Best Forex Brokers for Pattern Trading

  1. What is Pattern Trading Broker?
  2. What is Pattern Trading Platform?
  3. How to Read Trading Chart Patterns?
  4. What is Pattern Trading vs Trend Trading?
  5. Trend Trading Brokers List

What is Pattern Trading Broker?

Pattern trading is a trading strategy employed in various financial markets, such as stocks, forex, and commodities. Traders utilizing this strategy aim to identify and take advantage of recurring price patterns which might be recognized.

  • Pattern Trading is one of the popular trading strategies widely used and proved to be successful trading strategy along with Trend Trading, Day TradingScalping strategy, and Algorithmic strategy and is considered one of the Long-Term strategies.
  • The underlying principle of Pattern Trading is that historical price patterns offer valuable information about future price movements and may repeat over so potential price direction can be predicted.
  • In most cases, Pattern trading brokers are widely presented and allow use of Pattern Trading Strategy with no limitations or restrictions, however we still advise to verify and test it via Demo account before placing real funds in.
  • Besides, Good Broker for Pattern trading should offer trading platform you’re comfortable using, also provide good tools, and resources to pattern recognition. These tools may inlcude: charting software, indicators, and educational materials focused on pattern trading.

Read more about Pattern Trading on Wikipedia page.

🛡️ Trading StrategyPattern Trading Strategy
💰 SpreadDepends on the Broker and Instrument
📊 Fees/ CommissionTypically Yes with overnight or holding charges applied
🔒 RejectionTypically No

What is Pattern Trading Platform?

A Pattern Trading Platform refers to a trading platform that is suitable and recognized good for pattern traders to run trading strategy. In most cases there is no need of a specific platform for Pattern Trading but is good to choose Platform with quality Charting that tools, features, and resources identify, analyze, and execute trades based on chart patterns and technical analysis since are essential for Pattern Recognition.

See some of Important points about Pattern Trading:

  • A pattern being a part of technical analysis may be recognized by several ways either drawing a line that connects significant price points, such as closing prices, highs, or lows, over a specific timeframe, or represent specific figures that can range from simple trendlines to more intricate formations such as double head and shoulders patterns
  • However, patterns vary in their reliability and application to particular strategy, Patterns like the head and shoulders demonstrate quite a high success rate, while others like the double top/bottom pattern may be less dependable.
  • So, Different patterns play different roles and have their own significance. For instance, Reversal patterns come into play when a price pattern indicates a shift in the direction of the trend, while continuation patterns indicate that the trend will persist in its current direction after a temporary pause.
  • Selecting the right platform is crucial for Pattern trading success. The platforms that are particularly favorable for Pattern trading include MT4, MT5, cTrader, and NinjaTrader.
  • In Pattern trading one of the most important points is advanced charting, while other tools are rather additional. For this reason, pattern trading is popular since does not require much sophisticated tools, but rather an understanding of the Price Action and ability to read the Trends also using trendlines to identify support and resistance areas on a price chart.
  • Yet, Pattern trading is a trading strategy that also often uses various technical analysis tools to determine the direction of market. So platform with access to various timeframes, utilized drawing tools, and technical indicators may increase Startegy to be more Profitable Trading Startegy. Alike technical indicators, including moving averages, trend lines, and chart patterns, play a good role in trend trading.
  • In fact, there are many tools built based on Pattern reading and many platforms offer Pattern Recognition Trading Tool which is useful not only for Pattern Trading but other strategies too. Also, another useful tool advised to use is personalized alert based on specific patterns or conditions, yet Irrespective of the trading strategy adopted, it is crucial for traders to implement a stop-loss strategy to effectively manage potential risks.
Pattern Trading AdvantagePattern Trading Disadvantage
Suitable for Both Beginning and Professional TradersChoice of the Reliable Broker is crucial
Good to Use Technical analysisMarket risks
Enabled by many BrokersPsychological element included
Potential for high profits and catching of bigger market movesLonger analysis
FlexibilityFalse Signals
Lower fees

Top 5 Best Forex Brokers for Pattern Trading

Below is a listing of our Best Reviewed Pattern Trading Brokers and Brokers allowing Pattern Trading suitable for Both Beginners (Find out the Best Forex Trading Platform for Beginners) and Seasoned Traders. These brokers provide various platforms with good tools included and are well-suited for Pattern Trading Strategy which we select by category:

  • HFM – Best Overall Pattern Trading Broker 2024
  • BlackBull Markets – Best MT4 Pattern Trading Broker 2024
  • FP Markets – Best Pattern Trading on MT5 Broker 2024
  • Eightcap – Broker with Lowest Spread for Pattern Trading 2024
  • BDSwiss – Best Broker for Pattern Trading Strategy 2024

What is Pattern Day Trading?

As per FINRA rules, a pattern day trader is defined as a customer who executes four or more “day trades” within five business days. In simple words, Trading Intraday using Pattern Staretgy is classified as Pattern Day Trading, which is one fo the popular trading strategies used by Professional Traders.  

How to Read Trading Chart Patterns?

Reading chart patterns involves analyzing price charts and identifying recurring patterns that may provide insights into future price movements. Yet, Reading and understanding charts determined by the strategy and complex of analysis you use, so is something individual, yet in most cases these are widely used analysis points checking on: different types of charts, current trend and its current development, price swings an the pattern and changes of the volume.

What is the Difference Between Pattern and Trend Trading?

Pattern trading emphasizes the identification of specific price patterns that tend to repeat over time in a shorter or longer timeframe, while Trend trading is a trading strategy that involves identifying the direction of a current market trend itself which believed to continue rather than reverse. So there are some similarities but main differences on how you analyze the market, also which timeframe you use.

The Complete List of Forex Platforms Offering Pattern Trading

These are the Brokers that are regulated and are recommended by us for Pattern Trading:

Broker Detail
HFM Logo HFM
Min. Deposit: 0 US$
Max. Leverage: 1:2000
Trading Platforms: MT4, MT5, HFM Trading App
Regulation: CySEC, FCA, DFSA, FSCA, FSA, CMA
1
HFM Review
BlackBull Markets logo BlackBull Markets
Min. Deposit: 0 US$
Max. Leverage: 1:500
Trading Platforms: MT4, MT5, cTrader, BlackBull Trade, Trading View
Regulation: FMA, FSA
2
BlackBull Markets Review
FPM logo FP Markets
Min. Deposit: 100 US$
Max. Leverage: 1:30
Trading Platforms: IRESS, MT4, MT5, cTrader
Regulation: ASIC, CySEC, St. Vincent and the Grenadines, FSP, CMA
3
FP Markets Review
BDSwiss Review BDSwiss
Min. Deposit: 10 US$
Max. Leverage: 1:400 | 1:2000
Trading Platforms: MT4, MT5, BDSwiss Webtrader, and BDSwiss Mobile App
Regulation: FSC, FSA, FSCA, MISA
4
BDSwiss Review
GO Markets
Min. Deposit: 0 US$
Max. Leverage: 1:30, 1:500
Trading Platforms: MT4, MT5, cTrader, WebTrader
Regulation: ASIC, CySEC, FSC, FSA
5
GO Markets Review
Errante Review Logo Errante
Min. Deposit: $€50
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, cTrader
Regulation: CySEC, FSA
Errante Review
Pepperstone Review Pepperstone
Min. Deposit: 200 US$
Max. Leverage: 1:30 to 1:400
Trading Platforms: MT4, MT5, cTrader, TradingView
Regulation: ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN
Pepperstone Review
SquaredFinancial Review Logo SquaredDirect | SquaredFinancial
Min. Deposit: $250
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, Mobile App
Regulation: CySEC, FSA
SquaredDirect | SquaredFinancial Review
Octa
Min. Deposit: $25
Max. Leverage: 1:40 | 1:1000
Trading Platforms: MT4, MT5, Octatrader
Regulation: CySEC, FSCA, MISA
Octa Review