Momentum trading is a popular strategy for forex, stocks and other assets that aims to take advantage of strong price trends. Below we uncover the key definitions and learn about some popular strategies, indicators and software. We also review whether momentum intraday trading works and provide some ideas and tips to boost your education.
Momentum Trading Brokers in Iran
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- Demo account
- Regulator: ASIC, CySEC, FSCA, BVI FSC
- Platforms: Web Platform, MT4, MT5, TradingCentral
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- Demo account
- Regulator: FMA, FSA
- Min. deposit: $0
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- Demo account
- Regulator: CySEC, MISA
- Platforms: MT4, MT5
84.6% of retail CFD accounts lose money. -
- Demo account
- Regulator: FCA, ASIC, FSCA, VFSC, CIMA
- Min. deposit: $50
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- Demo account
- Regulator: ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya
- Min. deposit: $0
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- Demo account
- Regulator: FSA
- Platforms: MT5
Learn how we test brokers and why you can trust our ratings.
Here is a short summary of why we think each broker belongs in this top list:
- Markets.com 4.4/5 Established in 2008, Markets.com is a long-standing, multi-regulated broker with oversight from the CySEC and FSCA. It offers unique features to track hedge fund moves and insider trades, while providing stock signals to alert traders to market opportunities. Its choice of accounts (Classic to Professional) caters to all levels of active trader. 72.3% of retail accounts lose money.
- BlackBull 4.5/5 BlackBull is a New Zealand-based CFD broker providing diverse trading opportunities on over 2,180 instruments. After undergoing a rebrand in 2023, it now sports a modern look and feel complete with professional-grade trading tools and ultra-fast execution speeds averaging 20ms.
- FXCC 4.6/5 FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Comoros Union and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.
- Vantage 4.7/5 Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to millions of clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
- FP Markets 4.2/5 Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to day traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.
- Bullwaves 3.9/5 Established in 2024 and headquartered in Seychelles, Bullwaves is a MetaTrader-only broker offering access to a modest collection of 250+ assets including forex, metals, indices, and newer additions like stocks and ETFs. Traders can choose from three accounts; Classic, VIP and Elite, catering to different experience levels and budgets.
Community Sentiment
See how users rate these brokers based on the average customer ratings submitted on DayTrading.com, plus ratings from Trustpilot, the Apple App Store and Google Play.
| Broker | Our Users' Rating | Trustpilot Score | Trustpilot Reviews | iOS App Rating | Android App Rating |
|---|---|---|---|---|---|
| Markets.com | 1258 | ||||
| BlackBull | 3521 | ||||
| FXCC | 225 | ||||
| Vantage | 15864 | ||||
| FP Markets | 10373 | ||||
| Bullwaves | 677 |
Markets.com
Markets.com is best suited to retail investors who trade frequently but don’t want to calculate commissions, thanks to its spread-only pricing (EUR/USD around 1.3 pips). It especially appeals to short-term traders who value fast execution, flexible asset choice spanning 2,200+ instruments and proprietary tools like hedge fund confidence indices and insider trade alerts.
Christian Harris, Reviewer
Markets.com quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Commodities, Indices, Crypto, ETFs, Bonds
- Regulator
- ASIC, CySEC, FSCA, BVI FSC
- Platforms
- Web Platform, MT4, MT5, TradingCentral
- Minimum Deposit
- $200
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, AUD, ZAR, SEK, NOK, DKK, CHF, PLN, CZK
Pros
- Within the 2,200+ CFDs, Markets.com offers thematic baskets like the Warren Buffett Blend and Cannabis Blend, which behaved like ready-made mini-ETFs during testing, saving the work of balancing weights manually.
- Markets.com provides commission-free trading on most assets with spreads starting from around 0.6 pips on major forex pairs, making it cost-effective for casual traders.
- Switching between the proprietary web platform (great for alerts and quick analysis) and MT5 (strong for algorithmic EAs) was smooth in our tests; positions synced across desktop, web, and mobile without gaps or re-quotes.
Cons
- During sign-up, we hit unclear account type explanations and got stuck in an email verification loop that locked us out for an hour - way less streamlined than other brokers we’ve tested.
- Inactivity charges kick in after just 3 months, while variable spreads are wider than top ECN brokers during testing, which may deter day traders and high-frequency traders.
- The proprietary web platform felt a bit basic once we pushed into advanced charting with fewer drawing/indicator options than full TradingView or MetaTrader.
BlackBull
After improving its trading infrastructure with Equinix servers in London, reducing latency for traders, BlackBull is an obvious choice if you want to day trade stock CFDs with ECN pricing. With competitive spreads and no commission on a growing roster of digital tokens paired with USD, BlackBull also works for active crypto traders.
Christian Harris, Reviewer
BlackBull quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Stocks, Indices, Commodities, Futures, Crypto
- Regulator
- FMA, FSA
- Platforms
- BlackBull Invest, BlackBull CopyTrader, MT4, MT5, cTrader, TradingView, AutoChartist
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, ZAR, SGD
Pros
- After partnering with ZuluTrade and Myfxbook, alongside improvements to its own CopyTrader, and finally enabling cTrader Copy, BlackBull offers one of the most comprehensive copy trading experiences we've seen.
- BlackBull offers every ingredient for day traders; fast execution speeds of <100ms and tight spreads from 0.0 pips.
- BlackBull is a much greater fit for aspiring traders following the overhaul of its ECN Prime account, now featuring improved spreads averaging 0.16 on EUR/USD and a more accessible minimum deposit of $0 compared to the old $2,000.
Cons
- Despite a growing selection of 2,180+ assets, including additions to its Asia Pacific indices, they are mainly stocks with an average selection of currency pairs and indices.
- Unlike most top brokers, BlackBull charges an irritating $5 withdrawal fee, which can detract from the overall cost-effectiveness, especially for active traders who frequently move funds.
- Although the Education Hub now features improvements like webinars and tutorials, the courses we’ve explored need more focus on explaining the wider economic factors influencing prices.
FXCC
FXCC continues to prove itself an excellent option for day traders with a particularly strong selection of 70+ currency pairs, ultra-tight spreads from 0.0 pips during testing, and a free VPS for qualifying traders.
Jemma Grist, Reviewer
FXCC quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Metals, Energies, Crypto
- Regulator
- CySEC, MISA
- Platforms
- MT4, MT5
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD
Pros
- FXCC has stepped up its offering over the years, adding MT5 to its suite of platforms, hundreds of stocks and more cryptos to its product line-up, plus a copy trading feature and greater margin trading opportunities.
- Customer support still relies on human agents with response times of under three minutes on live chat during our tests and knowledgeable reps - a welcome break from the frustrating AI chatbots increasingly offered by brokers.
- FXCC’s ECN XL account has been built with active traders in mind, featuring spreads from 0.0 with no commission, while also passing our execution speed benchmark for day traders.
Cons
- Although the economic calendar has benefited from a facelift, FXCC still offers very little in terms of market research beyond basic daily technical analysis and aggregated market news, with no tools like Autochartist or social sentiment data.
- Although regulated by the CySEC, FXCC’s offshore entity operates with weak regulatory oversight from MISA and may not provide safeguards like investor compensation in the event of broker insolvency.
- FXCC charges steep withdrawal fees on many of its payment methods, including $45 for bank transfers and 2% crypto transfers, which may cut into the returns of traders making regular withdrawals.
Vantage
Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly.
Jemma Grist, Reviewer
Vantage quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds
- Regulator
- FCA, ASIC, FSCA, VFSC, CIMA
- Platforms
- ProTrader, MT4, MT5, TradingView, TradingCentral, DupliTrade
- Minimum Deposit
- $50
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN
Pros
- The app was upgraded in 2026 with wider asset visibility bringing together balances across Contract, Copy, and Funding accounts on one screen
- The ECN accounts are very competitive with spreads from 0.0 pips and a $1.50 commission per side (Pro ECN account)
- There are no short-term strategy restrictions with hedging and scalping permitted
Cons
- A steep $10,000 deposit is needed for the best trading conditions, which include the $1.50 commission per side
- The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
FP Markets
FP Markets strikes an ideal balance between affordability and quality for active traders. They’ve managed to keep trading costs low while expanding their investment offering, charting tools, and research features, all while providing excellent support you can rely on for urgent trading queries.
Christian Harris, Reviewer
FP Markets quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, Bonds, ETFs, Crypto
- Regulator
- ASIC, CySEC, FSA, FSCA, FSC, SCB, CMA-Kenya
- Platforms
- Iress, MT4, MT5, cTrader, TradingView, AutoChartist, TradingCentral
- Minimum Deposit
- $0
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
Pros
- AI-powered sentiment analysis, trading signals and real-time NewsIQ research, integrated with MT4 and MT5, has been added via FP Markets Intelligence.
- FP Markets has integrated top-notch research tools from Trading Central and Autochartist, helping traders identify short-term opportunities based on chart patterns, indicators, and other technical factors.
- With MetaTrader, cTrader, Iress and more recently TradingView, FP Markets is one of the most accommodating brokers in terms of platform choice.
Cons
- Although Traders Hub provides rich research, notably the Daily Report, Technical Report, Market Insights, and Fundamental Analysis, it needs to widen its daily content variety and keep its forex news updated to match category leaders like IG.
- FP Markets’ Iress platform is only available to clients in Australia. It also primarily emphasizes stock trading over forex trading, and data fees can accumulate rapidly unless you're an active trader or maintain a high-balance account.
- While pricing in the Raw account is excellent, spreads in the Standard account trail the cheapest brokers with a 1.1-pip average spread on the EUR/USD compared to the 0.8-pip average at IC Markets.
Bullwaves
Bullwaves may appeal to aspiring day traders looking for the MetaTrader charting platforms with a growing suite of research tools, including AI-powered market analysis. However, the limited track record and weak regulatory credentials raise questions about its reliability.
Christian Harris, Reviewer
Bullwaves quick facts
- Demo Account
- ✔Yes
- Instruments
- CFDs, Forex, Commodities, Stocks, Indices, ETFs, Crypto
- Regulator
- FSA
- Platforms
- MT5
- Minimum Deposit
- $100
- Minimum Trade
- 0.01 Lots
- Account Currencies
- USD, EUR, GBP
Pros
- Bullwaves has upgraded its market offering with global equities, soft commodities, cryptos, and ETFs, as well as tripling the selection of FX assets.
- MT5 is supported (MT4 has been discontinued), giving day traders a leading charting platform with excellent backtesting capabilities.
- Bullwaves now offers copy trading, allowing users to replicate the moves of traders across 900+ strategies with thin spreads from 0.01 pips.
Cons
- Bullwaves has limited education tools, reducing its appeal for beginners, especially compared to category leaders like IG that provide structured courses and interactive elements.
- Bullwaves operates without strong regulation in major jurisdictions, holding a license with one lower tier regulator, the Seychelles FSA, meaning it lacks oversight from reputable authorities to ensure compliance with strict financial standards.
- Customer support performed poorly during our initial tests with no 24/7 chat support as advertised, and no response to our email queries, though it performed much better in our latest round of tests with most queries getting answers same-day.
See top brokers for online trading
What Is Momentum Trading?
The definition of momentum is the rate of acceleration of an asset’s price, or, the speed at which the price changes. Momentum day trading is therefore an investment strategy that aims to capitalise on this.
The goal for investors is to react to market information by buying rising securities and selling them when they appear to have reached a peak. This herding strategy follows other participants in the market who seek buying opportunities in short-term uptrends. The trader then sells when momentum drops and repeats the process on the next uptrend.
Momentum trading requires a good level of technical analysis, specifically measuring trends using oscillators and other indicators. These can help analyse the three main factors in trading momentum:
- Volume – This is the number of assets traded in a given time frame (not the number of transactions). Entry and exit points rely on liquidity in the market, which is when there is a high number of buyers and sellers.
- Volatility – Volatility is the level of an asset’s price change. A highly volatile market is characterised by large price swings, whilst low volatility is more stable. Momentum traders take advantage of volatile markets, seeking profits from short-term rises and falls.
- Time Frame – Momentum trading generally works with short-term movements, though trades can be held for a long period of time if the trend is strong. This makes it suitable for both long-term position traders, as well as day traders or scalpers.
Now that we’ve covered the basics, let’s look at how to day trade momentum with some examples of popular strategies.
Momentum Trading Strategies
To start trading momentum, you will need to consider the asset that you are interested in. You can trade momentum with any market, including forex, stocks, futures, mutual funds, ETFs, or using options. You can even do high-frequency momentum trading with cryptocurrencies. Since momentum relies on volume, it makes sense to consider more liquid markets, such as EUR/USD, gold or Bitcoin.
You’ll then need to develop a system based on a range of technical indicators and graphical tools. If you’re new to trading, don’t forget to take advantage of your broker’s demo account, where you can practice risk-free on real-time charts.
The momentum indicator is the obvious first choice for most traders. The indicator shows how strong a trend is by comparing the most recent closing price to the previous one. Since it’s an oscillator, it is characterised by a single line that ranges to and from a centre line. The reading shows you how quickly the price is moving.
Let’s take a look at some strategies involving other popular indicators:
Moving Averages (MAs)
Moving averages allow you to identify price trends by filtering out market noise and short-term fluctuations. MA lines can be applied for different periods and can show traders whether a trend is accelerating. When the MAs crossover, this signifies a reversal in the trend.
Note that MAs tend to be lagging indicators, i.e. the signals occur after the price has already moved. It’s also important to combine MAs with other indicators to detect your exit points when momentum trading.
Alternatively, you could analyse the market with a moving average convergence divergence (MACD) to identify the relationship between the two MAs of an asset’s price. It’s also an excellent tool for playing breakouts as they can help to spot a reversal in a trend.
Relative Strength Index (RSI)
The RSI provides entry and exit signals based on whether the asset is overbought or oversold. This momentum trading strategy can therefore tell you when to buy and sell, by oscillating between 0 and 100. If it drops below 30, it is thought to be oversold, whilst a reading over 70 is considered overbought.
Momentum traders will look for opportunities within this range as it signifies a clear trend. Note that RSI is most effective when used with other indicators because trends can unexpectedly stay in overbought or oversold territories for long periods of time.
Stochastic Oscillator
This indicator tracks the speed of an underlying market by comparing the most recent closing price to the previous trading range. It’s therefore ideal for predicting price movements. The stochastic oscillator consists of two lines on the chart: the indicator line and the signal line.
The indicator line oscillates between 0 and 100 (with a reading over 80 signifying an overbought market and a reading below 20 representing an oversold market). The signal line will indicate to the trader a potential change in direction if it crosses with the indicator line.
In some cases, the stochastic might not fall back to 20, meaning the trend could continue upwards, despite pullbacks.
Regardless of which set-up you decide to master, proper risk management rules will help to protect your capital and ensure you don’t run into a disaster. It’s worth learning how to calculate your risk per trade and the position size formula before committing any funds.
Your broker might also be able to provide some advice and tips on good forex strategies to use, although PDF downloads and video guides are available from plenty of other sources too.
Momentum Trading Tools
Whether you’re developing your current method or picking up a new one, it could be worth employing some trading tools. These will depend on your own preferences and goals, so take some time to consider what these are before starting.
Automation
Automated tools and software are popular among traders who don’t have as much time to monitor trades throughout the trading day.
Trading bots, for example, are computer algorithm programs based on signals which can determine buy and sell points. Although they don’t suit all momentum trading strategies, they can act as quick market scanners that, when conditions are good, can automatically submit orders on the trader’s behalf.
You can recruit bots for virtually any strategy and algorithm, as they are widely available in most top platforms. The platforms use either proprietary or universal programming languages, such as Python or, in MetaTrader’s case, MQL4 and MQL5.
Such technology has already allowed traders to streamline their trading strategies, though we could see exciting future developments with the wider use of artificial intelligence and machine learning.
Software
The quality of the software you use will have a huge impact on your day-to-day trading models and setups. Once you sign up to a broker, you will usually have a choice of at least two different platforms to choose from.
Think carefully about the features of the platform and what you require to start your momentum trading. The platform should offer a range of technical analysis tools, chart time frames and risk management features. Today, most brokers will also offer a mobile trading app for those who prefer to trade on-the-go.
If you’re an advanced trader, some platforms such as MetaTrader or cTrader allow you to code your own custom bots and indicators, which you can also backtest within the platform. A community forum, economic calendar and help guides can also be useful.
Alerts
Trading alerts are customisable, automatic notifications that trigger when prices move or certain conditions change. They are usually pre-included within your platform and can be sent via email, SMS or push notification.
Alerts are extremely useful tools that ensure that you never miss an opportunity in the markets and can be used as part of your risk management strategy. For example, price alerts will tell you when there has been a certain percentage change, whilst technical indicator alerts notify you of any buy and sell points.
Some momentum trading platforms even allow you to set reminders about global events and central bank announcements directly from your economic calendar.
Signals
Trading signals trigger buy and sell suggestions when a pre-determined set of criteria has been met. These can vary from simple signals on earnings reports or volume changes to complex signals based on existing ones.
Signals can either be generated by another trader, or an automated forex robot, depending on the preference of the subscriber. You can get both free and paid momentum signals, but note that not all providers are reliable or robust.
In addition, be aware of any trading scams that claim ‘guaranteed’ success or unrealistic returns; these are especially targeted at beginners.
How Much Does Time Of Day Matter For Momentum Trades?
The time of day plays a significant role in short-term momentum trading, as market activity and volatility vary throughout the trading session.
To illustrate, let’s consider the US markets:
- Market Open (09:30 – 11:00 ET): This is one of the most volatile periods due to the influx of overnight news, earnings reports, and pre-market positioning. High volume and sharp price movements are ideal for momentum traders looking to capitalise on quick breakouts or reversals. Patterns like opening range breakouts and gap fills are common during this window.
- Midday Lull (11:00 – 13:30 ET): Trading activity often slows down as institutional traders take a break and market participants digest the morning’s moves. Lower volume can lead to choppier price action, making momentum strategies less effective. False breakouts and whipsaws are more likely during this quieter period.
- Afternoon Session (13:30 – 16:00 ET): Volatility typically picks up again as traders position themselves ahead of the close. This is another prime window for momentum strategies, especially when volume surges during the last hour (the ‘power hour’). Patterns like trend continuation or late-day breakouts are more likely to emerge.
Momentum strategies tend to be most effective at the open and in the final hours of trading, when volatility and volume are highest.
Is Momentum Trading Suitable For Beginners?
If we look at momentum trading vs scalping or day trading, the former is considered a more straightforward view of the markets. The aim is to take advantage of expected price changes and close positions when the trend loses strength.
Momentum trading allows you to follow market sentiment within liquid and popular markets. Herding strategies like this can create the potential for profits because you can use volatility to your advantage. You can also familiarise yourself with popular indicators and oscillators that can set you up for other strategies, including RSI, MAs and Stochastics.
However, momentum trading can be expensive, especially if you’re trading stocks with high turnover. If you compare this strategy vs trend-following or position trading, it can also be quite time-intensive for those who have busy lives outside of their trading platform.
It’s also worth noting that momentum trading focuses more on price action and technical analysis rather than long-term fundamentals, which might be a turn-off for some. Finally, since momentum trading works best in bull markets due to investor herding, this means that profit opportunities are reduced in bear markets, due to cautious investors.
Education
Different types of trading style and experience may require various forms of education, research tools and trading tips.
When trading with momentum strategies, much of your analysis will be based on quantitative data and price action rather than long-term economic developments. As such, we’ve provided a few ideas below that you could add to your technical learning checklist.
- YouTube video tutorials
- Online research papers
- Momentum trading podcasts
- Books (paper and digital PDFs)
- Broker or third-party blogs & newsletters
- Community group forum or trading chat room
- Momentum trading course or Forex Academy
Bottom Line
Now that we’ve explained a few potential strategies, popular indicators and useful trading tools, you should have a good idea of how to do momentum trading in the forex market. You may need to research which options would work best for you and look at online broker and trading platform reviews.
As with all strategies, momentum trading requires practice and dedication. Whether you’re a novice or an advanced trader, a demo account can help you to achieve your goals in your own time. Finally, always stick to your golden risk management rules to protect your capital.
FAQ
What Is A Momentum Trading Strategy?
A momentum strategy reacts to market information by buying when price trends are strong and selling when the assets appear to lose momentum. There are a variety of indicators needed for momentum trading, including moving averages and oscillators. You can also model your own strategy using custom bots or indicators if offered by your platform.
Does Momentum Trading Work?
Momentum trading is a herding strategy that aims to be ahead of the game by being the first to cash out and exit. This can work very well when markets are volatile and liquid but success is not always guaranteed. This is because the markets can change unexpectedly, causing investors to act more cautiously.
Is Momentum Trading Profitable?
Momentum trading can be profitable if you are experienced, patient and have robust risk management calculations in place. Nonetheless, just because you’re using risk management tools, it does not mean that you are immune to a losing streak. Risk tools help to minimise your losses but they are not bulletproof.
When Can I Trade With Momentum Strategies?
There are certain hours of the day where the market traded is more active. Whether you’re trading on the UK or Indian stock market, for example, the ideal trading hours will depend on the asset you are trading and the session times. Most brokers will post these trading hours and market holidays on their website.
Is Momentum Trading Legal?
Yes, momentum trading is legal. Restrictions to trading in general usually depend on your broker, so check with your jurisdiction and your provider’s domiciled location.