The two most fundamental things you need to succeed in forex trading is a profitable strategy and a great forex broker. You do everything on the platform of the broker, from creating accounts to execute orders. And without a good strategy, how can you even make money from forex? Today we will show you the most basic strategies in the forex market as well as the very best forex brokers based on our experiences. Enjoy!
As for the question of what is the best trading strategy? Really this question does not have a single answer. The reason why? The best forex trading strategies will suit each individual. What's good with others, can sometimes be disastrous for you.
On the other hand, there are strategies that are sometimes unsuitable for others but can help you trade effectively. So test different trading strategies on the market to find the trading strategy that's right for you. During the test period, you can completely refine and change the method so that it is the most reasonable and effective.
There are many types of forex trading styles, from short to long term trading styles. You need to be aware of which trading style you are going to find out which trading strategy is right for you. Here are the most popular trading styles:
This is the style of trading in the short term, it is possible for orders to start and end in minutes. Scalping traders often try to overcome the cost of bid / ask spreads to earn a few profit points before closing a trade. Scalping is the most basic and common trading strategy for beginners and new traders.
This means transactions within a trading day. This is the trading style in which trading positions will be closed before the end of the trading day. This style of trading eliminates the possibility of bad price movements affecting overnight orders while avoiding the avoidance of overnight interest rates (Swap). Daytrading-style traders usually only hold positions within a few hours and commonly used time frames can be 1 minute, 2 minutes, and 5 minutes.
This is a style of trading held within a few days, whereby traders are aiming to profit from short-term trades. Swing-style traders often focus on 30-minute, 1-hour time frames.
Investors often prefer this style of trading, with this style you will keep trading orders in the long term and seek profit from large changes of price. The position trading style requires traders to be patient, disciplined and also requires a good amount of knowledge about the fundamentals of the market.
After a lot of tests, research, and surveys we conducted on our own, here are the 3 forex brokers that we think are the top fliers in the market:
Yes, of course you can scalp when trading with Exness. In fact, Exness is quite suitable for scalping as well. When you’re scalping, you will need brokers with low spreads because spread is the only obstacle from your profits. Exness offers very low spreads for the main currency pairs, at around 0.7 pip. That means Exness is a very suitable forex broker for scalping.
XM used to have very wide spreads so you must think scalping is not suitable for this broker. Actually, in the beginning of 2019, XM presented the Ultra Low account. This is a regular account with very tight spreads, sometimes even 0.6 pip. Thanks to this Ultra Low account, trades can absolutely scalp with XM forex broker.
Actually, no. HotForex doesn’t have as low spreads as Exness or XM. Instead, this broker has very low swap and slippages. And you know which trading strategy needs low swap. HotForex is a totally suitable forex broker for day trading, not one of the brokers allow scalping.