Understanding Scalping Costs
Scalping, by its very nature, involves placing numerous trades for very small profits, often holding positions for mere seconds or minutes. This means that even minuscule differences in spreads and commissions can significantly impact profitability over time. Beyond the headline figures, factors like execution speed, slippage, and the overall trading environment play a crucial role.
Exness Overview
Exness is a globally recognised multi-asset broker known for its competitive spreads and a variety of account types tailored to different trading styles. They are particularly popular among high-volume traders due to their low-cost offerings, especially on certain account tiers. Exness operates under various regulatory bodies, offering different protections depending on the entity.
Exness Account Types and Costs for Scalping
Exness offers several account types, some of which are particularly attractive for scalpers:
* Standard Account: Variable spreads, no commission.
* Raw Spread Account: Interbank spreads from 0 pips, fixed commission per lot.
* Zero Account: 0-pip spreads on the top 30 instruments for 95% of the trading day, fixed commission per lot.
The Raw Spread and Zero accounts are typically preferred by scalpers due to their ultra-tight spreads, with the cost being primarily through a per-lot commission. Execution speed is generally high, which is critical for scalping strategies.
Plus500 Overview
Plus500 is a well-known CFD provider, especially popular in Europe and the UK for its user-friendly platform and straightforward fee structure. Plus500 offers only one account type, with costs primarily built into the spread. They are heavily regulated and focus on providing access to a wide range of CFDs.
Plus500 Costs for Scalping
Plus500 primarily generates revenue through its spreads, which are wider than those typically found on commission-based accounts at brokers like Exness. They do not charge commissions on trades. While their platform is intuitive, the slightly wider spreads can be a disadvantage for scalpers who rely on razor-thin margins. Plus500 also charges an inactivity fee after three months of no login activity.
Exness vs Plus500: A Side-by-Side Comparison
To provide a clear picture for scalpers, let's look at the key metrics:
| Feature | Exness | Plus500 |
| :------------------------ | :----------------------------------------------------------------------- | :-------------------------------------------------------------------------- |
| Spreads (EUR/USD) | From 0.0 pips (Raw Spread/Zero), typical 0.7-1.1 pips (Standard) | Typical 0.8-1.5 pips (built-in) |
| Spreads (GBP/USD) | From 0.0 pips (Raw Spread/Zero), typical 1.1-1.5 pips (Standard) | Typical 1.8-2.5 pips (built-in) |
| Spreads (XAU/USD) | From 0.0 pips (Raw Spread/Zero), typical 10-25 pips (Standard) | Typical 35-50 pips (built-in) |
| Commission (per lot) | From $3.50/side (Raw Spread), from $0.2/side (Zero) | None |
| Minimum Deposit | $10-$50 (Standard, Pro), $500 (Raw Spread, Zero) | £100 (varies by payment method) |
| Regulators | FCA (UK), CySEC (Cyprus), FSCA (SA), CMA (Kenya), FSC (BVI), etc. | FCA (UK), CySEC (Cyprus), ASIC (Australia), MAS (Singapore), etc. |
| Platforms | MetaTrader 4, MetaTrader 5, Exness Terminal | Proprietary WebTrader and Mobile App |
*Figures are typical, at time of writing — check broker site for live spreads and commission structures.*
Execution Speed and Slippage
For scalpers, execution speed is as critical as cost. Both brokers aim to provide fast execution, but their underlying models differ. Exness, with its ECN/STP-like execution on Raw Spread and Zero accounts, often provides very fast order processing with minimal slippage, especially during normal market conditions. Plus500, being a market maker, manages its own liquidity, which can lead to consistent execution but potentially wider spreads during volatile periods or more pronounced slippage if market conditions diverge rapidly from their internal pricing.
Regulatory Environment
Both Exness and Plus500 are regulated by top-tier authorities, which is a crucial consideration for any trader, particularly in the UK. Plus500 UK is regulated by the FCA, offering strong investor protection. Exness also holds an FCA license, alongside other global regulators, ensuring a high standard of operation for its UK clientele. Always ensure you are trading with the entity regulated in your jurisdiction.
Verdict by Trader Type
For the Aggressive Scalper
Exness is generally the superior choice. Its Raw Spread and Zero accounts offer significantly tighter raw spreads and competitive commissions, which are essential for maximising the profitability of high-volume, short-duration trades. The availability of MetaTrader 4 and 5 also provides advanced charting tools and customisation options highly valued by aggressive scalpers.
For the Casual or New Scalper
Plus500 might be considered for its simplicity. The single account type and proprietary platform are easy to navigate, which can reduce the learning curve. However, the wider spreads mean that the cost per trade is higher, making it less suitable for truly high-frequency, ultra-short-term strategies where every pip counts. While scalping on Plus500 is technically possible, its cost structure is not optimised for it.
Overall Consideration for Scalping Costs
When comparing Exness vs Plus500 scalping costs, Exness with its commission-based, raw spread accounts clearly offers a more cost-effective solution for dedicated scalpers. The ability to access interbank spreads, even with a commission, often results in lower overall trading costs compared to the built-in spreads of Plus500, especially across a high volume of trades. For UK traders looking to minimise their trading expenses and maximise their scalping potential, Exness presents a compelling option.
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*CFD trading involves significant risk and can result in the loss of your invested capital.*