A Complete Guide to Scalping on FXGT: Including a Thorough Explanation of Risks and Disadvantages

Scalping is a trading method that involves repeatedly buying and selling within a short period of time, ranging from a few seconds to a few minutes, in order to accumulate small profits

While it may seem unremarkable since the goal isn't to make huge profits in a single trade, you can aim for stable returns by increasing the number of trades

Furthermore, while not all FX brokers recommend scalping, FXGT allows scalping trading

This article explains the advantages, disadvantages, and risks of scalping on FXGT in an easy-to-understand way for beginners .

This article also explains important points and prohibited actions regarding scalping on FXGT , so please refer to it.

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What is the scalping technique?

Scalping is a short-term trading method that involves accumulating small profits over a short period of time, ranging from a few seconds to a few minutes .

When trading using scalping techniques, you may make dozens or even hundreds of trades in a single day

Even if the profit from a single trade is small, the goal is to accumulate substantial profits by making multiple trades

Scalping requires high concentration and quick decision-making in order to capture small price movements in the market

Mastering this technique allows you to aim for stable profits while minimizing market fluctuation risks

Another advantage is that the trading time is short, which means less mental stress

A thorough explanation of scalping techniques in overseas forex trading | Easy-to-understand and highly reproducible strategies

FXGT does not have restrictions on scalping trading

FXGT does not impose any special restrictions on trading using scalping techniques.

This is an important point for scalping traders who make many trades in a short period of time

Some overseas forex brokers prohibit or severely restrict scalping

However, FXGT has no restrictions, allowing you to focus on scalping trading with peace of mind

Furthermore, since scalping using EAs (Expert Advisors) is officially permitted, FXGT is also recommended for those considering high-speed trading using programs

However, since the conditions are not the same for all account types, it is important to check the specifications for each account type in advance, such as stop levels

Advantages of using scalping strategies on FXGT

The main advantages of using scalping strategies on FXGT are the following six:

1. Bonuses are available
2. Less susceptible to market fluctuations
3. They offer a wide selection of low-spread accounts
4. You can trade without worrying about swap points
5. Scalping is possible with automated trading (EA)
6. With leverage up to 5,000 times, it's easy to make money with a small amount of capital

Understanding the above advantages will allow you to utilize them for scalping on FXGT

Bonuses are available

One of the advantages is that you can use bonuses

offers a variety of bonus campaigns, including account opening bonuses and deposit bonuses, as listed below

campaign	Bonus details	Applicable account types
Account opening bonus	10,000 yen	Optimus account
First deposit bonus	100% of the deposit amount (maximum payable of 50,000 yen)	Standard+ Account, Mini Account, CryptoMax Account
Loyalty Bonus	25% of the deposit amount (maximum payout of 700,000 yen)	Standard+ Account, Mini Account, CryptoMax Account

The bonus mentioned above is useful for scalping trading

For example, using a deposit bonus allows you to trade with more margin than your own capital

Therefore, you can enter trades with larger lot sizes or manage your positions with more leeway

Many overseas forex brokers may have restrictions on combining scalping and bonuses, but this is not an issue with FXGT

Less susceptible to market fluctuations

The second advantage is that it is less susceptible to market fluctuations

Scalping allows trades to be completed in a short period of time, from a few seconds to a few minutes, thus minimizing the impact of rapid market fluctuations.

Unlike strategies that involve holding positions for extended periods, this approach offers the advantage of avoiding the risk of unexpected and significant price fluctuations caused by sudden news or economic indicator announcements

A stable trading environment like FXGT makes it easier to accurately capture small price movements, allowing you to take advantage of the benefits of scalping techniques

They offer a wide selection of low-spread accounts

The third advantage is the wide selection of low-spread accounts

FXGT offers several account types with low spreads that are ideal for scalping, as follows:

Account type	Standard+ Account	PRO account	ECN Zero Account
Minimum spread	1.0 pips ~	0.5 pips ~	0.0 pips ~
Transaction fees	none	none	Yes (6 dollars round trip/lot)

In particular, ECN Zero accounts allow for trading with narrow spreads

In scalping, small profits are accumulated, so the spread (transaction cost) directly impacts the profit .

The narrower the spread, the more advantageous the trade becomes for the trader

Therefore, the wide range of account types offered by FXGT is a major attraction for scalping traders who want to pursue profits efficiently while keeping costs down

FXGT's Spread List for All Instruments | Thorough Investigation of Spreads by Time of Day and Account Type

You can trade without worrying about swap points

The fourth advantage is that you can trade without worrying about swap points

Swap points are interest rate adjustments incurred when a position is carried over to the next day

In scalping, positions are held for only a few minutes at most, so swap points are rarely incurred.

Therefore, you can avoid the risk of losses due to swaps that can occur when holding a position overnight

This offers significant advantages, both psychologically and financially, when trading currency pairs that are prone to negative swaps

Scalping is possible with automated trading (EA)

The fifth advantage is that you can do scalping using automated trading (EA)

FXGT allows scalping using automated trading programs called EAs (Expert Advisors)

Using an Expert Advisor (EA) allows you to automate high-speed trades that would be difficult to perform manually, eliminating human emotions and judgment errors.

FXGT officially allows scalping using automated trading systems

However, in order for EA to function properly, it is important to prepare the environment, such as considering the use of a VPS (Virtual Private Server)

An introduction to automated trading (EA) in overseas forex! We explain how to get started and introduce free MT4/MT5 EAs

With leverage up to 5,000 times, it's easy to make money with a small amount of capital

The sixth advantage is that it's easy to make money with a small amount of capital thanks to leverage of up to 5,000 times

FXGT allows trading with high leverage of up to 5,000 times .

Because scalping yields small profits per trade, it's necessary to secure a certain trading volume (lot size)

By using high leverage, you can trade large lots with a small amount of margin, allowing you to scalp while improving capital efficiency

Therefore, it expands the possibility of aiming for substantial profits even with small amounts of capital, which is a great advantage for traders who do not have much money to spare

Complete Guide to FXGT's Leverage | Explanation of Restriction Changes and Regulations by Account Type

Risks and disadvantages of using scalping strategies on FXGT

The main disadvantages of using scalping strategies on FXGT are the following three:

1. Sometimes you lose money due to the spread
2. Stop level zero is only available on ECN Zero accounts
3. ECN Zero and PRO accounts, which have narrow spreads, are not eligible for bonuses

Understanding the disadvantages mentioned above will allow you to trade more cautiously, so please keep this in mind

Sometimes you lose money due to the spread

One of the disadvantages is that you may lose money due to the spread

Scalping is a trading method that involves accumulating profits from small price movements

However, if the spread widens too much, profits can be eaten up by the spread, potentially resulting in a loss known as "spread loss."

In particular, spreads tend to widen during periods of low liquidity, such as when economic indicators are released or in the early morning, so it is important to be careful about the timing of your trades

Stop level zero is only available on ECN Zero accounts

The second disadvantage is that a stop level of zero is only available with an ECN Zero account

The stop level is a value that indicates how far from the current price limit orders and stop-loss orders need to be set

If the stop level is zero, you can place an order very close to the current price, which is advantageous for scalping, a strategy that aims to profit from small price movements

However, at FXGT, the only account with a stop level of zero is the ECN Zero account .

Other account types have stop levels set, which may slightly limit the flexibility of scalping

ECN Zero and PRO accounts, which have narrow spreads, are not eligible for bonuses

The third disadvantage is that ECN Zero and PRO accounts, which have narrow spreads, are not eligible for bonuses

Account types with low spreads that are ideal for scalping, such as ECN Zero and PRO accounts, are often excluded from the generous bonus campaigns offered by FXGT

Therefore, this is a disadvantage for traders who want to make the most of their bonuses

Whether to prioritize low spreads or bonuses depends on your own trading style and financial situation.

Recommended account types for scalping on FXGT

The following three account types are recommended for scalping on FXGT:

1. PRO account
2. Standard+ Account
3. ECN Zero Account

Scalping involves a high number of trades, and since transaction costs directly impact profits, minimizing spreads is crucial

Each account type offered by FXGT has different features, so choose the account that best suits your trading style and financial situation

FXGT's Complete Account Type Comparison Guide | A Thorough Explanation of Recommended Account Types

PRO Account

The first account type is the PRO account

FXGT's PRO account offers industry-leading narrow spreads on major currency pairs, minimizing trading costs.

Scalping is a trading method that relies on capturing small price movements to accumulate profits, so a narrow spread is a significant advantage

However, a disadvantage of PRO accounts is that bonuses are not available

Therefore, choose one that suits your trading style and financial situation

Standard+ Account

The second account type is the Standard+ account

The Standard+ account is the basic account type offered by FXGT

While the spreads aren't as tight as with PRO or ECN Zero accounts, you 'll be eligible for bonus campaigns such as the first deposit bonus and Loyalty bonus,

campaign	Bonus details
First deposit bonus	100% of the deposit amount (maximum payable of 50,000 yen)
Loyalty Bonus	25% of the deposit amount (maximum payout of 700,000 yen)

By taking advantage of these bonuses, you can start trading with more margin while keeping your own capital low

This is recommended for beginners who want to try scalping while minimizing risk by using bonuses

ECN Zero Account

The third account type is the ECN Zero account

boasts the narrowest spreads among all the account types offered by FXGT

Because spreads are offered at near-zero levels, you can focus on scalping without worrying too much about trading costs

Furthermore, the stop level is set to zero, limit and stop-loss orders can be placed very close to the current price, increasing the flexibility of scalping.

However, please note that ECN Zero accounts, like PRO accounts, are not eligible for bonus campaigns

Points to note when using scalping strategies on FXGT

When scalping with FXGT, it is important to understand the following points

1. There are different stop levels for each account type
2. Leverage limits vary depending on the account balance
3. Engaging in prohibited transactions may result in your account being frozen

To ensure safe trading, please review the above points

There are different stop levels for each account type

One important point to note is that there are different stop levels for each account type

At FXGT, stop levels vary depending on the account type

In scalping, stop levels are important because you are trying to capture even small price movements

Among FXGT's account types, only the ECN Zero account has a stop level of zero; all other account types have a stop level set.

Therefore, when scalping, consider using an ECN Zero account, or if using another account, develop a trading strategy that takes stop levels into account

Why is it necessary to compare stop levels in overseas forex trading? A comparison chart is also provided

Leverage limits vary depending on the account balance

The second point to note is that leverage limits vary depending on your account balance

FXGT offers high leverage of up to 5,000 times

However, FXGT's leverage is gradually restricted as your account balance increases, as follows:

Effective margin level (USD)）	Maximum leverage
0～1,000	5,000x leverage (Optimus account, conditional) 2,000x leverage (PRO, ECN Zero, Standard+, Mini accounts, conditional)
0～3,000	2,000x leverage (Optimus account, default) 1,000x leverage (PRO, ECN Zero, Standard+, Mini accounts, default)
3,001～5,000	1,000 times
5,001～10,000	500 times
10,001～30,000	200 times
30,001～100,000	100 times
100,001～	50 times

If you accumulate profits through scalping and your account balance increases, your leverage will be restricted. Therefore, it is necessary to understand the leverage restrictions in advance and create a fund management plan .

Complete Guide to FXGT's Leverage | Explanation of Restriction Changes and Regulations by Account Type

Engaging in prohibited transactions may result in your account being frozen

The third point to note is that there are different stop levels for each account type

While scalping itself is permitted at FXGT, malicious trading practices that violate the guidelines are prohibited.

For example, this includes hedging across multiple accounts or trading that abuses the zero-cut system

Engaging in these prohibited transactions may result in severe penalties, such as account freezing or withdrawal refusal, without prior warning

By reviewing FXGT's terms of service beforehand and striving to trade in accordance with the rules, you can continue scalping safely

Prohibited actions when using scalping strategies on FXGT

While scalping itself is permitted at FXGT, the following trading activities are prohibited:

1. Hedging transactions between different accounts
2. Arbitrage (discretionary trading)
3. Unscrupulous transactions targeting window opening and window closing
4. Transactions aimed at implementing a zero-cut system

Violating the above prohibited actions may result in severe measures such as account freezing or refusal of withdrawals, so it is important to understand them thoroughly beforehand

Hedging transactions between different accounts

The first prohibited activity is hedging across different accounts

Hedging is a trading strategy in which you simultaneously hold both a "buy" and a "sell" position in the same currency pair

FXGT allows hedging within the same account, but hedging across multiple accounts is prohibited .

For example, holding a buy position in account A and a sell position in account B would be a violation of the terms of service

Even if unintentional, having multiple accounts requires caution

Arbitrage (discretionary trading)

The second prohibited activity is arbitrage (discretionary trading)

Arbitrage is a trading strategy that attempts to profit by taking advantage of price differences and latency (delays in transactions) between different brokers .

FXGT prohibits intentional arbitrage trading

In particular, transactions that exploit delays in the communication environment are considered malicious acts and are subject to severe penalties

Scalping requires high-speed trading, but you should absolutely avoid any actions that intentionally exploit system vulnerabilities

[Overseas Forex] Is Arbitrage Profitable? A Beginner-Friendly Explanation of Methods and Prohibited Practices

Unscrupulous transactions targeting window opening and window closing

The third prohibited activity is malicious trading that aims to exploit gaps in the market (opening or closing gaps)

Gap opening and gap filling refer to the phenomenon where prices start with a large gap after the market is closed for the weekend or during periods of low liquidity

FXGT prohibits malicious trading practices that exploit these "gaps" to profit from sudden price fluctuations

For example, holding a position over the weekend and aiming for a large profit from a gap opening at the start of the week may violate the terms of service, so please be careful

Transactions aimed at implementing a zero-cut system

The fourth prohibited activity is trading with the aim of utilizing the zero-cut system

FXGT employs a "zero-cut system" that prevents margin calls even if your account balance goes negative

This system is designed to reduce the risk of losses for traders

However, it is prohibited to exploit the zero-cut system by intentionally trading with large lot sizes to induce forced stop-loss orders and profit from them

Please note that transactions like those described above may be considered a violation of the terms and conditions and could result in your account being frozen

Frequently Asked Questions about Scalping on FXGT

This Q&A addresses common questions that traders have about scalping on FXGT

1. Can I trade cryptocurrencies on FXGT even on weekends?
2. Are there any restrictions on scalping on FXGT?
3. Can I use automated trading (EA) for scalping on FXGT?
4. What account type is recommended for scalping at FXGT?

Please review the above information and use it as a reference to resolve your own questions

[Summary] Scalping on FXGT

This article provides a detailed explanation of scalping on FXGT, including its advantages, disadvantages, and points to be aware of

FXGT offers an environment conducive to scalping, with no restrictions on scalping trades, the ability to utilize bonuses, and a wide range of low-spread accounts

On the other hand, there are some points to be aware of beforehand, such as the risk of losing money due to spreads, differences in stop levels depending on the account type, and leverage restrictions based on the account balance

In particular, adhering to prohibited practices such as hedging across multiple accounts and abusing the zero-cut system is essential for continuing to trade safely

At FXGT, it's important to choose the account type that best suits your individual trading style

Take advantage of FXGT's benefits, understand its drawbacks, and thoroughly manage your risks

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