Spreads
Member Since Jan 17, 2021
2 posts
Mar 03, 2021 at 02:42
Hello everyone,
I'm pretty new in the game and I have a question about spreads.
When I look here on myfxbook -> Brokers -> Spreads the spreads a very low compared to these my brokers offer.
For example here on this site for IC Markets GBPAUD 1.5. But in my MetaTrader4 the Spread is 24.
Also on the GKFX Account: here on this site 6.8 for GBPAUD but in my MT4 45.
Do I misunderstand anything or what's wrong here?
I'm pretty new in the game and I have a question about spreads.
When I look here on myfxbook -> Brokers -> Spreads the spreads a very low compared to these my brokers offer.
For example here on this site for IC Markets GBPAUD 1.5. But in my MetaTrader4 the Spread is 24.
Also on the GKFX Account: here on this site 6.8 for GBPAUD but in my MT4 45.
Do I misunderstand anything or what's wrong here?
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Myfxbook (Staff)
Member Since Jul 31, 2009
1431 posts
Mar 03, 2021 at 07:21
@tradingjules the spreads showing in your account are in points while the spreads in our spreads page show in pips. Points simply show the decimal difference between bid and ask taking into account that the last digit of the price is equal to 1 point. When comparing spreads, a pip is usually referred to the figure in the 2nd or 4th decimal, depending on the currency.
For example,
EURUSD 1 pip is the 4th decimal.
From your image:
EURUSD ask price of 1.20843 and bid of 1.20854 would mean (1.20854-1.20843)*10000=1.1 pip however in points that is (1.20854-1.20843)*100000=11 points.
For example,
EURUSD 1 pip is the 4th decimal.
From your image:
EURUSD ask price of 1.20843 and bid of 1.20854 would mean (1.20854-1.20843)*10000=1.1 pip however in points that is (1.20854-1.20843)*100000=11 points.
Member Since Jan 17, 2021
2 posts
Mar 03, 2021 at 12:50
Make sense, thank you both!
Member Since Oct 27, 2020
18 posts
Mar 11, 2021 at 11:11
You need to learn to differentiate between the spreads in points and pips. Once you know the difference between the two, you are good to go.
Member Since Jul 23, 2020
869 posts
Mar 11, 2021 at 11:49
Zipp7 posted:Thanks for the explanation. It’s very helpful.
Yea, just like the above user said, the one you are talking about are points which is pipettes, if I am not wrong.
Do remember the spreads are fluctuating, so if IC Markets GBPAUD is 1.5, which is pips, so for, points are basically 15.
Member Since Jul 23, 2020
759 posts
Mar 24, 2021 at 18:00
Charlespeterson posted:I also didn’t know about the point. But I know now. Thanks for the explanation.
You need to learn to differentiate between the spreads in points and pips. Once you know the difference between the two, you are good to go.
Mar 25, 2021 at 13:16
Spreads varies from broker to broker and account type to account type. In zero spreads account you get very low spreads but you have to pay commission and standard account spreads will be high but won't be any commission. Choose according to your comfort.
Chris Smilas (ChrisSmilas)
Member Since May 03, 2017
1 posts
Mar 25, 2021 at 15:35
You must of course concentrate on the spreads but also, ticker value, swaps/overnight fees and commissions because this is a huge oversight for beginners in the markets. Spreads are important and pretty easy to understand but swaps and other Fees need to be researched properly before entering any trade. When opening an account with a broker you can use myfxbook which is great for showing you the trading costs, trading conditions but also check the KID(Key Information Documents) on your brokers website (normally found at the bottom of the home page but if you can't find ask the customer support/live chat at your broker.
Live the life you want to live.
Apr 11, 2021 at 17:52
ChrisSmilas posted:I completely agree with you. research before choosing the broker is a must for every trader.
You must of course concentrate on the spreads but also, ticker value, swaps/overnight fees and commissions because this is a huge oversight for beginners in the markets. Spreads are important and pretty easy to understand but swaps and other Fees need to be researched properly before entering any trade. When opening an account with a broker you can use myfxbook which is great for showing you the trading costs, trading conditions but also check the KID(Key Information Documents) on your brokers website (normally found at the bottom of the home page but if you can't find ask the customer support/live chat at your broker.
Apr 11, 2021 at 22:19
Trader forex usually will like if the broker has low spread because giving an opportunity to making profit quicker, but besides spread also quality instant execution also affected to the result in trading, if a trader wants to open and close order, fast execution more preferable than delaying execution.
Member Since Jun 26, 2020
327 posts
Apr 12, 2021 at 04:46
spreads is very important issue in Forex trading for traders and also for a broker , because the broker always depends on spreads to bring their profit , i mean broker earn profit only by trading spreads.
Apr 13, 2021 at 01:03
UweMoench posted:Yes, We should choose a broker which offers a low spread over every trade but the broker should also have a good reputation in the market.
Spreads varies from broker to broker and account type to account type. In zero spreads account you get very low spreads but you have to pay commission and standard account spreads will be high but won't be any commission. Choose according to your comfort.
Member Since Jan 01, 2021
16 posts
Apr 15, 2021 at 14:03
Dictiony posted:I'm fairly new to trading, and I came on this platform to pick up useful tips and tricks... So if low spreads are so important then as per this spreads calculator thingUweMoench posted:Yes, We should choose a broker which offers a low spread over every trade but the broker should also have a good reputation in the market.
Spreads varies from broker to broker and account type to account type. In zero spreads account you get very low spreads but you have to pay commission and standard account spreads will be high but won't be any commission. Choose according to your comfort.
Member Since Mar 16, 2021
477 posts
Apr 16, 2021 at 03:23
The main support of the broker is spread. If the spread is low, it is possible to gain a lot of profit by trading in that broker. So before choosing a broker, it is very important to know about the spread of that broker first.
Apr 17, 2021 at 16:43
ChrisSmilas posted:Good information. I have learned something good from this post.
You must of course concentrate on the spreads but also, ticker value, swaps/overnight fees and commissions because this is a huge oversight for beginners in the markets. Spreads are important and pretty easy to understand but swaps and other Fees need to be researched properly before entering any trade. When opening an account with a broker you can use myfxbook which is great for showing you the trading costs, trading conditions but also check the KID(Key Information Documents) on your brokers website (normally found at the bottom of the home page but if you can't find ask the customer support/live chat at your broker.
Oct 02, 2021 at 03:23
RobertFerrari posted:Of course, without knowing how a trader will profit. The spread is in the second stage.AliaDare posted:You have proper knowledge about the market before using spreads.
When I go to trade I first form an idea about spreads. Because the spread is too high, it will be very difficult for me to make a profit.
