Scalping and hedging are two advanced trading strategies that require specific broker conditions. Not all forex brokers allow these strategies, so traders must carefully evaluate broker policies, execution speed, spreads, and trading platforms before making a choice.

Understanding Scalping and Hedging

Scalping

Scalping is a high-frequency trading strategy where traders open and close multiple positions within seconds or minutes to capture small price movements. This requires:

• Ultra-low spreads (preferably 0.0 pips on major pairs)
• Fast execution speed (low latency to avoid slippage)
• No trading restrictions (no minimum holding time)
• ECN/STP brokers (for direct market access)

Hedging

Hedging involves opening opposite positions on the same or correlated currency pairs to minimise risk exposure. This requires:

• No hedging restrictions (some brokers disable hedging for retail accounts)
• Low margin requirements (so traders can hold multiple positions)
• Flexible leverage options
• MT4/MT5 platforms with one-click hedging tools

Key Factors to Consider When Choosing a Broker for Scalping and Hedging

1. Regulation and Security

Choose a broker that is regulated by a recognised financial authority to ensure transparency and fund security. Trusted regulators include:

• FCA (UK) – Financial Conduct Authority
• ASIC (Australia) – Australian Securities and Investments Commission
• CySEC (Cyprus) – Cyprus Securities and Exchange Commission
• CFTC & NFA (US) – Commodity Futures Trading Commission & National Futures Association

2. Trading Platforms and Execution Speed

For scalping and hedging, brokers must provide a fast and stable platform. Look for brokers offering:

• MetaTrader 4 (MT4) & MetaTrader 5 (MT5) – Best for automated scalping and hedging strategies
• cTrader – Ideal for professional traders who need advanced execution tools
• Proprietary platforms – Some brokers offer their own trading platforms with scalping-friendly features

3. Spread and Commission Structure

Scalping strategies work best when trading costs are low. Look for brokers with:

• Raw spreads starting from 0.0 pips on major pairs
• Low commission per trade (e.g., $3 per lot per side)
• No hidden fees or markups on ECN accounts

4. Leverage and Margin Requirements

For scalping and hedging, traders often require higher leverage to open multiple positions. Broker leverage options vary by jurisdiction:

• ESMA-regulated brokers (EU/UK) – Max 1:30 leverage
• ASIC-regulated brokers – Max 1:500 leverage
• Offshore brokers – May offer up to 1:1000 leverage

Ensure the broker has reasonable margin requirements, especially for hedging trades.

5. No Dealing Desk (NDD) Execution

A No Dealing Desk (NDD) broker ensures direct market access with minimal interference. Scalping and hedging work best with:

• ECN (Electronic Communication Network) execution
• STP (Straight Through Processing) model
• No requotes or slippage on high-volume trades

6. Risk Management and Account Flexibility

Hedging strategies need brokers with flexible account settings that allow:

• Holding long and short positions simultaneously
• Partial close of hedged positions
• No restrictions on lot sizes

7. Customer Support Availability

Since scalping and hedging require quick execution, brokers should offer 24/7 customer support via:

• Live chat
• Phone support
• Email assistance

Top Forex Brokers That Allow Scalping and Hedging

1. Intertrader

• FCA-regulated with tight spreads and no dealing desk execution
• Allows both scalping and hedging
• Offers MT4 with fast order execution

2. TiBiGlobe

• ASIC-regulated with ultra-fast execution
• No restrictions on scalping and hedging
• Provides high leverage up to 1:500

3. Vantage

• ECN/STP execution with spreads from 0.0 pips
• Hedging and scalping allowed with no restrictions
• Low commission structure for high-volume traders

4. AvaTrade

• Regulated by FCA, ASIC, and CySEC
• Supports hedging and algorithmic scalping strategies
• Negative balance protection for risk management

5. Markets.com

• Tight spreads with zero commission accounts
• Hedging and scalping-friendly broker
• Proprietary trading platform with automated trading tools

6. IC Markets

• Best broker for scalpers with 0.0 pips spreads
• Allows unrestricted hedging
• ECN execution with ultra-low latency

7. FP Markets

• ASIC-regulated broker with STP execution
• Ideal for both scalpers and hedgers
• Supports algorithmic trading on MT4/MT5

8. Eightcap

• Scalping and hedging allowed on all accounts
• Low trading fees and deep liquidity
• Strong risk management tools

9. HFM (HotForex)

• No dealing desk execution with negative balance protection
• Scalping and hedging supported
• MT4 and MT5 trading available

10. RoboForex

• Hedging-friendly broker with high leverage options
• Tight spreads for scalpers
• Supports copy trading and automated strategies

11. Pepperstone

• Ideal for scalping with fast ECN execution
• No minimum holding period on trades
• Hedging allowed on all accounts

12. Tickmill

• Best for professional traders who use scalping
• FCA-regulated with commission-based ECN accounts
• Supports hedging on all instruments

13. Admiral Markets (Admirals)

• Scalping and hedging-friendly broker
• Tight spreads and strong risk protection
• FCA and ASIC regulated

14. FXTM

• Fast execution with low-cost scalping accounts
• Allows hedging on forex and CFDs
• MT4 and MT5 support

15. XM

• No requotes with instant execution for scalping
• Hedging allowed on all accounts
• Strong regulatory oversight

Final Thoughts

When choosing a forex broker for scalping and hedging, prioritise low spreads, fast execution, and unrestricted trading policies. Brokers like Intertrader, TiBiGlobe, Vantage, AvaTrade, and Markets.com provide ideal conditions for both strategies.

Ensure your broker offers ECN/STP execution, flexible leverage, and a robust trading platform to maximise trading efficiency. Always check regulatory compliance and customer support availability before selecting a broker for scalping or hedging.