What are the best forex day trading strategies?

The only limit to a possible day trading strategy is that it must, of course, be short-term and fast-paced, with trades closing the same day. Some of the best forex trading strategies for day trading include automated indicator-based strategies, where a trading signal is generated to buy or sell based entirely on the state of one (or many) market indicators. Other more subjective strategies may use technical analysis involving trendlines and drawing tools or measuring market patterns using formulas like Pivot Points, Fibonacci Retracements, and Elliot Waves. While the technical studies, analysis drawings, or measurements may help in determining when to enter and exit the market, proper position sizing is more dependent on your own goals and should be adjusted to your specific profit targets and appetite or tolerance for risk. In all cases, your strategy must factor in the trade size which will determine the pip value and is relevant for your stop-loss or limit order levels, if entered, and the general risk/reward ratio. For an in-depth exploration of how to develop your own day trading strategy for forex, take a look at my full guide on how to start forex day trading .

When is the best time to day trade forex?

The best time to day trade forex depends on several factors that may be unique to you and the state of the market around the time of your analysis, including the currency pairs you want to trade, the time zone you are located in, and the current market conditions for the underlying currencies. For example, if you are planning to trade the EUR/USD within the next ten minutes but there is a major upcoming economic news event from the U.S. Federal Reserve, that could be the worst time to trade given the potential for market volatility and price gaps, including widening spreads (depending on the broker). On the other hand, focusing on specific forex market hours can be helpful if you want to focus on pairs that are active during a particular trading session, such as during the overlap of the London and New York trading sessions. Check out my forex market hours guide for a deeper dive into this topic.

What is the best forex day trading platform for beginners?

IG is my top choice in 2024 for beginners to day trading thanks to its wealth of educational materials and streamlined web platform and mobile app. IG’s web trading platform in particular is handy for newer day traders due to its excellent balance of advanced features that are easily accessible, such as trading from the chart and managing orders with the drag-to-modify feature. IG also offers a commission-based account, Forex Direct, tailored especially for active traders routinely executing large orders. This account type delivers even more competitive pricing that could be beneficial as your trading volumes grow and you progress into a more advanced day trader.

Are there any fees for day trading forex?

Yes, there are always costs related to forex trading. Even if you are in and out of the market quickly while day trading and exit your trades before the rollover at the end of each trading day, you will still cross the spread or bid/ask prices on each trade, in addition to any per-trade commissions. For example, even if you have a commission-free account, when you place an order to buy currency, the asking price will always be higher than the bidding price if you were to sell again at that exact moment. In other words, once your order to buy is executed at the asking price, the trade is already at a loss for the amount of the spread, which must be overcome to either break even or turn a profit. For these reasons, it’s crucial to factor your trading costs into your strategy, especially for more cost-sensitive trading strategies. This will be true over time even on a so-called zero spread account since on average, after many trades, costs will still add up despite paying close to zero spreads.

Best Brokers for Forex Day Trading of 2024

Written by Steven Hatzakis
Fact-checked by Joey Shadeck
Edited by Jeff Anberg

May 24, 2024

ForexBrokers.com has been reviewing online forex brokers for over six years, and our reviews are the most cited in the industry. Each year, we collect thousands of data points and publish tens of thousands of words of research. Here's how we test.

Forex day trading is a strategy in which traders open and close currency-trading positions within the same day. Day trading creates unique demands on forex traders and the brokers that carry out day trading strategies. Choosing the right broker for your strategy can be the difference between success and failure.

Over the past 25 years, I've day traded millions of dollars in volume across various asset classes, including forex, using both manual and algorithmic day trading strategies. In this guide, I'll explain some of the nuances of forex day trading and help you choose the best broker for your forex day trading strategy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Which forex brokers can I open an account with?

Select your country of residency below to see which regulated forex brokers will accept you as a new customer for trading forex.

Company	Average Spread EUR/USD - Standard	Minimum Deposit	Overall Rating	Visit Site
Interactive Brokers	0.63 info	$0
IG	0.98 info	£250.00
Saxo	1.1 info	$0
CMC Markets	0.61 info	$0
FOREX.com	1.4 info	$100
FXCM	0.78 info	Starts from $50
Charles Schwab	1.25 info	$0