Scalping on a cent account, if such trading makes sense

Every year the number of brokers with cent accounts increases, and even reputable brokerage companies have similar options.

The main purpose of cent accounts is to test new strategies, but at the same time, some traders wonder whether they can be used for scalping.

Indeed, in contrast to standard strategies, scalping has slightly different earnings laws and profits can amount to hundreds and sometimes thousands of percent per month.

Is it really possible to make money on a cent account using scalping, or is this more of a platform for testing a new strategy?

 

If you've decided to make money with scalping, the first thing you should consider is what deposit you'll be trading with and what your goals are

Let's say you want to reach a profitability rate of 1000% in a month. This means that to earn $500, you will need a deposit of $50:

What's the point of using a cent account with $50?

There are many standard accounts available with a minimum trade size of just 0.01 lot or $1,000 when using currency pairs.

This means that using leverage of only 1:100 to open a minimum volume trade on a standard account, you will need about 10 US dollars.

That is, it can be said that if you want to make money on scalping, then there is no particular point in using a cent account for this purpose, since an amount of $50 is quite enough for scalping on regular accounts.

At the same time, everyone understands that trading conditions on standard, pro, and ecn will always be better than on cent accounts, which means you can earn much more on standard accounts, because every point of the spread matters when scalping.

At the same time, if you simply want to perfect your scalping strategy without incurring significant losses, then using cent accounts is a no-brainer.

Since the minimum trade volume on a cent account can be as low as $10, this means that by using a leverage of 1:100, you can open a trade with a deposit of only $0.1.

That is to say, a couple of dollars is enough for scalping on a cent account, although you won’t be able to make much money with this amount.

Brokers with cent accounts - https://time-forex.com/centovye-brokery