Is IC Markets Good For Forex Scalping?
I’ve been scalping the forex market professionally for some time now, I’ve used allot of different forex brokers and discovered each broker to have advantages and disadvantages. Several of the forex brokers that I have trading accounts with are FXCM, Go Markets and IC Markets. As a day trader I find it tough to find a broker that will allow me to buy and sell over news announcements this is why I’ve 3 brokers.
I have written this brief appraisal to share my opinions of each of these forex brokers and assist other people to make an educated choice when choosing the top forex broker for their day trading and scalping strategies. Below is a rundown of my forex trading experience with every of my three brokers over the numbers.
“No Dealing Desk” this is the FXCM catch phrase, yes I’m sure that they do not have a dealing desk but the truth is these days not many brokers do, most hedging is automated. Getting more to the point FXCM are really not a bad forex broker, however they’re better suited to novices rather than serious traders and scalpers. Over news periods their spreads blow out wildly, on one occasion I saw a spread of 12 points on the AUD/USD, this is certainly crazy given it’s usually offered on around a 2 pip spread. These kind of spread blow-outs make it almost impossible to employ any kind of aggressive forex scalping plan with FXCM.
Are they an ECN or just another “STP” broker?, this is the question that I asked myself when I initially started forex trading with IC Markets, at first I thought that they were just another so called “STP” forex broker but when I saw zero spreads I did some research and discovered that they’re in fact an “ECN”. To test it for myself I increased my lot size to 10 standard lots and much to my astonishment my orders were processed instantaneously at the price quoted on the screen. I still was not satisfied so I made a decision to examine their spreads over non-farm payroll and I was very impressed with what I saw. The spread on the EUR/USD stayed around 0.5 – 1 pips this was very different to what I noticed on the two other brokers platforms that I had running at exactly the same time. If you are a frequent trader or forex scalper you actually can not get better then a 0.5 – 1 pip spread on EUR/USD over non-farm payroll.
Go Markets are an extraordinary mob, they state that they have tight spreads but it is meaningless marketing tight spreads if you are not able to trade on them. I put this to the test and tried trading 10 standard lots when their EUR/USD spread was 0.6 pips, and as I expected the trade hung on the screen and didn’t execute, about 30 mins later on I traded one mini-lot and the deal was processed without any troubles. I then decided to put this forex broker to the test over non-farm payroll, as I thought their spread in EUR/USD blew out to 10 pips, I didn’t even bother attempting to trade on this outrageous spread.
If you are trading micro or mini lots I’m certain that any one of these brokers will be okay however if you are looking to trade over the numbers or actively scalp the market my advice would be to deal with a forex broker like IC Markets who provide a true ECN model. You actually cant go wrong with an ECN forex broker as your guaranteed, tight spreads, best execution and deep liquidity over the numbers.