rapidly growing emerging brokers today
Recommended Overseas Forex for Scalping: #7 MYFXMarkets Pro Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $3.325 (0.3325 pips) |
| Maximum leverage | 500 times |
| Forced stop-loss level | 20％ |
| Stop level | none |
| Minimum deposit amount | 20,000 yen |
MYFXMarkets' rules regarding scalping
I contacted MYFXMarkets to inquire about any restrictions on scalping, and received the following response
MYFXMarkets responded that scalping is possible without restrictions
it was stated that regardless of whether it is scalping or not, rate errors due to intent or negligence, collusion with multiple people, arbitrage trading, and trading that abuses bonuses are prohibited
Scalping, which aims to profit from market fluctuations, is not restricted, but any other prohibited transactions will be considered a violation of the terms and conditions
merit
- Pro accounts allow trading with low spreads starting from a minimum of 0 pips
- You can trade in units of 1,000 currency units (1 lot = 1,000 currency units)
- We also have a data center in Tokyo
Disadvantages
- The transaction fee is a bit high at $3.325
- With a maximum leverage of 500x, it's relatively low for an overseas forex broker
The 7th best account for scalping in overseas forex trading is "MYFXMarkets' Pro Account".
MYFXMarkets is suitable for scalping traders who don't require extremely high leverage ratios
the maximum leverage of 500x for the Pro account is relatively low compared to other overseas forex brokers, there are no leverage restrictions based on account balance.
Furthermore, since one lot is 10,000 units of currency, the trading size is the same as domestic FX, making it easy to use for scalping traders who are transitioning from domestic FX to overseas FX
MYFXMarkets is an overseas forex broker that also has a data center in Tokyo
Therefore, it also has the advantage of allowing scalping with lower latency than other companies
Top 8 Recommended Overseas Forex Brokers for Scalping: Milton Markets Elite Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0.2 pips ~ |
| Transaction fee (per lot/one way) | 0.2 pips |
| Maximum leverage | 500 times |
| Forced stop-loss level | 50％ |
| Stop level | none |
| Minimum deposit amount | 100,000 yen |
Milton Markets' rules for scalping
A member of the MoneyChat editorial team actually contacted MiltonMarkets to inquire about any restrictions regarding scalping
Milton Markets' official response is that "scalping is permitted without restriction as long as it complies with the terms of service."
Like other companies, MiltonMarkets prohibits hedging and arbitrage trading across multiple accounts, but there is no need to worry about penalties for scalping, which involves closing positions within minutes
merit
- Elite accounts offer low spreads starting from a minimum of 0.2 pips
- Slippage guarantees can compensate for any discrepancies in the execution price
Disadvantages
- The effective spread is slightly wider than the low-spread accounts offered by other companies
- Elite accounts offer leverage up to 500x
- The Elite account has a minimum initial deposit of 100,000 yen
- The forced stop-loss level is set high at 50%
The 8th best account for scalping in overseas forex trading is "Milton Markets' Elite Account".
Milton Markets is an overseas forex broker that employs a unique system called a slippage guarantee
Milton Markets' three-page guarantee covers slippage losses in trading outside of economic indicator releases and market open/close times .
Slippage can be a critical issue in scalping, so trading with Milton Markets gives you peace of mind
Milton Markets' three-page guarantee is a significant advantage for traders who scalp during the Tokyo and European market hours, when the impact of economic indicator releases is minimal
For example, in the Tokyo market, which tends to be range-bound, you can trade targeting small price fluctuations, and even if slippage occurs, you can receive compensation for those losses from Milton Markets
Top 9 Recommended Overseas Forex Brokers for Scalping: HFM Zero Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $3 (0.3 pips) |
| Maximum leverage | 2,000 times |
| Forced stop-loss level | 20％ |
| Stop level | Major stocks only 0 |
| Minimum deposit amount | – |
Rules for scalping in HFM
When a member of the MoneyChat editorial team inquired whether HFM has any restrictions regarding scalping, they received the following response
They explained that they cannot say there are no scalping restrictions in general, as they need to assess each customer's transaction to ensure there are no issues
Furthermore, the only transactions explicitly prohibited are those listed in the terms of service as "hedging, arbitrage, and picking/sniping transactions between multiple accounts," and scalping itself is not prohibited
merit
- HFM's Zero Account offers low spreads as low as 0.1 pips
- Currency pairs and gold can be traded with leverage up to 2,000x
- Major trading stocks have a stop level of zero
Disadvantages
- The average spread is slightly wide
- Minor stocks have stop levels
- Leverage restrictions apply before and after the release of economic indicators
The 9th best account for scalping in overseas forex trading is "HFM's Zero Account".
HFM offers a zero-cost account ideal for scalping, covering major trading instruments
Furthermore, if you are using an automated trading system (EA) that primarily employs scalping as its strategy, we also recommend using HFM's official VPS .
Using HFM's official VPS reduces the physical distance to the trading server, giving you an advantage in high-frequency scalping with minimal latency
HFM offers a VPS that is useful for automated scalping trading. The official HMF VPS Bronze package can be used for free on a monthly basis by depositing up to $400 worth of funds and trading 2 lots round trip per month
Top 10 Recommended Overseas Forex Brokers for Scalping: Vantage Trading ECN Account
| item | Content |
|---|---|
| Scalping | Possible |
| USD/JPY spread | 0 pips ~ |
| Transaction fee (per lot/one way) | Equivalent to $3 (0.3 pips) |
| Maximum leverage | 1,000 times |
| Forced stop-loss level | 10％ |
| Stop level | none |
| Minimum deposit amount | $50 equivalent |
Vantage Trading's rules for scalping
I actually contacted Vantage Trading to inquire about any restrictions regarding scalping
I received a response from Vantage Trading stating that scalping is not prohibited
However, unusually frequent transactions may violate the terms of service
Furthermore, since the final decision on whether or not a trade violates the terms of service is at the discretion of the relevant department, it's best to avoid so-called "second-by-second scalping" or high-frequency trading EAs
merit
- ECN accounts offer low spreads with a minimum of 0 pips
- You can trade major currency pairs and gold with leverage up to 1,000x
- The leverage limit based on account balance is lenient (it won't go below 500x)
- The forced stop-loss level is low at 10%
- ECN accounts are also eligible for bonuses
Disadvantages
- The average spread is slightly wide
- Transaction fees are set at standard rates
The 10th best account for scalping in overseas forex trading is "Vantage Trading's ECN account".
Vantage Trading's ECN account is an account type specifically designed for advanced traders, offering low spreads
With low spreads and leverage up to 1,000x, it offers a highly capital-efficient scalping environment typical of overseas forex brokers
Furthermore, is that they are "low-spread accounts eligible for bonuses."
With overseas forex brokers other than Vantage Trading, it is common for low-spread, advanced-level account types to be excluded from bonus offers
Vantage Trading's ECN account has the advantage of offering various bonuses
Vantage Trading's deposit bonus is particularly powerful, as it allows you to raise additional trading funds up to a total of 3 million yen
Three scalping techniques you can use in overseas forex trading
In overseas forex trading, scalping, which takes advantage of high leverage and narrow spreads, is an effective strategy
Here, we will explain the following scalping techniques that even beginners can put into practice
I've carefully selected the simplest strategies possible, so try refining them through your own judgment and experience to increase their effectiveness
A scalping strategy targeting round numbers
The second-by-second scalping method targeting round numbers an ideal strategy for scalping, allowing you to accumulate profits with a high win rate .
Round numbers refer to price ranges that are often considered significant milestones, such as 100 yen or 100.10 yen
In this round number, we will perform scalping in increments of a few seconds, taking advantage of the tendency for very short-term rebounds to occur
- The specific trading procedure for the second-by-second scalping method targeting round numbers is as follows:
- Wait until the round number: We wait until the market price reaches the round number
- Entry near round numbers: Enter a trade when a price rebound occurs at or near a round number
- Stop-loss if the price breaks through: If the price breaks through a round number or a price range where it has rebounded, a stop-loss will be issued
To profit from price rebounds around round numbers, traders enter by selling when the price touches a round number from below, and buying when the price touches it from above
The scalping strategy targeting round numbers allows you to continue trading as long as there is a rebound, making it a highly reproducible trading method. On the other hand, in markets where round numbers are not a factor, it has the disadvantage of being prone to losses
A trend-following strategy using Bollinger Bands
The Bollinger Band trend-following strategy a strategy that uses only the Bollinger Band indicator, which predicts market volatility .
This scalping method utilizes the fact that market price fluctuations tend to stay within the 2σ range of Bollinger Bands and that prices are supported by the 20-period Simple Moving Average (SMA) .
The specific trading procedure for a trend-following strategy using Bollinger Bands is as follows:
- Check the trend on higher timeframes: Check the trend on a higher timeframe than the one you are trading on (for example, a 15-minute chart if you are trading on a 1-minute chart)
- Entry based on the 20-period Simple Moving Average (20SMA): In an uptrend, consider buying at the 20SMA; in a downtrend, consider selling at the 20SMA
- Settle the trade using the Bollinger Bands: The goal is to close the trade at the upper and lower limits (2σ) of the Bollinger Bands
- Stop-loss if the price breaks below the 20-period Simple Moving Average (SMA): In an uptrend, stop-loss is triggered if the price falls below the 20-period SMA; in a downtrend, stop-loss is triggered if the price rises above the 20-period SMA
In this way, scalping is performed using the upper and lower Bollinger Bands and the 20-period Simple Moving Average (SMA) center line
In the direction of the higher timeframe trendIt is important to maintain a high win rate by trading only in trend-following positionsis
When a trend develops, we enter positions using the 20-period Simple Moving Average (20SMA), which tends to function as a support line, as the basis, and close positions at the upper or lower limits of the bands. The 2σ of the Bollinger Bands can be used as a guideline for profit-taking levels, based on the theory that volatility will subside with a probability of approximately 95.4%
Grid trading strategy using automated trading (EA)
The grid trading method using automated trading (EA) is
In the grid method, the following strategies are employed when the market is in a range-bound phase
- The closer to the lower limit of the range, the more likely you are to enter a buy (long) position within a certain price range
- The closer to the upper limit of the range, the more likely you are to enter a sell (short) position within a certain price range
- Take profits immediately when a profit is generated; cut losses immediately when the price breaks out of the range
This requires entering trades within a fixed price range and immediately closing profits, thus necessitating a large volume of automated trades
Therefore, grid trading is well-suited to the use of automated trading systems (EAs)
Since many EAs (Expert Advisors, or programs for automated trading) that primarily use grid trading are publicly available, you can easily find them on the MT4/MT5 store or on automated trading sales websites without having to create your own
Because grid trading involves processing a large volume of trades, it may be prohibited by some overseas forex brokers. Before using automated trading with grid trading, be sure to check with your overseas forex broker's support to see if it's permitted
Reasons why you might not be profitable with scalping in overseas forex trading and how to improve your strategy
Scalping requires quicker decision-making than day trading, which is why many beginners find it difficult to consistently profit
Here, we will introduce solutions for improving your trading strategy based on the following reasons why you might be losing money with scalping in overseas forex trading
- I am using an account with an extremely wide spread
- They are gambling based on their intuition
- Many trades have poor risk-reward ratios
- They are not strictly adhering to stop-loss orders
- I am trading multiple currency pairs/instruments simultaneously
- I only trade during periods of low volatility
- I haven't decided on a profit-taking level
The fundamental principles of making money through trading remain the same even for scalping, so if you focus on the basics and review your trades, you should be able to see a winning strategy
I am using an account with an extremely wide spread
It's no exaggeration to say that the width of the spread directly impacts how easy it is to win at scalping
This is because scalping targets smaller price movements than other trading methods
For example, there is a four-fold difference in cost between a broker with a 2-pip spread for USD/JPY and one with a 0.5-pip spread
By simply using an overseas forex account that offers low spreads and allows for advantageous scalping, as introduced in our " Recommended Account Ranking for Overseas Forex Scalping,
They are gambling based on their intuition
You cannot win at scalping by repeatedly making gambling trades based on intuition alone
Because scalping involves frequent trades, there is a tendency for each individual trade to become sloppy
However, the essential skills required for trading are the same whether you're scalping or day trading. Therefore, it's important to practice a trading method that is reproducible, even when scalping
Without hesitation, if you test your strategies using a demo account or similar method, you will be able to make accurate decisions more quickly, even when scalping
Many trades have poor risk-reward ratios
If you have many trades with poor risk-reward ratios, you will end up losing money even with a high win rate in scalping
Risk-reward refers to the ratio of the expected loss (risk) to the expected profit (reward)
For example, if the profit from one winning trade is 10,000 yen and the loss from one losing trade is 20,000 yen, the risk-reward ratio is 2:1
If you lose once, you need two consecutive wins to break even, and if you lose twice in a row, you need five consecutive wins to make a profit
By trading only in high-probability situations, such as pullbacks on higher timeframes, you can improve your risk-reward ratio. The more trades with a good risk-reward ratio you make, the more profit you can accumulate even with a low win rate
They are not strictly adhering to stop-loss orders
The importance of stop-loss orders remains the same even in scalping
Especially when scalping with high leverage, delaying stop-loss orders increases the risk of incurring catastrophic losses
Before taking a position, it's crucial to always decide on a price at which you will cut your losses
If you tend to get emotional and can't cut your losses, try trading with a lot size that allows you to make calm decisions by reducing leverage, and actively use stop-loss orders
I am trading multiple currency pairs/instruments simultaneously
Having multiple trading targets has the advantage of increasing profit opportunities
On the other hand, trading multiple stocks simultaneously tends to reduce trading accuracy because humans are not naturally suited to multitasking
If your trading method is not fully systematized, you should refrain from trading multiple stocks simultaneously, as this can impair your judgment
I only trade during periods of low volatility
During periods of low volatility, considering the spread, it is preferable to trade during periods of high volatility, even when profiting from scalping
To target periods of high volatility, try trading during key turning points in the following three major markets
| market | Time periods when volatility tends to be high (Japan time) | Special notes and points to note |
|---|---|---|
| Tokyo Market | 9:00-10:00, mid-rate determination at 9:55 | The focus is on the USD/JPY pair. The currency tends to move in one direction when the mid-rate is determined |
| London Market | 16:00-18:00 (immediately after opening), 23:00 London fix, 21:30 when indicators are released | European currencies are active. Pay particular attention to the London Fix, especially at the end of the month |
| New York Market | 22:00-25:00 (immediately after opening), 21:30, 23:00, 3:00 AM, and when events are announced | The focus is on dollar-denominated pairs. Trading can be sharp during crucial events such as the FOMC meeting |
For example, full-time traders often trade primarily in the Tokyo market, which tends to have narrower spreads and a certain level of volatility
Furthermore, even those who work as company employees during the day can secure significant profits by targeting the highly volatile periods in the London and New York markets
I haven't decided on a profit-taking level
Setting a profit-taking level makes scalping more likely to result in a positive return
In scalping, the general strategy is to accumulate profits while maintaining a high win rate
Therefore, delaying profit-taking could result in being caught in a sharp rise or fall and losing money
Instead of aiming for a huge profit in a single trade, focus on steadily accumulating trades with a good risk-reward ratio
Prohibited actions regarding scalping in overseas forex trading
While many overseas forex brokers allow scalping, they also have restrictions, as outlined below
If you engage in scalping, which is prohibited, you may face penalties such as account freezing or profit cancellation, so be sure to carefully check which trading methods are prohibited
Arbitrage
Arbitrage is a trading method that profits from price differences between different markets or brokers.
For example, if there is a price difference of 150.10 yen for the dollar against the yen at company A and 150.00 yen at company B, this refers to the act of simultaneously "selling at company A and buying at company B" to secure profits without risk
but,Arbitrage is prohibited by overseas forex brokers because it often results in losses for the brokerIt is being done
Hedging across multiple accounts
Overseas forex brokers prohibit hedging across multiple accounts
Hedging across multiple accounts involves buying the same stock in account A and selling it in account B
Hedging across multiple accounts is used in arbitrage and zero-cut trading, as mentioned earlier, and is therefore prohibited by many overseas forex brokers
Hedging across multiple accounts can occur unintentionally when running automated trading on the same stock. Therefore, it is recommended to use one strategy per stock when using automated trading
Opening multiple accounts
Opening multiple accounts is prohibited by many overseas forex brokers
Normally, opening an account with an overseas forex broker requires identity verification, so it's not possible to open multiple accounts
If it is discovered that you have falsified your identity by submitting identification documents in the name of a third party to open multiple accounts, or that you have received bonuses twice,This could result in penalties such as account freezing, loss of profits, and in the worst case, forced withdrawal from the serviceThis is the result
Trading targeting only the gaps at the end of the week and the beginning of the next week
Trading that targets only the gaps at the beginning of the week or weekend is generally prohibited
A gap (also known as a window) is a phenomenon that occurs when there is a large price fluctuation in the market, causing a jump in price and creating a blank space on the chart
When this gap occurs, the market becomes highly volatile and risky, so all FX brokers prohibit active trading during this time .
Trading that targets only the timing of economic indicator releases
Trading that targets only the period before and after the release of economic indicators is also prohibited in principle
When highly anticipated economic indicators are released, various expectations from market participants converge, making the market prone to high volatility and irregular price movements .
Such market conditions are high-risk, and overseas forex brokers are more likely to increase their loss compensation through zero-cut policies
Therefore, trading that targets only the timing of economic indicator announcements is prohibited
High-frequency trading puts an excessive load on the server
For individual FX brokers, high-frequency trading that places an excessive load on the server is generally prohibited
High-frequency trading, which places an excessive load on servers, a trading method known as HFT (High Frequency Trading), which involves making large trades in milliseconds .
High-frequency trading (HFT) is a trading method that many institutional investors have adopted in recent years, but it is prohibited by individual FX brokers because it places an excessive load on their servers
Frequently Asked Questions about Scalping in Overseas Forex Trading
Is scalping possible with overseas forex trading?
Yes, scalping is permitted by many overseas forex brokers
What are the characteristics of people who are good at scalping in overseas forex trading?
Those who excel at scalping in overseas forex trading are characterized by their ability to make quick judgments and decisions, and to repeatedly execute trades according to their established trading rules. While these are skills that should be acquired in any trading style, not just scalping, speed of decision-making is especially crucial in scalping
Which overseas forex brokers are recommended for scalping?
The following are recommended brokers for scalping in overseas forex trading
- Exness: Zero Account
- Axi: Elite Account
- Axiory: Nano Account: Terra Account
The overseas forex brokers listed above offer narrow effective spreads (including trading fees), sufficient leverage, and reliable execution speeds ideal for scalping. Furthermore, even within the same broker, account types specializing in low spreads are the most advantageous for scalping and are therefore recommended
Which overseas forex broker is recommended for gold scalping?
For scalping gold in overseas forex trading, Exness is a recommended broker. Exness's Zero Account allows you to trade gold with a minimum spread of 0 pips. Furthermore, you can use unlimited leverage even with an account balance of less than $1,000, making it ideal for those who want to scalp gold with a small amount of capital
Which overseas forex brokers offer the narrowest spreads for USD/JPY?
The following three brokers offer the narrowest spreads for USD/JPY in overseas forex trading
- Exness Zero Account: Average 0.1 pips (0.45 pips including trading fees)
- Axi Elite account: Average 0.5 pips (0.675 pips including trading fees)
- ThreeTrader Raw Zero Account: Average 0.5 pips (0.7 pips including trading fees)
In all cases, the minimum spread for USD/JPY is 0 pips, and the average is narrow at 0.5 pips or less. Note that the transaction fee is a fixed amount and will not expand rapidly like the spread
Which is better for scalping: overseas forex or domestic forex?
When comparing overseas and domestic forex brokers, if your only priority is narrow spreads, domestic forex is a better choice. On the other hand, if you're looking for other advantages such as increased capital efficiency through leverage and zero-cut protection (where losses exceed your account balance), then overseas forex is recommended
Will my overseas forex account be frozen if I engage in scalping?
No, your account will not be frozen due to scalping in overseas forex trading. However, there is a risk of account freezing if the broker prohibits scalping or if you engage in any of the prohibited activities listed below
- Arbitrage
- Hedging across multiple accounts
- Opening multiple accounts
- Trading targeting only the gaps at the end of the week and the beginning of the next week
- Trading that targets only the timing of economic indicator releases
- High-frequency trading puts an excessive load on the server
Transactions that violate the prohibited activities may result in penalties such as account freezing, cancellation of the transaction, or, in the worst case, forced withdrawal from the platform
What are some recommended scalping strategies for overseas forex trading?
For beginners looking to improve their scalping skills in overseas forex trading, we've explained three recommended scalping strategies in " Three Recommended Scalping Strategies for Overseas Forex Trading ." We've introduced the following scalping strategies:
- A scalping strategy targeting round numbers
- A trend-following strategy using Bollinger Bands
- Grid trading strategy using automated trading (EA)
What currency pairs are recommended for scalping in overseas forex trading?
The following currency pairs are recommended for scalping in overseas forex trading
- USD/JPY: High liquidity, stable spreads, and easy to trade
- Euro/Dollar: Often offers narrow spreads in overseas forex markets, making it easier to target small price movements
- Gold: Although it is a CFD instrument, it has high liquidity and high volatility
These trading instruments are recommended because they have narrow spreads and allow for easy use of high leverage
Summary of scalping in overseas forex trading
By choosing an account specializing in low spreads with overseas forex brokers, you can leverage high execution speed and high leverage to perform scalping advantageously
In addition to excellent trading conditions, it's also important to implement a reproducible, strategic trading approach. This article also introduced scalping techniques that even beginners can practice in overseas forex trading
Please use this as a reference for the basics of your strategy, and through practical experience, optimize your methods according to your personality and financial resources, and try to make money with scalping in overseas forex
This article lists brokers suitable for scalping in overseas forex trading.
If you want to focus on scalping, start by considering the brokers listed in this article.
Also, be sure to read the sections on the reasons why you might not be successful in overseas forex scalping and how to improve your chances of winning.
