Is the popular gold scalping trade method recommended for overseas FX brokers such as XM? We will introduce and explain the advantages and disadvantages. Gold scalping in overseas FX is a super short-term trading strategy that targets fluctuations in the price of gold, and is particularly used in gold trading in the FX market. In this article, we will explain in detail the basics of gold scalping, its advantages and risks, strategies, and important points to note.
What is gold scalping?
Scalping is a type of ultra-short-term trading that takes place over a few seconds to a few minutes, and is a method of taking advantage of small price fluctuations to make a profit. Gold scalping is the application of this strategy to gold trading. In the FX market, gold is traded as a currency pair such as “XAU/USD”, and scalping aims for small price movements of about 1 to 10 pips. It mainly takes advantage of high volatility and accumulates small profits by repeating transactions.
Advantages of gold scalping
Here are some advantages of gold scalping. Use indicators to find opportunities. There are MTs both in Japan and overseas, and scalping trades are possible with EAs and 1-minute charts. Compare the features as you use them. When entering the market, be more conscious of pips than anything else. If a trend emerges in one day, you can make a profit by entering a lot, but if the trend reverses, you will need to immediately cut your losses. The key for beginners to make money is to find rising and falling markets as follows.
High volatility
Gold is strongly influenced by the global economy and geopolitical risks, so its price often fluctuates widely. This makes it an asset suitable for scalping. It is important to fully determine how to use it and the rules before making money. If the liquidity is high on average, whether buying or selling, you may incur large losses. It is better to accumulate knowledge and make money in a range. There is also compatibility. Keep trading costs low over the long term and find opportunities.
24-hour trading
The FX market is open 24 hours a day, and gold in particular is prone to large movements during the opening hours of the Asian, European, and American markets. This allows traders to trade according to their own lifestyle. It costs money, but there are plenty of real opportunities. First, try trading with US dollars or Japanese yen in a standard account. Professionals also consider swap points when entering.
You can start with a small amount of capital
By using leverage from 100x, you can make large trades with a small amount of margin, so it is easy to start trading even with a small amount of capital. Later, choose an account with the best specifications, perform technical analysis of highs and lows, and be sure to start with a small amount. USD/JPY and EUR/USD are recommended. Therefore, even among major pairs, pound sterling is dangerous. It is better to choose a pair that you can predict and calculate and aim for slowly. As a result, you will be able to earn money in a stable state.
Quick profit confirmation
Scalping settles positions in a short time, so there is less time for risk to be exposed to large price fluctuations, and profits can be confirmed quickly. Forex companies also publish news on their official websites. Avoid entering before and after the announcement of indicators. It is a good idea to adjust the lot according to the level and to have a clear line to stop at. If there is no rebound and the price range is large, a trend will emerge, so entering at the rebound is dangerous.
Risks and points to note
There are also risks and points to be aware of. You need to specifically assume trend lines and draw programs such as moving averages and be aware of them. You need to take economic indicators into account when trading. Eventually you will be able to make many trades with a margin, so it’s important to get used to it. Even if you have some expectations, you should also expect pessimistic results. Once you are able to maintain your funds, they will gradually increase.
Effect of spread
In scalping, profits are small, so if the spread (the difference between buying and selling prices) is large, it will cut your profits. It is important to choose a reliable broker and ensure a trading environment with low spreads. If the spread widens too much, you may be forced to cut your losses. It is important to have a narrow spread unit in order to maintain a relationship where you can maintain profits and losses. Be careful, as precious metals tend to move quite repeatedly based on emotions.
Mental stress
Since multiple trades are made within a few seconds to a few minutes, high concentration and quick decision-making are required. The more trades you make, the greater the mental burden becomes, and you may not be able to make calm decisions. Many people are concerned about when the price will rise or fall, and in which direction it will break out. Whether it’s rising or falling, you need to think about the pattern and predict all of these things from the beginning.
Risk management is important
Scalping involves trading positions multiple times in a short period of time, so if a single loss becomes large, a lot of profit is required to cover it. Risk management is very important, and it is necessary to accurately determine the timing of loss cuts. When you start, always decide in real time what to do when looking at long-term time periods such as 1-hour or 4-hour charts. Liquidity is generally high, so it is necessary to look at it from a long-term perspective as well.
Leverage risk of overseas FX
Overseas FX companies often offer higher leverage than domestic companies, but high leverage also increases risk. Especially with highly volatile products such as gold, unexpected movements can cause large losses.
Scalping strategies
The following are recommended scalping strategies. Of course, you can use indicators, but trader blogs are also easy to read and helpful. If you want to make money in a short time, invest in currency pairs and CFDs, taking swaps into account. Strategies and categories change quite a bit depending on the time of day, so I’ll check it out later.
Short-term chart analysis
Scalping involves analyzing minute price fluctuations using short-term charts such as 1-minute and 5-minute charts. Technical indicators that are often used include moving averages (MA), Bollinger bands, and RSI. MT is by far the most powerful because it can be easily added from the home page. By repeating this process in the same way, you will become accustomed to managing it. Once you have a track record, you will gain confidence when it comes to taking profits. Once you find value in it, you will be able to use it efficiently and freely.
Instant reaction to news
Gold reacts sensitively to economic indicators and geopolitical risks, so it is important to catch the news quickly and respond to sudden changes in price. For example, US employment statistics and inflation indicators can have a significant impact on gold prices. These combinations are the factors that cause the market to move. In some cases, the market may move instantly due to emergencies, so it is best to respond a little ahead of time for the sake of safe assets. It is necessary to continue to understand this in order to increase your chances of success in the industry over the long term.
Utilizing risk management tools
When scalping, stop-loss orders are essential to minimize losses. Set your loss tolerance in advance and use tools that automatically close positions. Risk management according to your balance is necessary. Do not engage in any prohibited activities.
Recommended overseas FX brokers
The important thing in gold scalping is to choose a reliable broker with a good trading environment. It is a good idea to select a broker based on the following criteria.
Low spread: The narrower the spread, the more advantageous it is for scalping.
Execution speed: Does it offer a high-speed execution environment?
Reliability: Make sure there are solid regulations and that customer assets are properly protected.
XMTrading
XM actually has three companies. When you search online, you will find three hits: XM.com, XMtrading.com, and XMGlobal. Among them, XMTrading offers a comfortable environment for Japanese users, and is highly recommended as it has KIWAMI and Zero accounts.
| Brand name | XM | XMTrading | XMGlobal |
| Operating company | Trading Point Holdings LTD | Tradexfin Limited | XM Global Limited |
| URL | www.xm.com | xmtrading.com | xmglobal.com |
| location | Cyprus | Seychelles | Belize |
| license | FCA、ASIC、CySEC | FSA | IFSC、DFSA、ASIC、CySEC |
| Service Countries | Europe | Asia | others |
FXGT
FXGT is a relatively new FX company established in 2019. The operating company is 360 Degrees Markets Ltd., with a registered address in the Republic of Seychelles. Originally, they also offered services called Global GT and Crypto GT, but they were merged into FXGT in 2023. Of course, they also have a financial license, so you can rest assured that they have a high reputation among people. In the past, they have added many bonuses, and they are a good deal as they are a top-ranked broker.
| Operating company | 360 Degrees Markets Ltd. |
| Registered address | セーシェル共和国 Room 12, First Floor, Kingsgate House, Victoria, Mahe, Seychelles |
| Financial License | FSA: Seychelles Financial Services Authority |
| Established | 2019 |
Axiory
Axiory is an overseas FX broker established in 2015 by Axiory Global Ltd. Axiory is headquartered in Belize and incorporated as a “tax haven”. It has obtained the IFSC license from the Financial Services Agency of the Belize International Financial Services Commission, making it a very reliable and safe FX broker.
| Operating company | Axiory Global Ltd. |
| Established | 2015 |
| location | No. 1 Corner of Hutson Street andMarine Parade Belize City, Belize |
| Financial License | IFSC: Belize International Financial Services Commission |
Bigboss
BigBoss is an FX company established in 2013. It is based in Saint Vincent and the Grenadines and is operated by Prime Point LLC. It has a good reputation among traders and has not experienced any major problems or withdrawal refusals, so it can be said to be a very reliable company.
| Company | Prime Point LLC |
| Found | 2013 |
| Address | 1/F, First St Vincent Bank Ltd Building James Street Kingstown St. Vincent and the Grenadines |
| License | SVG FSA |
easyMarkets
easyMarkets was founded in 2001, making it by far the oldest company among overseas FX brokers. It is operated by EF Worldwide Limited, and is an FX broker based in the Marshall Islands. The Marshall Islands are a tax haven, so they tend to be the base of FX brokers.
| Operation Company | EF Worldwide Limited |
| Address | Ajeltake Road, Trust Company Complex, MH 96960, Ajeltake Island, Majuro, Marshall Islands. |
| License | CySEC,ASIC,FSA,FSC |
| Found | 2001 |
| URL | Click here |
Exness
Exness is a world-famous FX brand founded in 2008 with global expansion. It is a multinational corporate group that has obtained official financial licenses in multiple countries, including European and overseas subsidiaries and affiliates. As of April 2022, it boasts a trading volume of over 2105 trillion dollars.
| Operating company | Exness Limited |
| Registration number | 8423606-1 |
| Country of registration | Japan-Seychelles Relations |
| Company Address | 9A CT House, 2nd floor, Providence, Mahe, Seychelles |
| Established | 2008 |
| Number of Employees | 1054 |
| URL | Home Page |
| telephone number | (+248) 4346767 |
| email address | support@exness.com |
| Financial License | Seychelles Financial Services Authority |
FBS
FBS is an FX broker based in Vanuatu. Founded in 2009, it is a FX broker with a long history of operation. It has successfully expanded globally and has branches all over the world. It also has a financial license. It is well-known among overseas FX brokers, and deposits and withdrawals are safe.
| Operation Company | Mitsui Markets Ltd. |
| Established | 2009 |
| Address | 133 Santina Parade, Elluk, Port Vila, Efale, Vanuatu |
| License | VFSC、IFSC、CySEC |
HFM
The company profile of HF Markets is as follows. The company name has always been Hot Forex, but it changed to HFM in 2022. HFM is a very popular company, especially in Europe, and has won more than 60 awards, so it is very popular and well-known.
| Company Name | HF Markets(SV)Ltd |
| CEO | – |
| Found | 2010 |
| Address | Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont Kingstown, St. Vincent and the Grenadines. |
| Capital Stock | ? |
| Number of employees | 250 |
| support@hfm.com | |
| Licence | IBC No: 22747 IBC 2015 St. Vincent and the Grenadines |
| URL | Home Page |
iForex
iForex is a very long-established FX company, and this alone makes it trustworthy. The operating company is Formula Investment House Ltd, which was established in 1996, so it has a history of 30 years. It is based in the British Virgin Islands and has a financial license registered with the Financial Services Commission of the British Virgin Islands (BVI FSC).
| 運営会社 | Formula Investment House Ltd |
| 設立 | 1996 |
| 所在地 | 1, Wickham’s Cay, Road Town,Tortola BVI VG1110 |
| 金融ライセンス | BVI FSC：英領バージン諸島金融サービス委員会 |
IronFX
IronFX is a globally expanding FX broker established in 2010. As service information is provided worldwide, there are many registered users in Europe, Asia, the Middle East, Africa, and Latin America, and awareness is increasing. IronFX is recognized as a fast-growing FX broker, and in 2012 it won the Best Trading Platform 2012 award.
| Broker | IronFX |
| Established | 2010 |
| Headquarter | Cypros |
| Service Area | Europe Asia Africa Oceania North America South America |
| License | CySEC FCA ASIC |
| Address | 2, Iapetou Str., Agios Athanasios, 4101 Limassol, Cyprus |
| Tel | +44(0) 203 282 7777 |
| Owner | Markos A. Kashiouris Peter G. Economides |
| Company Name | Notesco Limited |
| URL | Home |
LandPrime
Land-FX is an FX broker established in 2013 by the operating company Land Prime Ltd. It has been in operation for over 10 years, so it can be said to be a fairly established broker. Its greatest appeal is its narrow spreads and high contract power, and it has traders all over the world.
| Operation Company | Land Prime Ltd. |
| Established | 2013 |
| Address | ? |
| License | SVG FSA |
| URL | Home |
MILTON MARKETS
MILTON MARKETS is an FX company established in the Republic of Vanuatu in 2015. It is regulated by the Vanuatu Financial Services Commission and has a financial license from the VFSC, so it is a very reliable company.
| 運営会社 | Milton Markets Ltd. |
| 設立 | 2015 |
| 所在地 | バヌアツ共和国 2nd Floor, Transpacific Haus Lini Highway Port Vila, Vanuatu |
| 金融ライセンス | VFSC：バヌアツ金融サービス委員会 |
GeneTrade
GeneTrade is an FX service company established in 2018 by the operating company Genius Trading LTD. The company is headquartered in Belize and holds a financial license from the Belize International Financial Services Commission (IFSC), so it is operated under regulations.
| Operation Comapany | Genius Trading LTD |
| Found | 2018 |
| Address | 5 Cork Street, Belize City, Belize |
| License | IFSC |
TITANFX
TITANFX is an FX company established in the Republic of Vanuatu in 2014. It offers a wide range of services, including free VPS, free EA, and copy trading, and is highly recommended. The maximum leverage is 500x, so you can deposit and withdraw funds with peace of mind.
| Operation Company | Titan FX Limited |
| Establishment | 2014 |
| Address | Pot 564/100, Rue De Paris, Pot 5641, Centre Ville, Port Vila, Vanuatu |
| Financial license | VFSC |
TradersTrust
It is now TTCM TRADERS CAPITAL LIMITED, a group of companies that operate TradersTrust, and was founded in 2009. It is headquartered in Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC), which is difficult to obtain.
| Operation Compamy | TTCM Traders Trust Capital Markets Limited (ltd) |
| Found | 2009 |
| Address | 3 Thalia Street, Office Number 310-318, 3rd Floor, 3011, Limassol, Cyprus |
| License | CySEC |
Axi
We will explain the basic information of Axi. Axi is an FX broker established in Australia in 2007. Of course, it holds a license from the Financial Services Agency and is one of the famous brokers with many users. All account types offer up to 1,000 times leverage.
| Broker | Axi |
| Established | 2007 |
| Max Leverage | 1000x |
| License | SVG ASIC FSA |
| Trading Tool | MT4 |
FXPRIMUS
The basic information of FXPRIMUS is as follows. Naturally, it holds a financial license and is operated under strict regulations. It has bases in Vanuatu and Cyprus and has obtained licenses from the financial authorities of each country.
| Broker | Primus Markets INTL LTD(Cyprus) Primus Global LTD(Vanuatu) |
| Location | Cyprus Vanuatu |
| License | CySEC VFSC |
| Established | 2009 |
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