Building Automated Trading Strategies October 2018 | Page 53

APPENDIX
(1) SELECTING BROKERS FOR AUTOMATED TRADING
The Importance of Choosing the Right Forex Broker
If you decide to implement an intraday automated trading strategy (i.e.
scalping) you should choose a very competitive Forex broker. Some Forex
brokers even forbid scalping, so be extra careful with that.
These are some basic factors determining the ideal Forex Broker for intraday
trading:
1. Tight Spreads
Tight spreads are very important to trade Forex in the short-term. When your
target profit is just 3-5 pips the difference between 0.5 and 2.0 spread is
huge.
2. Fast Execution
High execution delay can catastrophically disturb short-term trading. That is
why you should be after only No-Dealing Desk Brokers. A NDD broker is
either an ECN or a STP broker.
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